Skift Daily Travel Briefing

Episode NotesAirbnb said on Monday it’s approaching 1.5 million verified listings, a key part of its strategy to build trust among users, reports Executive Editor Dennis Schaal.The company added that badges will be pinned to listings that have completed the verification process. Airbnb has long struggled to deal with fake listings and scammers, Airbnb’s verification push is designed to combat those issues. The short-term rental giant said it removed 59,000 fake listings last year. Airbnb first pledged to verify all of its listings in November 2019. The company recently said it had 7.7 million active listings at the end of last year. Next, JetBlue Airways announced that it has reached an agreement with Spirit Airlines to end their proposed merger, writes Airlines Reporter Meghna Maharishi. A federal judge had blocked the merger in January on the grounds that the combined airline would raise fares and hurt consumers. Both airlines said they believed it was unlikely that all the conditions for the merger would be approved by July 24. JetBlue CEO Joanna Geraghty said the company would focus on its strategy to return to profitability while Spirit CEO Ted Christie said he believed it could survive as an independent airline. Some Wall Street analysts have speculated that Spirit could either face a potential bankruptcy or have to find another buyer if it couldn’t merge with JetBlue. Finally, American Airlines has announced it’s ordering 260 new jets from three different manufacturers. Airlines Editor Gordon Smith delves into what the company is getting.American has confirmed it ordered 85 Boeing 737 Max 10 jets. It’s the company’s first order of the Max 10, which has yet to be certified to fly commercially. American ordered the exact same number of Airbus A321neos. In addition, the carrier placed an order for 90 Embraer E175s, which will be equipped with high-speed satellite Wi-Fi. 

Timeshare operator rivals Hilton Grand Vacations, Marriott Vacations Worldwide and Travel and Leisure Company have all reported financial results recently. Senior Hospitality Editor Sean O’Neill delves into those reports to search for broader trends in the segment. HGV executives said they’ve seen more consumers hesitant to agree to deals in part because of inflation. However, O’Neill notes that HGV has actually had to deal with more demand than the group can efficiently handle. Meanwhile, both Travel and Leisure and Marriott Vacations have seen business boom, with each company generating at least $3.5 billion in net revenue last year.Next, Airlines Editor Gordon Smith lists three takeaways from Air France-KLM Group’s full-year results.Smith notes geopolitical issues in the Middle East and Africa have hurt the supergroup’s profitability. KLM has yet to resume service to Israel. Meanwhile, instability in several West African countries has impacted Air France’s bottom line. However, group CEO Ben Smith said Air France might see a slight bump in the amount it earns from each passenger flown during this year’s Paris Olympics. Ben Smith added that the surge in premium leisure travel could make up for any weakness in business travel. Finally, Visit California is launching its first tourism campaign in a decade as part of the state’s efforts to reintroduce itself to travelers, writes Global Tourism Reporter Dawit Habtemariam.The roughly $33 million campaign — titled “The Ultimate Playground” — is looking to remind travelers about the Golden State’s abundance of activities. Habtemariam notes Visit California hadn’t been able to market itself extensively during the pandemic, when the state’s image took a hit due to widespread coverage of issues such as urban crime and wildfires. 

Episode NotesGilda Perez-Alvarado surprised some hotel industry insiders when she left JLL to become Accor’s chief strategy officer last October. Perez-Alvarado outlined her plans for Accor in her first interview since taking the new role. Perez-Alvarado touched on Accor’s efforts to make inroads in the U.S., among other subjects, with Senior Hospitality Editor Sean O’Neill. She said Accor would target markets and segments in the country where the company believes it should be present. Perez-Alvarado added that Accor would be increasingly open to dealmaking with interest rates stabilizing.Next, the Federal Aviation Administration told Boeing it has 90 days to create a plan to tackle its quality control issues, writes Airlines Reporter Meghna Maharishi. FAA chief Michael Whitaker revealed the timeline after the agency had an all-day discussion with the planemaker. Boeing’s 737 Max aircraft has been plagued with a litany of issues, including a blowout aboard an Alaska Airlines flight this January. Whitaker said he expects the plan to take into account the latest results from the FAA’s audit of Boeing’s production processes.Finally, Vacasa’s workforce is undergoing major changes again. The company announced it is laying off 320 employees while Chief Operating Officer John Banczak is leaving the vacation rental operator, reports Executive Editor Dennis Schaal.Schaal writes Vacasa’s latest round of layoffs, which represent 5% of the company’s overall workforce, will cost it between $4 million and $5 million. Meanwhile, Banczak will stay on in his current role through March 31. Vacasa said his departure as chief operating officer isn’t the result of any disagreements between him and the company. 

Episode NotesAmerican Airlines and United Airlines are among the major carriers that have increased baggage fees in recent months. Airlines Reporter Meghna Maharishi explains why checking bags at airports has gotten more expensive.  Maharishi writes that nearly every carrier cited inflation, higher fuel and operating costs as reasons they hiked baggage fees. JetBlue Airways said it raised baggage fees as part of its plan to return to profitability. Airlines may also be increasing bag fees to help boost sign ups for their loyalty programs and co-branded credit cards. An airline consulting firm executive said expensive bag fees increase the value of airline-branded credit cards. American said its loyalty program members and credit card holders can check their first bag for free.  Next, New York City hotels could see a $380 million boost in revenue this year from the city’s de facto ban on short-term rentals, writes Short-Term Rental Reporter Srividya Kalyanaraman. A new report from real estate firm JLL revealed the New York City hotels could book an additional 2.2 million nights this year. A city law requiringhosts to be present for stays shorter than 30 days went into effect last September. In addition to the crackdown on short-term rentals, New York City’s hotel industry also stands to benefit from a projected surge in international tourists this year.Finally, Katerina Giannouka has left her role as CEO of Jumeirah Group, writes Middle East Reporter Josh Corder. Giannouka became Jumeirah’s first female CEO in December 2022 after having previously served as the Asia-Pacific president for Radisson. During her brief time at Jumeirah, she said she was looking to double the group’s portfolio, including signing more hotels outside of the United Arab Emirates.Jumeirah’s current Chief Operating Officer Thomas B. Meier will serve as interim CEO, according to an internal document seen by Skift. 

Episode NotesHotel guests in Las Vegas during Super Bowl weekend earlier this month paid the highest room rates in continental U.S. history, writes Global Tourism Reporter Dawit Habtemariam. Industry data company STR said guests shelled out on average $800 for rooms in Las Vegas that weekend, the highest ever for any Saturday and Sunday in the continental U.S. Hotel guests on the Las Vegas Strip paid an even higher rate on Super Bowl Sunday — $962 on average. Meanwhile, short-term rentals in Las Vegas also saw average daily rates during Super Bowl weekend surge 19% from the previous weekend. Next, a Federal Aviation Administration panel reported on Monday that Boeing’s efforts to improve its safety culture are inadequate, writes Airlines Reporter Meghna Maharishi. The panel found a “disconnect” between Boeing executives and employees involved in the planemaker’s safety culture. Congress had mandated the report into Boeing’s safety culture after two fatal 737 Max 8 crashes. The FAA report revealed, among other findings, that most Boeing employees were unaware of the company’s safety culture efforts. Finally, Ryanair CEO Michael O’Leary said a shortage of aircraft could cause airfares to jump 10% in Europe this summer, reports Airlines Editor Gordon Smith. O’Leary said delays in delivering the Boeing 737 Max are a factor for the potential shortage. Fifty-seven Max planes are due to arrive at Ryanair by the end of March, the official start of the airline industry’s summer season. However, O’Leary acknowledged that only 40 to 45 jets may be ready for this summer. Produced and Presented by Jose Marmolejos

Episode NotesWyndham executives say the company’s efforts to fend off Choice Hotels’ hostile bid weighted on its results in the fourth quarter, reports Senior Hospitality Editor Sean O’Neill.Wyndham CEO Geoff Ballotti said its fourth quarter could have been better without the distractions from Choice Hotels’ merger proposal. The company’s revenue and income in 2023 both fell from the previous year, which may have been a result of Wyndham devoting resources to prevent the hostile merger. Wyndham said it’s spent $75 million related to the deal so far, including answering antitrust queries from regulators. Next, Expedia Group has pulled a Vrbo ad in Canada because its use of a traditional folk song from Newfoundland and Labrador sparked an uproar, writes Executive Editor Dennis Schaal. The ad, which aired during both the Grammys and Super Bowl, used the folk song I’se the B’y as its theme. Schaal notes the ad was intended to take a dig at rival Airbnb. But the provincial government and local tourism executives demanded Expedia remove the ad because they believed using the folk song was disrespectful.Finally, Bali has implemented a tourist tax as part of its efforts to combat overtourism, writes Global Tourism Reporter Dawit Habtemariam.Visitors to the popular Indonesian destination have to pay about $10, which will go toward conservation efforts and improving the island’s infrastructure. Mark Howarth-Archer, an executive at tour operator G Adventures, said Bali’s infrastructure can’t handle the surge in tourists.

Episode NotesMarriott and Hilton have both released their annual financial reports for 2023. Senior Hospitality Editor Sean O’Neill lists 12 noteworthy takeaways after comparing the companies’ 10-K filings. The two hotel giants have a rivalry in terms of loyalty program membership numbers. Marriott currently has roughly 16 million more loyalty program members than Hilton. But O’Neill notes Hilton could overtake Marriott in 2025 if the two companies maintain their most recent growth rates this year. O’Neill adds that both companies were considerably more profitable in 2023 than they were six years prior. Next, Airbnb CEO Brian Chesky believes the company can create a new artificial intelligence interface that will help transform it into a cross-vertical company, writes Executive Editor Dennis Schaal.  Chesky said the planned interface could be one of the most innovative ever created. He added that it would enable Airbnb to become a cross-vertical company: Think Amazon when it expanded beyond books and Apple when it launched the app store. Chesky also said Airbnb would make announcements later this year regarding new products and services.  Finally, American Express has opened the world’s largest Centurion Lounge at Atlanta’s Hartsfield-Jackson International Airport, writes Airlines Editor Gordon Smith.The 26,000-square foot lounge, which includes indoor and outdoor areas, is American Express’ latest effort to target high-spending travelers. It also includes a whiskey bar serving cocktails designed by Centurion’s mixologist. American Express Travel President Audrey Hendley said a new Atlanta lounge was a major priority for the company. 

Episode NotesSome analysts had wondered if Airbnb could increase its supply of hosts and listings to meet the growing demand from travelers worldwide. That question has been put to rest, writes Executive Editor Dennis Schaal. Airbnb said during its fourth-quarter earnings call on Tuesday it has around 7.7 million active listings. That’s an increase of more than 1 million from the end of 2022. The company ended 2023 with a roster of more than 5 million hosts, also a jump of roughly 1 million from the previous year. Airbnb also said its supply of listings increased 18% in the fourth quarter from the same period in 2022. Next, Marriott had a banner 2023, especially in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. Marriott said during its fourth-quarter earnings call that it generated $3 billion worth of net income and a 48% profit margin last year. The company was boosted by its strength in luxury. Marriott had a company record of 58 luxury signings last year. It says its portfolio of luxury hotels is 50% larger than its nearest competitor. Finally, billionaire investor Carl Icahn has again bought a stake in an airline — this time in JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Icahn reported a 9% stake in JetBlue, making him the airline’s third-largest investor. JetBlue shares rose by more than 16% after news of Icahn’s stake became public. That’s welcome news for a company that has experienced its share of struggles in recent years, including declining revenues. Icahn acquired a more than 20% stake in Trans World Airlines in 1985. He helped TWA grow, but it was saddled with debt and filed for bankruptcy twice. 

Episode NotesThe Bahamas saw a drop in short-term rental bookings and hotel reservations in January after a U.S. State Department safety alert to travelers, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam notes short-term rental bookings fell 7% in January from the same month in 2023. Meanwhile, hotels in the Bahamas also registered weekly occupancy declines from last year throughout the month. While higher average daily rates may have deterred bookings, those drops followed a U.S. Embassy alert warning Americans about crime in Nassau. A State Department spokesperson said the overall Travel Advisory for the Bahamas is at Level 2, which advises U.S. citizens to be cautious in the country due to crime. Next, Expedia Group’s equity stake in American Express Global Business Travel has taken a beating — to the tune of $326 million, reports Executive Editor Dennis Schaal. Expedia said on Monday the fair value of its equity stake in Amex GBT has dropped 40% since 2021. Expedia took a 19% stake in Amex GBT following its sale of corporate travel agency Egencia. However, Schaal notes Expedia may have benefited from the deal on several levels, including enabling it to offer hotel stays and vacation rentals to business travelers through Amex GBT.  Finally, flying taxis could take to the skies in Dubai by 2026 after local officials signed a deal with electric aircraft maker Joby Aviation, writes Airlines Editor Gordon Smith. Joby’s contract with Dubai’s Road and Transport Authority gives the company exclusive rights to operate flying taxis in Dubai for six years. Smith notes Joby believes it could even operate air taxis next year, ahead of the planned 2026 launch. Joby has also signed a deal with infrastructure company Skysports, which will build and run take-off and landing areas for flying taxis in Dubai. Still, it’s no sure thing: As with all pioneering technologies, progress in the sector has been peppered with pitfalls. 

Episode NotesExpedia Group will have a new CEO soon. Ariane Gorin, currently president of Expedia for Business, will succeed Peter Kern starting on May 13, writes Executive Editor Dennis Schaal.  Schaal reports Gorin will also take a seat on Expedia Group’s expanded board of directors, effective February 12. Expedia Group Chair Barry Diller said the company was looking for an internal candidate to succeed Kern. As president of Expedia for Business, the company’s business-to-business arm, Gorin was responsible for a large portion of Expedia Group’s revenue and profits.Meanwhile, Kern will continue to serve as Expedia Group’s vice chairman and a member of its board. Next, Spirit Airlines has experienced its share of struggles in recent years, including $1 billion worth of debt due next year. But CEO Ted Christie is refuting any talk the company could go bankrupt, writes Airlines Reporter Meghna Maharishi. Christie expressed confidence Spirit will survive during the airline’s fourth-quarter earnings call, citing steps it’s taking to strengthen its finances. It recently netted $419 million in cash through selling and leasing back 25 aircraft. In addition, Spirit plans to make adjustments to its network, including reducing service to less lucrative destinations. Finally, a spokesperson for Taylor Swift says she has bought double the carbon credits needed to offset emissions caused by her Eras Tour. However, it’s uncertain if carbon credits are effective in reducing emissions, writes Airlines Reporter Maharishi. A study from the Institute of Policy Studies found a private jet emits at least 10 times more carbon emissions than a commercial jetliner. As for carbon offsets, Maharishi notes they can include replanting trees in the rainforest or introducing energy-efficient methods to struggling communities. Commercial airlines often provide customers the opportunity to buy carbon offsets when purchasing flight tickets. But Maharishi cites research that revealed 78% of carbon reducing emissions projects could be considered “junk.”