Skift Daily Travel Briefing

Episode NotesHilton has just released its annual whitepaper documenting major travel trends. So what did it reveal? Senior Hospitality Editor Sean O’Neill documents the three trends he found most noteworthy.O’Neill reports that only a small percentage of Hilton’s guests are checking in via the company’s app despite its efforts to upgrade the platform. He adds that other hotel groups may see even lower percentages of guests checking in via apps. In addition, Hilton has joined rival Marriott in unveiling a series of non-alcoholic cocktails. O’Neill writes that’s a sign prominent corporations believe mocktails can generate a lot of revenue. Hilton’s report also said that interest in all-inclusive resorts is booming, with O’Neill noting that event organizers are seemingly more eager to hold gatherings at resorts. Next, Saudi Arabia has announced it will bid to host the FIFA World Cup in 2034, writes Middle East Reporter Josh Corder.The kingdom is looking to follow in the footsteps of fellow Gulf State Qatar, which hosted the event last year. Corder notes Saudi Arabia must satisfy new hosting requirements to earn the right to stage the tournament. FIFA’s regulations for aspiring host countries include respecting human rights and committing to sustainability. Saudi Arabia’s World Cup bid is its latest effort to boost tourism through hosting major sporting events. Finally, China’s resurgent domestic travel industry is helping boost the global air travel recovery, reports Edward Russell, editor of Skift publication Airline Weekly. Airline passenger traffic was nearly 96% of 2019 levels during August, according to the International Air Transport Association. That figure is the closest to pre-pandemic levels since the start of the crisis. Russell writes that the return of Chinese domestic travelers drove the increase in air traffic worldwide. Domestic air traffic in China nearly doubled compared to last year.  

Episode NotesThe U.S. tourism industry has made progress in its recovery from the pandemic, but two major issues are hurting its ability to attract international travelers. What are they? Long wait times for visitor visas and outdated air infrastructure, writes Global Tourism Reporter Dawit Habtemariam. Executives speaking at the recent Skift Global Forum said the U.S. is facing fierce competition from overseas destinations that have improved their tourism infrastructure. NYC Tourism+Conventions CEO Fred Dixon highlighted Saudi Arabia as one destination his city is competing against for tourists. In addition, U.S. Travel Association CEO Geoff Freeman said long visa wait times in some top markets will cost the U.S. $12 billion in traveler spending. Freeman added those long waits don’t make the U.S. a welcoming environment. In addition, Freeman described air travel to the U.S. as a hassle as roughly 23% of all U.S. flights are delayed or canceled. Next, Air France-KLM will take a minority stake in bankrupt Scandinavian carrier SAS as part of a nearly $1.2 billion deal unveiled Tuesday, reports Edward Russell, editor of Skift publication Airline Weekly.Air France-KLM will invest $145 million for almost 20% stake in SAS as part of an investor consortium that includes the Danish government. SAS will join the SkyTeam Alliance with Air France and KLM as part of the Chapter 11 restructuring deal. Russell writes the deal is the latest in a wave of European airline consolidation that includes the Lufthansa Group’s pending acquisition of Italy’s ITA Airways. Russell adds Air France-KLM would see its share in Scandinavia, an area long seen as Lufthansa’s backyard, increase. Finally, United Airlines has placed an order for 110 Airbus and Boeing planes amid ongoing constraints limiting flight schedules, reports Airline Weekly Editor Russell.United said on Tuesday that the 110 planes will be delivered between 2028 and 2031. Russell writes the orders are driven partly by United’s need to replace older jets by the end of decade. The carrier is looking to grow at the capacity-constrained airports around the world. Russell adds United’s latest order will enable it to add seats to its existing schedules at, among other airports, Newark and San Francisco. 

Episode NotesExecutives speaking at the recent Skift Global Forum said hotel operators and short-term rental managers are not fighting for the same customers. However, hotel owners and Airbnb both have growth ambitions that could lead to more competition, reports Senior Hospitality Editor Sean O’Neill.  The heads of both Hilton and Airbnb said at the Forum that lodging isn’t a winner-take-all market but one in which multiple companies can coexist. Airbnb CEO Brian Chesky added the overlap between hotels and Airbnb is smaller than most people realize. But, O’Neill writes the future of lodging will probably see hotels and short-term rental providers increasingly go after the same travelers. While Chesky argued hotels don’t serve people seeking extended stays well, O’Neill notes hotels are increasing extended-stay options. Nearly a third of the construction pipeline for hotels in the U.S. is extended-stay projects, according to industry advisory firm Lodging Econometrics. Next, Marriott recently gave a 144-slide presentation to analysts documenting its strategy for years to come. So what were the highlights? Senior Hospitality Editor O’Neill provides analysis of the five most eye-catching sides.  O’Neill reports Marriott has plans to grow its footprint, including adding about 40,000 net rooms over the next three years. The world’s largest hotel company is also looking to expand outside of North America. Close to 40% of its current rooms are outside of the U.S. and Canada.In addition, Marriott has seen its non-room revenue rise significantly in recent years. Roughly 20% of Marriott’s total fee revenue comes from sources other than traditional room bookings. That figure was only 5% about a decade-and-a half ago.Finally, Japan Airlines has substantially upgraded its business and first class cabins as it prepares the Airbus A350-1000 to be its flagship long-haul aircraft, writes Reporter Ajay Awatney. Japan Airlines will add doors to both business and first class cabins. The company will also introduce industry-first features, such as large partitions in its premium economy seating. It’s part of Japan Airlines’ strategy to help improve privacy for travelers. The A350-1000 will start flying on the Tokyo-Haneda to JFK Airport route by the end of 2023.

Episode NotesTravel executives from some of the industry’s most important companies will be speaking at the 10th annual Skift Global Forum this week in New York City and they’ll address a wide range of topics. When it comes to the future of travel, Skift CEO and founder Rafat Ali has outlined four major themes that will impact travel the most: demographic shifts, the widespread loneliness crisis, the evolving future of work and the urgent need for climate adaptation. All pose significant challenges – but also opportunities. As the world’s population ages rapidly, the travel industry can craft experiences for an older yet increasingly active population. To address loneliness, it can create group travels centered around shared interests and themes.Next, Hospitality group Ennismore has taken major steps to market its all-inclusive resorts in its push for 100 resorts by 2027, reports Senior Hospitality Editor Sean O’Neill.The company’s all-inclusive resort collection currently has 38 properties, and Ennismore co-CEO Gaurav Bhushan expressed confidence his company could stand out in a segment that O’Neill notes is typically dominated by generic offerings. Finally, tourism-dependent destinations such as Morocco and Maui have been decimated by natural disasters recently. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, to find out how events like earthquakes and wildfires impact tourism.As the aftermath of natural disasters often includes massive trip cancellations, Jorden writes Maui might see a decrease in visitors for the foreseeable future. Analysts at T.D have predicted that Maui’s rebound would “take years,” citing the two-year recovery for air travel demand to Puerto Rico after Hurricane Irma in 2017. Meanwhile, one Morrocan-based expert said the tourism to Marrakech, near the recent earthquake’s epicenter, would suffer for years, adding relying on the industry to revive would be illogical. However, Moroccan hotel managers have said business is gradually returning, especially with the upcoming World Bank Group annual meeting in Marrakech. 

Episode NotesHilton told hotel owners on Thursday it would move quickly to disclose mandatory fees upfront on all of its platforms, according to information Skift obtained, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes that Hilton’s support of fee transparency comes after it received legal pressure earlier this year. Texas’ Attorney General sued Hilton in May, alleging the company had a pattern of not disclosing the total price consumers would have to pay for a room upon booking. O’Neill adds a change in Hilton’s policy should help put an end to the lawsuit. Hilton follows in the footsteps of Marriott and Hilton, both of which now display mandatory resort fees upfront on their websites and apps. Next, U.S. tourism executives who recently visited China for the first time in four years said there’s growing demand there for travel to the U.S., writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that representatives from NYC Tourism + Conventions and Visit California have traveled to China in the past two months. Those trips came as the U.S. and China have taken steps to improve their tourism ties. China lifted in August its Covid-era restrictions on group tours to the U.S. In addition, both Beijing and Washington have agreed to double weekly flights between the two countries. NYC Tourism + Conventions CEO Fred Dixon said he’s seen inquiries about trips to the city increase since group tour restriction was lifted. Meanwhile, Visit California CEO Caroline Beteta noted that even China’s high youth unemployment rate hasn’t stunted pent-up demand for international travel. However, she added that Chinese looking to travel to the U.S. face long waits for visitor visas. Finally, Moroccan tourism managers said business is returning as the country recovers from an earthquake that decimated the country earlier this month. They expect a big boost from next month’s annual meeting of the World Bank Group, writes Middle East Reporter Josh Corder. While hotel bookings decreased immediately after the earthquake, Corder reports they’ve increased for October and beyond the country’s tourism hubs. Corder cites the Fairmont Royal Palm Marrakech as one hotel expecting a boom in business from the World Bank Group meeting. General Manager Jean-Francois Brun anticipates being fully booked for the event.  Corder also cited the Mandarin Oriental as another Moroccan hotel optimistic about the future. Its general manager Alain-Thomas Briere said the World Bank Group meeting is sending a message to the world that tourism to Morocco is about to resume. 

Episode NotesThe travel industry now – for the first time – has an index to track public travel stocks. Skift unveiled on Wednesday the Skift Travel 200, the first benchmark for measuring the $1 trillion-plus market for public travel companies. Senior Research Analyst Seth Borko reports the Skift Travel 200 will track travel company stock performance as well as analyze metrics such as revenue growth and profit margins. Borko adds that the Skift Travel 200 will be able to break down travel industry performance by sector. The index currently tracks 196 public companies from 34 countries, with each company classified into one of five travel sectors. Next, Airbnb CEO Brian Chesky provided updates on Wednesday about verified listings on its platforms and cleaning fees, among other issues, writes Short-Term Rental Reporter Srividya Kalyanaraman.Chesky tweeted that the company is building a new system to verify its listings. Each verified listing will have a special icon, which Chesky said is part of Airbnb’s efforts to assure users that listings aren’t fake. Airbnb plans to verify every listing in five countries — including the U.S., Canada, and Australia — in the next several months. Verified icons are set to appear on those listings starting next February.  Meanwhile, Chesky added that more than 200,000 listings have either reduced or removed cleaning fees since Airbnb started displaying the total price of stays last December.  Finally, Dubai is set to offer travelers more hotel rooms than Las Vegas by the end of the year, writes Middle East Reporter Josh Corder.Dubai is expected to have more than 154,000 hotel rooms, according to real estate consultancy firm Knight Frank. That’s roughly 2,000 more than what Las Vegas currently has. Dubai’s hotel count is projected to increase 6% from last year. Corder reports Dubai is seeing a surge in luxury hotel construction, with close to half of its planned rooms in luxury properties. 

European parliament group proposes regulations for short-term rentals to improve housing affordability. Venice implements a fee for day trippers to mitigate the impact of tourism. Florence raises tourist tax on rentals. Global corporations increase investments in tourism industry but still below pre-pandemic levels. Dubai experiences tourism rebound with Russian travelers.

Episode NotesCalifornia is looking to crack down on so-called junk fees at hotel and short-term rentals. The state’s legislators have passed two bills that could impact how California’s hotels and short-term rentals inform consumers about those fees, reports Senior Hospitality Editor Sean O’Neill.   Senate Bill 537 would prohibit businesses that sell lodging for up to 30 days in California from displaying room rates that don’t include all fees or charges, except for government-mandated taxes. Senate Bill 478 would block California businesses from advertising prices without including mandatory fees or charges, with some exceptions. The bills are on the desk of Governor Gavin Newsom, who has yet to take a position on them. While the California Hotel & Lodging Association has expressed support for the final version of the bills, Expedia Group and Airbnb both raised concerns about it. Next, Florida has seen an enormous boom in vacation rentals in recent years. But the state’s short-term rental industry is facing a profit squeeze with soaring labor and construction costs, writes Short-Term Rental Reporter Srividya Kalyanaraman.Kalyanaraman writes that while Florida has always been a formidable destination for vacation rentals, it’s becoming more unaffordable for visitors and residents. She adds the main factor behind Florida’s soaring inflation is the high cost of housing. The surging cost of housing and growing economic divide between out-of-state investors and Florida residents has been blamed for pricing locals out. Kalyanaraman cited Miami as one Florida city that’s seen an enormous demand for short-term rentals. However, an executive at real estate developer Newgard Development Group said despite the demand, it’s getting more expensive to build properties with lenders tightening big construction loans. In addition, the state has experienced a shortage of labor needed to maintain and service those rentals.Finally, despite the recent boom in air travel in the U.S., the country’s aviation industry is still suffering from a pilot shortage. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for answers why.Jorden notes concerns about pilot shortages are nothing new, with thousands of U.S. pilots approaching mandatory retirement age. But major carriers made the problem worse by encouraging staff to retire early or accept voluntary leave to help avoid massive layoffs during the pandemic. Officials at budget carrier Allegiant Air said U.S. airlines are short 17,000 pilots this year. That number could double by 2032.  In addition, Edward Russell, editor of Skift publication Airline Weekly, reported regional airlines have been the hardest hit by pilot shortage. Crews are leaving regional carriers for jobs at major airlines faster than the regionals have been able to replace the departed staff. 

Episode NotesMaui faces a long road to a full tourism recovery after wildfires decimated the western part of the island last month. Travelers have largely been slow to return to Maui out of sensitivity to local residents, writes Global Tourism Reporter Dawit Habtemariam.Although Hawaii tourism officials have said most of Maui is ready to welcome tourists, Habtemariam reports some travel businesses believe it’s too soon for visitors to come back. Alaska Air Group Chief Financial Officer Shane Tackett said a subset of travelers aren’t eager to vacation in a destination still suffering. In addition, airlines are continuing to cut flights to Maui in response to the wildfires. Habtemariam adds tour operators have been cautious about taking guests back to Maui. G Adventures is considering making a return to the island in October or November. Its Vice President of Product Yves Marceau said it doesn’t want travelers to feel like they’re going back too early. Next, Marriott International is making progress in reducing its carbon footprint ahead of its 2030 target. But the company’s emissions data reveals its greenhouse gas emissions increased last year, reports Head of Research Wouter Geerts. Geerts writes Marriott has some of the best tracking of emissions of any hotel company. That reporting showed the company’s scope 1 and 2 emissions rose by 2.5% in 2022 compared to 2021. Scope 1 and 2 emissions are all emissions from activities under operational control for hotel companies. Geerts notes Marriott is still on track to reach its 2030 emissions goal. But he adds the company needs a 5.4% annual decline in emissions to hit its target. Finally, Spirit Airlines stunned investors and even its competitors with its forecast of a steep third-quarter operating loss, reports Jay Shabat, senior analyst for Skift publication Airline Weekly. Spirit anticipates its third-quarter operating margin to be between negative 15-16%. The company had forecast in August the figure would be roughly negative 7%. Shabat notes that fuel prices have increased sharply in recent weeks while demand has softened. Spirit also expects total revenue for the third quarter to decrease from what was previously forecast. The poor forecast follows a rough first half for Spirit. Only Hawaiian Airlines performed worse in terms of operating margin in the first half of this year among major U.S. carriers. 

Airbnb's New York City listings decreased by 77% due to new registration rules, potentially benefitting hotels. Tour operators continue trips in Morocco despite a recent earthquake. Also discussed: the impact of air traffic control shortage on airlines.