Skift Daily Travel Briefing

Episode NotesTaylor Swift’s massive influence on U.S. culture and the economy isn’t slowing down anytime soon. And as her ongoing Eras Tour continues to pack stadiums and boost tourism worldwide, Editor-in-Chief Sarah Kopit explains why Swift might be the most powerful person in travel.Swift’s impact on the travel sector is vast, with major influence over tourism dollars, hospitality spending and the short-term rental market.Kopit notes that each Swift concert has the economic impact of the Super Bowl – and it’s not just once a year. U.S. cities hosting a Eras Tour concert have seen their monthly hotel room revenue jump more than 7% on average. In addition, one short-rental executive said the Eras Tour has been responsible for double-digit increases in occupancy and average daily rates.Skift Research estimates the tour generated an incremental $1.2 billion for the U.S. travel industry in 2023 across flights, hotels, short-term rentals and other expenditures.Next, Hilton is considering making acquisitions, a shift from its longtime strategy of creating brands internally, writes Senior Hospitality Editor Sean O’Neill. Hilton CEO Christopher Nassetta said the current economic environment might be more conducive for acquisitions. O’Neill notes rumors have surfaced that Hilton is in talks to acquire both Graduate Hotels and NoMad Hotels, a luxury lifestyle hotels brand. Nassetta said Hilton intends to enter the luxury lifestyle sector this year. Finally, the upcoming Super Bowl between the San Francisco Chiefs and Kansas City Chiefs is driving a surge in short-term rental rates in Las Vegas, writes Short-Term Rental Reporter Srividya Kalyanaraman. Short-term rental demand in Las Vegas from February 9 to 11 is 87% higher than the same period in 2023, according to AirDNA. Kalyanaraman adds that average daily rates have increased 51% from last year. Meanwhile, searches for Airbnb rentals in the Las Vegas area during Super Bowl week have jumped 65% compared to the same period last year.  

Episode NotesA preliminary report from the National Transportation Safety Board has provided information about what possibly caused the January blowout aboard Alaska Airlines Flight 1282. Four bolts appeared to be missing on a door plug that blew off that Boeing 737 Max 9 jet, writes Airlines Reporter Meghna Maharishi. Maharishi notes it’s not exactly clear how the four bolts meant to keep the door plug intact went missing. The board said it plans to interview Boeing and aircraft supplier Spirit Aerosystems. The report said the door plug Spirit delivered to Boeing last August had come with certain defects.  Next, U.S.’ low-cost carriers have generally struggled in recent years. But Frontier Airlines believes its new three-point plan can help boost profitability, writes Airlines Editor Gordon Smith. Smith notes that Frontier is planning to thoroughly overhaul its network, with fewer flights to oversaturated markets such as Las Vegas and Orlando. Frontier is also looking to increase service to more lucrative destinations where it aims to charge higher fares.The second part of Frontier’s three-point plan is a new product called “BizFare,” which would enable businesses to save on corporate travel expenses. In addition, Frontier is unveiling a revamped website and app, which the company hopes will help boost sales on its platforms. Finally, Chinese travelers are showing less interest in visiting Europe this year, writes Global Tourism Reporter Dawit Habtemariam.A survey by the European Travel Commission found roughly 57% of Chinese travelers plan to travel to Europe in 2024. That’s a 14 percentage point drop from last year. Habtemariam notes one reason for the drop is Chinese travelers’ growing desire to explore locations closer to home, with several Asian destinations easing their visa policies. 

Episode NotesNearly 94% of 737 Boeing Max 9s are back in service after the aircraft was grounded for roughly three weeks in January, writes Airlines Reporter Meghan Maharishi. The Federal Aviation Administration said that 135 Max 9s have been inspected and returned to service following a blowout aboard an Alaska Airlines flight in early January. The grounding of the Max 9 forced United Airlines and Alaska — the only two U.S. carriers operating the aircraft — to cancel thousands of flights last month.Next, Brand USA, the U.S.’ tourism marketing agency, will air a Super Bowl ad internationally for the first time, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports the 15-second ad will air in both Germany and the United Kingdom, two major sources of tourism for the U.S. Brand USA established a partnership with the NFL in Germany and the UK last year. Staci Mellman, the agency’s chief marketing officer, said partnering with the NFL has enabled it to tap into the growing number of international travelers interested in American football. We end today looking ahead to soccer’s World Cup in 2026. Officials in Dallas are disappointed they won’t get to host the final match but they still got one big win: hosting the most matches of any city, writes Global Tourism Reporter Habtemariam.Dallas will host nine matches during the tournament, including a semifinal. One local sports executive said the economic impact would be similar to that of nine Super Bowls. A study by the Boston Consulting Group found the 2026 World Cup should generate between $90 million and $480 million for the cities. 

Episode NotesSkift Research has published its Global Travel Outlook 2024, which sees Asia leading the travel industry’s growth while Europe’s travel boom will likely slow down.The forecast shows Asia Pacific growing 20% over 2023. Research Analyst Saniya Zanpure writes the region has gotten a big boost from China easing its strict Covid-era regulations in January 2023. Meanwhile, Europe’s travel revenue is projected to register only a 5% increase from last year, with Zanpure noting that Europe faces challenges such as inflation and climate-related concerns. Next, Frontier Airlines announced on Thursday that it’s launching a business fare as part of its strategy to attract corporate travelers, writes Airlines Reporter Meghna Maharishi. Frontier said that “BizFare” would enable businesses to save on corporate travel expenses. The ticket would be available through a company’s global distribution channel. Maharishi added the new fare could help Frontier cater to travelers that wouldn’t normally fly with an ultra-low-cost carrier for business trips. Finally, Royal Caribbean believes the new Icon of the Seas, the world’s largest cruise ship, will help the company better compete against destinations like Las Vegas and Orlando for family vacations, writes Global Tourism Reporter Dawit Habtemariam.Royal Caribbean Group CEO Jason Liberty said during the company’s fourth-quarter earnings call that it can hold its own against longtime popular tourist destinations. The $2 billion, 20-floor ship contains eight different sections, each with a different experience for guests. Liberty added Royal Caribbean plans to innovate further to reduce the value gap between the company and land-based vacations. 

Episode NotesBoeing CEO Dave Calhoun issued an apology for the recent Alaska Airlines blowout amid the reeling planemaker’s struggles with its 737 Max 9 aircraft, writes Airlines Reporter Meghna Maharishi. Calhoun said during Boeing’s fourth-quarter earnings call that the company has a lot of work to do to earn the public’s trust back. While Calhoun didn’t speculate on what possibly caused the blowout, he acknowledged Boeing was responsible. The 737 Max has been plagued with problems in recent years, and Max 9 was grounded by the Federal Aviation Administration for roughly three weeks in January.Boeing didn’t issue any financial targets for 2024, with Calhoun saying the company needs to “focus on every next airplane.” It is unclear how big of a financial hit Boeing will take.Next, GetYourGuide is rolling out its largest-ever advertising campaign as part of its strategy to challenge Viator in the U.S., reports Senior Hospitality Editor Sean O’Neill. GetYourGuide recently aired a 30-second commercial during the NFL playoffs and it plans to run more national TV ads during major events such as the Academy Awards. O’Neill writes that GetYourGuide’s ads aim to reach 70% of Americans this year. Only 25% of the company’s customers are located in the U.S. Finally, travelers can easily visit Machu Picchu again as protests blocking critical rail access to Peru’s most famous landmark are over, writes Global Tourism Reporter Dawit Habtemariam. Protesters had blocked rail service to Machu Picchu for five days in anger over the government’s contract with private company Joinnus to distribute tickets to tourist attractions. Peruvian officials signed an agreement on Tuesday night that includes ending the contract. A representative from Inca Rail said travelers can now book rail service to Machu Picchu. 

Episode NotesJetBlue Airways is focusing on how it can be profitable following its failed merger with Spirit Airlines. So JetBlue is looking at ways to cut costs and offer more leisure routes, writes Airlines Reporter Meghna Maharishi.JetBlue is grappling with rising costs due to new labor contracts and also has engine issues that have currently grounded seven aircraft. JetBlue Chief Financial Officer Ursula Hurley said the company would offer crew members voluntary buyouts to help offset some of those costs. The New York-based carrier also plans to defer $2.5 billion in aircraft spending to the end of the decade. And as JetBlue is increasingly targeting leisure travelers, the company is expanding service to popular destinations such as Florida, the Caribbean and Mexico. Next, protesters have blocked crucial rail access to Machu Picchu in anger over the Peruvian government’s new online ticketing system for tourist attractions, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports tour operators have had to substantially alter their trips due to the lack of rail service since last Thursday. Sarah Migniac, an an executive at tour operator G Adventures, said reaching Machu Picchu could take nine hours without the train route. Migniac added that international travelers may cancel trips to Peru if traveling to Machu Picchu remains difficult. One Peruvian official said the disruption is costing the Machu Picchu site roughly $260,000 in lost income per day. Finally, Hilton has announced plans to enable guests to make requests by text at all of its hotels by the end of 2024, reports Senior Hospitality Editor Sean O’Neill. Guests will be able to send messages via the Hilton Honors app, WhatsApp, and other platforms. Although texting customer service requests has become common in sectors such as retail and finance, some major hotel groups still require phone or face-to-face internations. Hilton is the first hotel group to require all its hotels to enable guests to make requests via text. 

Episode NotesFans heading to Las Vegas for the Super Bowl on February 11 will likely pay the highest hotel room rates in the event’s history, writes Global Tourism Reporter Dawit Habtemariam. The average daily rate for a Las Vegas hotel room between February 9 and 11 is projected to be $573, according to industry data company STR. That figure would break the record set in Miami four years ago. Habtemariam reports that visitors coming for the Super Bowl are expected to book about 350,000 room nights.Next, Ryanair CEO Michael O’Leary has come out in support of beleaguered planemaker Boeing, and called out United Airlines CEO Scott Kirby for saying his company would consider a future without the Max 737 10 in its fleet, reports Airlines Editor Gordon Smith.O’Leary called Kirby’s comments on the Max 10 “stupid” during Ryanair’s third-quarter earnings call on Monday. The Max 10 isn’t certified yet and United has more than 200 of them on order – it has already been waiting five years for the first deliveries of the plane. O’Leary said Ryanair would gladly accept Max 10 jets if United chose to cancel any deliveries. Ryanair has orders for the largest Max 10, which it isn’t due to receive until 2027.Finally, Vrbo took some not-so-subtle shots at Airbnb in two commercials that aired during the National Football League playoffs on Sunday, reports Executive Editor Dennis Schaal.Schaal writes the two ads — titled Relax/Rooster and Relax/Spaceship — are part of a Vrbo multimedia campaign. The narrator in both ads urges travelers to choose a vacation rental that will meet their expectations unlike others. While the Vrbo advertisements don’t mention Airbnb by name, Schaal notes they depict the “other vacation rentals” as those offered by Airbnb.

Episode NotesAlaska Airlines said it would take a $150 million financial hit from the Boeing 737 Max 9 grounding that prompted the airline to cancel roughly 3,000 flights, writes Airlines Reporter Meghna Maharishi. Alaska CEO Ben Minicucci said during its fourth-quarter earnings call that the company would put pressure on Boeing to produce better planes. Minicucci told NBC News this week he was angry at Boeing for the blowout aboard an Alaska flight earlier this month. He did express optimism that consumer confidence in the Max 9 would eventually come back.  Alaska posted a $2 million net loss during the fourth quarter. Next, Oracle Hospitality, one of the largest players in hotel tech, is selling what it considers a simplified system for hotel tech operations, writes Travel Technology Reporter Justin Dawes. Dawes reports Stockholm-based Scandic Hotels Group is already piloting an expanded version of Oracle Hospitality’s cloud-based system. The system, known as Opera Cloud Central, includes a property management system, central reservation system and distribution services on a single platform. Dawes adds that using a single system removes the need to transfer information between systems. An Oracle Hospitality executive said the company believes it will disrupt the traditional hospitality ecosystem. Finally, Jolyon Bulley, IHG’s CEO of the Americas, aims to grow the group’s luxury and lifestyle portfolio at what he calls ‘China speed,” writes Senior Hospitality Editor Sean O’Neill.Bulley, IHG’s former CEO for Greater China, said in an interview with Skift he sees potential for growth in the Americas. IHG’s luxury and lifestyle brands represent 22% of its global hotel development pipeline, roughly double the figure from five years ago. Burley also expressed optimism he could use lessons from China, where IHG’s portfolio has doubled over the past five years, to guide the expansion in the Americas. However, O’Neill notes that one obstacle to growth is IHG doesn’t have a great reputation among hotel owners for luxury in the Americas. 

Episode NotesLos Angeles is launching its largest-ever global advertising campaign to help remain competitive in the fight to attract tourists, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports the city will unveil next week the latest iteration of its “Now Playing” campaign, which has showcased Los Angeles’ arts, food and lifestyle. The multi-million dollar campaign will target the UK, France and South Korea, among other markets. LA Tourism CEO Adam Burke said the city is increasing its international marketing efforts in response to the emergence of other competing destinations, including Saudi Arabia.Next, Qantas’ new 10-minute long safety video has been largely panned by viewers who found it tedious among other complaints, writes Airlines Editor Gordon Smith.The new video features Qantas crew and passengers sharing some of their favorite destinations. But with renewed focus on pre-flight briefings in recent weeks, some commenters on social media have argued Qantas’ film lacks critical information regarding safety. Smith notes the Qantas video doesn’t have any in-cabin visuals of the actual airplane. However, Qantas executives said the video travelers see pre-flight will be shorter than the online version. Finally, Visit Orlando, one of the U.S.’ largest tourism boards, is about to see its marketing budget reduced by $15 million, writes Global Tourism Reporter Habtemariam. The Orange County Board of Commissioners approved a proposal to move that amount of tax funds from destination marketing to other projects. Visit Orlando CEO Casandra Matej said she was relieved the organization didn’t see a larger reduction in funding. Its leaders had warned the county commissioner board that cuts could result in fewer advertising projects.Visit Orlando will have an $85 million marketing budget for the 2025 fiscal year. 

Episode NotesUnited Airlines is taking another look at its fleet plan due to delivery delays with the Boeing 737 Max 10, writes Airlines Reporter Meghna Maharishi.The Max 10 hasn’t been certified by the Federal Aviation Administration yet. And given the Max 9 groundings, United executives said during the airline’s fourth-quarter earnings call on Tuesday that it’s unrealistic to expect deliveries will be on time. Maharishi notes United is focused on the Airbus A350. Meanwhile, United posted net income of $600 million during the fourth quarter. However, the Chicago-based carrier said Monday it expects a first-quarter loss due to the grounding of the Max 9 following a blowout aboard an Alaska Airlines flight earlier this month.  Next, Expedia CEO Peter Kern is urging hotel owners to clamp down on rogue wholesale rates, reports Executive Editor Sean O’Neill. Kern said at the Americas Lodging Investment Summit this week that hotels aren’t doing enough to keep their wholesale rates off of smaller retail travel sites. While hotels have long set aside certain rooms at discounted rates for contracted partners, Kern argued that some agencies are breaking the rules. Hotels may not be quick to respond because they benefit when rooms are full and it takes time and money to clamp down.Finally, Marriott CEO Anthony Capuano faces major challenges at the helm of the world’s largest hotel group, but he remains optimistic about the company’s future, reports Senior Hospitality Editor Sean O’Neill. Capuano said during an interview with Skift that he doesn’t see Marriott’s growth slowing down. Marriott has more than doubled its room count in the last 10 years, and Capuano said it’s targeting Europe, China and the Middle East as areas for growth. While O’Neill writes technology has changed faster than Marriott’s software has, Capuano expressed optimism the company’s tech transformation will be complete in the near future. Marriott will revamp its website and app to make comparison-shopping for hotels easier, among other updates.