Skift Daily Travel Briefing

Episode NotesGlobal hotel dealmaking is expected to make a major rebound in 2024 thanks to a more positive financing environment, reports Senior Hospitality Editor Sean O’Neill. At least $58 billion in hotel deals are set to take place this year, according to investment advisory firm JLL Hotels & Hospitality. That would surpass 2023’s total by at least 15%. JLL believes one reason for the increased dealmaking is that struggling hotel owners are looking for buyers to take problem properties off their hands. The company expects hotels in major cities like London, Paris and New York to see the most investor interest. Next, Google is planning to change how it displays flight search results in European Union countries. But eDreams Odigeo, a major flights seller, argues Google’s plan isn’t going far enough to let rivals compete, reports Executive Editor Dennis Schaal. Spain-based eDreams Odigeo said Google’s plan will allow it to favor Google Flights over competing flight-selling services. Google is under orders from the European Union to increase competition in the travel retail sector. The tech giant said it plans to add new dedicated units that contain links from competitors, among other changes. Finally, the Federal Aviation Administration is asking airlines to inspect the door plugs on more Boeing jets, another blow for the beleaguered planemaker, writes Airlines Reporter Meghna Maharishi. The agency said in a safety alert the Boeing 737-900ER has an identical door plug design to one on the Boeing 737 Max 9. The 737 Max 9 has been grounded since a blowout aboard an Alaska Airlines flight earlier this month. Alaska, Delta Air Lines and United Airlines all operate the 737-900ER.However, the three airlines have said they don’t expect the inspections to impact their operations. 

Episode NotesThe travel industry has gone from deep struggles during Covid to a major boom, with the high demand for “revenge travel.” So what’s in store for travel in 2024? Skift Research believes the industry will return to normal, writes Head of Research Seth Borko.Skift Research said in its newly published 2024 Global Travel Outlook that revenue growth for the travel industry will likely decelerate. However, Borko writes the slowdown isn’t a sign of weakness. He adds that economic conditions appear poised to support further spending and that consumers increasingly prioritize travel. Next, Airbnb argues that New York City hasn’t delivered on the benefits it promised residents after it enacted a de facto ban on short-term rentals in the city, writes Executive Editor Dennis Schaal. New York City enacted the law, which requires hosts be present for stays shorter than 30 days, as part of its efforts to increase housing availability and lower rents.Taylor Marr, Airbnb’s senior housing economist, said there’s been no discernable increase in available rental supply since the city’s rules went into effect last September. In addition, rents in New York City rose roughly 2% in December. Finally, Spirit Airlines faces an uncertain future following a federal judge’s decision to block its proposed merger with JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Maharishi writes Spirit is on its own to deal with declining revenues and surging operating costs. The airline hasn’t turned a profit since 2019 and several analysts said it probably needs a buyer or another way to improve its financial situation. Spirit’s shares have dropped by nearly 70% since the judge’s ruling. Maharishi adds Frontier Airlines, which originally sought to merge with Spirit in 2022, could be a potential buyer. But some industry analysts believe it may be difficult for Frontier to launch a bid since it’s also in a financially weaker state compared to two years ago. 

Episode NotesA federal judge blocked the proposed JetBlue-Spirit merger, putting an end to the two airlines’ attempt to create the fifth-largest carrier in the U.S. Why did JetBlue pursue a merger with Spirit Airlines? One key reason is Florida, writes Airlines Reporter Meghna Maharishi and Jay Shabat, senior analyst for Skift’s Airline Weekly. While Florida is a major market for JetBlue, the New York-based airline doesn’t have much pricing power for those flights. Maharishi and Shabat note that absorbing Spirit in a merger would have eliminated a major competitor known for pushing down airfares. Travelers would have had one less option and probably would have seen higher fares.U.S. District Court Judge William Young wrote the merger would lead to less competition in the industry since Spirit is the largest ultra-low-cost carrier. JetBlue and Spirit directly compete on roughly 40 routes to Florida. Next, Airbnb has announced it’s forming a housing council to help the company better engage with communities it operates in, reports Executive Editor Dennis Schaal.Jay Carney, Airbnb’s global head of policy and communications, said the short-term rental company would like to avoid regulations like those implemented in New York City last September. The city enacted a law requiring hosts be present for stays shorter than 30 days, which Carney described as onerous. Former Baltimore Mayor Stephanie Rawlings-Blake, who once headed the U.S. Conference of Mayors, will chair the Airbnb council. Finally, Chinese travelers aren’t super enthusiastic about visiting the U.S. in 2024 despite Beijing’s efforts to address the hurdles restricting outbound travel from the country, reports Asia Editor Peden Doma Bhuta. Travel from China to the U.S. is expected to be 70% below pre-Covid levels this year, according to marketing technology company China Trading Desk. CEO Subramania Bhatt cited limited flight capacity and expensive airfare as factors deterring Chinese travelers from visiting the U.S. Bhatt added that a perception of high crime is also a concern for Chinese travelers.Bhatt said Chinese travelers are increasingly interested in destinations suited to last-minute bookings, which means distant locations are taking a backseat. 

Episode NotesA U.S. District Court judge blocked the proposed $3.8 billion merger between JetBlue Airways and Spirit Airlines, the first time in 20 years Washington has rejected an airline merger, writes Airlines Reporter Meghna Maharishi.Maharishi reports the ruling represents a victory for the Biden administration, which has supported more competition in the airline industry. Four airlines control 80% of the U.S. market following a series of mergers the U.S. government has approved in the last two decades. Maharishi adds the judge’s decision is a major setback for JetBlue, which had been seeking ways to become more competitive against the giants of the U.S. airline industry. JetBlue would have fully absorbed Spirit’s operations if the merger had been approved. Next, flight disruptions are continuing to mount after a severe winter storm battered the Northeastern United States, writes Airlines Reporter Maharishi. There were close to 2,000 cancellations and 5,000 delays across the U.S. as of Tuesday afternoon, according to flight tracking site FlightAware. Southwest Airlines, United Airlines and American Airlines have been hit with the most disruptions thus far, although not all were caused by the weather. Maharishi adds airlines may not get a reprieve after the current storm passes, with another Arctic blast expected to hit the Southern and Plains regions of the U.S. later this week. Finally, Turkey is now charging tourists an admission fee to enter mosque and UNESCO World Heritage Site Hagia Sophia, writes Global Tourism Reporter Dawit Habtemariam.Tourists have to pay about $27 to enter the site, one of Turkey’s most famous attractions, starting this week. Hagia Sophia had admitted tourists free of charge since 2020, when services resumed at the mosque. Muslim visitors to Turkey can still worship for free at Hagia Sophia at appropriate times, noting the government has separated how tourists and worshippers enter the building. 

Episode NotesTripadvisor plans to release a metaverse experience later this year that would provide travelers the chance to virtually see popular attractions before booking, writes Travel Technology Justin Dawes. Tripadvisor has signed a contract with Meet Kai, a company that creates metaverse and artificial intelligence products. Dawes reports it’s still too early for Tripadvisor to share specifics on exactly how the metaverse experience will look, but the company looks to partner with travel brands to create digital spaces — such as shops in Paris — that users can explore. Adam Ochman, Tripadvisor’s global director of marketing solutions, said travel is one of the most expensive things that consumers can purchase without trying it beforehand. Next, London Heathrow Airport is coming off an enormously busy 2023, which saw 24 of its routes break the million-passenger milestone. Airlines Editor Gordon Smith takes a look at the airport’s busiest routes last year.Routes from Heathrow serving the U.S. represented six of the 24 that carried more than 1 million passengers last year, a sign of the boom in transatlantic travel. The Heathrow-JFK route was the busiest for the London airport, serving more than 3 million passengers. Meanwhile, Dubai and Doha took the next two spots for Heathrow’s busiest route in 2023. Finally, Thailand will be setting for the third season of the popular HBO show The White Lotus, which is expected to boost tourism to the kingdom, writes Global Tourism Reporter Dawit Habtemariam. Tourism Authority of Thailand and HBO have partnered to film and promote the Emmy-winning series. Thai officials didn’t disclose which hotel would be featured – the last two seasons were set at Four Seasons properties. Habtemariam notes that travel demand for Sicily boomed after the island was selected as the filming location for season two of The White Lotus. 

Episode NotesThe recent blowout aboard an Alaska Airlines flight is far the only problem that Boeing has experienced with its 737 Max aircraft. Associate Editor Rashaad Jorden takes a look at some of those issues using our artificial intelligence chatbot Ask Skift and additional reporting. The 737 Max was grounded globally for 20 months following fatal crashes in 2018 and 2019 in Ethiopia and Indonesia. But even after being recertified by the Federal Aviation Administration in November 2020, the aircraft has had technical problems. More than 100 737 Max jets were grounded in April 2021 after the discovery of a potential electrical program, which the FAA said could impact certain systems. In addition, Boeing asked airlines last month to inspect all of their 737 aircraft for a possible loose bolt in the rudder system, which is used to control planes during a flight. Next, Travel Technology Reporter Justin Dawes takes a look at the Apple Vision Pro, a virtual reality headset going on the market in February that could help travelers explore new places.Apple Vision Pro has a setting that allows users to view landscapes, which Apple said could include several U.S. national parks. Those landscapes could be a backdrop while watching movies on a plane or at home. Dawes adds there’s also potential for third-party companies to build apps on the Vision Pro that could offer more virtual travel experiences. Finally, Greece has introduced a new tourist tax to help provide financial support for future disaster relief efforts, writes Global Tourism Reporter Dawit Habtemariam. Greece’s so-called “climate crisis resilience fee” replaces the previous hotel tax that the government had levied on travelers. Habtemariam notes the amount for the new tax varies by hotel category and time of year. Greek officials implemented the new tourist tax after the country suffered several natural disasters in 2023, including record rainfall that left at least 17 dead.  Habtemariam adds those disasters prompted some tour operators to cancel trips in Greece. 

Episode NotesSkift has revealed its Megatrends for 2024, the 12th edition of its annual forecast of big-picture trends poised to shape the year in travel.The 12 megatrends delve into a wide range of topics: The impact on travel of demographic shifts, how the industry will react to the rise in loneliness. What we see developing out of India and the Middle East. Where you’ll see investments in hotels, aviation and how AI will impact travel jobs. Next, federal officials investigating the recent blowout on an Alaska Airlines plane are examining whether the bolts meant to keep a door plug in place were ever installed, writes Airlines Reporter Meghna Maharishi. National Transportation Safety Board Chair Jennifer Homendy said that four bolts should have secured the left door plug to prevent it from separating from the Boeing 737 Max 9. Maharishi notes those four bolts were missing when the agency recovered the door plug. Homendy added it’s uncertain if the bolts were ever installed or if they came out during the decompression.  The accident drove the Federal Aviation Administration to temporarily shelve certain 737 Max 9 planes for further inspection.   Finally, Airbus has beaten Boeing to land the first major airplane deal of 2024, reports Airlines Editor Gordon Smith. Taiwan-based carrier EVA Air has reached an agreement with Airbus for an order of 33 aircraft. EVA Air has long been a customer of both Boeing and Airbus, but Smith notes EVA Air’s deal with Airbus is a sign Boeing is losing ground to its European rival in the long-haul market. EVA Air Clay Sun said Airbus offered the most modern and fuel efficient plans for each market segment.

Episode NotesChoice Hotels has long relied on traditional broadcast and outdoor billboard advertising to drum up brand awareness. But the company is turning to streaming platforms including Spotify and using a touch of celebrity in its new year-long marketing campaign, reports Senior Hospitality Editor Sean O’Neill. Choice Hotels is experimenting with digital-video ads and podcast placements, which are cheaper than traditional TV sports, to better target demographic groups. The company will also feature Emmy winner Keegan-Michael Key in a set of six spots. Chief Marketing Officer Noha Abdalla said a celebrity like Key could help Choice Hotels grab consumers’ attention quickly on TikTok in particular. Next, we turn to the fallout from the recent accident aboard an Alaska Airlines aircraft that’s temporarily grounded certain Boeing 737 Max planes. Although Alaska and United Airlines both canceled hundreds of flights over the weekend, both airlines may not suffer a major financial hit from the grounding, reports Edward Russell, editor of Skift publication Airline Weekly.Raymond James analyst Savanthi Syth estimates that the financial hit from the grounding could be akin to that from a severe weather event. That’s based on the belief that the Federal Aviation Administration will explain what airlines need to inspect, which would allow them to begin returning to service. Boeing provided airlines information on Monday on how to inspect the planes, according to Reuters.  Finally, Indian online travel agency EaseMyTrip has suspended all flights to the Maldives in what the company’s CEO called “solidarity with the nation,” reports Asia Editor Peden Doma Bhutia.  Calls for boycotts of the Maldives have grown after many in India have accused Maldivian politicians of disparaging Prime Minister Narendra Modi. Modi sparked a social media controversy after urging Indian travelers to visit India’s Lakshadweep Islands, where he recently traveled to. Bhutia notes angry tweets called Modi’s Lakshadweep visit a suggestion to visit domestic destinations instead of the Maldives.India was the Maldives’ largest tourism source market in 2023, with roughly 210,000 Indians visiting the archipelago. Episode Presenter and Producer: Jose Marmolejos

Episode NotesA trip to Paris is getting more expensive this year. Visitors to the French capital have been hit with higher tourist taxes as the city prepares to host the 2024 Summer Olympics, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports that tourist taxes on stays in Paris have more than doubled. In addition, some tour operators have seen their room rates surge due to the Olympics. An executive at Kensington Tours said it’s seen year-over-year increases of at least 20% in the weeks leading up to the Olympics. Habtemariam adds that some of Paris’ major tourist attractions, such as the Louvre, have bumped up their prices. Next, luxury travel is expected to continue its boom this year. Travel Experiences Reporter Selene Brophy outlines seven key trends to look out for in luxury travel, according to several figures in the sector.  Brophy reports that group travel bookings will once represent big business for tour operators. Trips aboard private yachts for small groups are also expected to be popular this year. And Brophy notes that luxury travelers will likely continue to visit largely unexplored locations, noting that tour operator Black Tomato is seeing growing interest in lesser-known areas in Peru. Finally, Europe’s largest tour operator TUI has proposed delisting from the London Stock Exchange as a way to simplify its business structure, writes Travel Experiences Reporter Brophy. Brophy reports TUI shareholders will make a decision on the matter at its annual meeting next month. If they approve the move, TUI would likely delist from the London Stock Exchange in June. However, the company would retain its full listing on the Frankfurt Stock Exchange as roughly three-quarters of its share transactions are already conducted directly in Germany. Episode Presenter and Producer: Jane Alexander

Ryanair is in a conflict with several major online travel agencies. The Irish-based airline said that “pirates” throughout the sector stopped selling its flights last month, reports Executive Editor Dennis Schaal.Ryanair said that Booking.com, Kayak and Kiwi removed Ryanair flights from their websites in early December. Ryanair called those online travel agencies “pirates” for allegedly stealing what it considers its proprietary information and intellectual property. Although Ryanair expects a drop in bookings for December and January, the company doesn’t expect its full year traffic for 2024 to be significantly impacted.  Next, a leading hotel analyst sees good things on the horizon for several major companies in the industry, reports Senior Hospitality Editor Sean O’Neill.  David Katz, managing director of Jefferies Research, offered his predictions for the hotel industry in a report released this week. Katz believes average room rates will slightly increase this year while overall average occupancy rates will hit pre-Covid levels by 2025. Meanwhile, he projected Marriott, Hilton, Hyatt and Wyndham will experience growth this year. Finally, Travel Experiences Reporter Selene Brophy lists seven trends to look out for in adventure travel, according to prominent figures in the sector. Brophy reports that September and October — the Northern Hemisphere’s traditional shoulder season — should continue to see a surge in bookings. In addition, Northern Europe is expected to become more popular with travelers seeking cooler climates. And Brophy writes that the use of electric bicycles will likely increase, noting that tour operator Explore Worldwide has introduced an e-biking option on most of its trips. Presenter and Producer: Jane Alexander