Skift Daily Travel Briefing

Episode NotesThe rise of artificial intelligence has been a major topic of discussion in the travel industry over the past year. So as the theme of this month’s Skift Global Forum is Connection in the Age of AI, what do major travel executives think about booming technology? Travel Technology Reporter Justin Dawes provides some of their opinions about it.Dawes cites Airbnb’s Brian Chesky and Uber’s Dara Khosrowshahi as two CEOs vocal about the impact of AI on their companies. Chesky said AI would be the driving force between a vastly different Airbnb. Meanwhile, Khosrowshahi said AI could improve user personalization by tracking preferences, such as preferred types of cars. Dawes adds that executives around travel have spoken about how advancements in AI could change travel search and booking. Priceline and Booking.com have already released Google-powered tools on their respective apps. Next, the United Arab Emirates has established a gaming authority to regulate its nascent gambling industry, writes Middle East Reporter Josh Corder. Corder notes the General Commercial Gaming Regulatory Authority will set guidelines for future casinos as well as a potential “Arabian Strip” gambling zone. The country’s media has reported the agency would look to help unlock gaming’s economic potential. The United Arab Emirates could earn roughly $6.6 billion in revenue yearly from gaming, according to Bloomberg Intelligence. Finally, tour operators are increasingly turning to African adventures to attract young travelers, writes Travel Experiences Reporter Selene Brophy.Brophy cites Contiki as one company that has significantly boosted its Africa offerings. Contiki, which organizes trips geared largely towards 18-35 year olds, has seen bookings for its Africa tours jump 57% from 2019 levels. Kyle Junkuhn, Contiki’s Operations Lead for Africa, said its itinerary design has been a major factor in its growth. Its guests can bungee jump and zip wire, among other activities, at Zimbabwe’s Victoria Falls. 

Episode NotesHyatt has seen signs that more workers in big cities are returning to their offices. That could result in the company eventually seeing more business travelers, reports Senior Hospitality Editor Sean O’Neill. CEO Mark Hoplamazian said at a recent conference that some of its New York hotels are seeing increased levels of local traffic, a sign of more people back in their offices. Hoplamazian added the increased traffic doesn’t necessarily mean pre-Covid levels of business travel. But he said it’s an indication of more activity in offices that will eventually boost the sector’s recovery.Hoplamazian also expressed confidence that business travel would rebound fully. Next, budget carriers Allegiant Air and Frontier Airlines are poised to profit significantlyif U.S. authorities approve JetBlue Airways’ proposed merger with Spirit Airlines, reports Edward Russell, editor of Skift publication Airline Weekly.  JetBlue said on Monday that Allegiant would receive Spirit’s assets at Boston Logan and Newark Airports under divestiture agreements reached by JetBlue. In addition, Frontier would gain Spirit’s assets at New York’s LaGuardia Airport. Russell notes both Allegiant and Frontier could expand their operations at the above-mentioned airports. However, the agreements between JetBlue and Allegiant and Frontier are subject to the JetBlue-Spirit merger being approved by the U.S. government. The U.S. Justice Department has sued to block the deal on the basis of concerns about competition. Finally, business travel has made significant progress in its recovery, but will spending in the sector fully rebound? Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for answers.Jordan reports that the state of business travel’s recovery varies across the world. Corporate travel volumes were reported as of August to be at least 30% below 2019 levels globally. While a majority of India-based businesses expect business travel to increase this year, executives at several U.S. and European airlines have said in recent months the sector’s rebound has plateaued. But the Global Business Travel Association projected last month that corporate travel spending would surpass pre-Covid levels faster than expected. The group anticipates spending will hit $1.52 trillion in 2024, two years of a previous prediction. 

Episode NotesTravel companies have just finished reporting their second quarter results. So what did we learn about the state of the industry? Senior Research Analyst Seth Borko outlines four major trends Skift Research discovered after studying more than 200 publicly traded companies.  Borko writes that second quarter revenue growth was still far higher than other sectors – but that it’s beginning to slow down to more normal rates. At the same time, he notes that profits for the travel industry hit a post-Covid peak. In addition, among five travel sectors Skift Research studied, travel tech posted the fastest revenue growth while accommodations had the highest profit margins. Next, Hilton unveiled plans on Thursday to install Tesla electric vehicle chargers at 2,000 of its North American hotels, reported Senior Hospitality Editor Sean O’Neill. O’Neill notes that Hilton is installing up to 20,000 Tesla Universal Wall Connectors. They’re designed to charge all North American electric vehicles, not just Tesla-branded ones. Installation starts next year and once the process is complete, Hilton will own more electric vehicle chargers than any other U.S.-based hotel group. Hilton has had electric vehicle chargers at its hotels since 2015. O’Neill writes the company’s website has seen a significant rise in people seeking out the chargers in its search tool this year. Finally, President Joe Biden nominated airline industry veteran Michael Whitaker to lead the Federal Aviation Administration, reports Edward Russell, editor of Skift publication Airline Weekly.Russell writes Whitaker checks many of the boxes the Biden administration was looking for. Whitaker had previously served as a senior executive at United Airlines in addition to working as a deputy administrator at the FAA. Russell notes Whitaker, if confirmed, would face several major challenges running the FAA. The agency’s five-year funding bill is currently stalled in Congress and it also faces an air traffic controller shortage that won’t be solved soon, among other hurdles.The nomination comes more than five months following the withdrawal of President Biden’s first nominee, Denver Airport CEO Phil Washington, amid questions over his aviation experience. 

Episode NotesTrivago has struggled in recent years, with its shares currently trading for a little more than $1 per share. So the company is returning to its old playbook by looking to significantly beef up advertising, reports Executive Editor Dennis Schaal in his weekly column.  Schaal writes Trivago’s new leadership plans on intensifying its brand advertising, including on TV,by the end of the year. Schaal reports Trivago had built its brand as the place to find hotel deals through its seemingly ubiquitous TV ads. The company spent an average of 82% of annual revenue on advertising from 2015-2019. But the former CEO, who left in May, downplayed that strategy. Next, Capital One will open a branded lounge at Washington-Dulles Airport on Thursday, marking the latest investment by a credit card company in the space, reports Edward Russell, editor of Skift publication Airline Weekly.  Russell writes the new lounge is a part of Capital One’s multi-year strategy to target high spenders. The company is investing in a larger network, with plans to open lounges at both the Denver and Las Vegas airports. Capital One had opened its first branded lounge at the Dallas-Fort Worth Airport in 2021. Russell adds the lounge at Dulles is part of a larger ecosystem at Capital One. The company runs Capital One Travel, a travel booking portal, powered by online travel agency Hopper. Finally, a Mastercard executive highlighted six trends shaping Indian travel at the recent B20 Summit, reports Asia Editor Peden Doma Bhutia.   Mukul Sukhani, the company’s senior vice president of business development, said India is becoming a bigger player in the global travel industry — especially as the world’s largest outbound tourism market. He added that Indians are increasingly eager to visit countries with easier visa policies, citing Thailand as an example. Sukhani also said that more Indian travelers are looking to combine business and leisure trips. 

New York City's host registration system for short-term rentals is delayed. The future of tourism post-pandemic will be discussed at Skift Global Forum. Challenges of attracting tourists to hidden gems and the absence of Chinese tourists will be addressed by industry executives.

Episode NotesWashington, D.C. will spend roughly $20 million in an upcoming campaign to help boost the city’s lagging tourism recovery, writes Global Tourism Reporter Dawit Habtemariam. The global campaign — called “There’s Only One DC” — will launch November 1. Habtemariam reports the campaign will support influencer collaborations, as well as advertising on social media and television. Destination DC, the city’s destination marketing organization, hopes the funding injection will help it in its efforts to attract international travelers.Washington, D.C. welcomed 1.2 million foreign tourists last year, which was just 60% of its pre-Covid figure. Habtemariam cited the absence of Chinese tourists, the city’s largest visitor market pre-pandemic, as one reason for Washington, D.C.’s international slump. Next, U.S. hotel group Sonesta is facing a lawsuit about how it displays resort fees on its website and app, reports Senior Hospitality Editor Sean O’Neill.The suit alleges that Soneta made tens of millions annually since at least 2017 by not disclosing upfront its mandatory resort and destination fees at some of its properties. O’Neill writes Sonesta isn’t alone in not disclosing those fees upfront. He adds all of the major hotel groups and many smaller hotels brands have engaged in the practice of junk fees in recent decades. Lauren Wolfe, a counsel from consumer advocacy group Travelers United, said lawsuits against more companies regarding so-called junk fees are coming. Travelers United filed the class-action suit against Sonesta. Finally, Airbnb and New York City have often had a rocky relationship, once marked by lawsuits and numerous disputes. Associate Editor Rashaad Jorden provides a timeline documenting the tension between the city and the short-term rental giant over the past 10 years. Jorden lists the major twists and turns in New York City’s and Airbnb’s relationship using Ask Skift, our artificial intelligence chatbot, and additional reporting. Airbnb has sued the city twice — including this June over measures the company called a “de facto ban” against short-term rentals. That recent lawsuit was dismissed by a judge. In addition, Airbnb is staring at the prospect of a steep reduction in New York City listings starting September 5. That’s when city authorities said they would start enforcing its host registration law for short-term rentals. 

Episode NotesAirbnb hosts in New York City are rapidly approaching a September 5 deadline to register with the Mayor’s Office of Special Enforcement. So the company could see a large reduction in its New York City listings, reports Executive Editor Dennis Schaal. Airbnb had 23,000 active listings in the city as of July and Schaal writes many would be unable to accept stays under new enforcement. Airbnb has said it generated $85 million of revenue in New York City last year. Schaal adds due to regulatory pressures and other factors, Airbnb is a shadow of itself in New York compared to pre-pandemic years. The company had 36,000 active listings in New York City in July 2019, according to AirDNA. Next, the U.S. overseas travel boom is showing no signs of slowing down. Americans are traveling abroad in large numbers for Labor Day weekend, reports Associate Editor Rashaad Jorden.International travel bookings have risen 44% this Labor Day weekend from last year, according to travel organization AAA. The group also said international hotel bookings have increased 82% from last year’s holiday. AAA Spokesperson Aixa Diaz said pent-up travel was a major factor in the high number of international bookings. Meanwhile, travel news site The Vacationer found 57% of American adults plan to travel over the Labor Day weekend. That’s a 4 percentage point jump from last year.Finally, Indian travelers looking for a U.S. visitor visa will now find the process substantially less time consuming. Visa applicants can book interviews at U.S. consulates in India with no wait time, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter.The U.S. Consulate General in Mumbai said that applicants can schedule appointments for visa interviews within the standard time frame. It added that more than 900,000 nonimmigrant visa applications are being processed at the moment. U.S. Ambassador to India Eric Garcetti had said the goal for 2023 was to process at least one million visas. 

Episode NotesHyatt has joined MGM Resorts and Marriott in changing how they disclose resort fees on their websites and apps. However, those modifications still won’t quiet the growing uproar over so-called junk fees, reports Senior Hospitality Editor Sean O’Neill. In July, Hyatt began displaying nightly rates plus mandatory resort fees upfront on a traveler’s first search of its site and app. Hyatt’s move to more clearly disclose resort fees follows in the footsteps of Marriott and MGM Resorts. However, O’Neill notes the three companies still face unresolved grievances from some consumer advocates and government representatives. He adds one of the lingering issues is how hotel rates and fees are displayed on online travel agencies’ websites and apps. The three hotel groups have also quoted prices without including resort fees in ad and marketing campaigns. Next, amusement park corporation Six Flags has become the latest travel brand to hop on the artificial intelligence bandwagon. Six Flags is planning to release generative AI tools in partnership with Google Cloud, writes Travel Technology Reporter Justin Dawes. Dawes reports Six Flags is looking to release AI chatbots on updated versions of its app and park websites later this year. Six Flags said the virtual assistants would provide personalized recommendations and answers for visitors planning their trips. Google CEO Thomas Kurian said generative AI would enable Six Flags to redefine guest experiences. Finally, India’s hotel occupancy and room rates have finally recovered to pre-pandemic levels, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter.Ghosh reports that soaring demand for next month’s G20 Summit is a major reason for India’s strong hotel performance. One travel executive said the roughly 200 G20 meetings already held throughout India have placed some lesser-known destinations on the global tourism map. Meanwhile, FCM Consulting’s latest Global Trends Report revealed that India had Asia’s highest hotel occupancy rates in the first half of this year.

Skift Short-Term Rental Report: Skift’s latest newsletter focuses on the business of short-term rentals. Don’t miss out on essential industry news. Get a Trial SubscriptionEpisode NotesNew York City is behind in reviewing hundreds of short-term rental applications prior to a September 5 deadline requiring hosts to register with the Mayor’s Office of Special Enforcement, reports Executive Editor Dennis Schaal. The enforcement office told Skift it’s only reviewed roughly 25% of the more than 3,200 host applications submitted to date. The office added that more than half of the applications came in after August 8, when a judge dismissed an Airbnb lawsuit challenging New York City’s efforts to enforce its host registration rules. Hosts face fines up to for any violations. Google shut down its Book on Google feature for flights for overseas travelers last year. But those in the U.S. will be able to book some flights on Google to take advantage of its flight price guarantee, reports Executive Editor Dennis Schaal. Schaal writes Google announced it would end the service in the U.S. on or after March 31 of this year. That leaves the end date open-ended, though Google still intends to terminate Book on Google. The tech giant is trying to find another way to implement its flight price guarantee in the U.S. Schaal notes the issue is important because of the fear Google could become more of a booking-oriented online travel agency like Booking.com or Expedia. Finally, this year’s Men’s Cricket World Cup is driving up travel demand in the host country India, reports Research Analyst Saniya Zanpure.Zanpure writes travel companies are looking to cash in the cricket frenzy, a sport deeply embedded in Indian culture. Accommodation searches in the 10 host cities for match days have risen, on average, by 237% over the past year. In addition, airfares to some prominent host cities have increased between 40% and 60% during the same period. The Men’s Cricket World Cup runs from October 5 to November 19. 

Episode NotesA new report said JetBlue Airways is planning to raise airfares on routes flown by Spirit Airlines by as much as 40% if the two carriers’ proposed merger is approved, reports Edward Russell, editor of Skift publication Airline Weekly. JetBlue would increase fares between 24% and 40%, according to a report by legal news service Law360. The report cited documents released as part of a lawsuit brought by travelers looking to block the JetBlue-Spirit deal. The travelers suing JetBlue argued that the proposed merger would reduce competition for consumers. Russell notes their lawsuit is separate from the U.S. Department of Justice’s suit to stop the merger. JetBlue said in a statement that, without context, the information gave a “completely inaccurate picture of the facts” and that the proposed merger would result in low fares and better service. Russell adds that while airfares rose substantially last year, the average domestic airfare has dropped below pre-Covid levels. Next, travelers flying Qantas to the U.S. have historically arrived in Los Angeles to connect to other cities across the country. But the Australian carrier is looking to serve U.S. and Asian cities with a new plane order, reports Russell. Russell writes the airline has ordered 24 new long-range planes for both the U.S. and Asia that will see it add more nonstop flights to both regions. That means Qantas’ future will see more flying to Chicago and Seattle than Los Angeles. Qantas CEO Alan Joyce said on Thursday the new aircraft will enable the carrier to have more direct flights into the U.S.Finally, American Airlines has filed a federal lawsuit against hidden city flight platform Skiplagged, reports Executive Editor Dennis Schaal.Schaal writes that American alleges that Skiplagged sells flights without authorization and misleads flyers with deceptive offers, among other practices. Skiplagged is famous for offering hidden city flights, where passengers seeking a bargain ditch the rest of their journey at a layover. Schaal notes that airlines prohibit hidden city ticketing because of operational hassles and lost revenue. American is the latest major travel brand to sue Skiplagged, following Orbitz, United Airlines and Southwest Airlines. Skiplagged founder Aktarer Zaman told Skift he is fighting to protect consumer rights to find favorable airfares.