Skift Daily Travel Briefing

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesNavan, a travel and expense management startup, has laid off 5% of employees at the company, accounting for about 145 people, writes travel tech reporter Justin Dawes.Kelly Soderlund, a spokesperson for Navan, said in an email that the layoff affected teams across departments. She said in a statement that Navan is “refocusing efforts to move faster toward profitability” as its enters the next phase of its company. Navan has raised well over $1 billion in venture capital, most recently $154 million in October 2022. Next, a summit about mental health highlighted the risk for pilots, writes airline reporter Edward Russell.The issue received new attention in October after an Alaska Airlines pilot Joseph Emerson nearly brought down a plane while suffering a mental health crisis. Emerson said that he had experienced depression-like symptoms since the death of a friend in 2018 — some five years before the incident.More than 55% of pilots have expressed reluctance to report mental health issues due to fear of career reprisals, according to researcher William HoffmanJennifer Homendy, chair of the National Transportation Safety Board, is firm that something needs to be done. She stated at the summit in Washington, D.C.: “There’s a culture right now, which is not surprising to me, that you either lie or you seek help. We can’t have that. That’s not safety.”Finally, advertisements on Google by Air France, Lufthansa, and Etihad were banned for giving what the U.K.’s Advertising Standards Authority said was “a misleading impression” of their environmental impact, writes airline reporter Meghna Maharishi.The ad by Etihad, for example, implied that customers can travel with “total peace of mind” regarding its environmental advocacy. The ASA said it did not have adequate evidence that that was true.Etihad and Lufthansa took down the ads following the ruling. The ASA said Air France “did not provide a substantive response” to its ruling.

The podcast discusses recent changes in Airbnb's business team, with the CFO and VP of Finance taking on new roles and the Global Head of Hosting leaving. Also mentioned are Selina's restructuring plan and a potential merger between Alaska and Hawaiian airlines.

Episode NotesAlaska Air Group said it would buy Hawaiian Airlines in an all-cash transaction valued at $1.9 billion, including Hawaiian’s debt. The parent company of Alaska Airlines and regional Horizon Air said it would continue to operate Hawaiian as an independent brand, reports Edward Russell, editor of Skift publication Airline Weekly. The proposed merger isn’t a sure thing, given that it faces antitrust review by the Biden Administration. Analysts noted that JetBlue recently attempted to merge with Spirit Airlines, but that deal has since been mired in legal review. Given that the route networks of Alaska and Hawaiian wouldn’t lead to the same concentration as the networks of JetBlue and Spirit, the probability is higher that the Alaska-Hawaiian deal will go through, reports Russell.Next, the American Society of Travel Advisors (ASTA) and American Airlines are going head-to-head in a complaint before the U.S. Department of Transport (DOT). The debate hinges on whether American Airlines has been wrong to withhold about 40% of fare inventory from travel agencies that fail to adopt its preferred booking technology, reports Selene Brophy, Skift’s experiences reporter.Last month, American Airlines defended itself to regulators about its assertive push of the so-called new distribution capability while accusing travel agents of standing in the way of innovation. Skift asked ASTA for the group’s response, which it published on Monday exclusively. ASTA said, “What’s lacking from American Airlines’s response is how atrocious their workflow is for new reservations.” “We fully support the adoption of modern retailing methods when the necessary technologies are ready and in place, and we’re thankful for other airline partners who recognize that and have taken a more responsible approach.”The complaint is under review by U.S. regulators, with a response expected next year.Finally, Travelport said Monday that it had raised $570 million in new equity from investors, writes Skift tech reporter Justin Dawes. The world’s third-largest travel technology company will add new major backers, including Davidson Kempner Capital Management and Canyon Partners, to its existing equity stakeholders, Siris Capital and Elliott Investment Management.With this new investment, Travelport will have a stronger balance sheet with the least debt amongst its peers, it said. Travelport competes with larger peers Amadeus and Sabre in helping travel agencies book flights from airlines. Once again, as with the other two stories of the day, the travel industry waits for regulators to decide what to do.

Episode NotesAmerican Airlines is planning to improve its in-flight Wi-Fi access on regional jets, allowing passengers to easily check emails, browse the internet, or stream videos.The carrier plans to install high-speed Wi-Fi on around 500 regional aircraft starting next year in partnership with satellite services provider Intelsat, writes Skift’s airline reporter, Meghna Maharishi.While American already has high-speed Wi-Fi available on 900 mainline aircraft, the carrier said it wants to the same Wi-Fi service and speeds on its regional aircraft, with the goal of increasing the total number of satellite-connected aircraft to more than 1,400. Next, Hyatt plans to improve its hotel loyalty program in January, reports senior hospitality editor Sean O’Neill. Hyatt’s most notable change will be to expand the ability of program members to give some benefits to friends and family in one-off gifts. Before this, only certain members were able to share perks, which the company said has been highly popular. Those members could only share their benefits by booking a trip on behalf of someone else, using points or certificates. But come January, they’ll be able to extend those benefits to someone who booked and paid for a trip on their own. Benefits include free breakfast and the possibility of a free late checkout.Finally, Trip.com Group said Thursday that it has selected Amazon Web Services as its “strategic cloud provider” in a multiyear deal meant to drive innovations in travel bookings, personalized recommendations, and customer service, writes Skift tech reporter Justin Dawes.China-based Trip.com Group owns Trip.com, Skyscanner, and other travel sites. AWS is hosting a conference this week in Las Vegas, where it announced the Trip.com partnership as well as a number of other new technologies for the travel industry. Trip.com Group plans to improve the booking process, optimize flight pricing, and create personalized travel planning capabilities for consumers, among a group of other projects the partners have been working on.

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesA new class of drugs is helping make progress in the fight against obesity. However, Editor-in-Chief Sarah Kopit reports the global travel industry isn’t yet ready for a shift that could have a colossal impact on businesses. Kopit notes the so-called Ozempic Era could benefit cruise and tour operators and airlines – businesses that have food as a cost. For example, the more an aircraft weighs, the more fuel it takes to fly. Bloomberg cited one analyst who thinks United Airlines could save $80 million a year if the average passenger lost 10 pounds. But there could also be losers – travel companies that count on food as a revenue generator, such as hotels and entertainment venues. Even a small decrease in spending on food and drinks while traveling would hurt. Next, several next generation travel products have been revealed at the Amazon Web Services’ ongoing conference in Las Vegas, writes Travel Technology Reporter Justin Dawes. Dawes cited the Amazon One Enterprise, a kiosk that scans the palm of the hand to verify a person’s identity, as one product that could help hotels and airports operate more efficiently. AWS said the tech is meant to help turn companies away from traditional security access measures — like fobs and passwords — that can lead to security breaches. In addition, AWS revealed some new generative artificial intelligence capabilities for Amazon Connect, a platform that companies can use to streamline operations in customer-service contact centers. Choice Hotels is already using some of those capabilities in its customer service contact center. Finally, Virgin Atlantic Airways completed a transatlantic flight this week using only sustainable aviation fuel. The company is calling on the UK government to provide more support for the greener way of flying, reports Edward Russell, editor of Skift publication Airline Weekly. Virgin Atlantic CEO Shai Weiss said the flight was important to show that sustainable aviation fuel could fully power a flight across the Atlantic safely. Russell notes the fuel is considered to be the holy grail of its decarbonization efforts. But the global supply of sustainable aviation fuel is limited, and Weiss urged the British authorities to provide a price support mechanism to help bring down its cost. Russell writes most airlines are clamoring for a mix of sustainable aviation fuel mandates and financial support. 

Lengthy visa waits hurt US tourism recovery; Dolly Parton opens independent hotel; Canadian carriers plan joint venture

Episode NotesChoice Hotels is taking a bold step in its hostile takeover bid of Wyndham Hotels & Resorts. Choice is preparing to nominate directors to Wyndham’s board, according to Reuters, writes Senior Hospitality Editor Sean O’Neill. Choice’s move is part of its plan to push its roughly $9.8 billion unsolicited merger between the two companies. Shareholders’ annual vote on board members would become a referendum on whether Choice and Wyndham must reopen deal talks. O’Neill notes Choice is taking those aggressive steps because Wyndham rebuffed Choice’s latest offer to restart merger talks last week. Next, Expedia Group, Airbnb, and Uber are among major travel brands that have stopped advertising on X, the social media platform formerly known as Twitter, reports Executive Editor Dennis Schaal. Those moves come after X Executive Chairman Elon Musk endorsed another user’s post that was widely seen as antisemitic. Schaal writes critics have argued that antisemitic and anti-Muslim hate speech have increased on social media since Hamas’ attack against Israel last month. Expedia Group declined to explain its reasoning for pausing advertising on X while Airbnb and Uber didn’t respond to Skift requests for comments. The New York Times reported that X could lose $75 million from major brands discontinuing advertising on the platform. However, X said only $11 million was in jeopardy as other companies have increased their advertising. Finally, ahead of next month’s Skift Global Forum East in Dubai, Middle East Reporter Josh Corder lists five questions about the Middle East travel industry he’s eager to get answers to. Corder writes he’s excited to find out from Dubai Tourism CEO Issam Kazim if its visitor boom can continue. The city was attracting roughly 17 million visitors annually prior to the pandemic, a figure it hopes to surpass this year. Corder also notes he’s interested in learning about how Dubai’s major hotel brands plan to make inroads outside of the region.

Episode NotesU.S. airline pilots who believe they need treatment for depression often face difficult choices, such as whether to disclose their mental health issues. The new Federal Aviation Administration administrator is looking to establish a system to better help pilots dealing with mental health issues, reports Edward Russell, editor of Skift publication Airline Weekly. Under current policy, disclosure leads to a lengthy evaluation process during which pilots can’t fly. Joseph Emerson, the Alaska Airlines pilot who nearly crashed a plane in October, said he had experienced symptoms of depression and that many pilots don’t come forward. FAA Administrator Mike Whitaker said this week the agency needs a system and has already formed a new committee to evaluate mental health rules and recommend changes. Russell writes studies have found many pilots experience some form of mild depression.   Next, Wyndham Hotels & Resorts blasted Choice Hotels latest attempt at a hostile takeover, describing it as a “step backwards,” reports Executive Editor Dennis Schaal.Wyndham said it received a letter from Choice CEO Pat Pacious last week, which it stated was Choice’s first communication since going public with its bid. However, Wyndham Chair Stephen Holmes said Choice has failed to address critical issues Wyndham has raised, especially the timeline for Choice to obtain regulatory approval. Schaal writes the regulatory issue — and the possibility a deal could get blocked — is a major concern for Wyndham. Schaal adds that Wyndham believes the hostile bid would undervalue its growth potential. Finally, China’s travel rebound helped Trip.com Group’s third quarter revenue surpass 2019 levels, writes Asia Editor Peden Doma Bhutia.Bhutia reports Trip.com Group posted a net revenue of nearly $2 billion in the third quarter. That’s a 99% increase from last year as well as a 31% jump from 2019 levels. CEO Jane Sun attributed the company’s strong third quarter to Chinese consumers increasingly prioritizing spending on travel. In addition, Bhutia notes Trip.com executives are optimistic about China’s travel demand remaining strong despite uncertainties in the global economy. 

Episode NotesThe U.S. aviation industry is prepping for a record number of flyers to take to the skies for Thanksgiving this year. They’re doing so amid ongoing labor and air traffic controller issues, reports Edward Russell, editor of Skift publication Airline Weekly.The TSA and U.S. airlines predict 30 million travelers will fly from November 17 to 28. Russell writes this year’s holiday forecast comes while the aviation industry is already straining at the seams. Airlines are still grappling with pilot and air traffic controller shortages, especially in the New York City area. U.S. Secretary of Transportation Pete Buttigieg said the government is taking steps to limit flight disruptions as much as possible. But he acknowledged some delays and cancellations are outside of anyone’s control, with inclement weather forecast across the U.S. in the coming days. Next, a new report reveals that climate change and sustainability issues largely aren’t a priority for U.S. tourism boards, writes Global Tourism Reporter Dawit Habtemariam. Only 8% of U.S. tourism boards strongly prioritize tackling climate change and cutting greenhouse gas emissions to zero. That’s according to a survey of more than 300 destination marketers by travel marketing platform Sojern. Meanwhile, 62% of European tourism boards have made climate change a significant priority. However, U.S. — as well as Canadian — tourism boards placed much more emphasis on celebrating racial and ethnic diversity in their marketing efforts than their counterparts in Europe.Finally, Vietnam is poised to offer visa-free entry to Indian nationals, reports Contributor Ashvita Singh in the Skift India Newsletter. Vietnamese Minister of Culture, Sports and Tourism Nguyen Van Hung indicated the country would provide visa-free entry to Indian citizens as well as Chinese nationals. Indian travelers are increasingly looking to visit destinations that don’t require visas. Vietnam would follow in the footsteps of Sri Lanka and Thailand, both of which currently offer visa-free entry to visitors from India. 

The U.S. is grappling with an air traffic controller shortage that could run into the next decade, reports Edward Russell, editor of Skift publication Airline Weekly.A new Federal Aviation Administration report found the agency is on pace to only have about 200 more controllers in 2032 than it does now. The report also said that planned hiring numbers would barely make up for retirements and others leaving the position. Russell notes the shortage has contributed to flight reductions and aviation safety concerns. The report also provided recommendations for boosting air traffic controller staffing, including expanding capacity at the FAA Academy in Oklahoma City. Next, digital nomad startup Outsite has raised $325 million with the goal of purchasing 150 boutique hotels in Europe, writes Travel Technology Reporter Justin Dawes. Dawes reports the company is focused on purchasing hotels in France, Spain, Portugal and Italy. Outside properties are meant for remote workers looking to book stays between one week and three months. Outside founder Emmanuel Guisset said there’s plenty of demand for its properties, but it needs more inventory. Outside currently has roughly 50 properties in its portfolio around the world. Finally, Tripadvisor has released a preview of its 2024 study on the Experience of Travel, which revealed the majority of travelers treasure experiences over material objects, writes Travel Experiences Reporter Selene Brophy. Roughly 67% of travelers surveyed said they place more value on experiences than things. In addition, 95% of travelers said they would reduce discretionary spending in areas such as food or entertainment to fund their travels. Tripadvisor surveyed more than 5,600 travelers from seven countries for the study.