Skift Daily Travel Briefing

Ask Skift Is the AI Chatbot for the Travel Industry Ask Skift Your Questions Episode NotesChoice Hotels views its recent acquisition of Radisson Americas as an enormous success and it’s strongly considering making more deals, reports Senior Hospitality Editor Sean O’Neill.Choice CEO Patrick Pacious touted the benefits of the acquisition during Choice’s second quarter earnings call on Tuesday. As for future acquisition activity, Pacious said Choice is always looking for deals that could boost the return on investment for hotel owners and grow brands. He added that Choice sees opportunities to expand its portfolio outside of the United States.  Choice reported that its revenue per available room — an important hotel industry metric — increased 20% from the same period in 2019. The company also set a quarterly record for revenue. Next, the Chinese government is limiting overseas group travel for its citizens to certain destinations. Those restrictions are stunting the global travel industry’s recovery, writes Travel Experiences Reporter Selene Brophy. Chinese travelers can only take group tours to less than half of the countries that were available to them pre-Covid. Brophy reports the U.S. is not on that list as Chinese travel agencies aren’t permitted to sell any group tour products to the U.S. Sienna Parulis-Cook, an executive at China-based marketing company Dragon Trail International, said Chinese outbound tourism to the U.S. is also limited in part because of visa delays. Chinese travel agents surveyed said visa delays were the biggest obstacle in selling outbound tourism in 2024. Chinese outbound travel hit 65% of 2019 level during the country’s most recent national holiday period. Finally, Turkish Airlines and Thai Airways have unveiled a plan to form a joint venturecovering flights between Europe and the Asia-Pacific region, reports Jay Shabat, senior analyst at Skift publication Airline Weekly. The two carriers already have a codeshare arrangement, which enables them to market each other’s flights. But Shabat notes joint ventures go deeper, often involving revenue sharing, collaborating pricing and cargo cooperation among other practices. Turkish and Thai haven’t yet detailed their exact plans, other than announcing that Thai will start serving Istanbul in December. 

Episode NotesThe U.S. expects visitor numbers from some major markets such as Canada and India to exceed pre-Covid levels this year. However, Brand USA CEO Chris Thompson says that progress won’t be enough to make up for the large-scale absence of Chinese visitors, writes Global Tourism Reporter Dawit Habtemariam. Thompson said in an interview with Skift that the U.S. won’t experience a full tourism recovery unless it attracts more Chinese tourists. China represented the U.S.’ largest tourism market prior to the pandemic. Thompson said Beijing’s refusal to lift the ban on overseas group travel for its citizens has impacted visitor numbers to the U.S. He added that West Coast destinations such as Los Angeles have been hit hard by the absence of Chinese travelers. Thompson also touched on what Brand USA is doing with the $250 million it received in federal funds to help boost international tourism. The organization used the funding to launch “This Is Where It’s At,” its largest ever single consumer campaign. It’s running in 10 out of Brand USA’s 11 markets, with the exception of China.  Next, a newly published financial report said that the Expedia Group may be showing resilience against rival Booking.com in the U.S., reports Executive Editor Dennis Schaal.  An analysis from global financial services firm BTIG listed reasons why Expedia Group may have blunted Booking.com’s market share gains. Schaal writes Expedia likely saw a faster increase in room nights than Booking.com. He adds that signs suggest that Expedia outperformed Booking.com in the U.S. He notes that’s important because Booking Holdings sees the U.S. as a relatively untapped market where it has ample room to grow. BTIG estimated that 60% of the Expedia Group presence is centered in the U.S. Finally, artificial intelligence has fundamentally altered the travel industry in recent years. Associate Editor Rashaad Jorden explains how, using answers provided by Ask Skift, our artificial intelligence chatbot. Ask Skift listed four areas where AI has significantly impacted travel, including predicting travel demand and providing personalized customer service. One travel executive said AI will likely uncover signals about travel demand from unlikely sources of information. In addition, Jorden reports travel brands are using AI to customize travel itineraries, enabling them to increase customer loyalty. Amazon Web has already used AI to make personalized recommendations for travelers, including suggesting hotels that matched their interests. 

Episode NotesIt’s still uncertain when business travel will make a full recovery. But Hyatt is optimistic that the sector is making substantial progress in its rebound from the pandemic, reports Senior Hospitality Editor Sean O’Neill.Hyatt CEO Mark Hoplamazian said on Thursday the company is seeing sustained corporate demand for group travel, which he added is showing no signs of slowing down. Hyatt booked roughly $500 million in future group business in the second quarter, and 42% of those group business were corporate. O’Neill writes that Hyatt’s more than 1,200 hotels and resorts are popular places to hold events, noting that corporate travel managers have reason to be encouraged about Hyatt’s upbeat report. Hyatt generated a net income of $68 million during the second quarter. The company’s revenue per available room — an important industry metric — rose 15% from last year. Next, the Lufthansa Group has lifted its profit outlook for the rest of the year due to robust travel demand in Europe, reports Edward Russell, editor of Airline Weekly, a Skift travel brand.CEO Carsten Spohr said on Thursday that the company has seen travel demand remain extraordinarily strong. Russell writes the Lufthansa Group has been boosted by premium leisure travelers who have become increasingly important to major airlines. He adds that people are still willing to pony up for travel within Europe and long-haul international routes.In addition, although corporate travel has plateaued at passenger volumes roughly 60% of 2019 levels, Spohr expressed optimism about the sector’s outlook for the fall. Finally, Airbnb believes its formula to continued growth includes providing better value than hotels and expanding throughout Europe, Latin America and Asia, reports Executive Editor Dennis Schaal. CEO Brian Chesky told analysts on Thursday that he heard last year that Airbnb was becoming less affordable compared to hotels. However, the short-term rental giant saw its rates rise 1% globally in the second quarter while the hotel industry saw an up to 10% jump. The company unveiled new pricing tools for hosts several months ago, which Chesky said will help make Airbnb stays more affordable for guests. Schaal notes that Airbnb saw bookings significantly rise in both Brazil and Germany during the second quarter. Chesky said Airbnb would apply the lessons it’s learned from those two fast growing markets to its global expansion strategy, especially in Asia. However, he said Airbnb isn’t planning to re-enter Mainland China, which the company withdrew from in 2022. 

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesTrivago opted not to join the advertising unit that Google launched in May to attract hotel bookings. That decision contributed to the online travel agency’s disappointing second quarter performance, reports Executive Editor Dennis Schaal.  Schaal writes that Trivago’s absence in the new unit — unlike rivals such as Booking.com, Priceline and Expedia — negatively impacted its second quarter financial results. Trivago’s revenue fell 14% from the previous year. Trivago Chief Financial Officer Matthias Tillmann said on Wednesday it decided not to participate in Google’s property promotions ads because they are a part of Google hotel ads, which don’t perform well for Trivago.  Next, the chief technology officer of travel technology firm Sabre stepped down last month, a departure that coincides with other major job cuts and changes in leadership, writes Travel Technology Reporter Justin Dawes. Dawes reported that David Moore left Sabre last month after seven years with the company. The change comes as Sabre continues its biggest tech transformation ever, namely its transition to Google Cloud, which is expected to be completed by the beginning of 2025. Finally, Allegiant Air successfully rode its strategy of mostly flying on specific days[Access for Skift Pro and Airline Weekly subscribers only] and to its most popular destinations to a strong second quarter, reports Edward Russell, editor of Airline Weekly, a Skift publication. The Las Vegas-based discount carrier saw revenue increase 9% in the second quarter from last year. It also reported a $133 million operating profit. Russell writes Allegiant is unique among U.S. airlines in that it typically only flies on peak days, an approach that has helped it profitably serve many U.S. smaller and medium-sized cities. Russell adds that Allegiant’s rivals are taking steps to emulate its success. Southwest, Frontier and JetBlue have all unveiled plans to reduce flying on off-peak days. 

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesThe solid performance of Marriott’s premium hotels drove the world’s largest hotel company to a strong second quarter. And now, Marriott is looking to add midscale hotels to its portfolio, reports Senior Hospitality Editor Sean O’Neill.O’Neill writes one reason Marriott has raised its 2023 outlook for profitability was that its hotels are mostly premium or above. He adds that travelers able to afford Marriott stays were largely sheltered from the economic concerns hitting the general population. Marriott’s revenue per available room — a key hotel industry figure — rose roughly 13% in the second quarter from last year. Marriott has also taken steps to boost its number of midscale hotels, with CEO Anthony Capuano indicating that Marriott would make a midscale push in Europe. O’Neill writes one factor driving Marriott’s interest in the sector is that midscale properties are popular with developers, investors and owners. Midscale hotels tend to be fancier than economy hotels while still being considered affordable. Next, the Biden administration has repeatedly taken aim at so-called junk fees, charges that aren’t disclosed to consumers upfront. So what should the travel companies do? Give in. That’s the message from Skift CEO and founder Rafat Ali in an open letter to the travel industry. Ali argues that companies need to acknowledge that it’s a real issue and tackle it head on and. In most cases, that will mean being more transparent. In some cases, getting rid of certain fees. Ali adds that there’s bipartisan agreement in Washington, D.C. on the cracking down on junk fees and that consumer sentiment is 100% with it. Finally, India’s newest carrier Akasa Air has added an 20th aircraft to its fleet, making it eligible to fly internationally, writes Middle East and Asia Reporter Amrita Ghosh.Akasa Air CEO and founder Vinay Dube hailed the milestone as a major sign of the potential of India’s aviation industry. Ghosh notes that Indian regulations require airlines to have at least 20 aircraft in their fleet to be eligible for international operations. Dube has said Akasa Air, which launched last year, is looking to fly to the Middle East, Southeast Asia and Eastern Africa among other regions. 

Episode NotesSoccer’s World Cup is coming to North America in 2026, but it’s uncertain where the final of the tournament will be held. Three U.S. cities are jockeying to host the event’s most prestigious match, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam writes that Dallas, Los Angeles and MetLife Stadium in New York City’s New Jersey suburbs are prime contenders to host the final. FIFA, soccer’s international governing body, is expected to announce in September which city will host the match. Travel executives from each city laid out reasons why their city should be chosen. NYC Tourism+Conventions CEO Fred Dixon cited New York City’s passion for soccer as one reason it should host the World Cup final.Next, the lengthy visa processing times have inhibited U.S. destination marketers’ ability to attract tourists from crucial international markets, writes Global Tourism Reporter Habtemariam.The average wait time for a U.S. embassy interview for a first-time visitor visa applicant in countries such as India, Brazil and China exceeds 400 days on average, according to the U.S. Travel Association. LA Tourism CEO Adam Burke said those long waits are the biggest issue facing the U.S. tourism industry. NYC Tourism+Conventions CEO Dixon said the city needs to attract travelers who need visas in order to boost tourism. Habtemariam notes there are large numbers of travelers with valid visitor visas in many key tourism markets. Burke said there are roughly 5 million people in India with a valid 10-year visa, and Dixon stated there’s a good base of business coming from that segment of travelers. A 2023 Skift Megatrend examined the impact of visa processing delays on the travel industry’s recovery. Finally, as international travel continues to recover from the pandemic, Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, to find out what’s the world’s largest outbound travel market.Ask Skift revealed the answer is India, which overtook China as the world’s most populous nation in April of this year. India’s travel industry has been boosted by a growing middle class increasingly eager to venture overseas. India generated Asia’s highest outbound travel volume for the first time in 2022. In addition, international leisure flight bookings from India have jumped 40% for trips between June and August, compared to last year, according to travel software company RateGain. 

Episode NotesWyndham Hotels & Resorts reported a drop in profitability during the second quarter. That’s partly because the hot demand for its budget hotels is cooling, reports Senior Hospitality Editor Sean O’Neill. Wydham saw its net income fall 18% in the second quarter from last year. O’Neill writes its portfolio skews toward affordable roadside hotels, which surged in popularity immediately after the pandemic eased. Now, Chief Financial Officer Michele Allen said things are returning to normal. The company has also seen travel to big cities and international destinations rebound significantly.Meanwhile, Wyndham said it’s not worried about increased competition in the extended stay sector. The company launched its own extended stay brand last November in the U.S. and Canada. Extended stay has since emerged as one of the hottest categories in hotels, with Marriott, Hilton and Hyatt all addring brands. Next, Google executives had cited travel as a major source of revenue growth during the previous two quarters. However, the tech giant’s parent company Alphabet didn’t call out travel as a major priority this week, reports Executive Editor Dennis Schaal.Alphabet’s Chief Business Officer Philipp Schindler said that Google’s three main priority areas are artificial intelligence, retail and YouTube. Google had extensive layoffs at Google Flights earlier this year and recently replaced the head of Google Travel. Even so, Schaal writes Google surely still makes a lot of money from travel advertisers. And it announced in June that it had added some travel features to its AI-powered search experience. Finally, Royal Caribbean has raised its earning forecast this year by a third after a strong second quarter, writes Contributor Jess Wade.In addition to the increased earnings per share, the company said during its conference call on Thursday that consumer spending onboard is continuing to significantly surpass 2019 levels. A Royal Caribbean executive also pointed to “encouraging” bookings for its China cruises, which are expected to set sail in April 2024. Royal Caribbean recorded a net income of $459 million during the second quarter, in contrast to a loss the same period last year.

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesHilton is seeing no signs of a slowdown in travel demand. The company said the second quarter was the best booking quarter in its history, reports Senior Hospitality Editor Sean O’Neill. O’Neill reports Hilton’s second quarter revenue per available room — an important hotel industry performance metric — rose 12% from last year. CEO Christopher Nassetta expressed optimism on Wednesday that the good news would continue into next year. O’Neill notes that leisure and corporate travel were major revenue drivers for the company. Roughly 85% of Hilton’s revenue comes from corporate travelers at small-to-medium sized businesses. Nassetta also hinted Hilton is considering adding a new luxury lifestyle brand to its portfolio, adding the company could launch something in the sector next year.Next, the ongoing FIFA Women’s World Cup is sparking a U.S.-led tourism boom in Australia, writes Reporter Jess Wade.An executive at Tourism Australia cited the enormous interest in two-time defending champion U.S. team as a reason Americans are the largest group traveling to Australia for the tournament. Tourism Australia expects the projected 55,000 World Cup visitors to inject $385 million into the country’s economy. Tourism Australia Managing Director Phillipa Harrison said the tournament comes at a crucial time for an Australian tourism industry still recovering from the pandemic. Finally, travelers and travel companies have increasingly expressed a desire in recent years to make the industry more sustainable. But are they making any progress in doing so?Associate Editor Rashaad Jorden provides answers using Ask Skift, our artificial intelligence chatbot, and further research. Although the vast majority of travelers have said greener travel is important to them, Jorden reports most of them aren’t willing to shell out more money for sustainable travel options. Skift Research revealed late last year only 23% of travelers had paid more for greener travel in the previous 12 months. However, Jorden adds that the travel industry has made some progress in reducing its massive carbon footprint. The U.S. National Park Service is moving toward adopting a 100% electric vehicle fleet as well as installing charging station infrastructure within its parks. In addition, the Grand Canyon National Park received $27.5 million in federal funding to electrify its bus shuttles. 

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesHilton Worldwide launched a major international marketing campaign exactly a year ago on Tuesday that focused on its ability to provide travelers with reliable lodging experiences. So has it been a success? Senior Hospitality Editor Sean O’Neill finds out. O’Neill reports Hilton has seen an increase in sales and market share following its largest marketing push in six years. While it’s uncertain if the ad blitz led to the gain, O’Neill noted other boosts Hilton has received in the last year. Company representatives said they saw an increase in consumers searching for “Hilton” and more travelers considering the brand for leisure travel. O’Neill adds that Hilton also bet much more heavily on TikTok and its account has attracted 20,000 new followers since the launch of a 10-minute video that featured Paris Hilton.  Next, accommodation provider Sonder announced this week it’s asking shareholders to approve a reverse stock split in order to stay listed on Nasdaq, reports Executive Editor Dennis Schaal. Schaal notes that Sonder was warned by Nasdaq in April that its shares could be delisted because its price had dropped below $1 per share for 30 trading days in a row. He adds that a reverse stock split wouldn’t in itself impact Sonder’s valuation, but would get its share price much higher than $1 per share. Finally, the United Arab Emirates was the second fastest-growing international arrival destination in 2022, reports Asia Editor Peden Doma Bhutia in this week’s Middle East Travel Roundup. Bhutia writes that the United Arab Emirates trailed only Austria in the list of fastest-growing destinations for international arrivals last year. Skift’s State of Travel report for 2023 revealed that the United Arab Emirates was also the most visited country in the Middle East in 2022, attracting a little more than 22 million visitors. India and Russia were the top two source markets for the United Arab Emirates last year. Bhutia adds that while international travel in most regions still trails 2019 levels, the Middle East is the only region to see a full recovery of international travel in the first quarter of 2023. 

Episode NotesTravelers might be uncertain if Sonder is a short-term rental operator like Airbnb or a hotel operator. Now, the company is launching its first hotel collection, writes Executive Editor Dennis Schaal. Schaal reports that Powered by Sonder includes 23 Sonder-operated properties in 13 markets. The company said those hotels are different from other hotels and multi-unit apartments in that they’re boutique hotel-oriented. In addition, Schaal notes the Powered by Sonder properties have their own design elements and features, such as onsite food and drinking facilities. Patrick Mitchell, Sonder’s vice president of marketing and distribution, said the boutique hotel experience at those Powered by Sonder properties appeal to millennials and Gen Z travelers. Next, the lifestyle hospitality brand Ennismore has launched a loyalty program that features no need to earn points as well as no tiers to climb. It’s an attempt to distinguish itself from complex loyalty programs run by rivals, writes Travel Experiences Reporter Selene Brophy.Ennismore is calling the concept “Dis-loyalty,” and the company’s Chief Brand Officer Martina Luger said it’s meant to encourage exploration of new venues and experiences. Members can start using their benefits, which include half off all new hotel openings, as soon as they sign up for the program, which launches July 27 with a monthly subscription fee of $18 Ennismore has 15 openings planned for the next 12 months. Brophy also reports that members qualify for discounts across the 75 participating Ennismore hotels and 10 of its participating brands. Senior Hospitality Editor Sean O’Neill said the lack of a tier-based model may signal a broader upheaval in hotel loyalty programs. Finally, India is poised to become a bigger force in the global travel industry in years to come. How big in fact? The country’s outbound tourism market is expected to reach a little more than $44 billion by 2032, writes Middle East and Asia Reporter Amrita Ghosh.Ghosh notes a recent report outlined the sector’s projected growth. The report also featured recommendations for growing outbound tourism from India, including issuing tax rebates and collaborating with destinations and airlines. International leisure flight bookings from India have jumped by 40% for trips between June and August compared to the same time in 2022, according to travel software company RateGain.