Skift Daily Travel Briefing

Episode NotesU.S. destination marketing organizations are eager to increase their marketing activities in China later this year. So how successful will those efforts be? Global Tourism Reporter Dawit Habtemariam writes that any success depends on flights between the countries returning to pre-pandemic levels. Gloria Lan, CEO of tour operator Tour America, said a lot of destination marketing organizations are planning to travel to China to start soliciting business. Habtemariam cites Visit California as one travel brand sending representatives to China in the near future. However, weekly flights between the two countries are far below 2019 levels. Habtemariam adds some destination marketing organizations don’t plan to invest heavily in China until air connectivity improves, citing Meet Boston as one example.We turn next to a comparison between hotel giants Marriott and Hilton. Skift Research’s new report examines the fierce competition the two companies are engaged in, especially in areas such as net unit growth.Senior Research Analyst Pranavi Agarwal writes Skift Research compares Marriott and Hilton and analyzes the differences in net unit growth, segment mix and profit margins coming into the second half of 2023. While Marriott is the largest branded hotel in the U.S., Agarwal notes its pipeline isn’t growing as fast as Hilton’s. Finally, India’s aviation industry is poised for a major hiring surge, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Newsletter. Ghosh reports that Air India recently announced it would hire more than 1,000 pilots to support its fleet expansion. That comes after its low-cost subsidiary Air India Express hired more than 280 pilots and 250 cabin crew during a recruitment drive across three major cities. In addition, India’s civil aviation ministry has created more than 1,200 new jobs — close to 800 of which are to help overcome a shortage of air traffic control officers. 

Episode NotesAccor executives have been hard at work to boost the Paris-based hotel company’s digital operations, but what does that entail exactly? Senior Hospitality Editor Sean O’Neill provides answers in this week’s Early Check-In column.O’Neill delves into what he considers the most notable findings from presentations Accor recently held for investors. The company runs a “digital factory,” which brings together roughly 800 developers, product managers and others to tackle the problems of hotel guests and operators. Chief Digital Officer Alix Boulnois said the Accor has the only digital factory at scale in the hospitality industry. And O’Neill writes that Accor wants to sell more than just rooms. The company has launched All Food, a platform for booking meals at its restaurants in select markets — including France. Next, India has unveiled plans to substantially improve its cruise infrastructure. It’s part of the government’s plan to generate nearly $5 billion in revenue from the industry by 2041, writes Middle East and Asia Reporter Amrita Ghosh.Ghosh reports that Indian authorities want to build three new international cruise ports by 2024 as well as attract 4 million cruise passengers annually by 2041. India is already home to 12 major and 200 minor ports. Ghosh notes that the country faces some noticeable hurdles in its quest to boost cruise tourism, such as its current tax policy and lack of coordination among government agencies. In addition, one India-based travel executive acknowledged much of the country’s cruise infrastructure is outdated. Finally, the U.S. hotels registered a modest increase in job growth last month. However, the hotel industry still has a way to go to reach pre-Covid employment levels, reports Associate Editor Rashaad Jorden.The Bureau of Labor Statistics revealed in its latest jobs report released on Friday that hotels added roughly 5,500 jobs in June. The sector had added only 1,300 jobs the previous month. American Hotel and Lodging Association CEO Chip Rogers expressed optimism that hotels would continue to attract job seekers. But he said a lot more has to be done to increase employment in the hotel industry. 

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your Questions Episode NotesTaylor Swift is heading to Australia next February for her Eras Tour — but not New Zealand. However, Air New Zealand is boosting capacity for the thousands of Swifties eager to travel to Australia for her shows, writes Reporter Jess Wade.Wade reports 10,000 Kiwis have booked flights on Air New Zealand coinciding with the concert dates. One Air New Zealand executive said the surge is one of the greatest it’s ever seen for travel between the two countries. Wade adds the airline recently announced it’s adding 2,000 new seats from three major New Zealand cities to Melbourne and Sydney. Australia airlines have also seen enormous demand for Swift-related travel. Virgin Australia registered a more than 600% jump in bookings to Melbourne and Sydney during Swift concert dates. Next, the U.S. tourism industry is continuing to make strides in its recovery from the pandemic. International travel to the country hit 83% of pre-Covid figures in March, writes Global Tourism Reporter Dawit Habtemariam. More than 5 million overseas visitors came to the U.S. in March, according to the National Travel and Tourism Office’s latest data. That number is 83% percent of pre-pandemic levels. International visitor volume also topped 80% of pre-Covid levels in February of this year. Habtemariam notes the U.S.’ top overseas markets in March — outside of Canada and Mexico — were the UK, Germany and Japan. Finally, financial concerns are driving Europeans to modify their travel plans, writes Reporter Jess Wade.Wade reports a recent survey by the European Travel Commission is highlighting a shift in consumer behavior toward cheaper options. As 24% of European travelers worry about the overall rise in trip costs, the commission’s president Miguel Sanz said many people are looking for more affordable experiences or considering off-peak travel to stretch their budgets. The study found that 17% of travelers aim to travel off-season to get better prices while 14% plan to vacation in destinations they consider more affordable. 

Episode NotesToday we present an excerpt from the latest episode of The Skift Podcast, featuring Senior Hospitality Editor Sean O’Neill interviewing Travel Tech Reporter Justin Dawes about his experience last week at the Hospitality Industry Technology Expo and Conference—better known as HITEC, "the world’s largest hospitality technology show.”You can listen to the full interview detailing Justin’s take aways about the conference and the state of hospitality tech on The Skift Podcast. Find all of Justin’s excellent reporting from Hitec at Skift.com, including comments from industry executives and videos of the cutting edge technology that was on display.

Ask Skift Is the AI Chatbot for the Travel Industry: Ask Skift Your QuestionsEpisode Notes Hotels are increasingly viewing wellness as a way to attract travelers placing a greater emphasis on their physical and mental well-being. So what strategies are hotel brands taking? Senior Hospitality Editor Sean O’Neill reports in this week’s Early Check-In column that a recently published report is providing some answers.O’Neill writes a report by consultancy firm RLA Global is a rare effort to quantify wellness trends in hotels. That report analyzed data at more than 2,500 properties worldwide with some wellness, which include gyms, spas and yoga classes. O’Neill notes the report indicates hotels need to make significant investments in wellness activities for the sector to be profitable. He adds an extensive wellness offering typically translates into higher occupancy, higher average daily revenue gains and higher profit. Next, Tripadvisor’s Viator brand and GetYourGuide are two of the biggest players in the tours and activities sector. So after GetYourGuide recently announced a nearly $195 million investment round, how does it match up against Viator? Executive Editor Dennis Schaal looks for answers.  Schaal acknowledges that it’s tough to say definitively if Viator is growing faster than GetYourGuide. While Tripadvisor is worth close to $2.5 billion, GetYourGuide is a private company that doesn’t publish its financial records. Although a source close to GetYourGuide argued that it’s larger than the standalone Viator brand, Schaal writes the edge in number of bookable tours and activities appears to go to Tripadvisor.Meanwhile, a partner at Tourpreneur, a company that provides advice to tour operators, said he believes Tripadvisor is likely leading in the U.S. while GetYourGuide holds the top spot in Europe. Finally, major airlines are getting a major boost from advances in the increasingly lucrative in-flight entertainment industry, reports Associate Editor Rashaad Jorden.Jorden writes that carriers such as American Airlines and JetBlue Airways have teamed up with streaming services in recent years. American offers the use of an Apple Music subscription to stream inflight without the purchase of Wi-Fi. Meanwhile, JetBlue will provide passengers the opportunity to stream content from Peacock starting this summer. A JetBlue executive said travelers with a Peacock account will be able to stream all of the platform’s content from their own devices during flights. Jorden adds that airlines’ efforts to enhance their in-flight entertainment options have gotten a helping hand from improved aircraft designs. Hawaiian Airlines and United Airlines are introducing new in-flight entertainment systems on aircraft that will start flying in the next two years. 

Episode NotesAirlines flying out of the New York City area have had a terrible recent stretch, with severe weather and a shortage of air traffic controllers contributing to thousands of flight disruptions just before the Fourth of July. But perhaps the hardest hit carrier was United Airlines — especially at its hub Newark, reports Edward Russell, editor of Airline Weekly, a Skift publication. Newark was the only airport where United saw triple digit flight cancellations through Wednesday this week. So what helped cause the large number of disruptions? Russell notes New York City-area air travel was bound to face significant distress this summer. The Federal Aviation Administration acknowledged earlier this year it had a shortage of air traffic controllers. It even allowed airlines to reduce schedules by up to 10% at the three major New York City-area airports this summer. Russell notes the measure aimed to limit disruptions from severe weather while noting it was only a question of when those storms took place. Next, the U.S. government has invested billions of dollars to upgrade the country’s infrastructure. However, MGM Resorts International CEO Bill Hornbuckle believes too much of that infrastructure spending has been focused on aviation, reports Senior Hospitality Editor Sean O’Neill. Hornbuckle said in an interview with Skift that ground transportation is more important than air in most destinations and for more travelers. He added he wants to see ground transportation get a fair share of already approved budget money. Hornbuckle noted that at least $110 billion out of the federal money earmarked for infrastructure projects could be used to benefit tourism. O’Neill writes a U.S. Transportation Department had identified about 100 roads, railways and bridges that needed improvement to support tourism nationwide. Fifteen of them were deemed essential. Finally, advances in hotel technology took center stage at this week’s HITEC travel tech conference in Toronto, reports Travel Technology Reporter Justin Dawes in this week’s Travel Tech Briefing.Dawes reports that while property management systems and new door locks are critical for businesses, those aren’t the displays drawing crowds. He writes that robots and holograms are most popular. The conference showcased, among other products, an artificial intelligence-powered robot that could deliver wine directly to a guest’s room. 

Have a question about the business of travel? Get your answer at Ask Skift.Episode NotesInflation is still a major concern for many American travelers, but rising prices aren’t putting a dent in travel demand. More than 50 million Americans are expected to travel for this year’s Fourth of July, reports Associate Editor Rashaad Jorden. Travel organization AAA projects the number of Americans traveling for this year’s holiday will surpass the record set in 2019. A AAA executive said consumers are still looking to travel in large numbers despite concerns about inflation. Roughly 64% of respondents to a survey by travel news site The Vacationer said surging prices were affecting their travel planes.Jorden notes the U.S. airline industry is also optimistic about a banner Fourth of July weekend. The TSA projects more than 17 million travelers will fly for the holiday. In addition, the agency anticipates setting a single-day record for screenings on June 30. Next, Priceline has become the latest online travel agency to enter the world of artificial intelligence. The company has released an AI-powered platform as well as an AI chatbot, writes Reporter Jess Wade. Wade writes Priceline’s new AI platform Trip Intelligence provides travelers a list of personalized hotel recommendations and enhanced payment security among other features. Meanwhile, Priceline’s AI chatbot — named Penny — can be used as a local guide, help desk contact and 24/7 concierge. The company added that Penny can complete bookings within the chatbot interface. Priceline’s announcement came shortly after Booking.com unveiled an AI-powered trip planner as part of its Genius travel rewards program.We end today with a look at the occupancy levels for short-term rentals. Are they up or down? Short-Term Rentals Reporter Srividya Kalyanaraman writes the answer depends on what data you’re looking at. Short-term rental firm platform Beyond reported that occupancy levels for this July were roughly 5 percentage points under the figure from the same month last year. However, short-term rental data provider AirDNA found occupancy levels were a little more than 5 percentage points above 2019 levels in May of this year. The company also said demand for short-rentals increased roughly 12 percentage points in May 2023 from the same month a year ago. Kalyanaraman writes there are several reasons for the discrepancies, including base-year comparisons and seasonal changes. 

Episode NotesSeveral major U.S. cities are facing a similar challenge in their quest to make a full recovery from the pandemic — the absence of suburban residents. Urban destination marketing organizations acknowledge they need the critical group to help boost visitor numbers, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that prior to the pandemic, suburban residents often commuted to the city for work and then attended various events. Those activities kept businesses running and cities vibrant, which benefited local tourism industries. However, destination marketing organizations admit to having to counter negative perceptions about crime in their cities. In addition, the rise of remote work has made promoting activities more difficult to suburbanites making fewer trips downtown. Habtemariam writes some cities are launching campaigns to convince suburban residents to frequent urban attractions, citing Chicago and Minneapolis as examples. He adds that suburbanites can be ambassadors for nearby destinations, often helping encourage travelers to spend time in major cities. Next, executives from Amazon Web Services are bullish on artificial intelligence transforming how travel companies offer personalized customer service — possibly as early as next year, writes Travel Technology Reporter Justin Dawes. Amazon Web Services representatives at this week’s HITEC travel tech conference in Toronto explained how they’re working with major travel brands eager to incorporate advanced AI into their operations. Amazon Web Services has found only 15 percent of travel companies are using AI at an advanced level. But one executive said she expects to see more hyper-personalized content in the travel industry. Amazon Web Services has already worked with Hyatt to help the hotel giant make personalized recommendations for customers, including specific hotels that matched their interests.  Dawes adds that hyper-personalization means companies will be able to present images and text based on detailed data customers provide. Finally, Booking.com is rolling out on Wednesday an artificial intelligence-powered trip planner as part of its Genius travel rewards program. But that trip planner will use OpenAI’s ChatGPT as its base instead of Google Bard, reports Executive Editor Dennis Schaal.Schaal writes Booking.com’s decision is somewhat surprising considering its long relationship with Google. Booking.com is one of Google’s largest travel advertisers. However, Schaal notes critics have largely held OpenAI’s ChatGPT in higher regard than Google Bard. Booking.com said its own AI Trip Planner will field questions on its mobile app from travelers about destinations and accommodation options. 

Episode NotesChina was a major market for Carnival Corporation prior to the pandemic. But despite Beijing lifting the country’s strict travel curbs earlier this year, the cruise line isn’t returning to China in the near future, writes Global Tourism Reporter Dawit Habtemariam. Carnival CEO Josh Weinstein said on Monday the company’s strong second quarter did not reflect a return to China, and added the company would “be on the sidelines” for a few years. Roughly 1 million Carnival guests came from China in 2019. Meanwhile, Weinstein described the company’s onboard revenue as “off the charts.” Habtemariam reports more than a third of Carnival’s onboard revenue over the 12 months have been booked in advance. However, despite that higher consumer spending, the company’s shares fell 10 percent, after Carnival executives noted rising labor and fuel costs. Carnival Chief Financial Officer David Bernstein said the company incurred $13 million in higher fuel costs. Next, speaking of China, strong performance over the country’s most recent national holiday is a major sign international travel is rebounding, reports Asia Editor Peden Doma Bhutia. Bhutia writes China’s three-day Dragon Boat Festival holiday revealed a noticeable rebound in outbound travel. International border crossings during the holiday period hit 65 percent of 2019 levels, according to government officials. Bhutia notes that Hong Kong was the most popular destination for travelers living in Mainland China, with hotel bookings made by Mainland Chinese for Hong Kong trips recording a substantial increase from last year. China had the largest outbound travel market in the world before the pandemic, both in terms of number of trips and total spend. Finally, delays in Europe visitor visas are driving more Indian travelers to book trips closer to home, reports Asia Editor Bhutia and Middle East and Asia Reporter Amrita Ghosh.As one India-based travel executive admitted those delays are concerning to those looking to visit Europe, online travel company MakeMyTrip said Indian travelers are increasingly interested in Asian destinations. The company notes Thailand, Singapore and Malaysia are among the top five choices for Indian travelers. In addition, 92 percent of travelers expressed a desire to explore domestic destinations, according to a recent survey by budget hotel operator Oyo.

Episode NotesHong Kong-based carrier Cathay Pacific said on Friday it expects to turn a profit in the first half of 2023 after years of losses. But the company’s slow recovery is a concern in the airline industry, reports Edward Russell, editor of Airline Weekly, a Skift publication.Cathay Pacific’s expected profit comes after it posted a roughly $320 million dollar loss in the first half of last year. Russell writes Cathay Pacific was hit hard by the Hong Kong government’s strict Covid-era travel curbs, most of which were only lifted last December. Those restrictions severely limited Cathay Pacific, an airline with no domestic market to serve. Although Cathay Pacific has seen a surge in travel demand, Russell adds it still lags behind regional rival Singapore Airlines. He notes that Singapore Airlines used the pandemic to accelerate plans to streamline its operations while Cathay Pacific is still focused on rebuilding its network. Next, the U.S. has unveiled plans to open consulates in the Indian cities Bengaluru and Ahmedabad. U.S. officials believe those consulates could help expedite the visa application process for Indian travelers, writes Middle East and Asia Reporter Amrita Ghosh.Ghosh reports visa delays represent the single biggest impediment to growth in travel between the U.S. and India, with India emerging as the U.S.’ second-largest visitor source market outside of North America. U.S. lawmakers have urged the Biden administration to tackle the issue of lengthy visa wait times. There has been some improvement: Wait times for visitor visas at some U.S. consulates in India have recently decreased in half, from more than 600 days. Finally, the owners of the Spain-based Hotel Finca Cortesín have opened a new propertylocated inside a 17th century palace, reports Contributor Leslie Barrie.Barrie notes the Mallorca-based Gran Hotel Son Net is the second hotel venture from the team behind the Finca Cortesín. Finca Cortesín Hotels Managing Director Rene Zimmer is adamant the new property isn’t a boutique hotel or resort. But Zimmer said it will have plenty of local touches, including serving mostly Mallorcan wine and food grown on the island. Barrie writes the Gran Hotel Son Net’s staff believes its focus on local themes will resonate with guests.