Skift Daily Travel Briefing

Episode NotesVisa processing delays have hurt the travel industry’s recovery, especially in the U.S. and Europe. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for more information about how lengthy visa waits are impacting tourism. Jorden reports visa delays for the U.S.’ top inbound markets top 400 days on average. U.S. Travel Association CEO Geoff Freeman said at the recent Skift Global Forum that the long visa wait times make the U.S. an unwelcoming environment for travelers and the U.S. is losing ground in the race to attract tourists. Meanwhile, lengthy visa waits for travel to Europe are driving more Indian travelers to visit destinations closer to home. One India-based travel executive said it’s taken travelers as long as 45 days to land an appointment for a Schengen visa. Next, the Four Seasons recently enhanced its latest marketing campaign that showcases employees’ efforts to enhance customers’ stays. Senior Hospitality Editor Sean O’Neill said the Four Seasons is looking to unveil more guest-centric tech, including mobile keys for all guest rooms. The company is also working to enable guests to pay check-out invoices from their phones. However, Marc Speichert, the Four Seasons’ executive vice president, said the hotel isn’t looking to add any large properties to its portfolio. Finally, African travel executives believe the continent’s growing middle class could significantly boost tourism, especially domestic tourism, writes Travel Experiences Reporter Selene Brophy.Brophy reports that South Africa in particular has had a surge in domestic tourism. The sector has seen a 31% jump in overnight trips during the first four months of 2023. And domestic travel spending in the country has increased 41% in the same period. Analysts believe the growth could be replicated around Africa. The World Bank estimated that the continent was home to a pre-pandemic middle class of 170 million people. In addition, Brophy writes Africa has the youngest population in the world, with more than 60% of Africans under the age of 25. 

Episode NotesWyndham Hotels & Resorts executives used strong language Thursday to explain to investors why they were rejecting the $9.8 billion hostile bid from Choice Hotels, reports Senior Hospitality Editor Sean O’Neill.  O’Neill writes Wyndham executives highlighted a lack of cash up-front and Choice’s alleged weaker performance as major concerns about a deal. In addition, Wyndham said any deal between the two companies would take more than 12 months to clear regulatory review.The prospects for a deal aren’t completely dead, but it faces long odds. “It’s hard for us to say no more than we’ve already said no,” said Stephen Holmes, chairman of Wyndham’s board. Next, Royal Caribbean executives are optimistic they’ll see strong demand for cruises in China when they return there next April, writes Global Tourism Reporter Dawit Habtemariam. Royal Caribbean International CEO Michael Bayley said during the third-quarter earnings call that the company has seen strong bookings for China sailings next year. Bayley added that bookings are already ahead of 2019 levels, a record year for Royal Caribbean. Habtemariam reports the company doesn’t expect a slowdown in consumer spending, with Royal Caribbean customers having a median household income of above six figures. Finally, a Dubai billionaire believes the city is home to too many millionaires and it doesn’t have enough resources to cater to its increasingly wealthy population, writes Middle East Reporter Josh Corder.Real estate magnate Mohamed Alabbar, one of Dubai’s wealthiest men, said the city’s growth isn’t sustainable. Corder reports Dubai’s population is expected to increase from the current 3.5 million to 5.5 million by 2030. A recent report stated the United Arab Emirates is expected to attract a large number of millionaires from India. Alabbar added one of Dubai’s problems is that the city is trying to build too much, too quickly.

Episode NotesHilton’s third-quarter earnings call suggested that U.S. hotel demand is returning to pre-pandemic norms. However, the company is seeing bookings surge at its overseas hotels, reports Senior Hospitality Editor Sean O’Neill.Hilton’s revenue per available room — an important industry metric — rose only 3% in the U.S. in the third quarter. But it jumped 39% in the Asia-Pacific region. Hilton also reported worldwide growth in revenue per available room across all customer segments. The company generated $379 million worth of net income in the third quarter, a roughly 10% jump from last year. Next, Taylor Swift’s Eras Tour has had an enormous impact on hotel bookings around the U.S. (and Kansas City Chiefs viewership), but what about the short-term rental industry? Short-Term Rental Reporter Srividya Kalyanaraman examines the boost Swift has provided the sector.Kalyanaraman reports that the Eras Tour contributed roughly $10 million to the short-term rental industry. In addition, the 20 U.S. cities that hosted shows during the Eras tour registered a 28% increase in revenue per available room. Jeff Breece, an executive at revenue management program Beyond Pricing, said cities also saw double-digit increases in occupancy and average daily rates.  Finally, vacation rental brand Vrbo has recently cut ties with a large number of hosts who have canceled guest bookings too frequently, reports Executive Editor Dennis Schaal. Tim Rosolio, an Expedia Group vice president, said at a conference this week that Vrbo, an Expedia Group brand, has essentially been getting rid of bad apples from its ranks. He said that unnecessary cancellations could not only anger guests but turn them off from booking a vacation rental again. Rosolio noted that Vrbo has always viewed how many properties it has as a bit of a vanity number. In addition, Vrbo has also decided to levy penalties of up to 50% of a gross booking against hosts who cancel too much.

Episode NotesTaylor Swift wasn’t the only major pop star responsible for a tourism boom this summer. Beyonce’s Renaissance Tour helped lift hotel bookings across the U.S. and Europe, writes Senior Hospitality Editor Sean O’Neill.O’Neill cites Cardiff, Wales, Cologne, Germany and Houston, Texas, as cities where hotel bookings surged during stops on Beyonce’s tour. Hotels in her hometown of Houston generated $18 million in revenue on the nights of her concerts, a 45% jump from the same weekend last year.  However, O’Neill notes some cities — including London, Boston, and Las Vegas — didn’t register a noticeable bump. He adds shows on weeknights during the school year were much less likely to drive travel demand. Next, Airbnb has been accused of violating a temporary restraining order in a New York City building, reports Executive Editor Dennis Schaal. The owner had placed the building on New York City’s so-called banned building list, which blocks short-term rentals. However, the contempt motion alleges that guests were seen in the apartment on October 17 and that the listing was still on Airbnb. Schaal writes the building owner asked the judge to impose penalties for an alleged violation related to a short-term rental listing. A hearing is scheduled for October 30 in a New York State court. Finally, prominent airline industry executives will gather for the Skift Aviation Forum in Fort Worth, Texas on November 1. Edward Russell, editor of Skift publication Airline Weekly, lists five topics he’s looking forward to discussing at the Forum.  Russell writes that, despite constant warnings about economic downturns, the global airline industry is continuing to make progress in its recovery. While he notes that corporate travel in the U.S. has plateaued in its rebound, international travel has continued to boom. Transatlantic demand set records this summer, and many industry figures expect transpacific to surge as well. 

Episode NotesQatar Airways CEO Akbar Al Baker, one of most influential executives in the global airline industry, announced on Monday he’s stepping down, effective November 5, writes Reporter Ajay Awtaney. Under his leadership, the airline has grown from five aircraft in 1996 to 258 aircraft today. Al Baker also played a critical role in the opening of Hamad International Airport, which has served as Qatar Airways’ hub since 2014. Badr Mohammed al Meer, the airport’s current Chief Operating Officer, will replace Al Baker as Qatar Airways CEO. Next, Airbnb has emphasized South Africa in its quest to substantially boost international revenue. Indeed, the short-term rental company reported on Monday that host revenue in the country is 25% above pre-pandemic levels, writes Travel Experiences Reporter Selene Brophy. Brophy reports that users who listed South African properties on Airbnb generated roughly $211 million of revenue last year. The company said it has about 65,000 South African listings, triple the number it had in 2017. And Brophy notes Airbnb has plenty of room to expand in South Africa as the country has yet to make a full tourism recovery.  Finally, Meta is among a growing number of companies that have released artificial intelligence-powered tools that can be used for travel. So how does Meta’s new chatbot perform? Travel Technology Reporter Justin Dawes explains what it gets wrong.Dawes tested the chatbot on WhatsApp and noted several errors, including links to articles with outdated information. Dawes adds that Meta AI struggles with itinerary creation. He writes the chatbot produced a barebones itinerary following several steps, which included asking for details about restaurants and museum exhibits. 

Episode NotesFirst, the U.S. Department of State has issued a message urging all Americans traveling abroad to “exercise increased caution” due to heightened tensions in various locations and potential terrorist attacks and violent actions against U.S. citizens. The alert is in response to the global consequences of the ongoing war between Israel and Hamas, writes tourism reporter Dawit Habtemariam.Americans traveling abroad were advised to stay alert in locations frequented by tourists, enroll in the Smart Travel Enrollment Program to stay updated, and follow the State Department on Facebook and Twitter.Next, AirDNA, which analyzes short-term rental data from Airbnb and Vrbo, has launched a feature to help investors make profitable decisions when purchasing homes for vacation rentals, writes executive editor Dennis Schaal.Investors can now view homes for sale through AirDNA, as well as view estimates for how they have fared as short-term rental properties regarding occupancy, average daily rates, and revenue. Currently, it shows homes for sale in the U.S. only. The UK and France would likely be the next countries on tap for expansion.Finally, Air India Express unveiled its new look on a brand new Boeing 737–8 aircraft. The message was clear: A break away from its staid image as a sleepy subsidiary no one talks about, writes reporter Ajay Awtaney.The airline’s visual identity now features a bright color palette of orange and turquoise, with tangerine and ice blue as secondary colors. It has built its branding around the letter X, and is clearly trying to connect with a younger generation. Each aircraft livery will feature a variable tailfin design inspired by India’s art and crafts heritage. This is one of several investments being made with a goal for Air India Express to become a dominant carrier in India and serve international markets from India. 

Episode NotesGoogle is constantly tweaking its hotels platform, and the latest iteration contributes directly to the democratization of the online travel industry, writes Skift Research analyst Pranavi Agarwal.Skift Research conducted a study of Google Hotels platform. Here are three insights from the analysis: paid sponsored listings are dominated by the largest online travel agencies; the introduction of organic results is allowing direct sites and smaller online travel agencies to compete head-on with Booking and Expedia; and Google Hotels prioritizes the direct site in its organic results, with the official site most likely to appear on top, even when it is not the cheapest option. Next, there have been at least four travel tech acquisitions this month, writes travel tech reporter Justin Dawes. One of them was by property management system startup Mews, which acquired a small hotel AI startup called Nomi, whose tech is meant to help hotels deliver personalized recommendations based on data that guests provide. If the hotel can keep a profile on customers, then the hotel will have better information they can use to recommend activities and restaurants. And that data sets the groundwork for the useful implementation of future generative AI concierge tools. Finally, Premier Inn’s owner, Whitbread, said a shrinking supply of budget hotels in the UK will strengthen its pricing power for years to come, writes Senior Hospitality Editor Sean O’Neil.Premier Inn, the UK’s leading budget hotel chain, said the country’s independent budget hotel sector shrunk 10% between 2019 and 2022, with many not expected to reopen. This supply shortage is predicted to last for at least five years, presenting a growth opportunity for Premier Inn. Because of the company’s size, it can more easily obtain favorable loans and discounted supplies. Premier Inn also said that repeat guests made 86% of its bookings this year.

Episode NotesChoice Hotels has made a public bid to acquire Wyndham Hotels in what would be a hostile takeover. Valued at nearly $8 billion, the deal would combine the companies to create the largest franchisor of budget hotels in North America, writes Senior Hospitality Editor Sean O’Neil.Wyndham’s board of directors, however, publicly rejected the deal, citing regulatory and execution risks and they said the deal was not fair to its shareholders. Choice made its offer public after its talks with Wyndham broke down in September. The two had been in private negotiations over the past six months.Next, Expedia recently laid off around 100 employees in its recent round of job cuts. This is the online travel tech giant’s second round of layoffs in recent months, reports Online Travel Editor Dennis Schaal. Expedia’s recent layoffs follow Google, Hopper, Vacasa, Sonder and other tech companies cutting their workforces.One of the employees Expedia laid off was a director of program management for AI, machine learning and data. Finally, United reported strong in domestic demand in the third quarter. Analysts had been worried that the U.S. market would soften but United – and other airlines – aren’t seeing it yet. Profits in the Atlantic and Pacific regions reached “record highs.”

Episode NotesHilton will simplify how small-and medium-sized businesses book and manage billings for its small-group meetings and events and has opened a waitlist for Hilton for Business, reports Senior Hospitality Editor Sean O’Neil.To encourage sign ups, Hilton will run a loyalty program that rewards business owners with points that can go toward their businesses or their personal travel. Hilton will also offer bonus points based on the number of employee sign ups, stays and stays over time. Skift estimates the initiatives may be relevant to up to 70 million road warriors next year.Next, the ongoing war between Israel and Hamas have disrupted the operations of Royal Jordanian and Wizz Air, reports Airline Weekly Editor Ned Russell from the Routes World conference in Istanbul. To avoid flying through Israeli airspace, Amman-based Royal Jordanian has to now route flights either north over Lebanon and Syria, or south over Saudi Arabia and Egypt, said Royal Jordanian CEO Samer Majali at the conference.In addition, Wizz is canceling flights on a rolling four-day basis. Finally, Saudi Arabia’s futuristic NEOM super-city has unveiled a new region. Called Leyja, it’s a $500 billion sustainable and eco-tourism hub in the mountains, writes Middle East Reporter Josh Corder. The ultra-luxury project will include high-end stores, helipads and fine-dining restaurants. It will have at least three hotels, which will be called the Wellness Hotel, Oasis Hotel and Adventure Hotel. Each will have just 40 keys. An opening date for Leyja has not been announced yet.

Episode NotesAirbnb has been blamed in recent years for helping average rents in some cities increase. But Taylor Marr, Airbnb’s first senior housing economist, downplays its impact, reports Executive Editor Dennis Schaal.  Marr said, in an exclusive news interview with Skift, that Airbnb is launching a housing research program. Although Marr acknowledged Airbnb could have negative impacts on some communities, he played down the company’s role in rent increases. He cited a recently published Conference Board of Canada study that found there was no connection between Airbnb and rents. Next, Delta Air Lines struck a nerve with many of its customers when it made major changes to its SkyMiles loyalty program. However, the pushback the company received didn’t hurt its bottom line during the third quarter, reports Edward Russell, editor of Skift publication Airline Weekly.Delta CEO Ed Bastian said the company didn’t see a drop in bookings, spend levels or usage of its co-branded credit card with American Express. The Atlanta-based carrier changed its key loyalty metric to money spent with Delta. The company brought in roughly $1.7 billion during the third quarter under its deal with American Express. Bastian added that Delta plans to release updated requirements for its loyalty program soon. Delta generated a nearly $2 billion operating profit during the third quarter. The company’s revenue increased 11% from the same period last year. Finally, ever since the first generative AI chatbot was released almost a year ago, there has been widespread discussion about it might affect travel. Indeed, a trio of tech giants have recently unveiled travel-related AI products, writes Travel Technology Reporter Justin Dawes in his Travel Tech Briefing. Dawes explores the new offerings from Amazon Web Services, Meta and Microsoft. Amazon Web Services said its platform allows travel companies to build AI tools and apps that access their own proprietary data. As for Meta, it’s released a generative AI chatbot named Meta AI that could answer questions related to trip planning. Meanwhile, Microsoft revealed that users will be able to plan and complete corporate travel bookings through Microsoft 365 Chat. In addition, Microsoft said it’s working to pilot a travel assistant in partnership with travel technology company Amadeus.