Skift Daily Travel Briefing

Ask Skift Is the AI Chatbot for the Travel Industry: Go deeper into the business of travel with Skift’s new AI chatbot.Ask Skift Your QuestionsEpisode NotesThe Biden administration has taken another step to combat so-called junk fees. The Federal Trade Commission unveiled a proposed rule on Wednesday that would stop businesses — including those in the travel industry — from charging misleading fees, reports Associate Editor Rashaad Jorden. Jorden writes the rule would require companies to show consumers the full price of their purchase as well as whether fees are refundable. Under the FTC’s proposal, businesses that don’t comply with the agency’s regulations could face fines and possibly have to refund consumers. An FTC spokesperson told Skift that the agency will hold a 60-day public comment period after which it will decide any changes to the proposal. The FTC would then vote on a final rule.  Next, Disney has raised the price of tickets for both Disneyland and Disney World, writes Travel Experiences Reporter Selene Brophy. Brophy reports Disneyland raised one-day ticket prices by between 4% and 9% and also increased the prices of multi-day tickets. Meanwhile, Walt Disney World raised the price of its annual passes by nearly 10%, but it didn’t increase the price of daily tickets to any of its theme parks. One travel industry insider said Disney could be betting that a small monthly increase in payment won’t cause many pass holders to cancel. Finally, British Airways is the latest airline to suspend all flights to Israel following Hamas’ recent attack on the country, reports Edward Russell, editor of Skift publication Airline Weekly. British Airways has joined United Airlines, Ryanair and EasyJet and other airlines in suspending service to the country. However, Russell notes an extended conflict wouldn’t significantly impact the balance sheets of most major global airlines. Israel’s small size makes it easy for airlines to route flights around its airspace. Meanwhile, not every airline has suspended flights to Israel indefinitely. EasyJet and Ryanair currently plan to resume flights to the country before the end of the week. 

Episode NotesNew York City’s recently enacted stringent host registration rules for short-term rentals has led to a substantial reduction in Airbnb’s listings in the city. They’ve also helped create an underground market for Airbnb alternatives, reports Executive Editor Dennis Schaal in his weekly Online Travel Briefing.A recent article in Wired described New York City’s short-term rental regulations as “pure chaos.” Schaal cites a listing on Craigslist for a one bedroom property as one example of the booming underground market. Wired revealed that fewer than 500 hosts out of the 22,000 listings on Airbnb last summer are now registered. A spokesperson for an organization representing homeowners said short-term rentals are increasingly taking place in an unsafe environment for both hosts and guests.  Next, tourism to Morocco – especially the city of Marrakech – was hit hard by the massive earthquake that struck the country in September. But the city has just reached some important milestones in its recovery, writes Global Tourism Reporter Dawit Habtemariam.Although some areas affected by the earthquake remained closed to the public, Habtemariam reports several historic sites in Marrakech reopened to tourists recently. In addition, the city is hosting the 2023 World Bank and IMF Annual Meeting this week. One Moroccan tourism official said more than 14,000 people are expected to come to Marrakech for the event. Finally, Virgin Australia recorded a profit for its fiscal year ending in June, the airline’s first in 11 years. However, the company still has a long way to go to catch up to rival Qantas, reports Jay Shabat, senior analyst at Skift publication. Shabbat writes Virgin Australia notched an $87 million net profit and a 9% operating margin during the fiscal year. Virgin’s return to being in the black comes after it had restructured in bankruptcy during the pandemic. However, Virgin was less profitable than Qantas, which reported a 14% operating margin. Qantas also generated a little more than six times Virgin’s revenue during the fiscal year. 

Episode NotesIsrael had high hopes this year for its tourism sector this year as it sought to surpass 2019 visitor numbers. But Hamas’ surprise attack on the country, which has led to at least 1,000 deaths, has completely halted Israel’s tourism industry, writes Middle East Reporter Josh Corder and Asia Editor Peden Doma Bhutia. Corder and Bhutia report that major airlines worldwide, including American Airlines and Air India, have stopped routes to Israel. Meanwhile, several governments, such as the U.S., have issued “Do Not Travel” warnings to Gaza and urged their citizens to exercise caution when traveling to Israel. Israeli officials had expressed optimism earlier this year the country could set tourism records in 2023. However, Israel was already struggling to meet its targets before the recent attacks. Furthermore, carriers halting flights from the Americas and Europe, both large source markets, will likely have a major impact on visitor numbers for the rest of the year.    Next, Airbnb is ending its Airbnb Plus program, reports Executive Editor Dennis Schaal. Schaal writes Airbnb viewed the program as a way to obtain and promote and push exclusive listings that satisfied roughly 100 design expectations. However, he notes that Airbnb Plus sputtered and never came close to meeting expectations, with several industry experts questioning the usefulness of it for both hosts and guests. In addition, Airbnb hasn’t onboarded any new Airbnb Plus listings in some time. The official end date for the program is November 6. Finally, Puerto Rico is launching a new tourism campaign geared towards travelers unable to take certain trips because they couldn’t obtain their passport in time, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports that the “No Passport, No Problem” campaign will launch next month. It aims to remind Americans they don’t need a passport to visit Puerto Rico, a U.S. territory. Discover Puerto Rico Chief Marketing Officer Leah Chandler said about a third of Americans are unaware that trips to the island don’t require a passport. While the number of Americans traveling abroad is continuing to surge, Habtemariam notes that the average wait time to get a U.S. passport is between 10 and 13 weeks. 

Episode NotesSaudi Arabia has just announced it will bid to host the FIFA World Cup in 2034. A big question is, if chosen as the host, will the kingdom stage the first entirely alcohol-free World Cup, writes Middle East Reporter Josh Corder.Corder reports Saudi Arabia would have all the event spaces it needs as well as some of the world’s luxurious hotels by 2034. However, Saudi authorities would have to determine whether to ease the country’s long-standing ban on alcohol. Fellow Gulf State Qatar severely restricted the sale of alcohol when it hosted the World Cup last year after having initially announced that stadiums would serve booze.John Pagano, CEO of the Saudi government-owned Red Sea Global, said earlier this year that serving alcohol was not on the agenda for the country’s tourism industry. Next, Europe’s short-term rental industry has been blamed for an array of problems affecting the continent, including overtourism. But sector representatives argue they shouldn’t be the scapegoat for bad policies, writes Short-Term Rental Reporter Srividya Kalyanaraman. Viktorija Molnar, the acting secretary general of the European Holiday Home Association, defended the short-term rental industry in an interview with Skift. Molnar cited poor management as the reason why cities such as Barcelona and Amsterdam have suffered from overtourism. She also said the short-term rental industry has been attacked by politicians eager to show they’re working to solve the continent’s issues. Finally, VisitBritain will develop a tourism campaign featuring locations appearing in movie and TV shows, writes Global Tourism Reporter Dawit Habtemariam. VisitBritain CEO Patricia Yates said at the recent Skift Global Forum that British officials will tap into pop culture as part of its strategy to boost tourism. Yates cited Bristol, where the Charlie and the Chocolate Factory prequel Wonka was filmed, as one destination the organization would heavily promote. VisitBritain had previously featured Harry Potter and James Bond in its marketing campaigns.  Habtemariam writes VisitBritain is using film tourism to help spread tourism beyond London. The organization said roughly a third of potential tourists are interested in visiting locations used in filming and seen-on-screen. 

Episode NotesHilton has just released its annual whitepaper documenting major travel trends. So what did it reveal? Senior Hospitality Editor Sean O’Neill documents the three trends he found most noteworthy.O’Neill reports that only a small percentage of Hilton’s guests are checking in via the company’s app despite its efforts to upgrade the platform. He adds that other hotel groups may see even lower percentages of guests checking in via apps. In addition, Hilton has joined rival Marriott in unveiling a series of non-alcoholic cocktails. O’Neill writes that’s a sign prominent corporations believe mocktails can generate a lot of revenue. Hilton’s report also said that interest in all-inclusive resorts is booming, with O’Neill noting that event organizers are seemingly more eager to hold gatherings at resorts. Next, Saudi Arabia has announced it will bid to host the FIFA World Cup in 2034, writes Middle East Reporter Josh Corder.The kingdom is looking to follow in the footsteps of fellow Gulf State Qatar, which hosted the event last year. Corder notes Saudi Arabia must satisfy new hosting requirements to earn the right to stage the tournament. FIFA’s regulations for aspiring host countries include respecting human rights and committing to sustainability. Saudi Arabia’s World Cup bid is its latest effort to boost tourism through hosting major sporting events. Finally, China’s resurgent domestic travel industry is helping boost the global air travel recovery, reports Edward Russell, editor of Skift publication Airline Weekly. Airline passenger traffic was nearly 96% of 2019 levels during August, according to the International Air Transport Association. That figure is the closest to pre-pandemic levels since the start of the crisis. Russell writes that the return of Chinese domestic travelers drove the increase in air traffic worldwide. Domestic air traffic in China nearly doubled compared to last year.  

Episode NotesThe U.S. tourism industry has made progress in its recovery from the pandemic, but two major issues are hurting its ability to attract international travelers. What are they? Long wait times for visitor visas and outdated air infrastructure, writes Global Tourism Reporter Dawit Habtemariam. Executives speaking at the recent Skift Global Forum said the U.S. is facing fierce competition from overseas destinations that have improved their tourism infrastructure. NYC Tourism+Conventions CEO Fred Dixon highlighted Saudi Arabia as one destination his city is competing against for tourists. In addition, U.S. Travel Association CEO Geoff Freeman said long visa wait times in some top markets will cost the U.S. $12 billion in traveler spending. Freeman added those long waits don’t make the U.S. a welcoming environment. In addition, Freeman described air travel to the U.S. as a hassle as roughly 23% of all U.S. flights are delayed or canceled. Next, Air France-KLM will take a minority stake in bankrupt Scandinavian carrier SAS as part of a nearly $1.2 billion deal unveiled Tuesday, reports Edward Russell, editor of Skift publication Airline Weekly.Air France-KLM will invest $145 million for almost 20% stake in SAS as part of an investor consortium that includes the Danish government. SAS will join the SkyTeam Alliance with Air France and KLM as part of the Chapter 11 restructuring deal. Russell writes the deal is the latest in a wave of European airline consolidation that includes the Lufthansa Group’s pending acquisition of Italy’s ITA Airways. Russell adds Air France-KLM would see its share in Scandinavia, an area long seen as Lufthansa’s backyard, increase. Finally, United Airlines has placed an order for 110 Airbus and Boeing planes amid ongoing constraints limiting flight schedules, reports Airline Weekly Editor Russell.United said on Tuesday that the 110 planes will be delivered between 2028 and 2031. Russell writes the orders are driven partly by United’s need to replace older jets by the end of decade. The carrier is looking to grow at the capacity-constrained airports around the world. Russell adds United’s latest order will enable it to add seats to its existing schedules at, among other airports, Newark and San Francisco. 

Episode NotesExecutives speaking at the recent Skift Global Forum said hotel operators and short-term rental managers are not fighting for the same customers. However, hotel owners and Airbnb both have growth ambitions that could lead to more competition, reports Senior Hospitality Editor Sean O’Neill.  The heads of both Hilton and Airbnb said at the Forum that lodging isn’t a winner-take-all market but one in which multiple companies can coexist. Airbnb CEO Brian Chesky added the overlap between hotels and Airbnb is smaller than most people realize. But, O’Neill writes the future of lodging will probably see hotels and short-term rental providers increasingly go after the same travelers. While Chesky argued hotels don’t serve people seeking extended stays well, O’Neill notes hotels are increasing extended-stay options. Nearly a third of the construction pipeline for hotels in the U.S. is extended-stay projects, according to industry advisory firm Lodging Econometrics. Next, Marriott recently gave a 144-slide presentation to analysts documenting its strategy for years to come. So what were the highlights? Senior Hospitality Editor O’Neill provides analysis of the five most eye-catching sides.  O’Neill reports Marriott has plans to grow its footprint, including adding about 40,000 net rooms over the next three years. The world’s largest hotel company is also looking to expand outside of North America. Close to 40% of its current rooms are outside of the U.S. and Canada.In addition, Marriott has seen its non-room revenue rise significantly in recent years. Roughly 20% of Marriott’s total fee revenue comes from sources other than traditional room bookings. That figure was only 5% about a decade-and-a half ago.Finally, Japan Airlines has substantially upgraded its business and first class cabins as it prepares the Airbus A350-1000 to be its flagship long-haul aircraft, writes Reporter Ajay Awatney. Japan Airlines will add doors to both business and first class cabins. The company will also introduce industry-first features, such as large partitions in its premium economy seating. It’s part of Japan Airlines’ strategy to help improve privacy for travelers. The A350-1000 will start flying on the Tokyo-Haneda to JFK Airport route by the end of 2023.

Episode NotesTravel executives from some of the industry’s most important companies will be speaking at the 10th annual Skift Global Forum this week in New York City and they’ll address a wide range of topics. When it comes to the future of travel, Skift CEO and founder Rafat Ali has outlined four major themes that will impact travel the most: demographic shifts, the widespread loneliness crisis, the evolving future of work and the urgent need for climate adaptation. All pose significant challenges – but also opportunities. As the world’s population ages rapidly, the travel industry can craft experiences for an older yet increasingly active population. To address loneliness, it can create group travels centered around shared interests and themes.Next, Hospitality group Ennismore has taken major steps to market its all-inclusive resorts in its push for 100 resorts by 2027, reports Senior Hospitality Editor Sean O’Neill.The company’s all-inclusive resort collection currently has 38 properties, and Ennismore co-CEO Gaurav Bhushan expressed confidence his company could stand out in a segment that O’Neill notes is typically dominated by generic offerings. Finally, tourism-dependent destinations such as Morocco and Maui have been decimated by natural disasters recently. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, to find out how events like earthquakes and wildfires impact tourism.As the aftermath of natural disasters often includes massive trip cancellations, Jorden writes Maui might see a decrease in visitors for the foreseeable future. Analysts at T.D have predicted that Maui’s rebound would “take years,” citing the two-year recovery for air travel demand to Puerto Rico after Hurricane Irma in 2017. Meanwhile, one Morrocan-based expert said the tourism to Marrakech, near the recent earthquake’s epicenter, would suffer for years, adding relying on the industry to revive would be illogical. However, Moroccan hotel managers have said business is gradually returning, especially with the upcoming World Bank Group annual meeting in Marrakech. 

Episode NotesHilton told hotel owners on Thursday it would move quickly to disclose mandatory fees upfront on all of its platforms, according to information Skift obtained, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes that Hilton’s support of fee transparency comes after it received legal pressure earlier this year. Texas’ Attorney General sued Hilton in May, alleging the company had a pattern of not disclosing the total price consumers would have to pay for a room upon booking. O’Neill adds a change in Hilton’s policy should help put an end to the lawsuit. Hilton follows in the footsteps of Marriott and Hilton, both of which now display mandatory resort fees upfront on their websites and apps. Next, U.S. tourism executives who recently visited China for the first time in four years said there’s growing demand there for travel to the U.S., writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that representatives from NYC Tourism + Conventions and Visit California have traveled to China in the past two months. Those trips came as the U.S. and China have taken steps to improve their tourism ties. China lifted in August its Covid-era restrictions on group tours to the U.S. In addition, both Beijing and Washington have agreed to double weekly flights between the two countries. NYC Tourism + Conventions CEO Fred Dixon said he’s seen inquiries about trips to the city increase since group tour restriction was lifted. Meanwhile, Visit California CEO Caroline Beteta noted that even China’s high youth unemployment rate hasn’t stunted pent-up demand for international travel. However, she added that Chinese looking to travel to the U.S. face long waits for visitor visas. Finally, Moroccan tourism managers said business is returning as the country recovers from an earthquake that decimated the country earlier this month. They expect a big boost from next month’s annual meeting of the World Bank Group, writes Middle East Reporter Josh Corder. While hotel bookings decreased immediately after the earthquake, Corder reports they’ve increased for October and beyond the country’s tourism hubs. Corder cites the Fairmont Royal Palm Marrakech as one hotel expecting a boom in business from the World Bank Group meeting. General Manager Jean-Francois Brun anticipates being fully booked for the event.  Corder also cited the Mandarin Oriental as another Moroccan hotel optimistic about the future. Its general manager Alain-Thomas Briere said the World Bank Group meeting is sending a message to the world that tourism to Morocco is about to resume. 

Episode NotesThe travel industry now – for the first time – has an index to track public travel stocks. Skift unveiled on Wednesday the Skift Travel 200, the first benchmark for measuring the $1 trillion-plus market for public travel companies. Senior Research Analyst Seth Borko reports the Skift Travel 200 will track travel company stock performance as well as analyze metrics such as revenue growth and profit margins. Borko adds that the Skift Travel 200 will be able to break down travel industry performance by sector. The index currently tracks 196 public companies from 34 countries, with each company classified into one of five travel sectors. Next, Airbnb CEO Brian Chesky provided updates on Wednesday about verified listings on its platforms and cleaning fees, among other issues, writes Short-Term Rental Reporter Srividya Kalyanaraman.Chesky tweeted that the company is building a new system to verify its listings. Each verified listing will have a special icon, which Chesky said is part of Airbnb’s efforts to assure users that listings aren’t fake. Airbnb plans to verify every listing in five countries — including the U.S., Canada, and Australia — in the next several months. Verified icons are set to appear on those listings starting next February.  Meanwhile, Chesky added that more than 200,000 listings have either reduced or removed cleaning fees since Airbnb started displaying the total price of stays last December.  Finally, Dubai is set to offer travelers more hotel rooms than Las Vegas by the end of the year, writes Middle East Reporter Josh Corder.Dubai is expected to have more than 154,000 hotel rooms, according to real estate consultancy firm Knight Frank. That’s roughly 2,000 more than what Las Vegas currently has. Dubai’s hotel count is projected to increase 6% from last year. Corder reports Dubai is seeing a surge in luxury hotel construction, with close to half of its planned rooms in luxury properties.