Skift Daily Travel Briefing

Episode NotesAirbnb hosts in New York City are rapidly approaching a September 5 deadline to register with the Mayor’s Office of Special Enforcement. So the company could see a large reduction in its New York City listings, reports Executive Editor Dennis Schaal. Airbnb had 23,000 active listings in the city as of July and Schaal writes many would be unable to accept stays under new enforcement. Airbnb has said it generated $85 million of revenue in New York City last year. Schaal adds due to regulatory pressures and other factors, Airbnb is a shadow of itself in New York compared to pre-pandemic years. The company had 36,000 active listings in New York City in July 2019, according to AirDNA. Next, the U.S. overseas travel boom is showing no signs of slowing down. Americans are traveling abroad in large numbers for Labor Day weekend, reports Associate Editor Rashaad Jorden.International travel bookings have risen 44% this Labor Day weekend from last year, according to travel organization AAA. The group also said international hotel bookings have increased 82% from last year’s holiday. AAA Spokesperson Aixa Diaz said pent-up travel was a major factor in the high number of international bookings. Meanwhile, travel news site The Vacationer found 57% of American adults plan to travel over the Labor Day weekend. That’s a 4 percentage point jump from last year.Finally, Indian travelers looking for a U.S. visitor visa will now find the process substantially less time consuming. Visa applicants can book interviews at U.S. consulates in India with no wait time, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter.The U.S. Consulate General in Mumbai said that applicants can schedule appointments for visa interviews within the standard time frame. It added that more than 900,000 nonimmigrant visa applications are being processed at the moment. U.S. Ambassador to India Eric Garcetti had said the goal for 2023 was to process at least one million visas. 

Episode NotesHyatt has joined MGM Resorts and Marriott in changing how they disclose resort fees on their websites and apps. However, those modifications still won’t quiet the growing uproar over so-called junk fees, reports Senior Hospitality Editor Sean O’Neill. In July, Hyatt began displaying nightly rates plus mandatory resort fees upfront on a traveler’s first search of its site and app. Hyatt’s move to more clearly disclose resort fees follows in the footsteps of Marriott and MGM Resorts. However, O’Neill notes the three companies still face unresolved grievances from some consumer advocates and government representatives. He adds one of the lingering issues is how hotel rates and fees are displayed on online travel agencies’ websites and apps. The three hotel groups have also quoted prices without including resort fees in ad and marketing campaigns. Next, amusement park corporation Six Flags has become the latest travel brand to hop on the artificial intelligence bandwagon. Six Flags is planning to release generative AI tools in partnership with Google Cloud, writes Travel Technology Reporter Justin Dawes. Dawes reports Six Flags is looking to release AI chatbots on updated versions of its app and park websites later this year. Six Flags said the virtual assistants would provide personalized recommendations and answers for visitors planning their trips. Google CEO Thomas Kurian said generative AI would enable Six Flags to redefine guest experiences. Finally, India’s hotel occupancy and room rates have finally recovered to pre-pandemic levels, writes Middle East and Asia Reporter Amrita Ghosh in the Skift India Newsletter.Ghosh reports that soaring demand for next month’s G20 Summit is a major reason for India’s strong hotel performance. One travel executive said the roughly 200 G20 meetings already held throughout India have placed some lesser-known destinations on the global tourism map. Meanwhile, FCM Consulting’s latest Global Trends Report revealed that India had Asia’s highest hotel occupancy rates in the first half of this year.

Skift Short-Term Rental Report: Skift’s latest newsletter focuses on the business of short-term rentals. Don’t miss out on essential industry news. Get a Trial SubscriptionEpisode NotesNew York City is behind in reviewing hundreds of short-term rental applications prior to a September 5 deadline requiring hosts to register with the Mayor’s Office of Special Enforcement, reports Executive Editor Dennis Schaal. The enforcement office told Skift it’s only reviewed roughly 25% of the more than 3,200 host applications submitted to date. The office added that more than half of the applications came in after August 8, when a judge dismissed an Airbnb lawsuit challenging New York City’s efforts to enforce its host registration rules. Hosts face fines up to for any violations. Google shut down its Book on Google feature for flights for overseas travelers last year. But those in the U.S. will be able to book some flights on Google to take advantage of its flight price guarantee, reports Executive Editor Dennis Schaal. Schaal writes Google announced it would end the service in the U.S. on or after March 31 of this year. That leaves the end date open-ended, though Google still intends to terminate Book on Google. The tech giant is trying to find another way to implement its flight price guarantee in the U.S. Schaal notes the issue is important because of the fear Google could become more of a booking-oriented online travel agency like Booking.com or Expedia. Finally, this year’s Men’s Cricket World Cup is driving up travel demand in the host country India, reports Research Analyst Saniya Zanpure.Zanpure writes travel companies are looking to cash in the cricket frenzy, a sport deeply embedded in Indian culture. Accommodation searches in the 10 host cities for match days have risen, on average, by 237% over the past year. In addition, airfares to some prominent host cities have increased between 40% and 60% during the same period. The Men’s Cricket World Cup runs from October 5 to November 19. 

Episode NotesA new report said JetBlue Airways is planning to raise airfares on routes flown by Spirit Airlines by as much as 40% if the two carriers’ proposed merger is approved, reports Edward Russell, editor of Skift publication Airline Weekly. JetBlue would increase fares between 24% and 40%, according to a report by legal news service Law360. The report cited documents released as part of a lawsuit brought by travelers looking to block the JetBlue-Spirit deal. The travelers suing JetBlue argued that the proposed merger would reduce competition for consumers. Russell notes their lawsuit is separate from the U.S. Department of Justice’s suit to stop the merger. JetBlue said in a statement that, without context, the information gave a “completely inaccurate picture of the facts” and that the proposed merger would result in low fares and better service. Russell adds that while airfares rose substantially last year, the average domestic airfare has dropped below pre-Covid levels. Next, travelers flying Qantas to the U.S. have historically arrived in Los Angeles to connect to other cities across the country. But the Australian carrier is looking to serve U.S. and Asian cities with a new plane order, reports Russell. Russell writes the airline has ordered 24 new long-range planes for both the U.S. and Asia that will see it add more nonstop flights to both regions. That means Qantas’ future will see more flying to Chicago and Seattle than Los Angeles. Qantas CEO Alan Joyce said on Thursday the new aircraft will enable the carrier to have more direct flights into the U.S.Finally, American Airlines has filed a federal lawsuit against hidden city flight platform Skiplagged, reports Executive Editor Dennis Schaal.Schaal writes that American alleges that Skiplagged sells flights without authorization and misleads flyers with deceptive offers, among other practices. Skiplagged is famous for offering hidden city flights, where passengers seeking a bargain ditch the rest of their journey at a layover. Schaal notes that airlines prohibit hidden city ticketing because of operational hassles and lost revenue. American is the latest major travel brand to sue Skiplagged, following Orbitz, United Airlines and Southwest Airlines. Skiplagged founder Aktarer Zaman told Skift he is fighting to protect consumer rights to find favorable airfares. 

Episode NotesMaui’s tourism industry faces an uncertain future as the island recovers from the massive devastation caused by recent wildfires. Maui’s hotels have suffered enormously in the aftermath of the destruction, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports that nearly half of all hotel rooms in Maui were unfilled last week. The island’s hotel occupancy rates were 49% for the week ending August 19, according to commercial real estate information provider CoStar. Although the Hawaii Tourism Authority is encouraging travelers to visit areas of Maui away from the destruction, Habtemariam writes the state’s tourism leaders are facing a messaging challenge regarding the island. Three major U.S. airlines have cut their number of scheduled flights to Maui over the past week. The wildfires have claimed more than 110 lives in addition to causing billions of dollars of damage.Next, U.S. hotel companies have viewed China’s economic boom as a vehicle to boost hotel development. However, China’s economic turmoil could derail their plans, reports Senior Hospitality Editor Sean O’Neill. Hilton, Hyatt and Marriott are companies that have unveiled major expansion plans for China. Although O’Neill lists several reasons why hotel executives find China enticing, including the potential to expand quickly, he notes the country’s current economic woes are complicating growth plans. Hotel development in China recorded an 8% year-over-year drop in the second quarter. In addition, Bloomberg Economics Chief Economist Tom Orlik said China’s biggest challenge is that’s working-age population is decreasing. The country population’s fell last year, with O’Neill writing that an aging population will create multi-year problems economically. Finally, Wynn Resorts expects to obtain a gaming license soon for the United Arab Emirates’ first casino, reports Asia Editor Peden Doma Bhutia. Wynn Resorts CEO Craig Billings said recently the company has everything it needs to operate gaming at the Wynn Al Marjan property. Billings added that construction on the casino has already started. Skift reported last November that Wynn had confirmed the property would house a casino. However, Bhutia notes that questions about the casino have lingered to the country’s strict Islamic laws that typically don’t permit activities like gambling.   The Wynn Marjan is scheduled to open in 2027

Episode NotesEurope is experiencing a major air traffic controller shortage. It’s not only delaying flights, it’s hurting the continent’s travel recovery, reports Edward Russell, editor of Skift publication Airline Weekly.European airspace manager Eurocontrol found flight delays have increased 6% from last year, attributing those disruptions in part to air traffic controller staffing shortages. Russell writes the staffing shortage appears the worst in France and Germany, the two countries at the heart of Europe’s air traffic control system. One industry executive said European air traffic controllers, often run by individual countries, are at least 700 controllers short of target staffing levels. Meanwhile, Lufthansa Group CEO Carsten Spohr said in July that air traffic control and other industry constraints would limit growth through at least 2024. Next, global investment in the travel industry has dropped from pre-pandemic levels. How much? Roughly $100 billion, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that $856 billion was invested in the industry last year. While that’s an 11% jump from 2021, it’s substantially below 2019’s figure. Habtemariam notes worldwide investment in travel and tourism isn’t expected to return to pre-Covid levels until 2025. The three countries with the highest levels of investment in travel and tourism last year were the U.S., China and Saudi Arabia. Finally, the U.S. lifestyle and boutique hotel pipeline is projected to grow substantially in the near future, but those forecasts may be overly optimistic, reports Senior Hospitality Editor Sean O’Neill. Analysis by hotel consulting firm The Highland Group said developers and hotel groups are planning to open nearly 60,000 branded lifestyle, soft-branded and boutique hotels by the end of 2027. That figure would represent a 29% annual increase. However, Kim Bardoul, partner at The Highland Group, said those projections are likely too optimistic. Still, O’Neill writes that developers are interested in lifestyle and boutique hotels because of their recent positive financial performance, on par with the traditional, large hotel properties. And there’s growing demand from guests. 

Episode NotesHospitality brand Selina has seen a dramatic swing in its stock price as it attempts to escape from its penny stock status, reports Senior Hospitality Editor Sean O’Neill. The company saw its shares fall 41% last Friday although they rebounded 9% on Monday. O’Neill writes the stock price drop happened after Selina said that 8.6 million shares could be hitting the market soon. Two other hospitality brands, Sonder and Vacasa, have also seen stock prices go to penny stock status recently.  Next, American Airlines pilots approved a new contract on Monday worth nearly $10 billion, becoming the second major U.S. carrier to finalize a pilot deal this year, reports Edward Russell, editor of Skift publication Airline Weekly.  Russell writes pilots at American will immediately see a more than 21% pay raise under the four-year contract. It also includes roughly $1.2 billion in retroactive pay and bonuses. However, Russell notes that the deal was hardly a slam dunk for the Allied Pilots Association, which represents American’s pilots. Only about 73% of crew members voted for the deal. Pilots at Delta Air Lines had ratified a four-year contract of their own in March, which included an up to 34% pay increase. Finally, Omni Hotels knows it has the odds stacked against it in the fight to attract travelers. But it’s confident it can compete against global hotel giants, reports Senior Hospitality Editor O’Neill in this week’s Early Check-In column. Hotel giants have argued that smaller players such as Omni, which only has 51 hotels and resorts, can’t compete with their ability to use huge loyalty programs to lure guests. But Omni CEO Kurt Alexander touted the benefits of his company in an interview with Skift. Alexander said Omni is less expensive for hotel owners than bigger brands from a franchise and royalty fee standpoint.  Alexander added he would like to partner more with institutional owners. He said that Omni is flexible on brand standards, which may make it more appealing than large hotel groups that often have an extensive list of requirements. 

Discover how ChatGPT Plus can be a useful tool for planning trips, with access to third-party plugins like Expedia and Skyscanner. However, some users experienced errors and issues with detailed itineraries and bookings. Explore the challenges for Chinese travelers as restrictions on overseas group tours ease, including reduced international flights and compliance with COVID regulations.

Episode NotesIHG has launched its 19th brand, called Garner, an IHG hotel, as part of its strategy to target mid-market travelers, reports Senior Hospitality Editor Sean O’Neill.O’Neill writes Garner aims to be more affordable for travelers than IHG’s other brands targeting this segment. The company expects to open more than 1,000 hotels under the Garner brand over the next two decades. O’Neill adds that until the launch of Garner, IHG didn’t have a brand that fit this price range. An added attraction: Garner will allow guests to bring pets into their rooms. Next, Booking Holdings is proposing concessions for an issue threatening European Commission regulatory approval of its deal to acquire flight tech company eTraveli Group. Booking’s plan is to show hotels from competitors when travelers book a flight, reports Executive Editor Dennis Schaal.  Schaal writes European regulators are balking at approving the roughly $2 billion deal because they think it would strengthen Booking’s leading hotel business on the continent. As for a potential solution, Booking could use sister brand Kayak to offer choices from rival online travel agencies or the hotels themselves. Schaal adds such a scenario could also bolster the company’s already market-shaping hotels business. The European Commission is expected to make a decision on the deal by August 30. Finally, the proposed merger of JetBlue Airways and Spirit Airlines has been one of travel’s most watched developments over the past year. Associate Editor Rashaad Jorden provides a timeline of the planned deal poised to shake up the U.S. airline industry. Jorden lists the major twists and turns in the proposed JetBlue-Spirit deal by the month they occurred, which includes Spirit’s initial plans to merge with Frontier Airlines and JetBlue’s repeated attempts to acquire Spirit. The timeline also details the U.S. Department of Justice’s quest to block the JetBlue-Spirit merger, citing concerns the deal would reduce competition and raise airfares. The department’s lawsuit to thwart the proposed merger will go on trial this October. 

Episode NotesAirbnb and Booking.com have delivered strong cash flow over the past year, giving them the flexibility for acquisitions and other transactions, reports Executive Editor Dennis Schaal in his Online Travel Briefing.Schaal looked at the companies’ free cash flow conversion, which measures how efficiently companies convert revenue into free cash flow after interest payments. A key factor in their favor: They are all asset light businesses, meaning they don’t own the hotels or short-term rentals that they offer. The companies’ high levels of free cash flow provides the needed resources for a range of investment, including acquisitions and product development. Next, global luxury travel network Virtuoso has seen a sales boom driven by surging interest in private experiences, writes Travel Experiences Reporter Selene Brophy. Brophy notes that Virtuoso guests are spending between $10,000 to $50,000 per trip on average. Virtuoso’s platform has a network of 20,000 luxury travel advisors and they are seeing growing demand for exclusive experiences, wellness travel and yacht bookings. We end today looking at Saudi Arabia’s big investment in its tourism industry. Associate Editor Rashaad Jorden examines why the kingdom is investing so heavily in the sector using Ask Skift, our artificial intelligence chatbot. Ask Skift provided four reasons why Saudi Arabia is planning to spend more than $1 trillion beefing up its tourism industry over the next decade. That investment is a key part of its strategy to wean away from its heavy reliance on oil revenue. Jordan writes that Saudi tourism officials are heavily targeting Chinese travelers, with the goal of attracting roughly 4 million visitors from the country annually by 2030. Saudi Arabia is also investing heavily in sports tourism, a sector that is expected to be worth more than $3 billion in the country by 2024. Saudi authorities view sports as a key part of its strategy to boost the kingdom’s profile. The country has hosted several major sporting events in recent years, including its first-ever Formula One Grand Prix race in 2021.