Skift Daily Travel Briefing

Episode NotesAirline executives, like everyone else, were unable to predict the future of the industry when the pandemic struck in 2020. But United Airlines believes 2023 will give the company a clearer picture of its post-pandemic future, reports Contributor Madhu Unnikrishnan.  Despite United’s challenging first quarter, Unnikrishnan writes the Chicago-based carrier believes it spotted a noticeable trend during the period. CEO Scott Kirby said during its first quarter earnings call on Wednesday that business travel, historically strong in January and February, hasn’t yet returned to 2019 levels. Kirby added there’s a clear change in seasonality, noting the airline expects both business and leisure demand to peak between March and October. United reported $11.4 billion worth of revenue during the first quarter. That’s a 51 percent increase from the same period last year. But the airline lost $256 million during the quarter. Next, a growing number of major hotel companies, including Hyatt and Marriott, have launched extended stay brands in recent months. The pioneer U.S. company in the segment, Extended Stay America, is confident it can hold its own against its rivals though, reports Senior Hospitality Editor Sean O’Neill. Extended Stay America CEO Greg Juceam cited the company’s extensive experience as a reason for its confidence. Juceam claimed Extended Stay America is essentially the only brand purposely built for extended stay guests, which he said gave it insight on how to effectively serve them. He added the Extended Stay America has no plans to go upscale unlike its competitors.O’Neill also writes the company’s new owners have made franchising a priority in part because franchising expands its portfolio faster than buying hotels. Juceam said most of its pipeline is currently dedicated to Extended Stay America Premier Suites, a franchise brand it created in 2021. Finally, American Airlines recently shook up its airfare strategy to help it gain more control over their distribution. But that move has caused travel agents to see steeper airfares in some of its smaller hubs if they aren’t using the airline’s preferred method of distribution, reports Corporate Travel Editor Matthew Parsons. American transferred 40 percent of its airfares to channels powered by the so-called New Distribution Capability, a technology that grants airlines more power over their content. American also offered higher airfares if travel agents insisted on accessing the airline’s airfares through what it describes as third-party legacy technology platforms. Parsons notes many corporate travel agencies still book flights through those platforms that American disparages.American has raised non-New Distribution Capability fares more in smaller hubs such as Miami and Chicago compared to its larger ones, according to business travel platform AmTrav. American refuted that it raised fares, but the carrier acknowledged differences in pricing due to the changes in technology it made.  

Episode NotesHyatt unveiled its newest brand, Hyatt Studios, on Tuesday, becoming the latest hotel company to launch an extended stay brand, reports Senior Hospitality Editor Sean O’Neill. Hyatt expects to open its first Hyatt Studios hotels next year. O’Neill writes Hyatt’s entry into extended stay is part of a boom in the category, with Marriott and Wyndham having launched extended stay brands recently. Extended stay projects represent roughly a third of the construction pipeline for U.S. hotels, according to hotel industry consulting firm Lodging Econometrics.Next, Delta Air Lines has increased its market share in key markets such as Boston, New York, and Seattle this year compared to 2019 levels. But the company still needs its core hubs to fully recover, reports Edward Russell, editor of Airline Weekly, a Skift publication. Russell writes the recovery of Delta’s core hubs — including Atlanta, Detroit and Minneapolis-Saint Paul — was delayed amid operational challenges that forced the airline to fly less than it hoped last year. Delta President Glen Hauenstein said the company’s hubs fuel its profits. Russell adds that Delta needs its hubs to rebound to help it hit its financial targets, one of which is recovering to pre-Covid operation margin levels in 2024. Finally, online travel agency Hopper’s feature enabling customers to leave a tip as part of a reservation has been getting a lot of buzz recently, writes Travel Technology Reporter Justin Dawes. Hopper actually made the tip an optional fee in 2018, three years after the company implemented a mandatory fee in its reservations. Dawes reports the amount of the tip is either a flat fee or a percentage of the reservation. A Hopper spokesperson recently said many customers are willing to pay a small fee to thank the company for its service, so kept the tip feature. The spokesperson added that the optional tip is a way for users to acknowledge the value of its price prediction and flight-watch tools. The company offers those features for free. 

Episode NotesThe Ritz-Carlton believes it’s part of an innovative effort that could help it ease a labor shortage. The Marriott brand has teamed up with the Switzerland-based EHL Hospitality Business School to create a new employee training program in the Maldives, reports Corporate Travel Editor Matthew Parsons. The business school has established a three-year program to help the Ritz-Carlton and the Patina Hotels & Resorts train and retain employees. A consultant for the business school said the program would help current employees at the two companies who lack formal certifications. The first group of students graduated from the program last week. Next, Brazil plans to reinstate tourist visa requirements for visitors from the U.S., Japan, Australia and Canada. That’s in response to those four countries requiring Brazilian tourists to have visas. Global Tourism Reporter Dawit Habtemariam writes Brazil’s retaliatory visa rules could stunt its tourism recovery. The Brazilian government recently announced that citizens from those aforementioned nations would need to have a tourist visa starting October 1. Habtemariam reports Brazilian officials haven’t yet announced details for the reinstated visa application procedure. But he adds visas will hurt the country’s competitiveness in the race to attract visitors. A Brazil-based executive at tour operator Intrepid Travel questioned the decision to reimplement the visa requirements, noting that travelers don’t want to apply for a visa most of the time. In addition, Habtemariam writes that poor visa processing times can harm a destination’s tourism recovery, a subject Skift explored in a 2023 report. Finally, boutique hotel brand Maisons Pariente has focused on operating understated luxury properties in resort destinations since its 2019 launch. But it’s opening a hotel in Paris this June, a market that represents a major challenge for the family owned company, reports Contributor Leslie Barrie. Barrie writes the Hotel Le Grand Mazarin will be its first hotel not located in a leisure destination and first to be open year-round. She adds that the Maisons Pariente has to walk a fine line between maintaining a “homey” vibe unique to the brand and appealing to both travelers and locals. Maisons Pariente co-founder Kimberley Cohen said it had designed properties that make travelers feel like they’re at a friend’s house. However, Cohen added that its Parisian hotel will have a distinct personality separating it from the brand’s other three hotels. She said visitors to Paris want to experience something grand — instead of feeling like they’re staying at a typical apartment or house. 

Episode NotesSkift Research projected in 2014 that so-called silent travelers — consumers who resorted to their mobile devices first to find solutions to problems — would significantly alter the travel industry. Has that been the case? Associate Editor Rashaad Jorden reports that mobile-first consumers have indeed changed travel in many ways.Jorden lists some of the shifts travel brands have made to meet the desires of the growing market. Frontier Airlines decided in November 2022 to eliminate its call center and instead provide customers online, mobile and text support via a chatbot. A company spokesperson said most customers prefer communicating via digital channels. Skift had argued nearly a decade ago that silent travelers would increasingly turn to mobile tech rather than the traditional in-person customer service staff that travel companies traditionally relied on.  Hotels have also been impacted by the rise of silent travelers. Paris-based hotel group Accor started enabling guests to check in up to two days before arrival using its mobile app. The company said it unveiled those check-in features to adapt to travelers’ growing mobile habits. Jorden notes a 2017 study found that hotels incorporating apps into a guest stay saw higher visitor satisfaction. Next, Airbnb recently confirmed that it paused offering new experiences, or tours and activities, without indicating any plans to relaunch them. The company has also removed them from its homepage, raising serious questions about its long-term strategy for its experiences offerings, writes Travel Experiences Reporter Selene Brophy.Airbnb said it was halting new experiences offerings to focus on other services. The short-term rental giant hasn’t admitted what went wrong after its 2022 relaunch of its experiences following a pandemic-era pause. Baidi Li, a spokesperson at tours and activities provider Go City, said Airbnb’s decision was a sensible move. At the same time, Li questioned Airbnb’s approach to the sector, describing experiences provided by its hosts as passion projects.  Brophy quotes one Airbnb host who believes the company will eliminate its experiences offerings due to their absence on its homepage. However,  Dan Wasiolek, an analyst at financial services firm Morningstar, said Airbnb pausing offering new experiences doesn’t mean it won’t continue to invest in the sector. Finally, higher airfares are helping drive more business travelers in Europe to opt for trains instead of planes, reports Corporate Travel Editor Matthew Parsons. Parsons cites corporate travel agency CWT as one company that’s seen a surge in rail bookings. The agency estimates that 70 percent of domestic business travel is by rail. Parsons adds the push to reduce carbon emissions is also contributing to business travelers increasingly embracing trains. Saad Berrada, CEO of French travel management platform Fairjungle, said more consumers are looking for low-carbon alternatives to air travel.

Episode NotesAirbnb confirmed on Thursday that it’s pausing offering new experiences, or tours and activities, without saying when it plans to resume them, writes Travel Experiences Reporter Selene Brophy.An Airbnb spokesperson said it was putting a halt to new experiences offerings to focus on other aspects of its operations. Brophy reports the short-term rental giant had resumed its Experiences last year after pausing them at the beginning of the pandemic in 2020. Airbnb CEO Brian Chesky had said the company would be developing experiences for the growing number of people working from home, and for others. Airbnb valued the total addressable market at roughly $1.4 trillion in its initial public offering paperwork published in November 2020. Next, Delta Air Lines acknowledged industry-wide anxiety about decreasing travel demand and a possibly weak summer. However, the company doesn’t share those worries, reports Edward Russell, editor of Airline Weekly, a Skift publication.Russell writes Wall Street analysts have raised concerns about domestic travel demand in recent weeks, citing a slowdown in new bookings. But Delta President Glen Hauenstein said during its first-quarter earnings call on Thursday that data cited by analysts reflects a change in booking booking patterns and not a softening in demand. Russell notes more travelers are booking trips earlier than usual with the confidence they can change their flights later if necessary. Delta reported a nearly $550 million operating profit for the first quarter. The company also generated nearly $13 billion worth of revenue during the period. Finally, travel entrepreneurs often experience challenges in securing funding for their startups. But those hurdles are compounded for Black startup founders seeking capital to help diversify Africa’s tourism offerings, writes Travel Experiences Reporter Brophy. Brophy cites Rwandan-Canadian Charles Shima, founder of Africa-centric online travel marketplace ZaNiheza, as one executive fighting to raise funds. Despite securing a few grants, Shima acknowledged securing funding for his travel startup concept remains his biggest challenge. He said that ZaNiheza aims to create travel experiences that encourage travelers to visit Africa’s cities instead of just exploring the continent’s popular safari destinations. Although Brophy notes African startups secured a continental record $5 billion of funding in 2022, most of those investments went into fintech, energy and agriculture startups. One South Africa-based tech executive said the continent’s travel sector lacks unicorns, adding that officials across Africa need to get the fundamentals right pertaining to travel and tourism. 

Episode NotesHilton has long taken a cautious approach to expanding its footprint in India. But with plans to debut its luxury brand Waldorf Astoria in the country, Hilton believes it’s in a prime position to replicate its China success in India, reports Asia Editor Peden Doma Bhutia. Hilton Asia-Pacific President Alan Watts acknowledged the company may be late in growing in India compared to its rivals. However, Watts said the country’s improved travel infrastructure has given Hilton the push to expand in India. He said that Hilton has every intention of opening brands suitable for India, as it did in China, adding that Waldorf Astoria is an excellent fit for the Indian market. Next, American Airlines believes it has reasons for optimism when it reports its first quarter earnings. However, it’s no certainty the second quarter will see a repeat of any first quarter success, reports Edward Russell, editor of Airline Weekly, a Skift brand.Russell writes American’s numbers for the first quarter look good in part due to its large Latin American business. Travel demand in the region typically peaks during the first quarter. But Russell notes the second quarter is expected to be mixed for U.S. airlines, including American. The demand for domestic travel appears to be slowing, with the Bank of America projecting a roughly 5 percentage point slowdown in domestic net sales since mid-March. Finally, Japan is seeing a major visitor boom amid its ongoing cherry blossom season. However, the country’s tourism businesses are having trouble serving tourists due to significant staffing shortages, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that travel to Japan has been trending upward since the country reopened to foreign tourists last October. He adds that bookings for this cherry blossom season, which runs from early March to early May, are at an all-time high in part due to travelers moving bookings from 2020 to 2023. But as the pandemic took a major toll on Japan’s travel businesses, Habtemariam notes the country’s tourism industry has fewer workers than it did prior to Japan closing its borders to overseas visitors. Roughly 78 percent of hotels reported in January having a shortage of full-time employees, according to one survey. In addition, an executive at tour operator Intrepid Travel admitted finding experienced tour guides has been a struggle.

Episode NotesJetBlue Airways announced on Tuesday it’s launching service to Amsterdam this summer as part of its European expansion. But is the company disrupting the transatlantic market as it claims? That’s not really the case, reports Edward Russell, editor of Airline Weekly, Skift brand. JetBlue CEO Robin Hayes argued that travelers on the New York-Amsterdam route had long been subject to expensive fares and mediocre service provided by other U.S. airlines. He added JetBlue would bring down fares and improve the experience for customers flying between the U.S. and Amsterdam.However, Russell writes JetBlue really hasn’t disrupted the transatlantic market, or more specifically the New York-London one. Overall average fares, including all service classes, jumped 3 percent in the third quarter of 2022 compared to pre-Covid levels. The third quarter is traditionally the busiest for flights between North America and Europe. In addition, Russell notes most travelers would be hard-pressed to distinguish a business class flight on British Airways or Delta Air Lines, or one on JetBlue.Next, several news outlets reported on Tuesday that Airbnb had acquired Scotland-based property portal Letting Cloud. However, the short-term rental giant denied it was making the move, writes Short-Term Rental Srividya Kalyanaram. An Airbnb spokesperson said it’s never had discussions or any sort of a relationship with Letting Cloud. Letting Cloud produces technology that verifies short-term rental licenses and permits held by landlords. Finally, we profile Elizabeth Stenne, an artist who has produced work for some of the world’s prestigious hotels, in an At Your Service story, Skift’s monthly feature on travel’s coolest jobs. Corporate Travel Editor Matthew Parsons reports that Stenne has created art for the likes of Paris’ George V hotel and the Sofitel New York out of a rustic French studio. Despite her reputation for making art for opulent properties, she said her works can be any style, having to navigate the fine line between art and decoration. Stenne admitted that she largely works in the shadows, admitting that she paints without knowing where the finished product will be displayed. 

Episode NotesNew York City’s tourism industry has made a monster recovery from the pandemic. But local officials still have concerns about its long-term future, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports New York City hit 85 percent of its pre-Covid tourism volume last year. The city is expected to make a complete tourism recovery in 2024, according to New York City + Conventions. In addition, one New York-based tour guide said traditional attractions like the Empire State Building and Statue of Liberty are very close to hitting 2019 visitor numbers.  However, Habtemariam writes the city faces some underlying problems despite its tourism boom. A recent poll found that about 70 percent of New Yorkers are unhappy about the city’s direction. Habtemariam notes that widespread discontent could make tourism promotion tougher. Furthermore, the popularity of hybrid and remote work is costing New York City roughly $12 billion. Habtemariam adds the loss of tax revenue can cause cities like New York City to cut back on infrastructure improvements, which could hurt tourism. We turn next to another look at how artificial intelligence could significantly alter the travel industry. Skift founder and CEO Rafat Ali argues that an AI-powered Google Maps will make the app even more powerful than it already is.Ali said that AI would make searching for suitable hotels and restaurants more relevant based on a user’s history on Google Maps. In addition to becoming a game-changing app, he said in a video posted to his Twitter account that Google could emerge as a superapp. Superapps enable users to perform a myriad of tasks on one platform instead of having to resort to dozens of apps. Ali said that an AI-powered Google Maps might also provide a visual representation of search results.  Finally, Spain-based travel agency Pangea recently revealed it doubled its revenue from the first quarter of last year. How did it accomplish the feat? The company attributes the revenue boom in part to new stores, reports Senior Hospitality Editor Sean O’Neill. O’Neill notes an $11 million fundraising round in 2019 not only helped Pangea survive the pandemic, but also enabled the company to open four stores around Spain. Pangea CEO David Hernández said the physical stores have attracted a new generation of travelers. He added the company is developing new technology that aims to further digitize the travel agency sector. 

Episode NotesGoogle is turning to a popular social media feature to help enrich the hotel search and booking process. The search engine has added an Instagram-like story tool to Google Travel, writes Travel Technology Reporter Justin Dawes. Dawes reports users can view hotel options with access to information like location and price in a swipeable format somewhat similar to Instagram stories. The user would then be able to save the hotel, book directly on the hotel website, or access third-party links for booking. Dawes adds the previous ways to view search results are still available, but Google is simply providing another option for users who prefer a different format. Next, the all-inclusive resort chain Club Med is looking to capitalize on its post-pandemic boom. So the company is opening new properties and launching a marketing campaign as part of a push to go upmarket, reports Senior Hospitality Editor Sean O’Neill.Club Med recently announced that 97 percent of its resorts are now premium, a shift that was years in the making. At the Skift Global Forum in 2016, its leadership expressed a desire to move upmarket and target affluent millennial families. The company just opened a $200 million Club Med Tignes where rooms can cost roughly $2,000 a night. Meanwhile, Club Med has unveiled a new marketing campaign to help update consumer perceptions of the brand, including showcasing its Exclusive Collection resorts. One expert said Club Med’s campaign reflects a trend where hotels are eager to cash in on the growing appetite for luxury.Finally, Spanish city Malaga is looking to host the Expo 2027 World Fair. So what does its strategy entail? Malaga is working with dozens of African destinations to make their tourism industries more sustainable, writes Travel Experiences Reporter Selene Brophy.Brophy reports Malaga would roll out skills-sharing pilots with several African countries before 2027 — if its bid is successful. Malaga’s head of tourism, Jonathan Gomez Punzon, acknowledged its candidacy is not primarily about showcasing the Spanish city. He said Malaga wants to show cities worldwide how to incorporate sustainability in tourism. Brophy cites South Africa as one destination interested in Malaga’s skill-sharing program. South African Tourism Minister Patricia de Lille said the country could replicate Malaga’s advances in technology and sustainability to improve its tourism industry. Meanwhile, an official from Sierra Leone said working with Malaga was a done deal. 

Episode NotesThe U.S. government could follow in the footsteps of several states that have enacted bans on their agencies using TikTok. So how would a national TikTok ban affect the U.S. tourism industry? Global Tourism Reporter Dawit Habtemariam writes a ban would be a huge blow to the industry’s global marketing efforts. Habtemariam reports that U.S. tourism boards have increased their marketing on TikTok since 2021, noting the platform enables them to be less reliant on Google to reach travelers. TikTok has over 750 million monthly users worldwide. But Habtemariam notes there’s a push to ban TikTok in the U.S. due to concerns about its connection to the Chinese government and potential risk to U.S. national security.  One travel marketing executive said a national ban would drive tourism boards to redirect their advertising dollars to platforms like Instagram and YouTube Shorts. Habtemariam adds that destinations would lose insight into the experiences of international travelers, which would hamper the U.S.’ efforts to make a full tourism recovery.   Next, U.S. travelers are generally eager to partake in more sustainable forms of travel. But a new survey reveals inflation is largely preventing them from doing so, reports Associate Editor Rashaad Jorden.Travel industry website The Vacationer found that 74 percent of American adults intend to make greener travel decisions. However, Jorden notes a much lower percentage is actually shelling out money for sustainable options. Skift Research revealed in a recent survey that only 23 percent of travelers paid extra for sustainable travel in the past 12 months. The Vacationer’s co-founder Eric Jones said while sustainable travel may be important for many consumers, it’s not a major priority for people trying to make ends meet. Roughly 60 percent of respondents to the Vacationer’s survey said cost was the most important factor when booking travel. We end today looking at a Swiss hotel that’s made enormous strides in creating an inclusive workplace. Contributor Leslie Barrie profiles the Martigny Boutique-Hotel, where two out of three staff members have intellectual disabilities. Forty of the hotel’s 70 team members come from a foundation supporting people with intellectual disabilities. While Barrie writes that the Martigny takes pride in its concept, the hotel’s director Mathis Munoz said its main goal is to provide guests an art-themed experience with comfortable rooms. The Martigny is home to artwork created by people with intellectual disabilities.Munoz acknowledged that his role at the Martigny has presented him with challenges he hasn’t experienced before. But he said it’s been rewarding in part because team members are less self-conscious about expressing their happiness.