Skift Daily Travel Briefing

Good morning from SkiftIt’s Thursday, March 23, 2023For daily updates in your inbox, subscribe to the Skift Daily newsletter at skift.com/daily.And now, here’s what you need to know about the business of travel today.When Skift asked Hilton how it’s updating its brands for a new era, it was expecting to hear mostly about color palettes and breakfast options. But the company instead said workforce satisfaction was the most important factor. Senior Hospitality Editor Sean O’Neill reports the company believes a happy workforce will help its 19 brands thrive. Hilton Chief Brand and Communications Officer Matthew Schuyler said his biggest accomplishment at the company has been improving its workplace culture. Schuyler cited independent rankings that listed Hilton one of the best and most diverse workplaces. He added Hilton engendered goodwill by creating a job board for workers who had been laid off during the pandemic. O’Neill writes Hilton has also entered into partnerships with non-travel companies as part of its strategy to stay relevant with travelers. Hilton is adding at least one piece of Peloton fitness equipment to each of its U.S. properties, a collaboration Schuyler described as a strategic mash-up. Next, Delta Air Lines President Glen Hauenstein recently annointed his company South America’s leading carrier. However, American Airlines believes that’s not the case, reports Contributor Ted Reed.Hauenstein said at a J.P. Morgan investor conference that Delta’s partnership with South America’s largest airline group LATAM had made it no. 1 in the region. But American executive Jose Freig responded that the Fort Worth, Texas-based carrier is actually South America’s dominant airline, arguing it operates more flights to the continent than any other U.S. carrier.    So what do the statistics reveal? A spokesperson at airline industry data company Cirium said Delta comes out on top in some areas while listing others that American prevails in.   Finally, Bhutan’s tourism recovery has taken a hit in part due to the high sustainable tourism fee it requires visitors to pay. So the country is now offering duty-free gold to lure tourists it’s missing out on — especially from its biggest source market India, reports Asia Editor Peden Doma Bhutia. Bhutia writes the measure is largely geared toward travelers from India, where gold is considered an important part of the culture. Indian tourists had been allowed to enter Bhutan for free prior to 2020. Bhutia adds travel agents believe introducing the tourism fee for Indian citizens has deterred cost-conscious travelers from visiting. One Bhutan-based travel executive said the country has seen a roughly 50 percent drop in visitors from India from pre-Covid levels.However, Bhutia notes certain conditions must be met before travelers can obtain duty-free gold, including spending at least one night in a certified hotel. For more travel stories and deep dives into the latest trends, head to skift.com. To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Good morning from Skift. It’s Wednesday, March 22. Here’s what you need to know about the business of travel today.Episode NotesHotels are paying close attention to an increasingly influential set of travelers — Gen Z, or those born after 1996. This young generation is prompting hotels to rethink, and adopt, strategies that may even become permanent for guests across all their segments. So what steps have hotels been taking? Skift examines their marketing approaches in a deep dive by Senior Hospitality Editor Sean O’Neill and Contributors Sherry Sun and Carley Thornell.As members of Gen Z have reported greater loneliness than people in earlier generations, hotels could create spaces where travelers can connect with others, including locals. Johnny Quach, chief marketing officer at online travel agency Hostelworld, said it puts prospective guests in an online chat with other travelers staying in their hostel. In addition, one expert believes that many hotels will likely turn to year-round programming to attract members of specific subgroups, citing a local pickleball tournament as one possible activity.  And with Gen Z travelers placing greater emphasis on enjoying experiences such as food tours during their trips, hotels could also devise creative ways to make stays more affordable. Yoshiharu Hoshino, CEO of Japan’s Hoshino Resorts, said his company has added installment payments that enable travelers to pay for a trip over six months. He noted that option has been popular with members of Gen Z. Next, New York’s LaGuardia Airport has long been derided by many travelers and locals. But its perception has drastically changed after what Contributor Ted Reed describes as a miraculous resurrection. Reed reports that LaGuardia’s transformation included rebuilding Terminals B and C as well as five miles of roadway. Terminal B was recently recognized by one transport rating firm as the world’s best new airport terminal. It’s also the first terminal in North America to receive a five-star airport terminal rating. An executive who oversaw LaGuardia’s reconstruction said it was the airport’s mission to make it a place travelers would love after having been heavily criticized by then-Vice President Joe Biden in 2014. Finally, prominent TV shows can teach viewers valuable lessons. So Contributor Louise Felsher delves into what event planners can learn from the HBO smash hit The White Lotus, especially with more professionals resuming in-person gatherings.Felsher lists five lessons the show centered on the same-named fictional hotel chain can provide industry executives. She writes that event planners can avoid the menu fatigue that characters have experienced by selecting venues with multiple restaurant outlets. Felsher adds that savvy event planners prepare activities in advance for guests, citing an example of a father and son relegated to snorkeling in murky seawood due to their failure to plan ahead. Felsher also recommends event professionals spare no expense on medical resources, noting that each season of The White Lotus begins with a murder. She adds that preparing for attendees’ safety should be routine. For more travel stories and deep dives into the latest trends, head to skift.com.To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Good morning from SkiftIt’s Tuesday, March 21, 2023For daily updates in your inbox, subscribe to the Skift Daily newsletter at skift.com/daily.And now, here’s what you need to know about the business of travel today.Luggage delays at airports have made travel chaotic for hundreds of thousands of flyers in recent years, and some experts believe the problem will only get worse with passenger numbers expected to surpass 2019 levels soon. So what are the main cases for those airline debacles? Travel Technology Reporter Justin Dawes examines what drove the wave of disruptions as well as possible solutions to prevent even more delays.Dawes writes that outdated baggage technology has contributed mightily to luggage delays, noting that systems that transfer bags are typically decades old. Most airlines still track bags with a paper tag containing a barcode. The aviation industry’s struggles have also been compounded by difficulties in relaying critical pieces of data. One travel executive said there’s no standard way airlines and airports share information, with Dawes adding the issues of luggage delays are more pronounced at major hubs. Meanwhile, Dawes notes several startups are looking to automate baggage technology, one of which is developing robots that could deliver bags to passengers after they land. Next, we profile Tiny Urban Escapes, Indianapolis’ first Black and female-owned hotel. Contributor Leslie Barrie reports it’s tapping into luxury and sustainability to bring travelers to an overlooked part of the city. Barrie writes that founder and CEO Robin Staten-Lanier wanted to do something forward-thinking and sustainable when developing the concept for Tiny Urban Escapes, a wellness retreat and hotel that opens this July. So Staten-Lanier chose four upcycled shipping containers to create suites and a glass pavilion to create a green space at the hotel. Staten-Lanier said she’s working to ensure the hotel benefits its neighborhood as a whole. The Tiny Urban Escapes doesn’t have a restaurant, which Staten-Lanier said is meant to encourage guests to dine at local eateries. She did acknowledge that some local residents have been concerned about the hotel possibly causing gentrification.  Finally, India will invest about $12 billion in its aviation infrastructure to meet the growing demand for air travel in the country, writes Middle East and Asia Reporter Amrita Ghosh in Skift’s India Travel Daily newsletter.Ghosh reports Indian officials aim to open 70 more airports by 2025 as well as building new terminals. In addition, the country’s civil aviation minister said the number of jets in Indian carriers’ fleet will almost triple in the next five years. India has eased leasing rules for airlines to help them address aircraft shortages.For more travel stories and deep dives into the latest trends, head to skift.com. To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Good morning from SkiftFor daily updates in your inbox, subscribe to the Skift Daily newsletter at skift.com/daily.It’s Monday, March 20, 2023And now, here’s what you need to know about the business of travel today.American Airlines has opted to withhold 40 percent of its airfares from traditional retail channels on April 3, infuriating travel agents who had vehemently argued the impending removal would hurt business travelers, reports Corporate Travel Editor Matthew Parsons.Parsons writes the American Society of Travel Advisors pleaded in a letter to American Airlines to push the removal to the end of 2023. The trade group said that many corporate travel agencies and distribution systems would be unable to quickly implement New Distribution Capability, technology that gives airlines more control over airfares. The society also contended that travel agencies’ struggles in using the technology would disrupt the booking process, claims that American Airlines refuted.Next, Cambodia has made significant investments to improve the visitor experience at Angkor Wat, its most popular tourist attraction. But Global Tourism Reporter Dawit Habtemariam writes its strategy includes controversially relocating communities near the famous temple complex, moves that threaten their livelihoods.Habtemariam reports Cambodian officials have relocated nearly 10,000 people as part of its efforts to preserve the temples and maintain its UNESCO World Heritage Site status. The Cambodian government has given residents land plots of land far from Angkor Wat in exchange for their relocation. Mark Howarth-Archer, an executive at tour operator G Adventures, said the government is using threats to Angkor Wat’s heritage status as a reason to move villages.Habtemariam notes that many residents of the relocated villages had established businesses to serve visitors to Angkor Wat. Although one local travel executive argued those forced to relocate weren’t being left out to dry, Howarth-Archer said participating in the tourism industry would be a challenge for them. Habtemariam writes that some relocated residents are living roughly 45 minutes away from Angkor Wat by motorbike.Finally, Greek carrier Aegean Airlines rode its country’s tourism boom to a third consecutive profitable quarter, reports Jay Shabat, Senior Analyst at Airline Weekly, a Skift brand.Shabat writes Aegean recorded a 2 percent operating margin in the fourth quarter. That’s a 1 percentage point increase from the same period in 2019. Shabat adds any fourth quarter profit for a Greek airline is considered a victory, with the country’s carriers typically posting losses during the winter. While Athens experienced a slight drop in fourth quarter airport traffic from 2019 levels, major Greek island resorts saw double digit increases from the same timeframe.For more travel stories and deep dives into the latest trends, head to skift.com.To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Good morning from Skift.It’s Friday, March 17, 2023For daily updates in your inbox, subscribe to the Skift Daily newsletter at skift.com/daily.And now, here’s what you need to know about the business of travel today.The Asia-Pacific region’s travel rebound has gotten an enormous boost from China recently easing Covid-era restrictions. Skift Research’s newly released Travel Health Index for February reveals the region’s recovery has surpassed that of Europe.   Research Analyst Saniya Zanpure reports that travel across most regions is flourishing, including Asia-Pacific. The Index’s average global health score hit 93 percent of pre-Covid levels, a 4 percentage point jump from January. Skift Research attributes that growth to the Asia-Pacific region’s recovery. Zanpure writes the area had been considered the “black sheep” of the global travel industry due to its struggles to recover to pre-pandemic levels. Skift Research also found that cancellations after February’s massive earthquake in Turkey drove the decline in Europe’s travel performance.Next, Dutch-based hotel company CitizenM has obtained a $500 million loan based on its ability to hit sustainability targets, writes Contributor Sherry Sun.Sun reports that CitizenM is one of the first European hospitality companies to adopt a financing structure tied to sustainability goals. CitizenM, which obtained funding from four banks, joins a list of hotel companies that have established emissions reduction goals.Finally, Skift has covered dozens of innovations poised to significantly alter the travel industry upon their launch. So have they really been groundbreaking? Associate Editor Rashaad Jorden examines the impact of six tech advances Skift featured in a newsletter named the Corporate Travel Innovation Report.Jorden reports that while virtual and augmented reality may not have lived up to expectations yet, both forms of technology are expected to become more prevalent in the travel industry. Dutch carrier KLM has already used them to help train employees coming out of the pandemic. In addition, some tourism boards have incorporated virtual and augmented reality into their marketing efforts.Meanwhile, Jorden writes that artificial intelligence has had a massive impact on the travel industry. He adds its importance is poised to grow due to the emergence of generative AI, the technology that includes the creation of images, audio and video. A growing number of online travel agencies are exploring how to utilize generative AI to boost bookings.    For more travel stories and deep dives into the latest trends, head to skift.com. To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Good morning from SkiftIt’s Thursday, March 16, 2023For daily updates in your inbox, subscribe to the Skift Daily newsletter at skift.com/daily.And now, here’s what you need to know about the business of travel today.Travel brands have increasingly emphasized their commitment to sustainability in recent years, including major hotel companies. So how are they faring in their quest to reduce greenhouse gas emissions? Skift Research addresses that topic in a new report analyzing hotel companies’ sustainability efforts. Senior Research Analyst Wouter Geerts reports that most of the largest hotel companies have established science-based targets for their emissions levels. He writes that’s an improvement from just a few years ago. Geerts adds that most hotel companies seem to be on target for their emissions reduction goals.  Next, the short-term rental industry, like other sectors of travel, has struggled with labor shortages coming out of the pandemic. However, Short-Term Rental Reporter Srividya Kalyanaraman writes it can’t rely on tech yet to solve its staffing issues. Guy Westlake, founder of property management software firm Lavanda, said it’s becoming harder to find candidates for positions in the short-term rental industry. Kalyanaraman reports a lot of workers are shunning hospitality for higher-paying remote roles that have emerged in recent years. But Westlake adds human workers will be necessary for at least another decade, noting that robots can’t clean or maintain apartments yet.Kalyanaraman writes the rising cost of living in popular tourist markets has also contributed to the short-term rental industry’s labor crisis. She notes that many locals who would have previously found work in the industry have been priced out of those destinations. Finally, South Africa has been battered by a worsening energy crisis that’s included frequent blackouts. That’s complicating business for the country’s travel industry, writes Travel Experiences Reporter Selene Brophy.Brophy writes the ongoing power cuts don’t bode for South Africa’s attempts to attract digital nomads. Cape Town Tourism CEO Enver Duminy said the power cuts have made internet connections challenging. The organization has partnered with Airbnb to promote Cape Town as a remote working destination. Meanwhile, an executive at South African hospitality brand Curiocity said frequent power outages could result in digital nomads cutting their stays in the country short. Remote workers account for at least 80 percent of the company’s bookings.  Brophy adds that power cuts have forced some travel businesses to invest in costly diesel generators, which eat away at any potential profits. On the other hand, the V&A Waterfront, South Africa’s most visited attraction, has increased its investment in solar energy over the last 15 years. Brophy notes it’s seen a substantial decrease in overall energy consumption. For more travel stories and deep dives into the latest trends, head to skift.com. To find these stories and more insight into the business of travel, subscribe to Skift daily newsletter at skift.com/daily.

Here’s what you need to know about the business of travel today.

Here’s what you need to know about the business of travel today.

Here’s what you need to know about the business of travel today.

Here’s what you need to know about the business of travel today.