Skift Daily Travel Briefing

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.  

Episode NotesAmerican Airlines recently shook up its ticket distribution strategy to help it gain more control of airfares. That move has resulted in corporate travel agencies seeing huge gaps in ticket prices, reports Corporate Travel Editor Matthew Parsons. American moved 40 percent of its airfares to its website and channels powered by New Distribution Capability, a technology that gives airlines more power over their content. It also stopped selling tickets through what it describes as third-party legacy technology platforms. Although three major global distribution systems now provide access to the carrier’s New Distribution Capability-enabled fares, Parsons writes corporate travel agencies are seeing large fluctuations in ticket prices. One agency, AmTrav, said 35 percent of its itineraries had lower fares in New Distribution Capability than in standard distribution systems.Next, the growing number of travelers combining business and leisure during their trips are becoming a more valuable market for hotel brands. So designers are increasingly looking to adapt to their changing needs, reports Contributor Carley Thornell.Thornell writes brands are making changes that go far beyond enhancing Wi-Fi capabilities or adding power ports. She cites Zoku as one brand that’s modified the common spaces to help improve interaction among guests. A Zoku executive said it needs to create watercooler moments for visitors, with Thornell noting that the company has selected long communal tables to encourage guests to interact with each other. An executive at one design firm said there’s no going back when it comes to hospitality spaces, adding the hotel lobby is no longer a space to sit and wait for a car. Finally, Australian short-term rental operator Alloggio is poised to be taken private by a private equity firm. Short-Term Rental Reporter Srividya Kalyanaraman writes that other struggling companies in the sector could follow in Alloggio’s path. Alloggio would go private if its shareholders approve the roughly $40 million deal in July. Although Kalyanaraman writes that private equity can inject much-needed capital into some companies, it also often comes with restructuring — including furloughs and change of management.Annie Holcombe, co-host of a podcast devoted to vacation rentals, said being managed by private equity could help firms operate more efficiently. Allogio — as well as Vacasa and Sonder — have experienced struggles after going public. 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.

Episode NotesExpedia has released the first version of a ChatGPT-powered travel planning chatboton its mobile app. It’s the first online travel agency outside of Asia to do so, writes Travel Technology Reporter Justin Dawes.Dawes notes that Expedia users can now use the chatbot to help plan trips. Although the tool does not offer specific real-time information about details such as pricing and events yet, users can get help during travel planning by asking general questions about a destination. Dawes adds that although the chatbot doesn’t provide the next-generation planning and booking experience experts envision, the tool brings that vision closer to reality. Next, U.S. beach destinations saw a boom in visitor numbers during the pandemic. But they’re facing increased competition from large cities and overseas destinationsthat have re-emerged as popular options for travelers, writes Global Tourism Reporter Dawit Habtemariam. Habtemariam reports that some beach destinations expect their tourism growth rates to slightly decrease in 2023, citing Panama City Beach, Florida as an example. He notes one reason is that Americans have become more comfortable with traveling abroad. In addition, big cities such as New York City are expecting a surge in visitor numbers this year.Habtemariam notes beach destinations will emphasize to prospective visitors that they’re home to more than sun and sand. He cites Myrtle Beach as one example. The South Carolina city has been actively promoting its live music and culinary scenes the last two years. Meanwhile, officials in Panama City Beach said their decision to open its second large-scale outdoor sports park in 2019 has paid dividends.  Finally, Choice Hotels has at last reported on its environmental performance. However, the company hasn’t provided information about emissions from its franchised hotels, the vast majority of its properties, reports Senior Research Analyst Wouter Geerts.Choice recently released its 2022 Environmental, Social and Governance report, the first time it’s ever reported on its environmental and social efforts in depth. While the report contains some emissions data, Geerts notes that it offered no insight into its scope 3 emissions. Greenhouse gas emissions are divided into three scopes, and scope 3 includes emissions from franchised hotels.Choice CEO Partrick Pacious wrote in the report that the company is working to implement a dashboard that would enable it to track its scope 3 emissions. Choice has more than 7,000 franchised properties in its portfolio. 

EPISODE NOTESDenmark’s national tourism board VisitDenmark is tapping into artificial intelligence to boost interest among prospective visitors. Its latest tourism campaign includes foreign landmarks, with an assist from Artificial Intelligence, playfully urging travelers to visit Denmark, reports Contributor Samantha Shankman. The campaign features iconic attractions such as the Mona Lisa and Statue of Liberty telling travelers they should head to Denmark instead of coming to see them. VisitDenmark’s Marketing Director Dennis Englund said the organization aims to show the opportunities the country provides, especially outside of its major cities. Englund added VisitDenmark learned about AI’s strengths and weaknesses in content creation while developing the campaign. Next, New York’s Gansevoort Hotel is facing competition to attract the consumers increasingly interested in fine art and luxury goods. So the boutique property is undergoing a $30 million facelight to remain relevant in Manhattan’s changing Meatpacking District, reports Contributor Leslie Barrie. As the Meatpacking District has transformed from the center of New York’s nightlife into a neighborhood with luxury shops, Barrie writes the Gansevoort is becoming an adult version of itself. The hotel has remodeled its rooms, lobby and check-in. It’s also increased its art collection, with the aim of becoming a cultural hub instead of a nightlife epicenter. Barrie also writes that some of the quirks that made Gansevoort appropriate for a New York’s nightlife hot spot are gone. But she adds the hotel must walk a fine line between working with its brand recognition from that era and appealing to deep-pocketed consumers in a rapidly gentrifying neighborhood. Finally, China has issued more than 18,000 visas to Indian travelers this year despite a lack of direct flights between the two countries, writes Middle East and Asia Reporter Amrita Ghosh. Ghosh reports Indian travelers have passed through Nepal and Myanmar, among other countries, to reach China. A Chinese official said Beijing was working with India to resume direct flights linking the two countries, which have been disrupted since the start of the pandemic. Ghosh adds that Indian tourists have paid steep airfares to travel to China. 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.

Episode NotesSouthwest Airlines took a major beating from a massive meltdown that resulted in it canceling more than 17,000 flights last holiday season. So it’s implementing substantial steps to prevent a repeat of that enormous fiasco, reports Edward Russell, editor of Airline Weekly, a Skift brand.Southwest said in a new report it’s focused on major improvements in three areas, most notably beefing up its winter weather operations. Chief Commercial Officer Andrew Watterson acknowledged at a U.S. Senate hearing in February that the carrier had done a poor job of preparing for inclement weather. Southwest will also make $1.3 billion in technology-related investments in 2023. The company’s outdated tech was widely believed to be a cause for the epic meltdown. Next, India-based budget hotel operator Oyo revealed on Friday that it’s reducing its proposed $1.1 billion initial public offering nearly in half, reports Asia Editor Peden Doma Bhutia. Bhutia writes Oyo filed its latest initial public offering paperwork with the Indian stock exchange on Friday. The company is likely to go public in mid-November once it receives approval from Indian authorities. A source close to the company said it hopes to raise between $400 million and $600 million from selling new shares to the public. Bhutia adds the sales could help improve Oyo’s financial positions and credibility in the Indian stock market. Finally, the LGBTQ+ travelers have become one of the most powerful and lucrative segments in the travel industry in recent years, with travel brands increasingly looking to make inroads in the growing group. With its clout expected to increase even more in the future, Associate Editor Rashaad Jorden is taking a deep look at how Skift has covered issues pertaining to LGBTQ+ community throughout the years. Jorden reports Skift has frequently addressed marketing efforts toward LGBTQ+ travelers, including hits and misses. Skift highlighted Fort Lauderdale in July 2015 as one success story. The Florida city attracted more than 1.5 million LGBTQ+ visitors the previous year. However, some industry executives believe travel brands struggle at times to effectively market themselves to LGBTQ+ travelers. One travel advisor described marketing to the community as narrow in a June 2021 article.Jorden also lists LGBTQ+-related travel advances and setbacks Skift has covered. Skift reported on the U.S. joining countries like Canada and Germany by issuing its first ever non-binary passport in October 2021. Issues specifically affecting transgender travelers have also been featured in Skift. One industry executive said it’s often difficult for transgender travelers to find suitable information from travel advisors.

Episode NotesRemote work has grown exponentially in recent years, and speakers at the recent Skift Future of Lodging Forum in London believe it’s becoming further embedded in the hospitality industry, reports Corporate Travel Editor Matthew Parsons in this week’s Future of Work briefing. Parsons cited Airbnb as one company getting a boost from the rise in remote work. Global Head of Hosting Catherine Powell attributed its 60 percent jump in bookings from pre-Covid levels in part to the flexibility remote work provides travelers. In addition, Tamara Lohan, CEO of luxury booking service Mr & Mrs. Smith, said even upscale properties are aware of the importance of remote work. Lohan mentioned room designs that can make it easier for guests to do work.   Next, many travelers consider souvenirs an important part of their trips, but largely don’t use those mementos after returning home. Global Tourism Reporter Dawit Habtemariam explores why souvenirs are often forgotten as well as innovations that could help communities dependent on selling them. Habtemariam reports that souvenirs are destination marketing products to potential visitors, with roughly two-thirds of them being given to either relatives or friends. Many residents of popular tourist destinations have established businesses around souvenirs, enabling them to support themselves and preserve their cultures. However, International Inbound Travel Association chair Peter van Berkel said travelers hardly use the souvenirs they buy. Habtemariam also notes that unused souvenirs can damage the environment, especially those that come in plastic. As one travel executive said meaningful souvenirs are more likely to be used after their purchase, Habtemariam writes improvements in delivery speed and costs could help diversify souvenirs countries are famous for. He adds that the most popular souvenirs are easy to carry on planes, especially since large items possibly meaningful to travelers are often difficult to bring home. Finally, popular TV shows and movies are not only driving more travelers to visit certain destinations, they’re also inspiring travel brands to create pop culture-centered trips amid the growing desire for experience-based travel, writes Travel Experiences Reporter Selene Brophy.Brophy cites luxury travel company Black Tomato as one brand working to further leverage the power of the silver screen to boost bookings. It’s entered into a partnership with the production company behind the iconic series of James Bond films. Brophy notes a Bond-inspired itinerary includes action stunt lessons with actor Daniel Craig’s stunt double. Black Tomato co-founder Tom Marchant said sales of its TV and movie-themed trips have grown 170 percent over the past five years. The company launched a series called Set Jetting in 2016 that features TV-inspired itineraries. 

Episode NotesHilton is looking at ways it can utilize the advances in artificial intelligence to adapt to travelers’ changing needs. So the company has been testing new features that will enable it to deeply personalize guest bookings and stays, reports Executive Editor Dennis Schaal. Chief Commercial Officer Chris Silcock said at the Skift Future of Lodging Forum in London on Wednesday that Hilton is testing out packages with features like pre-booked meals and parking. He told Senior Hospitality Editor Sean O’Neill that Hilton wants to perfect those features first before distributing them to partners such as Booking.com and Expedia. Silcock added that knowing what amenities a guest prefers will help Hilton create what he described as powerful personalization.  Next, United Arab Emirates-based luxury hospitality company Jumeirah Hotels is booming in the Middle East, with plans to open several properties throughout the region. That growth is pushing the company to expand further — especially in Europe, reports Asia Editor Peden Doma Bhutia.Jumeirah Group CEO Katerina Giannouka said at the Forum on Wednesday that it’s keen to invest in more properties in Europe. Jumeirah has five European hotels in its portfolio, having recently acquired Swiss luxury hotel Le Richemond. Giannouka also told Skift President Carolyn Kremins that Jumeirah has plans to grow its portfolio in Asia and the Americas.   Giannouka added that Jumeirah has seen a 25 percent increase in demand from sub-Saharan Africa. Finally, the tours and activities sector in Southeast Asia is widely considered to be lagging in its adoption of technology, contrary to many people’s perception of a largely tech powered region. So recent tech upgrades are a godsend for companies eager to capitalize on the sector’s enormous popularity in Asia, reports Asia Editor Bhutia. Bhutia cities BeMyGuest, a distribution platform for Southeast Asian tours and activities operators, as one company that’s helped boost the sector. BeMyGuest has expanded its offerings to include a booking system and translation services. CEO Blanca Menchacha said the pandemic accelerated the adoption of technology, adding the recovery has been much faster for companies that started using new programs during the pandemic. Roughly 80 percent of Southeast Asia’s tours and activities sector is offline.Meanwhile, GoCity, the world’s largest sightseeing pass company, is also working to digitize the tours and activities sector. GoCity, which entered the Southeast Asian market in 2018, is focused on developing a booking system that Bhutia writes would help tours and activities operators improve their customer experience.  

Episode NotesHotel companies have gotten better in recent years at reporting their environmental performances amid their push to reduce carbon emissions. However, Skift Research’s latest report reveals hotel brands still have blind spots in their reporting, especially the performance of their franchised hotels.Skift Research investigated the environmental performance of the world’s six largest hotel companies. Senior Research Analyst Wouter Geerts writes all companies need to do a better job of measuring and reporting their so-called scope 3 emissions. Greenhouse gas emissions are divided into three scopes, and scope 3 includes emissions from franchised hotels.Geerts notes that some companies have more comprehensive scope 3 coverage than others. Wyndham, the largest franchise holder of the companies Skift Research investigated, has very little scope 3 reporting. Prominent hotel brands have increasingly turned to franchising to help grow their portfolios.  Next, major U.S. airlines are still struggling to make a complete recovery coming out of the pandemic. United Airlines and American Airlines are cutting flights due to issues such as pilot shortages and aircraft delivery delays, reports Edward Russell, editor of Airline Weekly, a Skift brand.United cited a pilot shortage as the reason it’s ending flights to Erie, Pennsylvania in June. Russell notes that’s a well-documented problem primarily affecting regional carriers. He adds that ongoing aircraft delivery delays have also made scheduling flights difficult. American suspended flights between Philadelphia and Madrid in May and Jue due to late deliveries of Boeing 787 jets. Russell also writes the reduced flight schedules don’t come as a surprise, with Airbus and Boeing having consistently delivered planes late since last year. Finally, airports across the Middle East need an enormous amount of infrastructure improvement to help meet the rising demand for air travel. How much? $151 billion, reports Asia Editor Peden Doma Bhutia in this week’s Middle East Travel Roundup newsletter. The push to improve the region’s aviation infrastructure comes as Middle East airports are expected to handle more than 1 billion passengers by 2040. That’s up from 405 million in 2019. Bhutia writes that several countries around the Middle East have already unveiled massive airport projects, including Saudi Arabia. Saudi officials are planning to build one of the world’s largest airports. 

Episode NotesCarnival Corporation is continuing to make enormous strides in its recovery from the pandemic. The company recorded its highest-ever booking volume for future sailings during the first quarter. That’s in large part due to its stellar performance in North America, writes Global Tourism Reporter Dawit Habtemariam. Carnival CEO Josh Weinstein said during its earnings call on Monday that North American booking volumes have exceeded 2019 levels during the last six months. He added the company has seen demand surge across all regions. Carnival does not disclose specific numbers for bookings. Although Carnival is doing well in Europe, the company is struggling to make a full recovery in both Asia and Australia. Habtemariam reports Carnival has been hit hard by China not reopening to international cruise travel. Next, New York City is tweaking its iconic “I Love New York” slogan to “We Love New York City” as part of a new marketing campaign. But Global Tourism Reporter Habtemariam writes the new slogan like many others faces an uphill climb in gaining acceptance from the public. Habtemariam reports New York City is launching the campaign to help boost civic engagement as well as pride in the city. Kathryn Wylde, a local business executive, admitted that New Yorkers largely felt pessimistic about the state of the city, adding the widespread negativity makes promoting tourism difficult. New Yorkers largely felt pessimistic about the state of the city, adding the widespread negativity makes promoting tourism difficult. Wylde said the new slogan is supposed to inspire New Yorkers to take concrete action to improve the city. Habtemariam writes marketing campaigns can drive civic engagement, citing St. Louis as an example. However, Habtemariam notes the new campaign has largely been ridiculed in the press. One marketing expert acknowledged it’s very difficult for tourism slogans to win community support, adding there have been more failures than successes. Habtemariam also writes that tourism slogans often struggle to gain acceptance because they can’t tell people how to feel. Finally, the U.S. is making substantial progress in reducing the lengthy waits Indian travelers endure to obtain visitor visas. Wait times at some U.S. consulates in India have dropped below one year, reports Middle East and Asia Reporter Amrita Ghosh and Asia Editor Peden Doma Bhutia in Skift’s India Travel Daily newsletter.Reducing visa visitor delays has been a major priority for U.S. consulates in India, a major tourism market for the U.S. Average wait times are roughly 250 days in New Delhi and 330 days in Mumbai. The consulate in Mumbai had recently announced it was bringing in consular officers from around the world to assist with its visa operations. 

Episode NotesHotels have long said that they struggle to place women in executive roles, with women currently representing only 30 percent of leaders in the hospitality industry. So the hotel industry’s efforts to create paths for women to hold leadership positions is a long overdue step in reversing that gender imbalance, reports Contributor Carley Thornell. Although women account for more than half of travel and tourism workers worldwide, Thornell notes that gains for women in high level hotel management have been minimal. She cites Choice Hotels’ HERtels by Choice development seminar as one program looking to create leadership opportunities for women. The seminar connects women with hotel industry veterans and Choice executives. One hospitality CEO said a lack of industry connections is a significant barrier to hotel ownership. Thornell adds that women are typically carrying more of the burden for childcare coming out of the pandemic, another obstacle to landing executive roles. So Marriott International created part-time manager positions to help make the company appealing for mothers. Next, travel brands marketing to LGBTQ+ community have historically focused on gay solo travelers and same-sex couples, largely in tune with their images of the segment. But Travel Experiences Reporter Selene Brophy writes that LGBTQ+ family travel is growing, with safari tour operators poised to take advantage of its boom.David Ryan, CEO of South African-based tour operator Out2Africa, said LGBTQ+ family travel as an emerging trend completely counter to long held stereotypes of travelers in the community. He added Out2Africa’s guests haven’t had any issues with any of the safari companies it’s worked with, describing them as LGBTQ+ friendly. Brophy writes the safari industry is well-prepared to take advantage of the booming LGBTQ+ family market. Ryan attributed the rise in LGBTQ+ family travel to the surge in same-sex couples having children. Meanwhile, Ryan admitted that Uganda’s recent move to enact some of the world’s harshest anti-gay laws is complicating business for Out2Africa. Ryan said Uganda has been on his radar for a long time. While the president of the International LGBTQ+ Travel Association said he would never tell travelers not to visit a particular destination, Ryan said members of the community are unlikely to support an unwelcoming destination. Finally, the hotel industry has long considered revenue per available room — so-called RevPar — to be its most important performance metric. But some executives believe companies should use other figures to convey how well hotels are performing, reports Senior Hospitality Editor Sean O’Neill in this week’s Early Check-In.Hotel valuation firm HVS is urging hotels to use metrics that it says better capture a hotel’s profitability. While O’Neill writes revenue per available room is useful for its simplicity, he adds another metric to consider is revenue per available square meter. That accounts for the building as a whole. Russell Kett, the chair of HVS’ London office, said the new metric would give hotel owners more ideas of how to turn profits.O’Neill adds that HVS also believes that revenue per available room doesn’t correlate well with a hotel’s valuation.