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Skift Daily Travel Briefing

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Aug 29, 2024 • 4min

Short-Term Rental Arms Race, Saudi Tourism Push and Air France-KLM's Next Move

Episode NotesA growing number of short-term rental hosts are turning to amenities such as pools, hot tubs and mini golf to help stand out from the competition. Reporter James Farrell examines what one executive calls an “amenities arms race.”Farrell writes hosts and owners willing to invest in developing properties with high-end amenities are likely to see benefits. Analysis from AirDNA found that listings with pools and hot tubs posted higher revenues and occupancy rates than listings without them. Luxury listings with high-quality amenities saw more pronounced revenue benefits than budget or economy listings. Farrell adds the push for more amenities might be driven partly by the desire of hosts to appeal to families as well as wellness or adventure travelers. David Krauss, CEO of advocacy group Rent Responsibly, said members of those groups tend to expect high-quality amenities.  Next, Saudi Arabia says it’s a destination for all types of travelers in its new tourism campaign, writes Middle East Reporter Josh Corder.A video titled “This Land is Calling” showcases several of the kingdom’s attractions, including skyscrapers and seaside resorts. Corder notes the campaign aims to highlight the nature in the country as well as its culture and entertainment options. The video’s narrator is a solo female traveler as Saudi Arabia attempts to send a message that it’s a welcoming environment for female travelers. The campaign launched on Wednesday in the UK, the U.S., France, Italy and Germany. Finally, the Air France-KLM Group has officially become a shareholder in SAS Scandinavian Airlines, having formally acquired a roughly 20% stake in the company. Airlines Editor Gordon Smith lists three things to pay attention to. SAS will join the SkyTeam group of airlines on September 1 after having long been a member of rival Star Alliance. Smith notes one of the biggest implications of the shift pertains to loyalty programs, with members of SAS and Air France-KLM’s programs soon being able to enjoy reciprocal frequent flyer benefits. Smith adds that flyers will find buying tickets and connecting between flights operated by the airlines easier. For example, Air France-KLM passengers will have easier access to 33 destinations in Northern Europe via SAS hubs. In addition, SAS confirmed it recently completed bankruptcy proceedings in the U.S., which CEO Anko van der Weff said represents a new era for the company. For more travel stories and deep dives into the latest trends, head to skift.com. Connect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 28, 2024 • 4min

Travel Innovators, Parks Vs. Overtourism and China’s Senior Travelers

Episode NotesColumnist Colin Nagy believes a growing number of luxury travelers are looking for depth instead of hyper glitz. With that in mind, he provides his list of this summer’s biggest innovators in travel as well as information about more than a dozen noteworthy trends in the industry.Nagy writes his list is inspired by brands that build and execute with integrity and vision. He praised Belmond, his choice for hospitality brand of the year, for embracing the idea of slow luxury. Nagy also commended the Mandarin Oriental for showing a deep respect to Oman’s culture in the opening of the company’s newest property in the country.In addition, Nagy cited Sri Lanka and the Pacific island nation of Palau as destinations he’s paying close attention to. Next, the National Park Foundation recently received a $100 million grant to help combat overtourism at the country’s national parks. Global Tourism Reporter Dawit Habtemariam lists three ways national parks are looking to manage visitor numbers. More parks are requiring visitors to make a reservation for peak periods. Glacier and Mount Ranier National Parks have implemented vehicle reservation systems for popular entrances while Yosemite reinstated its requirement that visitors book their visits in advance during certain periods. The National Park Service also plans to implement a uniform permit application process for tour operators. In addition, some parks — including Zion and Glacier — have raised camping fees to cover maintenance costs, while others have submitted proposals for fee increases next year.Finally, Trip.com Group reports that China’s senior citizens are spending a large amount of money on travel. So the company is taking more steps to appeal to that growing segment of China’s population, writes Asia Editor Peden Doma Bhutia. Trip.com Group recently launched the Old Friends Club, which is geared toward travelers older than 50. The company said Chinese senior citizens have spent more than $224 million on its platform this year. CEO Jane Sun said during its earnings call this week that seniors are showing a growing interest in customized tours.  Bhutia notes China’s population is aging rapidly, with 28% of Chinese projected to be older than 60 by 2040.Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 27, 2024 • 4min

Labor Day Surge, Middle East Bump, and Amex GBT and AI

Episode NotesRecent data suggests Americans are traveling in large numbers for Labor Day, and short-term rentals are seeing a surge in bookings for the holiday weekend, writes Global Tourism Reporter Dawit Habtemariam. More than 2.4 million nights have been booked on short-term rental platforms for the four-day period ending on September 1. That’s a 13% jump from last year, according to data analytics firm AirDNA. Short-term rental daily room rates are up 13% from last year. However, short-term rentals at urban destinations increased by only 1%, which AirDNA attributes to New York City’s crackdown on the sector. Domestic travel for the Labor Day weekend is projected to be up 9% from last year, according to AAANext, American Express Global Business Travel is increasingly using AI to handle trip requests via e-mail, which can help free up agents to take care of more critical tasks, reports Senior Hospitality Editor Sean O’Neill.Chief Marketing and Strategy Officer Evan Konwiser said agents manually reading, routing and responding to every message creates bottlenecks and inconsistent service. Natural language processing enables Amex GBT agents to categorize incoming messages accurately, such as urgent flight changes and routine invoice requests. Amex GBT is also benefiting as large corporate clients grapple with net-zero commitments – it is developing tools to help corporations make travel choices that cut their carbon impacts.Finally, the Middle East is seeing a tourism surge, largely driven by an increase in Saudi Arabia, writes Middle East Reporter Josh Corder.Saudi Arabia saw a combined 60 million international and domestic tourists in the first half of this year. Those travelers injected roughly $38.1 billion into the economy. Saudi officials didn’t disclose the split between international and domestic tourists. The kingdom also has the most hotels under construction among Middle Eastern countries.  Meanwhile, Dubai saw a 9% increase in international overnight visitors in the first six months of 2024 from last year. And Qatar saw a 28% jump from the same period. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 23, 2024 • 3min

Biz Class Bookings, Viking’s Earnings and Small Meetings Boom

Episode NotesHotels are devising plans to bypass traditional booking intermediaries to help boost direct bookings from corporations and businesses. Senior Hospitality Editor Sean O’Neill explains why the shift could disrupt how business travel is sold. Some hotel executives believe they can attract business travelers to book directly if they provide more enticing offers that can’t be found via third parties. Several large hotels are testing a new pricing and booking process called attribute-based booking. Hotel executives have argued the new process will help corporations better understand their spending. Attracting more direct bookings could help hotels save money. However, O’Neill notes a transition to attribute-based booking faces several hurdles, including a lack of industry-wide standards. Next, Viking CEO Torstein Hagen said the luxury cruise line doesn’t see any sign of a slowdown in travel, writes Global Tourism Reporter Dawit Habtemariam. Hagen said during its second-quarter earnings call on Tuesday that Viking doesn’t see any reason for concern going into 2025. He added the company recently had one of its strongest booking weeks ever. Habtemariam notes roughly 95% of Viking’s passenger cruise days for 2024 were booked as of August 11. Viking Holdings generated $1.6 billion worth of revenue during the second quarter, a roughly 9% increase from last year. Finally, a growing number of companies are organizing regular in-person gatherings to bring staff together. That’s driving travel managers and hotels to modify their offerings to cater to the boom in smaller meetings and events, writes Reporter Christiana Sciaudone.  Travel management firm Reed & Mackay recently doubled its meetings and events staff to address growing demand for offsite internal events. DeAnne Dale, an executive at the company, said clients are doubling or tripling their number of yearly gatherings and reorganizing how they operate. Meanwhile, Hilton has made it easier for companies to book room blocks and meeting spaces online with customized packages. CEO Chris Nassetta said during a recent earnings call that the company is poised to get a boost from meetings and events. For more travel stories and deep dives into the latest trends, head to skift.com. Connect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 22, 2024 • 3min

Hotel Loyalty, Visit Florida's LGBTQ Snub and VRBO's New Campaign

Episode NotesThe world’s largest hotel groups have made huge strides in signing up guests for their loyalty programs in recent years. But which one has the largest loyalty program? Senior Hospitality Editor Sean O’Neill provides the answer. Marriott has the largest loyalty program membership with more than 210 million members as of June 30. Hilton, IHG and Wyndham occupy the next three spots, with each of them recording more than 100 million members. Skift reported earlier this year that Hilton has grown its loyalty program faster than Marriott, which could result in Hilton overtaking Marriott's membership count next year. Next, Expedia’s short-term rental platform Vrbo is portraying itself as a stress-free alternative to rivals like Airbnb in its latest campaign, writes reporter James Farrell.  Vrbo’s new campaign is centered around the slogan “Relax, you host on Vrbo.” While none of Vrbo’s ads directly mention Airbnb, Farrell notes Vrbo is taking veiled shots at its biggest rival, explaining the big differences between the two platforms — like Vrbo’s tendency to attract longer-term guests and its fledgling OneKey rewards program. Airbnb is considered an outlier in the hospitality industry due to its lack of a loyalty program. One Vrbo ad featuring a man and a boy relaxing in a fishing boat invites hosts to “sit back and attract repeat guests” at their properties. Finally, Visit Florida has removed an LGBTQ Travel page from its website. Global Tourism Reporter Dawit Habtemariam examines the impact of its move.The page provided information on LGBTQ-friendly beaches, destinations, businesses and museums. Habtemariam notes Visit Florida’s decision could further damage relations with LGBTQ travelers, two years after Governor Ron DeSantis signed into law a bill dubbed “Don’t Say Gay” by critics. . Former Visit St. Pete-Clearwater CEO David Downing said the DMO used to have strong marketing efforts with the LGBTQ community. Other destination marketing organizations in Florida have kept similar pages geared toward LGBTQ travelers on their websites. For more travel stories and deep dives into the latest trends, head to skift.com. Connect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 21, 2024 • 4min

Hyatt Buys Standard, Shakira Pitches Despegar and Hotel Loyalty Licensing

Episode NotesHyatt announced plans on Tuesday to buy the five brands owned by Standard International, reports Senior Hospitality Editor Sean O’Neill.  Hyatt will pay $150 million upfront, with up to an additional $185 million over time as more properties join its portfolio. Hyatt won’t acquire any physical assets in the deal, but it is buying the management, franchise and license contracts for hotels with roughly 2,000 rooms. Hyatt and Standard International expect the deal to close this year, subject to approvals. Next, Marriott International and Sonder Holdings announced this week they had signed a 20-year strategic licensing deal that enables members of Marriott’s loyalty program to earn points at any Sonder property. O’Neill lists 10 things to know about the growing trend of loyalty licensing tie-ups. Although the past year has seen several new loyalty licensing deals, O’Neill notes those partnerships are far from a novel concept. IHG signed a license agreement with Las Vegas Sands in 2010. Hotels also see loyalty licensing deals as part of their plan to show an increase in room growth. In addition, major hotel groups have viewed loyalty licensing deals as a way to enter difficult-to-access markets — such as Las Vegas. Loyalty partnerships enable hotel groups to give guests access and allow gaming resorts to take advantage of hotel groups’ cost advantages in marketing and distribution. Finally, Despegar, Latin America’s largest online travel agency, is teaming up with pop star Shakira for upcoming marketing campaigns, reports Executive Editor Dennis Schaal.A Despegar spokesperson said the Colombia-born singer will be featured in reels and full-length videos on the company’s YouTube channel and social media accounts. Shakira will also appear on billboards across several Latin American cities. Schaal notes Despegar’s first campaign with Shakira is still under development. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 20, 2024 • 4min

Marriott-Sonder Deal, Mallorca and Short-Term Rentals and Most-Connected Airports

Episode NotesMarriott International and Sonder Holdings have signed a 20-year strategic licensing deal, reports Senior Hospitality Editor Sean O’Neill.Marriott will receive a royalty fee based on a percentage of Sonder’s gross room revenues. The deal will also increase the number of locations where Marriott Bonvoy loyalty program members can earn and redeem points. O’Neill adds Marriott will benefit from Sonder’s ability to run apartment buildings as licensed hotels, which has enabled Sonder to operate in some neighborhoods with limited hotels. Sonder gets new marketing and distribution power through the licensing deal. It has been on shaky ground: It has faced a Nasdaq delisting, conducted several rounds of layoffs and piled up losses.Next, Global Tourism Reporter Dawit Habtemariam writes that a crackdown on short-term rentals in Mallorca has led to a drop in bookings.Short-term rental bookings in Mallorca’s capital Palma fell 8% in July from last year, according to data analytics firm AirDNA. Mallorcan authorities enacted new restrictions on short-term rentals earlier this year, including imposing heavy fines on apartment buildings with at least 12 short-term rental units. In addition, large-scale protests against mass tourism erupted in July, with many protestors blaming short-term rentals for making Palma unaffordable for locals. Finally, data detailing the number of unique nonstop destinations served from each airport in the first half of this year has been released. Istanbul takes the top spot, writes Airlines Editor Gordon Smith.Istanbul Airport served 309 destinations nonstop during the first six months of 2024, according to aviation analytics firm Cirium. Smith notes the airport’s connectivity is helped by Turkish Airlines flying to more countries than any other carrier — 130 as of June 2024. Frankfurt Airport in Germany takes the runner-up spot, serving 296 destinations nonstop.The highest-ranking U.S. airport is Chicago-O’Hare, which is tied for fourth place with Amsterdam’s Schiphol Airport. Producer/Presenter: Jose MarmolejosConnect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 16, 2024 • 3min

350+ Travel Stats, Booking Vs. Expedia and Nashville's Edge

Episode NotesThe Skift Research team on Thursday unveiled its State of Travel 2024 report, a 400-page document with over 350 slides on industry performance and consumer and business trends in travel.The State of Travel 2024 is strong, reports head of research Seth Borko. Travel businesses are growing with healthy margins. The report contains information on, among other topics, the state of international travel after the pandemic. It contains detailed tourism figures for each major global region. In addition, the report examines some short-term issues, such as the likelihood of moderate growth in 2024 and beyond.   Next, Booking Holdings and Expedia spent an enormous amount on marketing last year — nearly $13 billion combined. But there are key differences in how they spend, writes Senior Research Analyst Pranavi Agarwal. As a share of expenses, Agarwal notes Expedia spent more on marketing last year than it did in 2019 while Booking spent less. Expedia also needed to spend more than Booking to drive bookings. Expedia spent nearly 6% of its gross bookings on marketing in 2023 while Booking spent 4.5%. Skift Research’s analysis shows Booking has a higher return on ad spend from Google’s sponsored listings than Expedia in every region.  Finally, Nashville has long been known as a popular destination for country music fans. But tourism officials in Tennessee’s capital are looking to branch out and attract mega events, writes Global Tourism Reporter Dawit Habtemariam. Deana Ivey, CEO of the Nashville Convention & Visitors Corp., said it is a key objective for the city. Nashville has its sights set on hosting the Super Bowl and Wrestle Mania, among other events. The city has already hosted the NASCAR Ally 400.   Ivey said another priority is attracting more international visitors. She acknowledged Nashville needs nonstop flights from its largest overseas markets to help boost visitor numbers. For more travel stories and deep dives into the latest trends, head to skift.com. Connect with SkiftLinkedIn: https://www.linkedin.com/company/skift/X: https://twitter.com/skiftFacebook: https://facebook.com/skiftnewsInstagram: https://www.instagram.com/skiftnews/WhatsApp: https://whatsapp.com/channel/0029VaAL375LikgIXmNPYQ0L/Subscribe to @SkiftNews and never miss an update from the travel industry.
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Aug 15, 2024 • 4min

Fake Travel Reviews, Southwest Threat and Answering for AI

Episode NotesTravel executives still believe artificial intelligence will transform the industry — even if it’s taking longer than expected. Travel Technology Reporter Justin Dawes provides recent insights from several executives on AI.Booking Holdings CEO said the latest advances in AI could help make connected trips — travel experiences in which consumers can book all parts of a trip in one place — a reality. AI has already significantly boosted revenue for Tripadvior. CEO Matthew Goldberg said travelers using its AI-powered trip planner have generated, on average, 15 times more revenue than TripAdvisor’s platform-wide average.  Airbnb CEO Brian Chesky said the company has been working on integrating AI for nearly two years since ChatGPT launched. One learning is that it will take years to rebuild Airbnb into a fully AI-powered digital travel concierge that learns and adapts to each individual user.Next, the U.S. Federal Trade Commission has finalized a rule that would discipline businesses for buying or selling fake reviews. Senior Hospitality Editor Sean O’Neill explains what the measure means for the travel industry. The FTC’s new rule prohibits the creation, purchase or sale of fake reviews, including those generated by AI. The agency could enact civil penalties of up to roughly $52,000 per violation against the creators and posters of fake content. O’Neill cites travel agencies, travel booking platforms and price-comparison services as travel brands that could face penalties if they don’t police fake reviews.  Fake reviews have long been an issue in the travel industry. Tripadvisor said it caught and removed more than 1 million reviews in 2022.  Finally, activist investor Elliott Investment Management has published a list of 10 candidates it would like to see serve on Southwest Airlines’ board, writes Airlines Gordon Smith.Smith notes four of the 10 candidates have held CEO roles in the airline industry. Elliott said in an open letter that the nominees would offer Southwest shareholders a different approach, arguing the carrier’s current board has delivered poor returns for shareholders. There are currently 15 members on Southwest’s board of directors.Elliott took a nearly $2 billion stake in Southwest in June, making it one of the carrier’s largest investors.For more travel stories and deep dives into the latest trends, head to skift.com. 
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Aug 14, 2024 • 4min

Delta’s Free Wi-Fi, Paris Luxury Boost and Inspirato’s Layoffs

Gordon Smith, Airlines Editor, dives into Delta Air Lines' ambitious plan for free global Wi-Fi, discussing the challenges of international expansion while comparing it to competitors' services. He highlights Delta's successful domestic strategy and the ongoing satellite upgrades for better connectivity. The podcast also explores how luxury hotels in Paris experienced a significant occupancy surge during the Olympics, albeit amid a backdrop of overall sluggish summer tourism. It's a dynamic view of an evolving travel landscape!

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