Episode Notes

The Department of Transportation officially launched a probe on Thursday into whether the loyalty programs of the four largest U.S. airlines are engaging in deceptive or noncompetitive practices, writes Airlines Reporter Meghna Maharishi. 

Transportation Secretary Pete Buttigieg sent a letter to American, Delta, United and Southwest requesting that they provide records about their loyalty programs. The department said its probe would focus on how frequent flyer programs are impacted by extra fees and hidden pricing as well as reduced competition and choice. 

The Transportation Department first announced last November it would investigate the fairness of loyalty programs. 

Next, Poland-based online travel agency group eSky is buying tour operator Thomas Cook for roughly $40 million. Senior Hospitality Editor Sean O’Neill provides takeaways from the deal.

O’Neill notes eSky’s acquisition is part of its strategy to expand its package holiday business in Western Europe. ESky expects the deal to increase package sales by over $255 million next year. However, O’Neill adds eSky faces challenges in reviving a tarnished brand as Thomas Cook went bankrupt in 2019. 

Finally, Hyatt wants to own fewer properties, and executives say they have reached a goal of $2 billion in gross proceeds from selling real estate, writes Senior Hospitality Editor Sean O’Neill. 

CEO Mark Hoplamazian said at a conference on Thursday that Hyatt will continue to selectively buy, renovate and sell properties to increase its brand portfolio. Since 2017, Hyatt has generated $5.6 billion in gross proceeds from asset sales. The company is also looking to make deals like its recent acquisition of hotel booking site Mr & Mrs Smith, which quickly added 700 hotels to Hyatt’s loyalty program and caters to Hyatt’s high-end clientele. 

Episode Notes

Skift has unveiled its Power Rankings, our list of the most influential people in the travel industry. With the help of Skift Research, our editors spent several months establishing a methodology, crunching the numbers and weighing each leader’s influence to create our list of travel’s 30 most powerful people. 

Hilton CEO Chris Nassetta takes the top spot on our list. During his time as Hilton CEO, Nassetta has more than doubled Hilton’s global room. Number two is Airbnb CEO Brian Chesky, who has helped change how many people travel around the world. And just behind Chesky is United Airlines CEO Scott Kirby, the driving force behind the Chicago-based carrier being one of the U.S.’ most profitable airlines. 

Next, both Marriott and Hilton recently reached milestones in terms of portfolio growth. What company is leading the hotel growth race though? Senior Hospitality Editor Sean O’Neill delves into the matter.

Hilton and Accor have seen their property counts increase by at least 6% in the past five years. Meanwhile, Hyatt registered a 25% growth spurt although O’Neill notes it was a jump from a significantly smaller base. As for room count, Hyatt was the largest gainer, recording a roughly 16% increase in the last five years. 

Finally, Expedia Group CEO Ariane Gorin has defended its $25 billion B2B business, arguing it isn’t diluting the company’s consumer businesses, writes Executive Editor Dennis Schaal.

Gorin said at a recent investor conference that the B2B business is “incremental” to Expedia’s consumer businesses — including Expedia.com, Hotels.com and Vrbo. She noted that 60% of the bookings in the B2B business take place at points of sale on partner sites outside of the U.S. As for Expedia’s total business, including its consumer brands, only about 36% of revenue last year was generated outside of the U.S.  

However, Skift Senior Research Analyst Pranavi Agarwal argues that Expedia is creating more competition for itself. 

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Episode Notes

Thousands of hotel workers went on strikeacross several large U.S. cities between Sunday and Tuesday. Senior Hospitality Editor Sean O’Neill examines why the strikes are taking place and what they mean for the hotel industry. 

More than 9,000 workers at 21 hotels in 9 cities went on strike on Tuesday. O’Neill notes that hotels are struggling to balance maximizing profits with worker demands for better pay and improved working conditions. Gwen Mills, president of union Unite Here, told Skift in June that workers want increased wages as hotel revenue per room had gone up in recent months. 

Roughly 40,000 hotel workers in 22 North American markets have union contracts that could expire in the next year. Unite Here has threatened to expand strikes to 65 hotels in up to a dozen cities if its demands aren’t met.

Next, investor Elliott Investment Management now owns 10% of Southwest Airlines’ common stock shares. That enables Elliott to hold a special meeting during which it could vote to make big changes at the airline, writes Airlines Reporter Meghna Maharishi. 

Regulatory filings posted on Tuesday revealed that Elliott managed to convert 10% of its economic stake in Southwest into common stock. Elliott could use a special meeting to force a vote on whether to oust Southwest CEO Bob Jordan and chair Gary Kelly. Special meetings are typically used to request shareholder votes on issues that can’t wait until the next general meeting.

Elliott said it wants a leadership change at Southwest in part because the carrier’s stock has lost 50% of its market value in the last three years.  

Finally, New Zealand has announced it will nearly triple entry fees for visitors, reports Associate Editor Rashaad Jorden. 

Travelers to the country will pay roughly $62 U.S. starting on October 1, up from a little more than $21. The increased entry fee is intended to help cover the costs of environmental protection around the country. Tourism Minister Matt Doocey argued the increased entry fee wouldn’t hurt travel since the new amount represents less than 3% of most visitors’ spending. 

However, some tourism executives believe the entry fee hike will make it more challenging for New Zealand to attract tourists. 

Producer/Presenter: Jose Marmolejos

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Episode Notes

Airports worldwide are investing large amounts in tech upgrades for a projected huge increase in passenger traffic. Travel Technology Reporter Justin Dawes profiles five U.S. airports making upgrades.

JFK Airport shared plans earlier this year for its new terminal 6, which will include digital concierge services as well as a self check-in and bag drop. The airport said its new terminal 1 would feature a state-of-the-art baggage handling system. San Francisco International Airport has started working on a $2.6 billion project to modernize terminal 3, which will include automated bag drop stations and new security checkpoints. 

And Pittsburgh International Airport is building a new terminal with more streamlined ticketing stations and baggage claim systems. 

Next, Qantas unveiled details about its all-new aircraft on Thursday. Airlines Editor Gordon Smith takes a look at the Airbus A321XLR, which the Australian carrier will start receiving next April.  

Qantas says the aircraft — which Airbus has coined the “XLR” or “Xtra Long Range” — will open up direct domestic and short-haul international routes. It’s a direct replacement for Qantas’ existing Boeing 737s, which are due to leave the carrier’s fleet over the next decade. The XLR can fly around 1,500 nautical miles further than the outgoing 737s. 

Finally, Edinburgh’s city council recently approved a proposal to levy Scotland’s first tourist tax. Local officials are worried the tax could make the city less competitive, writes Global Tourism Reporter Dawit Habtemariam. 

The “Transient Visitor Levy” will charge guests staying at paid accommodations in Edinburgh 5% per room night. Capped at seven consecutive days, the tax will go into effect in 2026. Edinburgh officials will use the funds for affordable housing, infrastructure and destination management, among other areas. 

Habtemariam notes some tourism businesses are concerned the new tax will make the Scottish capital more expensive for tourists. Marc Crothall, chief executive of the Scottish Tourism Alliance, described Edinburgh’s new tax as a contentious matter, citing concerns about the possible impact on future bookings.  

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Episode Notes

A 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. 

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Episode Notes

Columnist 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 Marmolejos

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Episode Notes

Recent 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 AAA

Next, 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. 

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Episode Notes

Hotels 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. 

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Episode Notes

The 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. 

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Episode Notes

Hyatt 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 Marmolejos

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Episode Notes

Marriott 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 Marmolejos

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