Accor is expanding its portfolio of economy hotels in the Middle East as the region shifts toward mass-market tourism, with a particular focus on Saudi Arabia. In India, while domestic and outbound tourism have grown, inbound tourism remains weak due to visa difficulties and reduced government funding for global tourism promotion. Meanwhile, the Chinese social media platform RedNote has surged in popularity among American travelers, offering a new hub for travel inspiration amid uncertainty over TikTok’s future.

• Accor has big plans to expand its portfolio of economy hotels in the Middle East
• Why India can’t attract more international tourists
• RedNote, the Chinese social media platform that has seen a surge in popularity among American travelers

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President Donald Trump signed executive orders that could impact travel, including a federal hiring freeze that may lead to visa processing delays and stricter screening rules that resemble his previous travel ban. Online travel agency Hopper is considering an IPO, with CEO Fred Lalonde estimating a potential $10 billion valuation, though the company must meet revenue and profitability targets first. Meanwhile, global tourism has rebounded to pre-Covid levels, with international arrivals increasing by 11% in 2024, driven largely by growth in Africa and the Asia-Pacific region.

• The executive orders that could have the biggest impact on the travel industry
• Online travel agency Hopper is considering an initial public offering 
• Global tourism recovered to pre-Covid levels in 2024

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Donald Trump’s return to the White House has the hotel industry hopeful for policies like tax cuts and expanded worker visas to boost business, as the expiration of key tax provisions could lead to a 33% increase in taxes. Meanwhile, TikTok will remain accessible in the U.S. after Trump extended the deadline for ByteDance to find a buyer, preventing a federal ban that could have disrupted travel marketing for major brands like Expedia and Disney Parks. Additionally, online travel agency Agoda has launched a Sustainable Tourism Impact Fund to support small businesses in Southeast Asia with low-interest loans to promote eco-friendly practices.

• Airbnb has unveiled measures to crack down on price gouging
• 2024 was a record-breaking year for airlines
• Luxury cruise group Ponant Explorations Group acquired Aqua Expeditions

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Airbnb has introduced a policy preventing hosts in Los Angeles and Ventura counties from increasing prices by more than 10% after wildfires, following warnings from California’s attorney general about illegal price gouging. In the airline industry, 2024 saw record-breaking passenger capacity despite fewer scheduled flights, with U.S. airlines dominating the global market and Atlanta’s Hartsfield-Jackson ranking as the busiest airport. Meanwhile, luxury cruise company Ponant Explorations Group acquired Aqua Expeditions, expanding its presence in the high-end, small-ship cruising sector, with plans for new itineraries in East Africa.

• Airbnb has unveiled measures to crack down on price gouging
• 2024 was a record-breaking year for airlines
• Luxury cruise group Ponant Explorations Group acquired Aqua Expeditions

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The U.S. Department of Transportation is suing Southwest Airlines for chronically delayed flights on specific routes, while the airline disputes the claims. President-elect Donald Trump’s Transportation Secretary nominee, Sean Duffy, emphasized aviation safety and merit-based hiring during his Senate hearing. A report on the hotel industry highlights a gap between sustainability commitments and actual actions, with only 6% of surveyed hotels using renewable energy despite widespread emissions reduction plans.

• U.S. Department of Transportation has filed a lawsuit against Southwest Airlines
• President-elect Donald Trump's nominee for Transportation Secretary appeared before the Senate Commerce Committee
• A new report by the World Travel and Tourism Council and Greenview about hotels and sustainability

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Tripadvisor is testing a partnership with AI search engine Perplexity to leverage its vast travel data and maintain visibility in search results, while Perplexity pays for that data and gives Tripadvisor a commission on bookings. Meanwhile, Southwest Airlines is pausing corporate hiring and most internships to cut costs as it works toward returning to profitability. Finally, luxury hospitality company Banyan Group plans to expand beyond its Asian base by adding new properties and residences, including openings in Tanzania, the Dominican Republic, North America, and the Middle East.

• Tripadvisor has begun a trial to power travel-related answers on ChatGPT rival Perplexity
• Southwest Airlines is pausing corporate hiring and most summer internships
• Luxury hospitality company Banyan Group is looking to expand beyond its traditional base

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American Express Global Business Travel is defending its proposed $570 million acquisition of CWT against a U.S. Department of Justice lawsuit, arguing the deal, slated to close in March, would not harm competition despite DOJ concerns over pricing and innovation. Meanwhile, luxury hotel brand Belmond is promoting its properties with hour-long ambient videos, aiming to differentiate itself from competitors who focus on short social media clips. Lastly, Spanish Prime Minister Pedro Sanchez announced plans to raise taxes on holiday rentals, aligning with a new EU directive and addressing concerns about their impact on housing availability and affordability.

• American Express Global Business Travel pushed back on a recently filed U.S. Department of Justice lawsuit
• Ultra-luxury hotel brand Belmond is sharing hour-long videos with minimal action
• Spanish Prime Minister Pedro Sanchez announced plans on Monday to raise taxes on holiday rentals

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TikTok is launching its first e-commerce product exclusively for travel brands to help them reach potential customers in the booking moment. Meanwhile, Hilton has surpassed 1,000 trading hotels in Asia-Pacific ahead of schedule and plans to expand further by tailoring offerings to local travelers and leveraging strategic franchising. Lastly, with hotel supply in India lagging behind demand, industry analysts predict room rates will surge and revenues will continue climbing through the 2025 and 2026 fiscal years.

• TikTok said Thursday it’s launching its first e-commerce product exclusively for travel brands
• Hilton is looking to take advantage of the travel boom across Asia 
• Room rates in the India are expected to surge

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Kerzner International plans to expand its ultra-luxury hotel portfolio by adding at least 10 new properties under both the One&Only and Atlantis brands, while also accelerating the growth of its newer lifestyle brands, Siro and Rare Finds. Meanwhile, Delta Air Lines is ending its eight-year partnership with Lyft and making Uber its exclusive rideshare and delivery partner, allowing SkyMiles members to earn miles on qualifying Uber trips. Finally, the UK government is standing firm on a policy requiring airlines to use more sustainable aviation fuel—starting at a 2% mandate and rising to 22% by 2040—despite concerns this will raise ticket prices.

• Kerzner International has big plans to expand its portfolio
• Delta Air Lines announced this week that it will link its SkyMiles loyalty program to Uber
• UK government is standing firm behind its new policy requiring airlines to use greener jet fuel

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At Skift’s Megatrends event, travel executives discussed the rising impact of AI on the industry, with Thomas Reiner of Altimeter Capital warning that AI-driven personal assistants could disrupt online travel agencies, metasearch engines, and traditional SEO. Meanwhile, Kayak CEO Steve Hafner anticipates that a commercial agreement between an AI engine and a major travel brand could arrive by 2025, potentially reshaping consumer booking habits. Finally, British Airways’ controversial switch to a revenue-based loyalty program underscores the importance of transparent communication and planning when making significant changes that affect frequent travelers.

• Online travel agencies and metasearch engines are in trouble due to the rise of AI-generated search
• The first commercial agreement between an AI engine and a major travel brand
• British Airways recently announced several controversial changes to its loyalty program

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The U.S. hotel transaction market is flourishing for properties valued under $50 million or over $250 million, but mid-size full-service hotels have essentially frozen due to owners clinging to 2019 prices and increased renovation costs. Meanwhile, a severe winter storm caused over 1,400 flight cancellations in the Mid-Atlantic and Midwest, most notably at Washington, D.C.’s Reagan National Airport, with airlines waiving rebooking fees. Lastly, Indian budget hotel operator Oyo has barred unmarried couples from its Meerut properties, sparking questions about the legality and potential spread of this policy to other cities.

• The U.S. hotel transaction market is currently hot for luxury properties
• Airlines canceled more than 1,400 flights in the U.S. on Monday
• Oyo will no longer permit unmarried couples to stay in Meerut, India

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