Skift Daily Travel Briefing Skift Travel News

The use of artificial intelligence in the travel industry has grown significantly in recent years. However, the industry still has a lot of work to do to get the most out of AI. Vivek Bhogaraju, advisory partner of data and AI at Skift, provides travel companies with ideas on how to develop AI strategies.
Bhogaraju writes that this is just the beginning of the AI era. He urges companies to be flexible when using the technology, noting that new regulations will eventually be introduced. Bhogaraju also emphasized the importance of hiring the right chief data officers, who he said need extensive technical knowledge and a background in the travel industry. 
Although Bhogaraju writes that successful data and AI execution requires urgency and efficiency, he notes that projects that succeed take time and persistence. 
Next, LVMH said on Thursday it reached a deal with Accor to speed up the revival of the hotel company’s Orient Express brand, reports Senior Hospitality Editor Sean O’Neill.  
LVMH said it would make an unspecified strategic investment in the Orient Express brand. O’Neill notes the joint venture will include ships in addition to trains and hotels. Meanwhile, LVMH downplayed rumors it would open a Louis Vuitton-branded hotel in Paris.
Finally, Thailand has decided to scrap a proposed $8 fee on international tourists arriving by plane, writes Asia Editor Peden Doma Bhutia.
Prime Minister Srettha Thavisin recently said his administration would abandon the previous government’s plan, which was approved in February 2023. Thai officials intended to use the revenue from the tourism fee to fund the management of insurance for international visitors. 
However, Bhutia notes the tourism fee faced significant opposition from private stakeholders. Plus, Thavisin said eliminating the tourist fee could produce greater economic benefits. 

Episode Notes
Activist fund Elliott Investment Management has called for a major shakeup at the top of Southwest Airlines after recently taking a $2 billion stake in the carrier. However, Southwest CEO Bob Jordan has no plans to resign, writes Airlines Reporter Meghna Maharishi.  
Jordan said at a Politico event on Wednesday that he would consider Elliott’s feedback, adding that Southwest is ready to adapt its business model. Maharishi reports Elliott has been calling for Jordan and Chairman Gary Kelly to step down due to Southwest’s recent struggles. The carrier has yet to turn a profit this year. 
Next, hotel companies’ investments in wellness have grown enormously in recent years. Senior Hospitality Editor Sean O’Neill takes a look at emerging trends in hotel wellness.
A report from consulting firm RLA Global revealed hotels with wellness offerings saw healthy growth in 2023. So-called upper upscale hotels performed best in wellness last year compared to luxury and upscale segments. In addition, a report from investment bank Truist found that spa treatment revenue per occupied room was up at least 30% relative to 2019 levels. 
Finally, cruise lines are expected to disclose all mandatory fees and taxes to U.S. consumers starting July 1 to comply with California’s junk fee law, writes Global Tourism Reporter Dawit Habtemariam.
California Governor Gavin Newsom signed a bill last October banning junk fees. The law applies to all businesses with offices or customers in the Golden State. Consumers can sue companies allegedly breaking the law for at least $1,000 in damages. 
Royal Caribbean, Carnival and Norwegian Cruise Line all plan to meet the requirements of the new law. Habtemariam reports total prices won’t change — only the advertised prices shown upfront on cruise company channels will. 

Presented by Brand USA
Episode Notes
IAG Loyalty has big plans to expand its frequent flyer currency Avios. IAG Loyalty CEO Adam Daniels discussed those ambitions and more in an interview with Airlines Reporter Meghna Maharishi. 
Daniels said one of IAG Loyalty’s goals is to make Avios a global currency. Avios has already entered into partnerships with Qatar Airways and Finnair, carriers outside of the IAG family. IAG’s airline brands include British Airways, Iberia and Aer Lingus. Daniels added Avios is in discussions with other airlines as well as hotel groups.
Daniels also addressed the trend of devaluing frequent flyer miles. He acknowledged one criticism of loyalty programs is that collecting miles has been easier than using them. Daniels said IAG Loyalty is looking to change that.   
Next, Marriott recently reached a deal with the U.S. Justice Department to comply with the Americans with Disabilities Act, reports Senior Hospitality Editor Sean O’Neill. 
Marriott will make improvements to its reservation processes to make it easier for guests to reserve and stay in rooms they need to accommodate their disabilities. O’Neill notes that Marriott aims to list all accessible rooms through its booking system. The Justice Department had investigated Marriott’s reservation practices after complaints from individuals with disabilities. 
Although Marriott contended it has complied with all ADA requirements, the company will pay a $50,000 civil penalty under the deal. 
Finally, Southwest Airlines is vehemently defending its strategy after activist fund Elliott Investment Management took a $2 billion stake in the company, writes Airlines Reporter Meghna Maharishi. 
Maharishi reports Elliott — now one of the airline’s largest investors — is pushing for major leadership changes at Southwest, including a shakeup at the top. Southwest said its board of directors and executive team are reviewing Elliott’s proposal. In addition, Southwest said it was taking steps to return to profitability, such as making new technology investments and cutting underperforming routes. 
Get more travel news at https://skift.com
Producer/Presenter: Jose Marmolejos

Presented by Brand USA
Episode Notes
Apple unveiled new travel-related features for several of its products on Monday at the 2024 Apple Worldwide Developers Conference. Travel Technology Reporter Justin Dawes provides details about Apple’s updates. 
Dawes notes the Apple Watch will have a new translation app, live update features for flights and Uber, and a setting to alert users before it rains. In addition, Siri is getting a connection to OpenAI, which will enable users to ask Siri anything they can ask ChatGPT, including trip planning info for free. And travelers will be able to use Apple Vision Pro virtual reality headsets on not just planes — but trains as well. 
Next, InterContinental Hotels Group would like its property mix to include more premium, lifestyle and luxury brands. However, IHG is downplaying its plans due to its investors’ preference for mid-market and extended-stay brands, reports Senior Hospitality Editor Sean O’Neill. 
Although O’Neill notes moving upmarket is tantalizing for several reasons, IHG is responding to the demand it sees from hotel owners and investors. In addition, IHG’s Americas CEO Jolyon Bulley said that some owners who want to do deals are concerned about the state of the lending environment. O’Neill adds that conversions are more appealing to some investors because of obstacles in the market. 
Finally, Mallorca has seen massive protests over mass tourism that many residents believe has helped make housing unaffordable, among other problems. Travel Experiences Reporter Jesse Chase-Lubitz delves into the widespread anger on the island.
Protests have erupted even in towns far from Mallorca’s most popular beaches, with Chase-Lubitz citing one small town without tourist attractions that’s been swarmed by tourists seeking lodging. One university professor and Mallorca native said the tourism boom has made it hard for residents to find affordable housing. The island’s capital city Palma de Mallorca and four other cities have seen residential property prices jump more than 10% this year. 
Chase-Lubitz adds several other incidents have fueled widespread Mallorcan anger about tourism, including a fight involving a group of young British men earlier this month. 
Get more travel news at https://skift.com
Producer/Presenter: Jose Marmolejos

Presented by Brand USA
Episode Notes
Authorities in Venice believe the roughly $5 entry fee it charges visitors has benefited the city. And a top tourism official told Skift Venice could raise the amount, writes Global Tourism Reporter Dawit Habtemariam. 
Simone Venturini, the city’s deputy mayor for tourism, said the fee is part of Venice’s strategy to preserve its beauty and pivot away from being “a cheap tourism capital.” Venturini added that everything has gone smoothly since the entry fee was implemented in April. He said the city is considering hiking it to roughly $10. 
Venturini said the entry fee mainly targets local day-trippers. He also disputed the notion that the majority of Venetians object to it, stating a protest that attracted 200 people didn’t represent the views of most residents.  
Next, U.S. hotel demand growth is projected to slow down — even in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. 
Data firms STR and Tourism Economics project a roughly 2% increase in average daily rates this year. That’s down from a previous estimate of 3%. STR President Amanda Hite said hotel industry figures believe there isn’t as much weekend demand for leisure as expected. 
Hite added she was surprised about the revised projection in the luxury segment. O’Neill notes the luxury sector faces greater risks due to a shift in the guest mix from leisure travelers toward more group bookings and business travelers. 
Finally, population shifts across the U.S. could drive vacation rental growth in certain markets, writes Reporter Elizabeth Casolo.
AirDNA Chief Economist Jamie Lane said at the Skift Short-Term Rental Summit this year that the “mass exodus” of people from certain locations would impact where guests stay. Lane said that would result in people vacationing in entirely different markets, with Casolo citing Texas and Florida as states that have seen population growth. 
Lane added AirDNA had identified up-and-coming hot sports for vacation rentals. The four highest-ranked destinations AirDNA listed were all in Texas. 
Get more travel news at https://skift.com
Producer/Presenter: Jose Marmolejos

Episode Notes
Booking.com is targeting U.S. travelers to tap into the increasing demand for short-term rentals, writes Reporter Christiana Sciaudone. 
Eric Bergaglia, Booking.com’s vice president of Homes & Growth Segments, said at the Skift Short-Term Rental Summit that the company needs to be more U.S.-centric in how it develops products. Sciaudone reports Booking.com is focusing on in particular payments, liability insurance, damage policy to appeal to American consumers.  
Bergaglia said that U.S. consumers aren’t as aware of Booking.com as those in other markets worldwide are.  
Next, population shifts across the U.S. could drive vacation rental growth in certain markets, writes Reporter Elizabeth Casolo. 
AirDNA Chief Economist Jamie Lane said at the Skift Short-Term Rental Summit that the “mass exodus” of people from certain locations would impact where guests stay. Lane said that would result in people vacationing in entirely different markets, with Casolo citing Texas and Florida as states that have seen population growth. 
Lane added AirDNA had identified up-and-coming hot spots for vacation rentals. The four highest ranked destinations AirDNA listed were all in Texas. 
Finally, Marriott Bonvoy’s Homes & Villas unit is seeing a surge in international reservations — especially in non-traditional destinations, writes Travel Experiences Reporter Jesse Chase-Lubitz. 
International reservations are 38% of the unit’s total — up from 14% in 2021, according to Vice President Jennifer Hsieh. While Hseih said Italy, France, and Spain remain popular for guests, she added Marriott is seeing booking jumps in destinations such as Curaçao and the Greek island of Paros. Homes & Villas’ international listings have jumped 39% in the past year. 
Hsieh also addressed the matter of standardization. She said travelers aren’t looking for standardization in the home product design — instead they’re focused on consistency in cleanliness, safety and security. 
Get more travel news at https://skift.com