Skift Daily Travel Briefing Skift Travel News

Presented by BrandUSA
Episode Notes
OpenAI, Google and Meta have big plans for AI chatbots that can serve as personal assistants for travelers. Travel Technology Reporter Justin Dawes provides takeaways after reviewing the latest updates.
OpenAI is releasing new voice translation capabilities in the near future that can understand non-verbal cues and recognize different voices in group conversations. Dawes notes OpenAI’s voicebot could break down language barriers that could keep travelers from visiting certain destinations. OpenAI and Meta are also promoting their tech’s visual translation capabilities, which help travelers, for example, figure out a menu not in their native language. 
While Dawes notes OpenAI is the furthest along in creating a virtual personal assistant that can be a tour guide, he writes Google is the furthest along in developing trip planning tools integrated with booking options.  
Next, Chase Travel saw its sales grow as fast as Booking Holdings’ last year. But Chase said it faces some headwinds, reports Executive Editor Dennis Schaal.
Chase Travel reported it grew its gross bookings 25% year-over-year in 2023, just ahead of Booking Holdings at 24%. Meanwhile, Expedia Group registered only 10% growth. Chase Travel executives have said they’re looking to gain share from competitors such as Booking Holdings and Expedia that have been around for decades. 
Chase Travel did report at its recent annual investor day that “macro travel headwinds” were impacting its profit margins. One Chase Travel executive told investors that the company saw lower growth in spending by luxury travelers. 
Finally, India’s largest airline IndiGo is launching a business-class product by the end of this year, reports Asia Editor Peden Doma Bhutia.
CEO Pieter Elbers said the new product is part of IndiGo’s plans to adapt to India’s changing travel landscape, adding the carrier has seen a greater demand for premium travel. He also expressed confidence that the new offering would cater to corporate travelers’ needs. Elbers indicated IndiGo would unveil information about news routes in August.  
Producer/Presenter: Jose Marmolejos

Presented by BrandUSA
Episode Notes
Airbnb recently said its average daily rates can be cheaper than those of hotels. But there are lot of factors to consider, reports Executive Editor Dennis Schaal.
The company said the average daily rate in March of a one-bedroom Airbnb worldwide was $114 while data firm CoStar reported the equivalent rate for a hotel room was $140. But Schaal notes there is a lot of nuance in those numbers, adding they don’t include Airbnb cleaning fees, hotel resort fees or taxes. 
In addition, Jan Freitag, a CoStar executive, said the issue of whether an Airbnb or a hotel room is cheaper depends on the market and time of the year, among other factors. 
Next, Scandinavia is seeing a surge in tour and activity bookings for this summer in part due to the region’s moderate climate, writes Travel Experiences Reporter Jesse Chase-Lubitz. 
Data from GetYourGuide, Viator and TourRadar all indicate a significant jump in bookings compared to last year. The spike may be connected to traditionally popular destinations like Italy, Spain and Greece increasingly experiencing summertime heat waves and wildfires. Viator says Norway is the fastest-growing country in its portfolio while TourRadar reports bookings in Denmark and Sweden are surpassing average growth rates. 
Finally, Southwest Airlines fares are now appearing on Google Flights, which had been considered unlikely, writes Airlines Reporter Megnha Maharishi. 
Southwest said in a statement that it was looking to extend its reach, with Maharishi noting the carrier hadn’t previously listed its fares on Google Flights or online travel agencies as a way to cut distribution costs. Southwest is also conducting an in-depth study into consumer preferences as it considers making more changes to its model. CEO Bob Jordan recently said that Southwest is weighing whether to implement assigned seating and add premium cabins to its fleet. Today's podcast looks at Airbnb prices, summer travel in Scandinavia, and booking Southwest on Google Flights. 

Producer/Presenter: Jose Marmolejos

The World Economic Forum recently released its 2024 Travel & Tourism Index. Global Tourism Reporter Dawit Habtemariam and Senior Hospitality Editor Sean O’Neill profile five countries the organization named as among the most-improved economies for enabling travel and tourism development since 2019. 
Habtemariam and O’Neill highlight Albania, Indonesia, Egypt, Tanzania and El Salvador. In particular, Albania has seen a 141% increase in daily flight traffic since 2019. Meanwhile, Indonesian authorities boosted domestic tourism last year by launching a program that gave financial support to more than 170 festivals and cultural events. 
Habtemariam and O’Neill note that the World Economic Forum has recommended that tourism leaders develop strategies to combat challenges such as labor shortages and climate change. 
Next, the Four Seasons is betting that luxury travelers will be willing to make a long journey to the remote Pacific island of Palau, writes Columnist Colin Nagy. 
The Four Seasons is planning to open a permanent hotel development in Palau in the next few years. Armando Kraenzlin, a longtime Four Seasons general manager, described Palau as “one of the last true remaining frontiers.” The Great Barrier Reef Foundation reported that Palau is the only country to have protected 80% of its offshore marine environment. 
In addition, Nagy notes the Four Seasons has relocated its liveaboard ship, the Explorer, from the Maldives to Palau, as well as moved some diving instructors and marine biologists. 
Finally, airlines are scrambling to acquire the five new slots for long-distance flights departing from Reagan National Airport, writes Airlines Reporter Meghna Maharishi. 
President Joe Biden recently signed a bill with a provision approving the new slots. Maharishi reports the slots have to be allocated within 60 days of the act becoming law. 
American Airlines had already announced a partnership with San Antonio International Airport to launch flights between the city and Reagan National. In addition, Alaska Airlines plans to apply for flights between San Diego and the airport. San Diego is currently the largest market without nonstop service to Reagan National.  

Episode Notes
Marriott and Hilton are in fierce competition regarding the growth of their portfolios and loyalty programs. But Marriott is the clear winner in terms of fees earned from services for hotel owners, writes Senior Hospitality Editor Sean O’Neill in this week’s Early Check-In. 
Hotel groups charge owners fees for managing or franchising hotels. Marriott generated $1.24 billion in gross fee revenue last year while Hilton generated $773 million. While Hilton’s fee revenue is growing faster than Marriott’s, O’Neill notes that Marriott’s lead is so large that it would take Hilton 40 years to catch up if current trends remained the same. 
Next, Google recently launched AI-driven search capabilities as well as a more advanced Gemini AI model. Skift CEO and founder Rafat Ali provided his take on the new offerings. 
Ali writes that AI Overview stands out as a key feature in Google Search, and provides comprehensive summaries for complex travel queries. One query – “What’s the best time to visit London?” – generated a curated overview with suggested itineraries, travel tips and related multimedia content. 
The travel information landscape is now infinitely more complex, as Google is pulling results from across many different media and display formats. Reddit as a source of competition for any travel information query is the biggest new change in search in 2024.
Finally, Spirit Airlines has joined fellow ultra-low-cost carrier Frontier in dropping change and cancellation fees, writes Airlines Reporter Meghna Maharishi. 
Maharishi reports Spirit appeared to quietly remove most change and cancellation fees from its website this past weekend. Spirit now doesn’t charge any fare classes, except for group bookings. The company had charged between $69 and $119 to change or cancel a reservation, depending on the number of days before departing. 
Spirit said the move was part of its strategy to return to profitability. Spirit and Frontier are among a growing number of U.S. carriers that have eliminated change fees in recent years. American, Delta and United all scrapped change fees during the pandemic, except for the cheapest and most restrictive fares. 

Episode Notes
Airlines have recently gotten a big boost from a segment many airlines thought would continue to struggle — business travel, writes Airlines Reporter Meghna Maharishi. 
Delta Air Lines said corporate bookings were up 14% in the first quarter. Delta President Glen Hauenstein said 90% of the companies it surveyed said they plan to increase travel in the second quarter. United Airlines and Alaska Airlines both recorded significant increases in corporate bookings during the first quarter, with Alaska stating business travel for the carrier has fully recovered to pre-Covid levels. 
Next, Chase now offers its cardholders something its rivals and online travel agencies don’t — the opportunity to book Southwest Airlines flights through its own travel platform, reports Executive Editor Dennis Schaal. 
A Chase spokesperson said this week that cardholders are able to book Southwest flights on Chase Travel using points or cash. Cardholders who wanted to book Southwest flights in the past would’ve had to phone Chase Travel customer service. Schaal notes Southwest’s official website was the only place to book its flights for years, adding that online travel agencies that tried to offer Southwest flights received cease and desist letters. 
It’s uncertain though if other credit card companies will enable cardholders to book Southwest flights through their travel portals. 
Finally, Saudi Arabia is looking to attract 70 million international tourists annually by 2030. They can’t all stay in the luxury hotels that get so much attention, writes Middle East Reporter Josh Corder.
Fahd Hamidadin, CEO of the Saudi Tourism Authority, said that no more than 20% of visitors will be staying in four- or five-star hotels, adding that the real business of tourism is far from luxury. Indeed, an Accor executive said most people in the world are basically economy and mid-scale brand consumers. 
However, roughly 82% of the rooms in Saudi Arabia’s hotel pipeline are in the luxury and upscale categories, according to real estate consultancy firm Knight Frank.

Episode Notes
This year’s Summer Olympics are boosting short-term rental bookings in Paris, writes Reporter Elizabeth Casolo. 
Short-term rental bookings in Paris between July 26 through August 11 are up 46% compared to the prior two weeks, according to data analytics firm AirDNA. Bookings in Paris’ suburbs for the Olympics are up 112%.
However, AirDNA Chief Economist Jamie Lane said short-term rental rates during the Olympics are beginning to drop. Lane added AirDNA expects rates to continue falling because hosts will get worried their units aren’t booked.  
Next, Generation Z travelers are spending big on travel — especially hotels, writes Senior Hospitality Editor Sean O’Neill. 
Generator and Freehand hotel brands — both of which heavily target guests between the ages of 18 and 28 — saw revenue jump 15% in 2023 from the previous year. The two brands have seen bookings jump 40% this year in markets such as Miami, Madrid and New York. Alastair Thomann, CEO of the two brands, attributed that growth to spending by Gen Z travelers. 
O’Neill notes Gen Z is financially better off than young people in prior generations, with youth unemployment in the world’s seven most well-off countries the lowest since 1991. 
Next, Europe’s largest tour operator TUI is facing several challenges due to ongoing Boeing delivery delays, writes Travel Experiences Reporter Jesse Chase-Lubitz. 
TUI CEO Sebastian Ebel said the company received fewer Boeing jets than expected, which drove TUI to extend leases on older aircraft. Ebel added that maintenance expenses associated with older aircrafts helped drive up costs for TUI. However, he said the tour operator expects to receive compensation from Boeing. 
Despite the challenges brought about by delivery delays, TUI still had a strong second quarter. The company generated just below $4 billion of revenue, a 16% increase from last year.