Skift Daily Travel Briefing Skift Travel News

Episode Notes
Skift has unveiled its list of the U.S.’s highest-paid tourism marketing CEOs. Visit California CEO Caroline Beteta took the top spot, writes Global Tourism Reporter Dawit Habtemariam. 
Beteta collected more than $1.5 million in compensation during the 2022 fiscal year. Former San Francisco Travel Association CEO Joseph D’ Alessandro came in second at just under $965,000. Skift used the 2022 fiscal year because it contains the most recent comprehensive up-to-date records.  
Habtemariam notes Skift focused on CEOs from the top 20 cities and major tourism states with large, non-profit destination marketing organizations. Pay packages of CEOs of Brand USA and Destinations International were also included in Skift’s list. 
Next, Spirit Airlines CEO Ted Christie blasted the current state of the airline industry, describing it as a “rigged game,” writes Airlines Reporter Meghna Maharishi. 
Christie said during the company’s first-quarter earnings call that smaller non-legacy carriers like Spirit are struggling to return to profitability. He added that profits in the airline industry are concentrated around two companies. Maharishi notes the “Big 4” carriers — American, Delta, United and Southwest — have recorded record revenues since the pandemic. 
Spirit reported a $142 million first-quarter loss. 
Finally, Expedia Group has given a more complete explanation of the cause of a tech outage that took down several of its websites on Sunday, reports Executive Editor Dennis Schaal.
Expedia Group had first blamed maintenance issues for the widespread outage. But Schaal writes that Monday Expedia acknowledged it was a “backend software issue.” 
Schaal also confirmed that the affected Expedia sites had a common backend technology stack, and the problem went beyond just the consumer-facing websites and included some internal operations.
Producer/Presenter: Jose Marmolejos

Episode Notes
Expedia Group has trimmed its 2024 outlook for growth due to its vacation rental brand Vrbo’s slower-than-expected recovery, reports Senior Hospitality Editor Sean O’Neill. 
O’Neill reports Expedia Group’s first-quarter profit margins were mostly in line with last year. But the company acknowledged that the struggles of Vrbo and Hotels.com drove it to lower its full-year guidance. A tech migration that brought together all of Expedia Group’s major brands hasn’t yet paid off. 
In addition, incoming CEO Ariane Gorin said changes to Hotels.com’s loyalty program contributed to the brand’s sluggish performance. 
Next, one of Booking Holdings’ big goals is selling “connected trips,” where travelers book, for example, a flight, accommodation and attraction. Booking Holdings executives say they’ve seen modest growth in these “connected transactions,” reports Executive Editor Dennis Schaal. 
CEO Glenn Fogel said during its first-quarter earnings call that those connected transactions rose over 50% from last year, albeit off a low base Fogel added that the company has seen strong growth in the sales of attractions and rental cars as part of connected transactions. 
However, Schaal writes Booking Holdings’ goal of a connected trip won’t become reality in the next few years — if it ever does. More than 90% of travelers use Booking Holdings platforms solely to book a flight, car rental, attraction or accommodation. 
Finally, a bipartisan group of U.S. Senators is calling for the restriction of facial recognition at U.S. airports, writes Global Tourism Reporter Dawit Habtemariam. 
A letter to the Senate leadership said that the biometric technology commonly used at airports poses a significant threat to civil liberties. More than 80 U.S. airports use the technology with plans to expand to more than 400. The senators want to add restrictions on biometric technology to the bill that would authorize funding for the Federal Aviation Administration. 
However, the U.S. Travel Association has come out in favor of expanded facial recognition. 

Episode Notes
Airbnb is looking to make waves with the launch of nearly a dozen experience-based homes the company is calling “Icons.” CEO Brian Chesky discussed the new product, as well as AI, loyalty programs and other subjects in a wide-ranging interview with Skift Editor-in-Chief Sarah Kopit. 
Chesky described Icons as a “gateway” into the experiences category, which Airbnb has been eager to break into. He acknowledged Icons won’t be a classic revenue generator for Airbnb as the houses will either be free or low cost to guests. 
In addition, Chesky said Airbnb is working on implementing AI-powered customer service. As for a loyalty program, Chesky said the company plans to start one. He’s adamant that it won’t be a points program, but said he’s open to other formats, including paid membership like Amazon Prime. 
Next, Marriott believes post-pandemic domestic travel demand in the U.S. is leveling out despite a global boom, reports Senior Hospitality Editor Sean O’Neill. 
Marriott CEO Anthony Capuano said during the first-quarter earnings call that North American travel demand patterns were normalizing. U.S. and Canadian hotels saw their revenue per available room — a key industry metric — rise 1.5% from last year. Chief Financial Officer Leeny Oberg cited Europe, the Caribbean and Latin America as regions Marriott expects to see a year-over-year increase in revenue per available room. 
Finally, Saudi Arabia is investing heavily in its tourism infrastructure as part of its strategy to attract more visitors by the end of the decade. But Middle East Reporter Josh Corder writes there’s a growing belief that the kingdom's Vision 2030 is too expensive for travelers. 
A Wyndham executive at the recent Future Hospitality Summit in Riyadh said Saudi Arabia could become too exclusive for travelers, stating that three-star hotels democratize travel. Another executive said Saudi officials aren’t focusing on developing mid-market hotels, which he called the core accommodation for any city — instead opting to boost the luxury sector. 
Corder reports roughly 320,000 new hotels are expected to open in Saudi Arabia, and roughly 82% of them are in the luxury and upscale segments. 

Episode Notes
The U.S. travel industry will likely see a full recovery in Chinese and Japanese tourism by 2026 — a year earlier than expected, writes Global Tourism Reporter Dawit Habtemariam.
The latest report from the U.S. National and Travel Tourism Office projects that international travel to the U.S. will fully recover in 2025. However, the office expects China and Japan to be behind the U.S.’ other source markets. An executive at the organization cited China’s weak economy and flight restrictions as barriers to a full rebound in Chinese visitors. 
In addition, soaring airfares have deterred some Japanese travelers from visiting the U.S. 
Next, many travelers might be unaware of Volotea, but the Barcelona-based airline is holding its own in Europe’s very competitive low-cost carrier market. Volotea CEO Carlos Muñoz explained how it’s achieved success in an interview with Airlines Editor Gordon Smith.
Muñoz said Volotea is the only low-cost airline dedicated to second- and third-tier cities, adding the company has less competition than its rivals. Smith notes that Volotea has almost 450 routes, with more than half of them exclusively served by Volotea. 
Muñoz also said the pandemic drove Volotea to remove the Boeing 717 from its fleet, aircraft he described as quite costly. 
Finally, Asia Editor Peden Doma Bhutia takes a look at Indian carrier IndiGo’s plans to become a bigger player in the global airline industry. 
Bhutia reports that IndiGo, India’s largest airline, is looking to offer nonstop connectivity from major Indian airports to global destinations. CEO Pieter Elbers said its plans align with the government’s aim to make India a global aviation powerhouse. IndiGo recently placed its first-ever order for widebody aircraft. 
However, Elbers didn’t offer any indications about where IndiGo intends to fly next. 
Producer/Presenter: Jose Marmolejos

Episode Notes
One of China’s largest airlines, China Southern, is buying 100 domestically-built planes – the C919, produced by the state-owned Commercial Aircraft Corporation of China (COMAC).
The plane is considered an emerging competitor to Airbus’ A320 and the Boeing 737. And Airlines Editor Gordon Smith examines if other airlines will look to buy these Chinese-built aircraft.
Just last week, Air China signed a similar agreement with COMAC for 100 C919 jets. The bigger question is if international carriers will be tempted to buy. 
Christian Scherer, the CEO of Airbus’ commercial aircraft division, has said the C919 “isn’t going to rock the boat.” However, one Boeing executive said the planemaker is factoring in competition from the C919 in its long-term forecast. 
Next, TUI CEO Sebastian Ebel believes recent protests in the Canary Islands against mass tourism aren’t about the industry itself. He says residents are angry about a shortage of housing, writes Travel Experiences Reporter Jesse Chase-Lubitz. 
Protestors are calling on authorities to limit tourist arrivals to ease pressure on the environment, infrastructure and housing supply. Chase-Lubitz notes many Canary Islands residents argue that mass tourism is pricing them out of their homes. 
However, Ebel said the unregulated online booking platforms are the reason housing prices have gone up — not tourism as a whole. Ebel blamed individual trips, which include people booking local apartments, for causing more housing to be offered as holiday accommodation.  
Finally, columnist Colin Nagy argues the ideals of luxury hospitality have been distorted so much that guests are struggling to understand reality: Great properties don’t get the attention they deserve, and others serve up superficial goods but fail to deliver. He looks at the problems and suggests ways to fix them. 
Nagy cites the decline of travel media as one area of concern, noting he believes thoughtful, unbiased commentary on hotels is disappearing. He lists writers and publications worth reading. Nagy also writes that luxury offerings all look the same, and urges readers to support brands carving out unique spaces.  
Producer/Presenter: Jose Marmolejos

Episode Notes
India’s largest airline IndiGo has taken a step in its quest to make a mark globally. IndiGo has ordered a large number of widebody aircraft that will enable it to operate more international flights, reports Contributor Ajay Awtaney. 
IndiGo announced the order of 30 A350-900 jets on Thursday. The company has also retained the purchase rights for another 70 aircraft. Awtaney notes IndiGo expects to start incorporating the aircraft into its fleet from 2027 onwards, adding the airline has been conducting internal assessments on the best choice for its growth strategy. 
Next, Wyndham is looking to adopt a two-part strategy after fending off Choice Hotels’ hostile takeover attempt, reports Senior Hospitality Editor Sean O’Neill.
Wyndham executives said they want to maintain their hotel group’s strength in the economy sector while adding more premium properties that generate higher franchise fees. Wyndham is investing more of its money to help developers finance deals to create hotels.  
Wyndham generated a net income of $16 million during the first quarter, down from $67 million a year ago. Wyndham executives attributed the drop to expenses related to Choice Hotels’ hostile bid.  
Finally, Royal Caribbean is getting a boost from a surge in younger travelers, writes Reporter Elizabeth Casolo. 
Royal Caribbean CEO Jason Liberty said during the company’s first-quarter earnings call that nearly half of its cruise guests are millennials or younger. Liberty added that demographic increased by 11 percentage points of share compared to 2019, growth he attributed to some of Royal Caribbean’s exclusive destinations. 
Royal Caribbean generated $360 million in net income during the first quarter.