Skift Daily Briefing

Presented by Brand USAEpisode NotesA growing number of companies have reduced their travel budgets in recent years, but that hasn’t slowed down business travel’s rebound, writes Reporter Christiana Sciaudone. Roughly 60% of travel buyers said their companies have cut their travel budgets in the past few years, according to a recent BCD Travel survey. In addition, 96% said their companies have introduced cost control policies. However, Sciaudone notes 2024 is shaping up to be a strong year for business travel. The global business travel market is expected to hit pre-Covid levels this year, according to British data analytics firm GlobalData. Roughly 220 million outbound business trips are projected to take place in 2024, up from 174 million last year. Next, American Airlines announced it’s reached a conditional purchase agreement with startup ZeroAvia for 100 hydrogen-electric engines, writes Airlines Reporter Meghna Maharishi. American CEO Robert Isom said the hydrogen-electric engines would help the company be more sustainable. ZeroAvia develops engines for commercial aircraft that can emit close to zero emissions. American joins rivals in making investments in ZeroAvia’s hydrogen-electric engines in recent years. However, a major issue with engines is that they can only power smaller aircraft. Maharishi notes most of the investment has been limited to regional jets since technology isn’t yet ready for hydrogen-electric engines to power larger planes. Finally, sports network ESPN has entered the experiences sector by launching a tour of Major League Baseball venues, writes Travel Experiences Reporter Jesse Chase-Lubitz. ESPN’s first tour — which runs over Labor Day weekend — will include stops at three stadiums and exclusive access to the network’s headquarters. Chase-Lubitz notes ESPN will make a determination about running more tours based on the success of its initial offering. An ESPN spokesperson at the Disney-owned network said it had seen growing demand for experiences tours. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Episode NotesNat Pieper has the task of helping lead 13 airlines as the CEO of the oneworld alliance, one of the world’s three major airline groups. Pieper discussed the challenges he faces and industry trends in an interview with Airlines Editor Gordon Smith.Oneworld has opened airport lounges in Seoul and Amsterdam this year, but Pieper acknowledged he doesn’t have a magic number in mind for how many lounges he’d like to open. He did note that the revenue outlook this summer for oneworld looks healthy despite post-pandemic revenge travel having run its course. And he sees the premium travel experience as a trend that’s here to stay. Next, visitors to Japan no longer have free access to Mount Fuji’s popular Yoshida Trail, writes Global Tourism Reporter Dawit Habtemariam. Local authorities have implemented both a mandatory $12 fee to climb Mount Fuji on the trail and a daily cap of 4,000 hikers. Officials have also set up a new reservation system and entry gate to enforce the cap. A Japanese tourism executive said the measures are necessary to help protect Mount Fuji from congestion and overcrowding, with Habtemariam noting that revenue from the fee would go toward maintenance and safety measures, among other services. Finally, Indian consumers are spending an astronomical amount of money on weddings, writes Asia Editor Peden Doma Bhutia.Weddings are the second-largest consumption category in India, trailing only food and groceries, according to brokerage firm Jefferies. In addition, the average Indian spends twice as much on a marriage ceremony than 18 years of education. Bhutia notes an Indian household spends on average three times its annual income on weddings. India is the world’s largest wedding destination, hosting between 8 and 10 million wedding ceremonies annually. The country’s wedding industry is worth approximately $120 billion. Get more travel news at https://skift.com.

Presented by Brand USAEpisode NotesThe National Transportation Safety Board has blasted Boeing, arguing the planemaker shared sensitive information with the media, writes Airlines Editor Gordon Smith. The NTSB said that Boeing had violated the agency’s investigative rules by disclosing information to the press about the January blowout on an Alaska Airlines flight. The agency also said Boeing improperly speculated about possible causes of the blowout. As a result, Boeing will no longer have access to the investigative information that the federal agency produces as it continues its probe into the January 5 accident. In a statement, Boeing acknowledged that it overstepped and apologized. Next, short-term rental price comparison business HomeToGo plans to show total cost, including fees and taxes, to comply with California’s new junk fee law that starts on July 1, reports Executive Editor Dennis Schaal. HomeToGo CEO Patrick Andrae said his company is going further than Airbnb, which plans to display the nightly rates and fees upfront — but not taxes — in California. HomeToGo will display total cost throughout all of the U.S. Andrae added that showing all fees and taxes will be HomeToGo’s practice regardless of whether it’s processing a booking on its own channels or directing a guest to a third-party site to book.Finally, there were 539 direct passenger flights in December 2019 between India and China. However, there are currently zero. Asia Editor Peden Doma Bhutia examines the issue.China has been pushing to resume direct air links between the two countries, which was suspended during the pandemic. But India remains cautious due to strained diplomatic relations. Bhutia notes people looking to travel between India and China have to rely on pricey and time-consuming connecting flights through third countries, such as Hong Kong, Bangkok and Singapore.Get more travel news at https://skift.com. 

Presented by Brand USAEpisode NotesA Microsoft executive believes Xbox can teach the travel industry several things about the customer experience, writes Travel Technology Reporter Justin Dawes. Shane O’Flaherty, a Microsoft executive who spoke this week at hospitality tech event HITEC, said Xbox has found ways to drive digital engagement with consumers. O’Flaherty explained that Xbox tracks every player’s movement and constantly presents them content that will improve their experiences. So how might that approach work in travel? O’Flaherty provided an example of a hotel that knows some guests love whiskey might create an impromptu tasting event and send a note about the event to those guests. Next, activist investor Elliott Investment Management has blasted Southwest Airlines for its weaker second-quarter financial outlook, writes Airlines Reporter Meghna Maharishi. Elliott, which took a nearly $2 billion stake in Southwest earlier this month, argued the carrier is led by a team unable to adapt to the modern airline industry. Elliott added that Southwest more or less admitted it was struggling to adjust to a new environment. The hedge fund has also been calling for major leadership changes at Southwest, including the resignations of CEO Bob Jordan and chair Gary Kelly. Meanwhile, Maharishi notes Southwest expects to record operating revenues for the second quarter. Finally, real estate investor Blackstone has acquired Village Hotels from private equity firm KSL Capital Partners. The deal is part of Blackstone’s strategy to expand its footprint in the United Kingdom, writes Senior Hospitality Editor Sean O’Neill.The companies haven’t revealed the price or deal terms, but O’Neill notes the transaction is valued at around $1 billion. The deal adds 33 properties to Blackstone’s portfolio in the UK. Meanwhile, Village Hotels CEO Gary Davis said the deal would also enable his brand to expand. Get more travel news at https://skift.com.Presenter/Producer: Jane Alexander

Presented by Brand USAEpisode NotesThe U.S. hotel industry’s performance has had mixed fortunes so far this year. The luxury sector has experienced robust growth in demand and room rates while economy hotels have struggled, reports Senior Hospitality Editor Sean O’Neill. Luxury hotel occupancy was up 1.8% in the first five months of 2024, according to CoStar. However, economy hotel occupancy was down a little more than 3%. O’Neill writes affluent travelers might be benefitting from a recent sharp run-up in stock prices and increased home values, which might make them feel comfortable spending on luxury hotels. Meanwhile, O’Neill adds high inflation for core things for lower-income households may force them to prioritize essential expenses instead of discretionary travel. Next, the Lufthansa Group — the parent company of several major airlines — says it can’t afford the additional costs of the European Union’s new environmental regulations on its own. So Lufthansa is adding a surcharge of up to $77 to flights departing next year, writes Airlines Editor Gordon Smith. The surcharge starts at just a few euro – the highest is for first class on long-haul flights. Lufthansa says the surcharge is needed to cover a portion of rising costs due to new environmental requirements. Smith notes the European Union has enacted a new quota for Sustainable Aviation Fuel, which goes into effect on January 1. The surcharge will apply to any flight sold and operated by Lufthansa that departs from a European Union member state.  Finally, Oslo’s tourism board released a tongue-in-cheek ad that promotes the Norwegian capital by using dry humor, writes Global Tourism Reporter Dawit Habtemariam.The ad features an actor telling potential tourists: “I wouldn’t come here.” The actor tells you everything that’s wrong with Oslo – no lines at museums, no waits at restaurants – and in doing so shares exactly what makes it unique and beautiful. It’s an appealing message as so many cities are overrun with tourists.Anne-Signe Fagereng, Visit Oslo’s director of marketing, said the city needed a different approach in the competition to attract tourists. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesTravelers heading to New York City for the Fourth of July weekend aren’t booking as many short-term rentals as they did last year. Bookings are instead surging at destinations along the Atlantic coast, writes Global Tourism Reporter Dawit Habtemariam. AirDNA revealed that New York City is no longer a top 10 market for the holiday and has been replaced by coastal destinations in Delaware and Maryland. Short-term rental bookings at coastal destinations for this Fourth of July weekend are up more than 7% from last year. Bookings for urban destinations saw a 10% drop from last year’s holiday weekend, which AirDNA attributes to a decrease in supply.Next, Jeff Miller, the longtime CEO and president of Travel Portland, will retire in December, writes Global Tourism Reporter Dawit Habtemariam. Miller, who has led the organization for 19 years, has been an outspoken advocate for the city against what he’s seen as negative news coverage of Portland. He said widespread reports about civil unrest in the city has damaged Portland’s reputation among suburban residents. Miller added Portland has made progress in rebooking conventions that had pulled out after the unrest, but still has a long way to go. Finally, the post-pandemic tourism surge has helped make some services more expensive across the world. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for more information about the link between the tourism boom and inflation. Jordan cites Iceland and Greece as two nations where inflation has been tied to an increase in visitor numbers. A 10% jump in visitors to Greece this year could cause the country’s property prices to increase close to 4%. In addition, inflation has been linked to tourism bumps from recent large concert tours, especially those of Taylor Swift and Beyonce. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesVenture capital investment in the travel industry hit its lowest level in a decade in 2023, one finding from a new Skift Research report examining the state of venture capital investment in travel. The travel industry had only $2.9 billion of venture capital investment in 2023, compared to nearly $9 billion in 2019. Senior Research Analyst Pravani Agarwal also notes the number of deals last year in the travel industry dropped more than 20% from the previous year. That’s the second steepest since the start of the pandemic.But while the trend is for fewer deals, they are on pace to be of a larger average size than 2023. This should lead to an overall increase in travel VC funding in 2024, Agarwal writes. The growth areas are in tours and experiences, AI & automation and hospitality employment.Next, starting July 1, Airbnb will display the total price before taxes of a stay in California to comply with the state’s new law banning junk fees, writes Executive Editor Dennis Schaal. Those junk fees would include host cleaning fees and Airbnb’s service fee, for example. Schaal notes that a guest outside of California booking an Airbnb in the state won’t automatically see the total price unless they choose to view it. The short-term rental giant rolled out a total price toggle button across the U.S. in May 2023. Finally, a growing number of corporate travel decision-makers are investing in artificial intelligence. Reporter Christina Sciaudone delves into how AI can solve problems in business travel. A Mastercard survey found that 90% of travel decision-makers plan to invest in AI and machine learning to improve operations and personalize employee travel. Suzanne Neufang, the CEO of the Global Business Travel Association, said AI can help overcome the complexities of corporate travel. FCM Travel, in particular, sees AI reshaping how it operates, including providing the company the opportunity to offer clients more personalized offerings. Get more travel news at https://skift.comProducer/Presenter: Jane Alexander

Presented by Brand USAEpisode NotesDestinations across Europe are grappling with extreme heat, with soaring temperatures contributing to the deaths of five tourists in Greece. Authorities on the continent are struggling to develop strategies to combat the heat, writes Travel Experiences Reporter Jesse Chase-Lubitz. Chase-Lubitz notes policy experts in the European Union believe governments are unprepared for the heat despite having access to information about possible heatwaves. European Climate Pact Ambassador Cinzia de Marzo said countries are responding to emergencies instead of putting plans in place to deal with extreme heat. The World Meteorological Organization released data recently showing that five of the most severe heat waves since 1950 took place in just the past three years.Next, a large number of Asian sports fans have traveled to Europe for the Euro 2024, the continent’s soccer championships, reports Asia Editor Peden Doma Bhutia.Online travel company Trip.com Group reported a 125% increase in bookings to Germany from Asian tourists. Bookings from Chinese tourists have registered the largest jump — 132%. A Trip.com executive cited a growing Asian middle class with disposable income as one reason Asian fans are interested in traveling to Germany for the tournament. In addition, flying to Germany has gotten easier for Chinese travelers, in particular. The number of direct flights from China to Germany has increased by 70% compared to last year. Finally, JetBlue is making a big change to its baggage policy. From September, the airline will allow all passengers — even those on its most restrictive ‘Blue Basic’ fare — to bring a carry-on bag for no extra charge. Airlines editor Gordon Smith gets into the impact. The policy change brings JetBlue in line with most of its peers. American, Delta, Southwest, and Alaska all allow ‘free’ carry-on bags, plus a smaller underseat personal item, across all fare categories. The move leaves United Airlines as the only major U.S. network carrier to charge its Basic Economy passengers for a carry-on.Come September, United will find itself squeezed on two fronts. Along with all of its more upscale counterparts offering complimentary carry-ons as standard, even ‘ultra-low-cost airlines’ are making big customer service improvements. Get more travel news at https://skift.com.Producer/Presenter: Jane Alexander

Presented by Brand USAEpisode NotesNew York City has cracked down on short-term rentals by requiring hosts to register since last September. Since then, the city has only approved a little less than 2,300 applications, reports Executive Editor Dennis Schaal.Schaal writes the figure is a sign of the lack of short-term rentals in New York City. Christian Klossner, the Office of Special Enforcement’s executive director, said Local 18, which also requires hosts to be present during the stay, has helped reduce illegal short-term rental listings in the city. The office has only approved roughly 36% of applications submitted since September. Next, the Federal Aviation Administration is looking to tighten safety requirements on public charter airlines such as JSX. That could be a blow for companies like JSX, writes Airlines Reporter Meghna Maharishi. Maharishi notes that if the changes are approved, public charter airlines would fly under the same rules as commercial airlines. The FAA has said some public charter flights operate like commercial airlines. Major carriers such as American Airlines and Southwest Airlines have lobbied the U.S. government to consider more stringent rules on JSX, arguing that JSX was benefitting from a regulatory loophole. Maharishi writes that tougher safety rules would be a problem for carriers like JSX since part of their appeal is a private jet-like experience. JSX, for example, operates out of small private terminals, and passengers don’t go through a typical TSA security screening. . Finally, China is continuing to expand its visa waiver program, adding Australia and New Zealand to the list recently, reports Asia Editor Peden Doma Bhutia. Chinese Premier Li Qiang announced on Monday that China would include Australia in its visa waiver program. While Beijing hasn’t revealed the details of the new visa arrangement, Bhutia notes Chinese officials announced a similar decision concerning New Zealand passport holders last week. China’s moves to provide travelers from more countries visa-free access are part of its strategy to rejuvenate its tourism industry. The country only welcomed about 36% of its 2019 foreign visitor total last year. Get more travel news at https://skift.comProducer/Presenter: Jose Marmolejos

Presented by Brand USAEpisode NotesThe 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. Get more travel news at https://skift.comProducer/Presenter: Jane Alexander