Skift Daily Briefing

Episode NotesAmerican Airlines and United Airlines are among the major carriers that have increased baggage fees in recent months. Airlines Reporter Meghna Maharishi explains why checking bags at airports has gotten more expensive.  Maharishi writes that nearly every carrier cited inflation, higher fuel and operating costs as reasons they hiked baggage fees. JetBlue Airways said it raised baggage fees as part of its plan to return to profitability. Airlines may also be increasing bag fees to help boost sign ups for their loyalty programs and co-branded credit cards. An airline consulting firm executive said expensive bag fees increase the value of airline-branded credit cards. American said its loyalty program members and credit card holders can check their first bag for free.  Next, New York City hotels could see a $380 million boost in revenue this year from the city’s de facto ban on short-term rentals, writes Short-Term Rental Reporter Srividya Kalyanaraman. A new report from real estate firm JLL revealed the New York City hotels could book an additional 2.2 million nights this year. A city law requiringhosts to be present for stays shorter than 30 days went into effect last September. In addition to the crackdown on short-term rentals, New York City’s hotel industry also stands to benefit from a projected surge in international tourists this year.Finally, Katerina Giannouka has left her role as CEO of Jumeirah Group, writes Middle East Reporter Josh Corder. Giannouka became Jumeirah’s first female CEO in December 2022 after having previously served as the Asia-Pacific president for Radisson. During her brief time at Jumeirah, she said she was looking to double the group’s portfolio, including signing more hotels outside of the United Arab Emirates.Jumeirah’s current Chief Operating Officer Thomas B. Meier will serve as interim CEO, according to an internal document seen by Skift. 

Episode NotesHotel guests in Las Vegas during Super Bowl weekend earlier this month paid the highest room rates in continental U.S. history, writes Global Tourism Reporter Dawit Habtemariam. Industry data company STR said guests shelled out on average $800 for rooms in Las Vegas that weekend, the highest ever for any Saturday and Sunday in the continental U.S. Hotel guests on the Las Vegas Strip paid an even higher rate on Super Bowl Sunday — $962 on average. Meanwhile, short-term rentals in Las Vegas also saw average daily rates during Super Bowl weekend surge 19% from the previous weekend. Next, a Federal Aviation Administration panel reported on Monday that Boeing’s efforts to improve its safety culture are inadequate, writes Airlines Reporter Meghna Maharishi. The panel found a “disconnect” between Boeing executives and employees involved in the planemaker’s safety culture. Congress had mandated the report into Boeing’s safety culture after two fatal 737 Max 8 crashes. The FAA report revealed, among other findings, that most Boeing employees were unaware of the company’s safety culture efforts. Finally, Ryanair CEO Michael O’Leary said a shortage of aircraft could cause airfares to jump 10% in Europe this summer, reports Airlines Editor Gordon Smith. O’Leary said delays in delivering the Boeing 737 Max are a factor for the potential shortage. Fifty-seven Max planes are due to arrive at Ryanair by the end of March, the official start of the airline industry’s summer season. However, O’Leary acknowledged that only 40 to 45 jets may be ready for this summer. Produced and Presented by Jose Marmolejos

Episode NotesWyndham executives say the company’s efforts to fend off Choice Hotels’ hostile bid weighted on its results in the fourth quarter, reports Senior Hospitality Editor Sean O’Neill.Wyndham CEO Geoff Ballotti said its fourth quarter could have been better without the distractions from Choice Hotels’ merger proposal. The company’s revenue and income in 2023 both fell from the previous year, which may have been a result of Wyndham devoting resources to prevent the hostile merger. Wyndham said it’s spent $75 million related to the deal so far, including answering antitrust queries from regulators. Next, Expedia Group has pulled a Vrbo ad in Canada because its use of a traditional folk song from Newfoundland and Labrador sparked an uproar, writes Executive Editor Dennis Schaal. The ad, which aired during both the Grammys and Super Bowl, used the folk song I’se the B’y as its theme. Schaal notes the ad was intended to take a dig at rival Airbnb. But the provincial government and local tourism executives demanded Expedia remove the ad because they believed using the folk song was disrespectful.Finally, Bali has implemented a tourist tax as part of its efforts to combat overtourism, writes Global Tourism Reporter Dawit Habtemariam.Visitors to the popular Indonesian destination have to pay about $10, which will go toward conservation efforts and improving the island’s infrastructure. Mark Howarth-Archer, an executive at tour operator G Adventures, said Bali’s infrastructure can’t handle the surge in tourists.

Episode NotesMarriott and Hilton have both released their annual financial reports for 2023. Senior Hospitality Editor Sean O’Neill lists 12 noteworthy takeaways after comparing the companies’ 10-K filings. The two hotel giants have a rivalry in terms of loyalty program membership numbers. Marriott currently has roughly 16 million more loyalty program members than Hilton. But O’Neill notes Hilton could overtake Marriott in 2025 if the two companies maintain their most recent growth rates this year. O’Neill adds that both companies were considerably more profitable in 2023 than they were six years prior. Next, Airbnb CEO Brian Chesky believes the company can create a new artificial intelligence interface that will help transform it into a cross-vertical company, writes Executive Editor Dennis Schaal.  Chesky said the planned interface could be one of the most innovative ever created. He added that it would enable Airbnb to become a cross-vertical company: Think Amazon when it expanded beyond books and Apple when it launched the app store. Chesky also said Airbnb would make announcements later this year regarding new products and services.  Finally, American Express has opened the world’s largest Centurion Lounge at Atlanta’s Hartsfield-Jackson International Airport, writes Airlines Editor Gordon Smith.The 26,000-square foot lounge, which includes indoor and outdoor areas, is American Express’ latest effort to target high-spending travelers. It also includes a whiskey bar serving cocktails designed by Centurion’s mixologist. American Express Travel President Audrey Hendley said a new Atlanta lounge was a major priority for the company. 

Episode NotesSome analysts had wondered if Airbnb could increase its supply of hosts and listings to meet the growing demand from travelers worldwide. That question has been put to rest, writes Executive Editor Dennis Schaal. Airbnb said during its fourth-quarter earnings call on Tuesday it has around 7.7 million active listings. That’s an increase of more than 1 million from the end of 2022. The company ended 2023 with a roster of more than 5 million hosts, also a jump of roughly 1 million from the previous year. Airbnb also said its supply of listings increased 18% in the fourth quarter from the same period in 2022. Next, Marriott had a banner 2023, especially in the luxury sector, reports Senior Hospitality Editor Sean O’Neill. Marriott said during its fourth-quarter earnings call that it generated $3 billion worth of net income and a 48% profit margin last year. The company was boosted by its strength in luxury. Marriott had a company record of 58 luxury signings last year. It says its portfolio of luxury hotels is 50% larger than its nearest competitor. Finally, billionaire investor Carl Icahn has again bought a stake in an airline — this time in JetBlue Airways, writes Airlines Reporter Meghna Maharishi. Icahn reported a 9% stake in JetBlue, making him the airline’s third-largest investor. JetBlue shares rose by more than 16% after news of Icahn’s stake became public. That’s welcome news for a company that has experienced its share of struggles in recent years, including declining revenues. Icahn acquired a more than 20% stake in Trans World Airlines in 1985. He helped TWA grow, but it was saddled with debt and filed for bankruptcy twice. 

Episode NotesThe Bahamas saw a drop in short-term rental bookings and hotel reservations in January after a U.S. State Department safety alert to travelers, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam notes short-term rental bookings fell 7% in January from the same month in 2023. Meanwhile, hotels in the Bahamas also registered weekly occupancy declines from last year throughout the month. While higher average daily rates may have deterred bookings, those drops followed a U.S. Embassy alert warning Americans about crime in Nassau. A State Department spokesperson said the overall Travel Advisory for the Bahamas is at Level 2, which advises U.S. citizens to be cautious in the country due to crime. Next, Expedia Group’s equity stake in American Express Global Business Travel has taken a beating — to the tune of $326 million, reports Executive Editor Dennis Schaal. Expedia said on Monday the fair value of its equity stake in Amex GBT has dropped 40% since 2021. Expedia took a 19% stake in Amex GBT following its sale of corporate travel agency Egencia. However, Schaal notes Expedia may have benefited from the deal on several levels, including enabling it to offer hotel stays and vacation rentals to business travelers through Amex GBT.  Finally, flying taxis could take to the skies in Dubai by 2026 after local officials signed a deal with electric aircraft maker Joby Aviation, writes Airlines Editor Gordon Smith. Joby’s contract with Dubai’s Road and Transport Authority gives the company exclusive rights to operate flying taxis in Dubai for six years. Smith notes Joby believes it could even operate air taxis next year, ahead of the planned 2026 launch. Joby has also signed a deal with infrastructure company Skysports, which will build and run take-off and landing areas for flying taxis in Dubai. Still, it’s no sure thing: As with all pioneering technologies, progress in the sector has been peppered with pitfalls. 

Episode NotesExpedia Group will have a new CEO soon. Ariane Gorin, currently president of Expedia for Business, will succeed Peter Kern starting on May 13, writes Executive Editor Dennis Schaal.  Schaal reports Gorin will also take a seat on Expedia Group’s expanded board of directors, effective February 12. Expedia Group Chair Barry Diller said the company was looking for an internal candidate to succeed Kern. As president of Expedia for Business, the company’s business-to-business arm, Gorin was responsible for a large portion of Expedia Group’s revenue and profits.Meanwhile, Kern will continue to serve as Expedia Group’s vice chairman and a member of its board. Next, Spirit Airlines has experienced its share of struggles in recent years, including $1 billion worth of debt due next year. But CEO Ted Christie is refuting any talk the company could go bankrupt, writes Airlines Reporter Meghna Maharishi. Christie expressed confidence Spirit will survive during the airline’s fourth-quarter earnings call, citing steps it’s taking to strengthen its finances. It recently netted $419 million in cash through selling and leasing back 25 aircraft. In addition, Spirit plans to make adjustments to its network, including reducing service to less lucrative destinations. Finally, a spokesperson for Taylor Swift says she has bought double the carbon credits needed to offset emissions caused by her Eras Tour. However, it’s uncertain if carbon credits are effective in reducing emissions, writes Airlines Reporter Maharishi. A study from the Institute of Policy Studies found a private jet emits at least 10 times more carbon emissions than a commercial jetliner. As for carbon offsets, Maharishi notes they can include replanting trees in the rainforest or introducing energy-efficient methods to struggling communities. Commercial airlines often provide customers the opportunity to buy carbon offsets when purchasing flight tickets. But Maharishi cites research that revealed 78% of carbon reducing emissions projects could be considered “junk.” 

Episode NotesTaylor Swift’s massive influence on U.S. culture and the economy isn’t slowing down anytime soon. And as her ongoing Eras Tour continues to pack stadiums and boost tourism worldwide, Editor-in-Chief Sarah Kopit explains why Swift might be the most powerful person in travel.Swift’s impact on the travel sector is vast, with major influence over tourism dollars, hospitality spending and the short-term rental market.Kopit notes that each Swift concert has the economic impact of the Super Bowl – and it’s not just once a year. U.S. cities hosting a Eras Tour concert have seen their monthly hotel room revenue jump more than 7% on average. In addition, one short-rental executive said the Eras Tour has been responsible for double-digit increases in occupancy and average daily rates.Skift Research estimates the tour generated an incremental $1.2 billion for the U.S. travel industry in 2023 across flights, hotels, short-term rentals and other expenditures.Next, Hilton is considering making acquisitions, a shift from its longtime strategy of creating brands internally, writes Senior Hospitality Editor Sean O’Neill. Hilton CEO Christopher Nassetta said the current economic environment might be more conducive for acquisitions. O’Neill notes rumors have surfaced that Hilton is in talks to acquire both Graduate Hotels and NoMad Hotels, a luxury lifestyle hotels brand. Nassetta said Hilton intends to enter the luxury lifestyle sector this year. Finally, the upcoming Super Bowl between the San Francisco Chiefs and Kansas City Chiefs is driving a surge in short-term rental rates in Las Vegas, writes Short-Term Rental Reporter Srividya Kalyanaraman. Short-term rental demand in Las Vegas from February 9 to 11 is 87% higher than the same period in 2023, according to AirDNA. Kalyanaraman adds that average daily rates have increased 51% from last year. Meanwhile, searches for Airbnb rentals in the Las Vegas area during Super Bowl week have jumped 65% compared to the same period last year.  

Episode NotesA preliminary report from the National Transportation Safety Board has provided information about what possibly caused the January blowout aboard Alaska Airlines Flight 1282. Four bolts appeared to be missing on a door plug that blew off that Boeing 737 Max 9 jet, writes Airlines Reporter Meghna Maharishi. Maharishi notes it’s not exactly clear how the four bolts meant to keep the door plug intact went missing. The board said it plans to interview Boeing and aircraft supplier Spirit Aerosystems. The report said the door plug Spirit delivered to Boeing last August had come with certain defects.  Next, U.S.’ low-cost carriers have generally struggled in recent years. But Frontier Airlines believes its new three-point plan can help boost profitability, writes Airlines Editor Gordon Smith. Smith notes that Frontier is planning to thoroughly overhaul its network, with fewer flights to oversaturated markets such as Las Vegas and Orlando. Frontier is also looking to increase service to more lucrative destinations where it aims to charge higher fares.The second part of Frontier’s three-point plan is a new product called “BizFare,” which would enable businesses to save on corporate travel expenses. In addition, Frontier is unveiling a revamped website and app, which the company hopes will help boost sales on its platforms. Finally, Chinese travelers are showing less interest in visiting Europe this year, writes Global Tourism Reporter Dawit Habtemariam.A survey by the European Travel Commission found roughly 57% of Chinese travelers plan to travel to Europe in 2024. That’s a 14 percentage point drop from last year. Habtemariam notes one reason for the drop is Chinese travelers’ growing desire to explore locations closer to home, with several Asian destinations easing their visa policies. 

Episode NotesNearly 94% of 737 Boeing Max 9s are back in service after the aircraft was grounded for roughly three weeks in January, writes Airlines Reporter Meghan Maharishi. The Federal Aviation Administration said that 135 Max 9s have been inspected and returned to service following a blowout aboard an Alaska Airlines flight in early January. The grounding of the Max 9 forced United Airlines and Alaska — the only two U.S. carriers operating the aircraft — to cancel thousands of flights last month.Next, Brand USA, the U.S.’ tourism marketing agency, will air a Super Bowl ad internationally for the first time, writes Global Tourism Reporter Dawit Habtemariam.Habtemariam reports the 15-second ad will air in both Germany and the United Kingdom, two major sources of tourism for the U.S. Brand USA established a partnership with the NFL in Germany and the UK last year. Staci Mellman, the agency’s chief marketing officer, said partnering with the NFL has enabled it to tap into the growing number of international travelers interested in American football. We end today looking ahead to soccer’s World Cup in 2026. Officials in Dallas are disappointed they won’t get to host the final match but they still got one big win: hosting the most matches of any city, writes Global Tourism Reporter Habtemariam.Dallas will host nine matches during the tournament, including a semifinal. One local sports executive said the economic impact would be similar to that of nine Super Bowls. A study by the Boston Consulting Group found the 2026 World Cup should generate between $90 million and $480 million for the cities.