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Saturday, July 22, 2017

Weekend Review: Google’s Sneaky Vacation Rentals + Does Airline Loyalty Matter?

July 22, 2017 View in browser
The focus this week was on business as a large chunk of the Skift team went to Boston for the Global Business Travel Association's annual gathering. The chatter around the place was about travelers' anxieties and what their companies and travel providers are trying to do to make them feel better when they're traveling.

Outside of business we had a busy week with a first look at Google's vacation rental tests in Europe, two excellent CEO interviews, a look at airline loyalty in the U.S. (spoiler: not very loyal), and more.
How the Digital Concierge Is Reshaping the Hotel Industry [SPONSORED]
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Interview: Viva Aerobus CEO on Why Half-Standing Seats Still Intrigue Him
With good management, this ultra low-cost airline strategy is profitable just about everywhere. The key? Airlines like Viva Aerobus must be fanatical about costs, and they must provide the cheapest fares, all the time. They also should treat their customers fairly.

Google Is Testing Vacation Rental Search in Its Hotel Price-Comparison Tool
In tests involving about 7,000 property listings in Europe, Google is checking if travelers would like to use it to search and book vacation rentals. Online travel rivals should be on the alert.

GBTA Notebook: The Future of Corporate Travel Is Basically the Same as the Past
Another year, another GBTA. It seems like corporate travel is heading in the direction of offering more options to business travelers, but progress remains slow.

Wyndham Buys AmericInn Hotel Chain for $170 Million
Wyndham's version of a great American idea? Buying AmericInn. (Sorry, we couldn't help ourselves.)

Travel Habits of Americans: U.S. Travelers Shun Airline Loyalty Programs
Many airlines have rewritten loyalty rules in recent years to make their programs more profitable and reward the most lucrative travelers. But our data show many U.S. travelers don't want to play by those rules and aren't loyal to any airline.
Digital
Travel Tech CEO Series: DerbySoft Prepares for a Hotel Distribution Free-for-All
DerbySoft has thrived as a vendor that helps global hotel groups with distribution partly because its top boss Ted Zhang called the rise of Booking.com early on. Zhang's latest predictions about what's next for the industry may ruffle some feathers.

Smart Travel Companies Leverage Tech Giants Rather Than Fear Them
A new white paper critiques today's industry mania for mergers, which is driven by a fear of rising digital gatekeepers such as Airbnb, Google, and Expedia. The contrarian take is refreshing but begs questions.

Priceline CEO: Hotels Secretly Love Us Despite Accusations of Monopoly
Priceline CEO Glenn Fogel says he wants travelers to think of Booking.com's name first when they start thinking about reserving homes and apartments for rental. He says a marketing effort is in the works to achieve that.
Guest Experience
Marriott and Hilton's New Cancellation Policies Won't Impact Corporate Travel as Much as You Think
Forty-eight hours isn't too bad, but things might be tougher for everyone, corporate and leisure travelers alike, if the policy stretches to 72 hours down the line.

New Research Suggests It Doesn't Always Pay to Book Direct for a Hotel
Maybe it really is better to keep clicking around if you're hoping to save money (and you don't want to be a member of a hotel loyalty program).

Environmental Sustainability Is the Next Frontier in Luxury Travel
Environmental sustainability will be the mark of luxury as we move into the future with discerning customers demanding that the businesses they patronize do everything possible to mitigate their impact.
Passenger Experience
Here's Why the Next Great U.S. Airfare Battle Will Take Place in Denver
It's not clear whether United or Frontier will win this battle in Denver. But what is nearly certain is that passengers will be the beneficiaries. They'll likely find cheaper fares.

EasyJet CEO Carolyn McCall Quits to Join UK Broadcaster
The best CEOs know when to quit and Carolyn McCall's decision to jump ship at a pivotal time for UK airlines is perhaps a sign that there might be tough times ahead.

British Airways Turns to A-List Actors for New Safety Video
In-flight safety videos are fascinating in that they all must stick to the same script. What airlines decide to do with this locked-in time is always an extension of their brand.
Business Travel
Business Travel Spending Is Expected to Gain Steam Globally by 2018
While growth prospects for business travel spending look strong for next year into 2020, there is still enough uncertainty that experts are adding lots of caveats to their forecast.

The Real Reasons Business Travelers Don't Get What They Want
Beyond limiting company spending, there are financial reasons why business travelers feel so constrained by corporate travel-booking policies. It's time for everyone to be honest about them.

iCars Denies That It Is Spinning Its Wheels in Corporate Ground Transport
In theory, the merger of iCars and Limos.com promises a thriving black car service for corporate travelers. In practice, there is circumstantial evidence this investment vehicle hasn't yet left the repair shop.
Tourism
International Tourism to the United States Dropped in 2016
Many travel brands had said last year was tough as full-year international visits to the U.S. decreased in 2016 for the first time since 2009. We'll need to wait until this time next year to see if this is a hiccup or a new trend.

Six Flags Just Unexpectedly Replaced Its CEO With Its Previous CEO
Duffey's departure is mysterious, but the new (and old) CEO knows the company and headed it for several years. There shouldn't be too much upheaval or shift in strategy, even if the unexpected change proves distracting for awhile.

Discriminatory Bathroom Bills Won't Keep Most Travelers Out of Affected States
Many U.S. travelers don't want to be labeled as racists or bigots, and publicly oppose discriminatory legislation. But that doesn't mean they won't take a trip they've been planning all year, especially if the legislation doesn't involve them.
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