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Thursday, October 26, 2017

Marriott Talks Las Vegas + Trivago's Big Speed Bump + Amazon Wants to Takeout Grubhub

October 26, 2017 View in browser

Note From the Editor

A fascinating thing about the news business and the travel industry is that they are full of surprises — some jaw-dropping and others that actually should have been foreseen. Travel tech editor Sean O'Neill writes about both varieties in two stories. In one, we find out the Trivago Guy and Trivago Woman, who have saturated TV advertising in recent years while the company has been on a growth tear, may be taking a commercial break, so to speak, because its two largest advertisers are suddenly getting stingy. And then there's Alaska Airlines, which is having all kinds of problems integrating Virgin America after their merger. News flash: Mergers are complicated.

P.S. Next week we are launching the Airline Innovation Report, our latest weekly newsletter. In the inaugural Airline Innovation Report on Wednesday, subscribers will get a first look at our one-on-one interview with the CEO of one of the world's largest airlines. Click here to subscribe now.
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Top Stories
Marriott CEO Believes There Are Limits to What Hotels Can Do About Security After Las Vegas
Sorenson didn't mince words talking about the negative impact the Trump administration's rhetoric and multiple travel bans are having on international visitation to the U.S. His comments about corporate tax reform may also not please proponents of raising the minimum wage for hospitality workers.

Growth Juggernaut Trivago Sees Revenue Slump Coming as Biggest Customers Pull Back
Expedia's fast-growing hotel search site Trivago may see its pace of growth stall as both Expedia and rival The Priceline Group have pulled back on spending. This is an extraordinary development given the fact that Trivago was one of Expedia's growth engines and there was seemingly no end in site.

You Can Now Order and Pay for Delivery With Amazon's App
Amazon's restaurant business is just getting started, but by aligning its technology with existing companies in the space, it is poised to go (very) big.

Analysts Take Alaska Airlines to Task for Mishandling a Broad Array of Issues
Many have dreamt of finding easy fortune in California. But Alaska Airlines is discovering -- via its merger with Virgin America -- that the airport tarmacs aren't paved with gold.
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Airfare App Hopper Enters HotelTonight Turf With Hotel Expansion
Hopper said it is on track to process about $500 million in gross bookings — a number much larger than actual revenue — this year. Its expansion into hotel bookings would bring fatter commissions and hopefully more engagement. But the company will go up against better-funded players. All bets are off.

Wyndham Took $13 Million Hit From Hurricanes in Third Quarter
There's no doubt that the damage from recent hurricanes will affect the travel industry for months and years to come. But analysts don't seem too worried about any impact on Wyndham Worldwide's financials as it plots its upcoming spinoff.

Uber Enters the Loyalty Game With New Credit Card
It makes sense for Uber to enter the credit card and loyalty arena. This card could be a solid alternative for frequent travelers who don't want to shell out a large annual fee.

Six Flags Wants to Be a Bigger Theme Park Player in California
It makes sense to keep a theme park open year-round in a tourist-rich place where winter weather doesn't keep people away. The only question is: What took Six Flags so long to make this decision?

Grubhub's Earnings Provide Insight Into the Future of Its Eat24 Business
Grubhub is taking a measured approach to integrating Eat24 into its system. Given the scale and scope of both companies, slow and steady is probably the best approach.

Visit Seattle Enlists Its Big Tech Companies to Reposition City to Meeting Planners
Visit Seattle is positioning itself as a broker of innovation, versus a sales conduit for meeting space, by introducing meeting planners nationwide to some of the world's most advanced companies.

Tours and Activities Site Klook Secures $60 Million Round as Goldman Sachs Invests
Klook's rapid growth suggests that a growing number of Chinese and other Asian outbound travelers want to travel independently, instead of in groups, and thus book their activities a la carte. That portends a sea change in the travel industry.
Popular Now
Expedia Axes Its Price-Matching Guarantee in a Sharp Break From the Past
Expedia's move seems odd, as hotel chains ramp up their direct-booking campaigns that include best-price guarantees. Our guess is that the company tested and found that most consumers are no longer swayed by price-matching offers. Or perhaps there was pressure from ongoing probes in Europe.

Marriott and Choice Take Varied Approaches to Reviving Classic Midscale Brands
This makes a lot of sense, but can Marriott and Choice make their established midscale brands stand out among all of the more design-driven newcomers that others are unleashing? Or do consumers and developers not really care as long as they save or make money?

Is the Visitor Center Dead? Scotland and LA Have Opposing Answers in the Mobile Era
Destinations with visitor centers are adjusting their strategies to ensure their locations are being effectively utilized. The concept of a mobile or pop-up visitor center is also becoming more common, and is certainly a trend to watch in 2018.
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