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Friday, November 10, 2017

AccorHotels Shutters Distributor Plan + Airbnb Bolsters China Presence + NCL Cuba Advantage

November 10, 2017 View in browser

Note From the Editor

In today's stories, we see three companies with a lot to prove. Acquisition-happy Accorhotels abandoned its plan to be a distribution channel for independent hotels. Wow Air, which charges extra for everything on its planes, wants to become the first carrier to make more cash from ancillary services than from its base airfares.

And Airbnb, which is building its base in China, thinks it can succeed where Google, Amazon, Uber, and a host of others have blatantly failed. Give Accorhotels, Wow Air, and Airbnb some credit. Nothing ventured, nothing gained.
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AccorHotels Ends Its Quest to Be a Booking Engine for Independent Hotels
Signs that this experiment wasn't going well were already evident. But given that the online travel agencies aren't faring so well, either, at the moment, we wonder: Does this mean there might be something fundamentally wrong with this type of intermediary relationship? How do hotels and online travel agencies need to evolve to survive then?

NCL Boss Predicts New Cuba Rules Are Good for Cruise Lines
Could cruise lines actually benefit from stricter regulations on American travel to Cuba? Norwegian Cruise Line Holdings CEO Frank Del Rio thinks so — and with even more cruises scheduled to the island next year, he'll find out if he's right.

Airbnb's New China Strategy Includes a Focus on Quality — and Quantity
Can we say we told you so again? In July, we noted that as Airbnb pursues its eventual IPO, China and the wider Asia-Pacific region will be absolutely critical, but the competition is tough and plenty of challenges remain.

Wow Air Looks to Outside Investment to Help Accelerate Growth
Many airlines have been undone by ambitious expansion plans, and while Wow Air is profitable now, extra planes mean extra costs. Can a small carrier like Wow Air survive in a sector that is moving toward further consolidation?

The Evolution of Business Class — Corporate Travel Innovation Report
Business class is changing, but airlines need to stop overpromising and underdelivering on transformative experiences.

Will Travelers Buy Singapore Air's New Suites? — Airline Innovation Report
Singapore Airlines has created one of the world's most luxurious airline products. But is that enough to make the six-seat cabin profitable? Perhaps on a few routes. But we're skeptical about others.
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Marriott CEO: Don't Expect Us to Play in the Midscale Space
Are 30 brands enough for one hotel company to have? They might be, for now, but we wouldn't rule out the possibility of wanting to add more in a year or two, especially in that red-hot midscale space.

British Airways Surcharge Means Travel Agents Won't Get Lowest Fares Through Sabre
Airlines have learned that standing up to the global distribution system giants can actually yield benefits. It has been a hard-earned victory.

Booking.com Rethinks Digital Advertising in Favor of TV
Did we just see an elephant fly? The Priceline Group, which is the largest spender on digital advertising in travel, just said TV commercials may be a better way to attract loyal customers. That's even more surprising than TV-happy Trivago's recent announcement that it would start devoting more resources to digital advertising. Don't you love this industry?
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