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Thursday, November 2, 2017

Air France-KLM: An Imperfect Union + Ctrip Buys Trip.com + Marriott Gets Retail-Minded

November 2, 2017 View in browser

Note From the Editor

Ctrip's Jane Sun, who became CEO of the big online travel agency late last year, is asserting the company's influence as it expands beyond China. Ctrip acquired Scotland-based Skyscanner in 2016, and yesterday news broke that it tacked on Palo Alto, California-headquartered Trip.com to assist the flight-search engine in enhancing activity recommendations for locals and travelers. It wasn't a blockbuster buy, such as purchasing TripAdvisor would have been, but it shows — if anyone needed to be convinced —that Ctrip will increasingly be a player beyond its Asia confines.

When it comes to merger and acquisition strategy, Ctrip has something in common with India's MakeMyTrip, which reported earnings yesterday. Both companies have scooped up competitors in recent years in an attempt to consolidate themselves out of debilitating price wars. Ctrip ironically is a minority investor in MakeMyTrip, and the tandem are likely learning a lot from one another.
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Interview: Air France-KLM CEO on Millennials and Unions of All Kinds
Is there a tougher job in the airline industry than making Air France more nimble? It's an airline that prides itself on its systems and procedures. But to compete forcefully in the 21st century, an airline must take chances. Air France needs to be more, in that regard, like its Dutch sibling, KLM.

Ctrip Buys Trip.com for Skyscanner to Enhance Local Recommendations
Ctrip-backed Skyscanner will tap in-destination content from social reviews company Trip.com. But is the acquiring company's true plan to further mobile engagement? Or is it to nab a domain name that may appeal more to Americans than Ctrip.com -- or Alibaba's Fliggy?

Marriott Rewards Debuts Tool to Preload Points Balances When Shopping at Retail Sites
Marriott More now allows shoppers in the U.S., UK, and Canada to earn and spend Rewards points on retail purchases. And while the value proposition for spending points is a bit fuzzy, it may be a good tool for some with stray point balances.

Video: Tourism Leaders on Planning to Avoid Overtourism
Tourism executives from around the world all have unique challenges as they promote their destinations, but they also have a lot in common: They want to avoid the pitfalls of destructive tourism, get a good return on their marketing dollars, and attract high-spending visitors.

Skyscanner Is Propelling Ctrip's International Growth
Ctrip, along with its partially owned sister brand Qunar, dominates Chinese online travel sales, but it has begun to lean heavily on its recently acquired flight search company, Skyscanner, to boost overseas sales.

MakeMyTrip Takes Steps to Escape Becoming a Price-War Casualty
The online travel market in India is ripe with opportunity. But competition is brutal. In response, MakeMyTrip has recently debuted loyalty programs and technological upgrades to entice well-heeled customers to choose it over the discounters.

Travelzoo Is Having Trouble Figuring Out Life After Metasearch
Travelzoo is a curious case. A newsletter-focused daily deals site that has given up on becoming a global metasearch site, it has clearly had trouble adapting to a marketplace where deals abound. Has a new focus on what its customers actually want come too late?

Can Technology Make Meetings and Events Safer?
It's not something a lot of people want to think about, but with large gatherings increasingly becoming a target for violent attacks, meeting and event planners have to step up their security tools and protocols.

Launching Our New Weekly Newsletter: Airline Innovation Report
We're excited to debut the Skift Airline Innovation Report. We hope it will become an essential tool in keeping abreast of and deciphering developments in the ever-changing global airline industry.
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Hotel Direct-Booking Pushes Really Worked and Owners Were Big Winners
The bigger question, however, is whether these campaigns will still work in 2017 and beyond; offering discounted rates can only last for so long. Hotels need to start thinking about how they can ensure this momentum continues in the long run without having to use discounted rates.

Women in Luxury Travel Share Perspectives on the Glass Ceiling
Although women are particularly well-positioned to lead in the nuanced luxury market, it will take the effort and collaboration of men and women already within the industry to bring about change and more equal leadership teams.

IAG Is Serious About Growing Its Low-Cost, Long-Haul Airline
IAG's testing of the low-cost, long-haul market with a virtual airline seems to have paid off. Its success shows that the model is here to stay. We'll be keeping a close eye on how this affects the legacy carriers, including those in IAG's own brand stable.
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