Weekend Review: Expedia as a Hotel Brand + American and Delta Are Best Friends Again

The Travel Industry's Daily Agenda-Setting Newsletter

January 27, 2018 View in browser

Note From the Editor If your rocket ship from an unknown solar system landed in southwestern Indiana or central London today and you wanted to learn about the global travel industry, this newsletter would be a great place to start. You'd find articles about online travel agencies, new technologies, airlines, hotels, meetings, tourism, and the megatrends shaping travel in 2018 — on earth. Not a bad place to start. — Dennis Schaal, Executive Editor New Skift Research: WeChat Marketing Strategies for Global Travel Brands 2018 With nearly one billion monthly active users, WeChat may be the key for travel brands looking to unlock the China market. This week we launched an examination of this social media super app, complete with case studies and top considerations for a thoughtful, effective WeChat strategy. Learn More Top Stories Why Expedia or Priceline Might Just Be the Next Great Hotel Brand Whether or not you agree with this, it's certainly an idea worth contemplating as everyone and everything in the travel industry are beginning to converge. Whatever you decide, please don't shoot the messenger. American and Delta Will Collaborate Again in Rebooking Passengers During Flight Disruptions American and Delta once again will take care of each other's customers when flights are delayed or canceled. For travelers, that's good news. The two giant airlines stopped cooperating in 2015, and passengers have been hurt. Marriott's Revamp of Aloft and Element Points to the Future of Select Service Hotels Everyone suspected the efficiency and consistency of the Marriott "machine" would be a perfect match up for Starwood's creative and innovative lifestyle brands. While it appears to be working for Aloft and Element, the true measure of success will be what Marriott can do with a brand like Sheraton. JetBlue Has Started Shrinking Legroom and Upgrading Interiors on Its Older Aircraft JetBlue is the latest airline to fall behind on a cabin retrofit program. It happens sometimes, as it's not so easy to update airplane interiors. But the first plane is in the shop. Considering JetBlue has some planes that haven't been touched since the early 2000s, this is welcome news. Choice Hotels Debuts New Booking System for Franchisees to Replace Outdated Tech Choice's decision to build its own reservation system in-house is a poke in the eye to the many technology companies that sell systems to hotel chains. Travel Megatrends Skift Podcast: Megatrends Defining Travel in 2018 We've released our annual Megatrends that will define travel in the year to come, and Skift experts hit some of the highlights in this podcast episode. The Hotel of the Future Needs to Be Everything to Everyone Think of this as mixed-use 2.0. As consumer demands and mobile technology evolve, hoteliers are becoming smarter about designing their spaces to accommodate our multitasking lives. Blockchain Will Spark a New Type of Tech Race in Travel Some companies are betting big on blockchain's bandwagon effect. Time will tell whether the new technology materializes into cheaper, better, and faster travel experiences. Personal Fulfillment Is the New Ultimate Luxury For luxury travelers, an experience in itself is no longer enough. The personal fulfillment and self improvement one gains from an experience are taking precedence, and luxury brands can help travelers reach this goal. European Travelers Return to Once-Disrupted Destinations Things can change very quickly in travel. Geopolitics plays a big part in deciding a destination's popularity. With Spain undergoing its own problems, and fewer terrorist incidents taking place in North Africa and the Middle East, the tourist spread is starting to rebalance itself. Mergers and Acquisitions Focus on Strategic Innovation The smartest travel companies are beginning to buy startups that may not be central to their main businesses or help them consolidate market share, but could boost the innovation metabolism of their motherships. Meetings Marriott Commission Cut on Group Bookings Could Ripple Across Hotel Industry Marriott will use its formidable presence in the North American hotel market to squeeze travel agents and meeting planners. The big question is whether competitors will follow suit. Could Marriott be setting the stage for a full-blown commission cut on all hotel bookings that would completely disrupt the travel sellers? Interview: The Future of Event Tech Is the Fight for Simplicity Is the meeting and events space on the cusp of a distribution revolution? There's still a ton of work to be done, but signs are promising if hotel chains become more engaged. Digital EasyJet Tightens Its Relationship With Travel Startups We keep waiting for conclusive proof that accelerators aren't just kindergartens for entrepreneurs. But the early word from easyJet and Founders Factory is upbeat. Voice Search Will Change Travel Marketing Faster Than You Think Voice will change the current travel marketing funnel much faster than we think. Savvy marketers and technologists should begin thinking about ways to make an impact on this burgeoning channel. Travel Search Engine Wego Labored in Asia but Found Its Footing in the Gulf States Wego got its start in 2005. But it only found a path to scaling up recently when it shifted its focus from Asia to the Gulf States. Hospitality Airbnb Signals Big Changes With the Appointment of American Express CEO to Its Board In short, Airbnb's message is: "We're not an Uber, guys. And we haven't forgotten about the people who made us a $31 billion company." Ace Hotels' New Sister City Brand, Explained Details are scant about Ace Hotels' new sister brand. But if Ace Hotels' track record is any proof, perhaps this could be a hit. But the bigger question is how do you balance travelers' desires for more local experiences versus feeling like they can escape the city they're in? Jumeirah Skips Luxury in Favor of 'Upscale Casual' for New Brand High-end luxury isn't for everyone, and it makes sense for Jumeirah to explore the upper midscale space; the upscale millennial travelers of today are the future luxury globetrotters of tomorrow. Flying American and Alaska Are Giving Away Elite Status If these new promotions are any indication, airline loyalty programs may be once more warming up to frequent flyers — for varied reasons, but out of necessity. United May Finally Be Frank About Why Flights Are Delayed Travelers often think their airlines lie to them about flight delays. While that could be true sometimes, it's almost certainly not the norm. American Airlines CEO Insists Growth Plans Won't Start a Fare War In a lengthy soliloquy on American's first quarter earnings call, CEO Doug Parker indirectly told investors to relax. Yes, U.S. airlines are increasing capacity this year. But they're being prudent by solidifying their hubs, he said, and not repeating past mistakes. Tourism Tourism Australia May Bring Back Crocodile Dundee, This Time With a Super Bowl Ad Crocodile Dundee is a nostalgic figure in the U.S., and it appears as though Tourism Australia could be hoping to score with an ad on Super Bowl Sunday. A campaign could get younger and older generations interested in Australia. But would a pricy spot during the Super Bowl be worth it? The Bahamas Has Too Many Cruise Ships and Not Enough Hotel High Rollers Many cruise passengers sail because it's a more economical way to visit a destination. Caribbean countries like the Bahamas have known this for years and are getting more ambitious about trying to attract more flights — a perennial problem — and hoteliers that can help do a better job at growing their economies in the long term. Ctrip CEO Expects Chinese Passport Holders to Double by 2020 If you thought there were a lot of Chinese tourists at the Eiffel Tower now, just wait until 2020. And in other news related to China's rise, Ctrip CEO Jane Sun has been wowing the global elite at Davos. Corporate Travel Marriott CEO: Known Traveler Program Could Balance Visitor Demand With Security Issues The balance between the freedom to travel versus security issues is a dynamic playing out across the globe. A known traveler program that uses biometrics and other data to alleviate security concerns would be great for road warriors and other supertravelers, but might have less utility for once-a-year vacationers. Then again, there are no panaceas. Business Class Fares to Europe Will Get Even More Expensive in 2018 Business travel demand is high, and so too are travel costs. Growing global instability in the political and economic realms, however, could disrupt these trends and drive costs down. For Gmail users: If you are using the tabbed inbox, Skift emails may be pushed to the 'Promotions' tab. To get updates from Skift direct to your primary inbox, drag and drop this email to that tab. You received this email because you are subscribed to Skift Daily Newsletter from Skift.

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