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Thursday, May 10, 2018

Booking Goes Direct + + FAA Faces Audit + Marriott Hypes Homesharing

May 10, 2018 View in browser

Editor's Note

The FAA finds itself once again in the crosshairs. But instead of facing questions of whether it should privatize its air traffic control system, it is being audited for safety inspections. On Wednesday, the U.S. Dept. of Transportation ordered a review of the FAA in connection with investigations it conducted of Allegiant and American airlines. The DOT is concerned that the FAA is not fining airlines, but rather working closely with them on issues.

Arguments can be made about which approach will ultimately make the airlines safer. What's problematic is the intrusion of politics into this mix from Congress. A recent report on 60 Minutes uncovering a pattern of safety issues at Allegiant was a public service. What Congress is doing in the aftermath, not so much.
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Not Just For Hotels — Booking Holdings Has a Direct Strategy of Its Own
With less fanfare than hotels, but with a ton of TV spend, Booking Holdings is intent on increasing its share of direct bookings. Anything that gets in its way, including metasearch sites that go out of favor, will be collateral damage.

Department of Transportation to Audit FAA Practices Investigating Allegiant and American
It's hard to know what to make of this. There could be something there, or the inspector general's office could just be changing the scope of its audit of the FAA to placate several members of Congress.

Marriott CEO Fires a Salvo: 'We Can Deliver a Better Homesharing Product'
Marriott — and well, any company wanting to get into private accommodations — should heed the advice of AccorHotels CEO and pay close attention to how they manage those rentals and how they can leverage their existing hospitality labor force to do it.

Skift Tech Forum Preview: Travelport's CEO on a New Era for Airline Merchandising
CEO Gordon Wilson of Travelport says his technology company is making it easier for airlines to display on travel agency "shelves" their content in the way they want. If true, that could significantly help airlines maximize their revenue.

TUI Has Big Plans for Its Soon-to-Be Enlarged Tours and Activities Business
Connecting up such a diverse, offline industry like tours and activities is not going to be easy, but the reward for a company like TUI is massive.

Agoda Names New CEO as It Aims to Go Global
Agoda's new CEO John Brown will be leading the company to increasingly push into Europe and the Americas, beyond its traditional online travel agency turf of Asia Pacific. The early numbers show that parent company Booking Holdings is putting its money where its mouth is.

Former Investor Darling WestJet Struggles as Canadian Airline Seeks to Reinvent Itself
Investors sometimes ask why Southwest Airlines has avoided straying too far from its roots. They wonder if it should assign seats, or add a business class cabin, or sell meals on board. But Southwest almost always prefers simplicity. Given how much WestJet — once a Southwest clone — has struggled as it has evolved, we now understand why Southwest is so conservative.

Traveler Behavior Is Still the Biggest Impediment to TripAdvisor's Tours and Activities Business
Should there be TripAdvisor booths at big tourist attractions in Paris, New York, Las Vegas and Rome? It might not be a bad idea to explore to attract the business of travelers who like to book attractions offline. Would it scale? Expedia does it, but the numbers crunchers would have to figure it all out.

Planners Work to Fix the Event Industry's Sexual Harassment Problem
Meetings represent a perfect storm for the kinds of incidents that sparked the #MeToo movement: Attendees gather in hotels and resorts and socialize at networking sessions fueled by alcohol. The industry is just now reacting with codes of conduct but that may not be nearly enough.
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Lonely Planet CEO to Depart as Company Pursues Sale
Lonely Planet has weathered the death of the guidebook better than any of its peers, and its new leader will need to figure out a way to flourish rather than just survive as it builds on the pieces of its empire.

Disney Is Exploring Where to Put Its Next New Worlds
Disney is pouring money into expanding its existing theme parks, so it should come as no surprise that the company would consider building in new countries altogether. While the CEO called such a move an "inevitability," no one should hold their breath for an announcement anytime soon.

Tourism Australia Targets High-Spending Consumers With New Premium Strategy
Everyone is talking about experiential travel these days. But Tourism Australia is upping the ante, using experiences to drive a premium strategy aimed at attracting more affluent visitors.
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