Weekend Review: Expedia's No Match + Hilton's Brand Frenzy + An Overtourism Framework

The Travel Industry's Daily Agenda-Setting Newsletter

October 28, 2017 View in browser

Note From the Editor As is par for the course in the travel industry, it was a week with noteworthy breaks from the past. Expedia scrapped its Best Price Guarantee because here's a dirty little secret: In an age of hotel-website-only loyalty rates, Expedia often does not offer the lowest rate, and price parity is basically dead anyway. Meanwhile, Marriott and Choice hotels are trying to set new paths by reviving midscale brands Fairfield Inn & Suites and Sleep Inn, respectively. Their campaigns to bring these brands into the 21st Century are as different as oil and water. For the weekend, you don't necessarily have to make a break with the past — just take a break before Monday shows up. — Dennis Schaal, Executive Editor Skift has Partnered With Easyfairs Sponsored by Easyfairs This November 28-29, our partner Easyfairs is bringing you Guest Madrid, an innovative event focused on the latest technological developments in the hospitality industry. At Guest, you'll have the chance to network with more than 150 companies. Top Stories 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. The Anxieties of a Muslim Traveler "I am this guy. I fit every cliché; I am the abstract villain of your imagined anxieties. Traveling while Muslim." Proposing Solutions to Overtourism in Popular Destinations: A Skift Framework As destinations scramble to reduce the impact of tourism on their citizens, foundational work must still be done to create a repeatable framework and process for preventing overtourism. 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? American Airlines Believes It Doesn't Need Over-the-Top Luxury to Compete With Gulf Carriers We're not surprised American Airlines is not interested in blinged-out first and business class cabins. But we're still slightly puzzled at the U.S. carriers' anger toward the Gulf airlines. Yes, Emirates, Etihad and Qatar receive government assistance, but so do a lot of airlines. Travel Operations and Maintenance Are Getting Smarter With AI [SPONSORED] Sponsored by IBM Smart technology is increasingly improving how airlines, railways, and other sectors ensure smooth experiences for travelers. For travel companies using these cognitive systems, that means saving time and costs, reducing delays, and optimizing efficiency. Read More Digital New Expedia CEO Just Became His Own Guy in Outlining a New Strategy It should be no surprise that the new Expedia CEO, who Barry Diller claims to have selected without conducting a wider candidate search, would have his own ideas about where to take the $22 billion company. Okerstrom is even talking about a path for Expedia becoming number one in online travel. That's definitely something we haven't heard publicly articulated in awhile. 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 per acquired customer. This is extraordinary given the fact that Trivago was one of Expedia's growth engines and there was seemingly no end in sight. 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. Hospitality Hilton CEO Previews New Brands and Tech Launches for 2018 Here's hoping that new "hostel on steroids" brand is more than just a beefed-up Tru by Hilton. And that the technology powering Hilton's Connected Room actually works. 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. 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. Flying Interview: ANA CEO on His Star Wars Strategy and Why Sushi Doesn't Fly Other airlines serve sushi, but not ANA, Japan's largest carrier. Why? ANA takes its food seriously, and its chefs don't think sushi tastes right on planes, so it serves sashimi instead. That's attention to detail. JetBlue Doesn't Expect Puerto Rico Tourism to Recover Until Late 2018 JetBlue has been good to Puerto Rico, but the airline has no choice. The island has been devastated by Hurricane Maria, and tourists won't be able to return soon. JetBlue needs to move some flights to other popular tourist destinations. 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. Tourism Beverly Hills Tourism Gives a Facelift to Its Shopping and Evening Strategy in Amazon Era Shopping is one of the parts of any trip that many travelers look forward to. Online shopping is certainly impacting in-destination spending in some markets, and more tourism boards are getting creative with how to compete with e-commerce giants. Catalonia's Bid for Independence Is Complicating Tourism in Spain A prolonged period of uncertainty over Catalonia's future does nobody any favors. The region and the city of Barcelona have endured a difficult 2017 and it will be interesting to see if this has any impact on tourism in 2018. 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. Business Travel Uber and Starwood to End Partnership in Possible Signal of Wider Loyalty Changes Ahead Business travelers will lament the end of the Uber-Starwood partnership, but much more may be on the horizon for Uber's loyalty plans. Smartphones Open Hotel Rooms at Luxury Properties But That Should Be Just the Beginning Hotels have years to go before guests will routinely be unlocking guest room doors with their mobile apps. Even then, it could be just a gimmick unless hotels make it part of a broader guest-experience enhancement. Lyft Continues Steady Rise in Popularity Among Business Travelers Signs point to an ongoing malaise for Uber, but Lyft still lags behind in overall usage by business travelers. 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.

Follow us Our address: 145 W 30th Street 5th Floor New York,  NY  10001  USA  Copyright © 2017 Skift, All rights reserved.

If you'd like to unsubscribe from this email, click here If you'd like to receive fewer emails, click here If someone shared this email with you and you would like to subscribe, visit our newsletters page on Skift