Amex GBT Buys Hogg Robinson + Expedia Gives Ground + Visitor Spending Malaise

The Travel Industry's Daily Agenda-Setting Newsletter

February 9, 2018 View in browser

Note From the Editor The American Express Global Business Travel deal to acquire Hogg Robinson Group will shake up the business travel world, widening Amex GBT's already sizable lead. Pity the IT folks at the two companies, though, because they will spend the next decade trying to bring together the legacy technologies of each. Expedia's stock price already nose-dived Thursday before the big news about this corporate travel consolidation. Expedia's woes were tied to earnings and increased marketing spend, added expenses for hiring salespeople and cloud-computing, and lowered 2018 guidance. Expedia CEO Mark Okerstrom admitted yesterday that there is a new equilibrium with hotels because of their direct-booking campaigns. He'd like you to believe that there's no harm, no foul, but in reality online travel has entered a new period of hyper competitiveness. Game on. — Dennis Schaal, Executive Editor Skift Forum Europe 2018 Program Sneak Peek Do you need even more reasons to join us in Berlin this April? Last month we announced our first speaker lineup. Now we're giving you a peek behind the curtain on how we're making this year the best Skift Forum Europe ever! Learn More Top Stories American Express Global Business Travel Agrees to Buy Hogg Robinson Group Hogg Robinson Group has gone through a significant amount of restructuring in recent years. The board obviously thinks now is the right time to cash in. Expedia Acknowledges a New Balance of Power With Hotels in Direct Booking Challenge A year from now — or perhaps sooner — we wouldn't be at all surprised to hear Expedia executives admit that hotels' direct-booking campaigns were having more of an adverse impact than the company initially articulated. Hotels have taken back some control from Expedia, and its shift toward independent hotels has far-reaching implications. International Visitor Spending in U.S. Dropped For Second Consecutive Year While each visitor market is unique, many international travelers in the U.S. last year probably weren't shopping until they dropped because of a stronger U.S. dollar. United Airlines May Change Its Boarding Procedures Most experts say airlines should board aircraft randomly if they seek maximum efficiency. But that's a problem since most carriers want to reward their best customers with early boarding. Under the circumstances, airlines do the best they can. Thomas Cook Looks to Turkey and Egypt to Ease Its Pain in Spain Spain's popularity among UK tourists has not dwindled. Thomas Cook will be hoping demand to higher-margin destinations such as Turkey continues to grow or else it faces an expensive summer. Travel Megatrends 2018: Asian Upscale Travelers Are Creating a Luxury Tipping Point 2018 will see greater numbers of Asian luxury travelers, but also greater challenges to meet more complex needs. As these travelers want to play in Asia, new high-end agencies are entering, while old ones are restructuring, creating new luxury divisions, or launching new luxury brands. New Tools and Platforms Are Changing Business Travel Making it easier for travelers to book how they want, and simpler for travel managers to experiment with new technology solutions, has become a focus in corporate travel. Skift Megatands Event Went International For the First Time After four years of Megatrends events in New York, we went global. Our first Megatrends event in London sold out and further solidified our presence in Europe. Profitability Is Not On the Horizon for India's MakeMyTrip as Price Wars Take Hold India has many homegrown online travel players, but only a couple will thrive. MakeMyTrip will be one of the survivors, but it may take until 2022 for it to achieve profitability. Expect it to make more acquisitions and investments to consolidate market share. Grubhub Seals $200 Million Investment and Exclusive Delivery Deal With Taco Bell and KFC Parent The push toward exclusive delivery deals continues. The Yum! Brands deal is a catalyst for aggressive market growth as online ordering and delivery brands compete for restaurant business and market share. Popular Now Airbnb Strikes Deal to Make a Bigger Hotel Push Anyone willing to bet that you may find your favorite "mass-produced" hotel chains on Airbnb in the not-too-distant future? Trivago Forecasts Slower Growth and 'Difficult' Quarters in 2018 It seems that Priceline Group's recent pullback from advertising on Expedia-backed Trivago may be a new normal. In a brutal move, Booking.com pulled almost entirely out of Trivago's search listings in Germany and Italy in December. Should Airlines Sell Business Class-Style Products in Economy Class? Many airlines sell premium amenities to customers in coach. But is it worth it? Yes, these are high-margin items, but airlines don't sell that many of them. Most coach customers want only the basics and don't want to pay extra for anything. 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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