Traveling Blog: Weekend Review: American Focuses on Profitable Routes + Airbnb Has New Standards

February 17, 2018

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Note From the Editor

Really long flights, such as those from the U.S. to China, can be flashy and prestigious, but many of them are unprofitable. Bucking the tide, American Airlines is taking a go-slow approach on some of these routes, and is instead focusing on high-margin flying. Airline Business Reporter Brian Sumers trekked — OK, he flew — to American Airlines headquarters to speak with an executive who makes a lot of these decisions about routes.

Airbnb is on the cusp of a decision to launch a new tier of properties with brand standards. Hospitality Editor Deanna Ting spoke to several hosts participating in the pilot. It's all about the professionalization of the no-longer-alternative accommodation experience.

P.S. Skift's daily newsletter will be taking a day off Monday for the U.S. Presidents Day holiday. See you Tuesday.

— Dennis Schaal, Executive Editor

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Hotel owners are masters of navigating a complex, constantly evolving environment. In the latest Skift Research Report, we get into the minds of hotel owners — how they choose operating models, brands, and how they adapt to disruptions from online travel agencies to Airbnb.

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Airbnb Is Set to Launch a New Tier of Select Properties

You know the saying, "The more things change, the more they stay the same"? When it comes to Airbnb's new endeavors in the accommodations space, it is certainly being inventive, but the company is also borrowing heavily from what hotels have been doing for centuries.

Carlson Rezidor Is Rebranding Itself as Radisson Hotel Group

Carlson Rezidor hasn't taken advantage of its vast potential. This new name and strategy may help.

Smart Hotel Guest Rooms Are Almost Here

The smart guest room of the future is still in development. A strong return on investment for hotel owners who invest in updated technology, however, will help push these innovations into the mainstream.

American Express GBT Deal Means More Mergers Will Be Coming

American Express Global Business Travel is making a shrewd, and expensive, move to become the world's biggest travel management company by a wide margin. More consolidation is almost certain to hit corporate travel as a result.

Hospitality

Marriott CEO Details How the Company Messed Up in China

If there's anything for other businesses to learn about this snafu, it's this: Don't mess with China.

Airbnb Hedge Fund Report Is a Sign That This Unicorn Is Growing Up

Headlines can often miss a key point: Airbnb has a positive and growing cash flow. Airbnb was already in a small club of highly valued startups, but there's an even more elite group, those that can turn a profit.

Wyndham Sells Its European Vacation Rental Business to a Private Equity Firm for $1.3 Billion

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Digital

TripAdvisor Has a TV-Heavy Marketing Strategy That Competitors Are Trying Too

Google execs are not losing any sleep yet, but they are likely aware that some of their largest travel advertisers are starting to favor commercials on TV instead of sponsored search engine links. The big spenders' new strategies will have a rippling impact across other metasearch companies, as well.

Duetto Raises $80 Million to Give Hotel Booking an E-Commerce Makeover

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What's Behind Alibaba's $486 Million Investment in Hotel Tech Giant Shiji

Shiji is a Beijing-based company that provides hotels and restaurants with operational software and hardware. It was already on an overseas acquisition spree before this new funding. Global leader Oracle Hospitality should be on guard.

Flying

Gogo Wants U.S. Airlines to Know Satellite Wi-Fi Isn't the Only Answer

For years, airline passengers have hated Gogo's air-to-ground, or ATG, service. But change is coming, and travelers soon may not need to curse when they learn they're on an air-to-ground-equipped airplane.

Norwegian Air Plans to Move On From a Terrible 2017 With Fleet Expansion

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Meetings

New Convention Centers Are Pivoting Toward Trade Shows Over Consumer Events

Destinations like Miami and Anaheim aren't turning their backs on the leisure travel business that they grew up on. But they also don't want their leisure reputations to overshadow their new convention center capabilities. That means they and other destinations are following new strategies to grow business travel.

Tour Operators

TUI Group Wants a Bigger Slice of the Tours and Activities Market

With TUI accumulating so much customer data, it makes sense to deploy that knowledge to its transfers, and tours and activities business. The sector is still fragmented and a player with deep pockets like TUI should be able to make inroads.

TUI Is Relying on Its Blockchain to Help Boost Profits

TUI seems to have found a good use case for blockchain technology, and the implied cost savings would help boost profits. But could TUI achieve the same result with an alternative?

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