Hilton's Caution on Deals + Trivago Sees Profits Again + Investors Punish Travelzoo

The Travel Industry's Daily Agenda-Setting Newsletter

October 25, 2018

Editor's Note On a day when earnings from the travel sector came fast and furious, one interesting thread we saw Wednesday popped out of Trivago's third quarter report — underscoring the current advertising dilemma for online travel. It comes down to a question brands have wrestled with for years: How much advertising is the right amount of advertising? Everyone wants to strike the perfect balance so as not to waste dollars on ads that don't deliver results. Trivago is clearly grappling with this issue. On Wednesday, it said it had trimmed its own spending for advertising (who hasn't seen those Trivago TV spots?), a move that helped the company rein in costs and return to profitability. At the same time, its revenue dropped 12 percent in the quarter year-over-year, largely because less advertising and promotion resulted in fewer bookings, and revenue as result. It seems the balance needs adjusting, but investors loved seeing profit again. Trivago's share price had its biggest jump on Wednesday in two years. — Tom Lowry, Managing Editor Skift Webcast: Reimagining Extended Stay — The Bold New World of 5+ Nights Sponsored by BridgeStreet How is the extended stay sector evolving to meet demands from employees for accommodations offering more flexibility, convenience, and choice? And how will they do it while satisfying company concerns about consistency, quality, and safety? Our new webcast session shines a light on this rapidly evolving business travel segment. Listen Now Top Stories A Cautious Hilton Unlikely to Buy Belmond Hilton is the kind of hotel company that's adamant about sticking to its guns. It says the future outlook looks fairly solid — unless, of course, fears of a looming recession come true. Ad Spending Cuts Help Trivago Return to Profitability Shares in the hotel search company rose the most in two years on news that a cut in ad spending had pushed the Expedia-controlled company into the black. But the company, which once enjoyed meteoric growth, seems unlikely to return to turbo-charged revenue gains anytime soon. New Weekly Newsletter Travel Advisor Innovation Report Is Launching November 6 Whether you are a home-based travel advisor or you work in a large office servicing high-profile accounts, the Travel Advisor Innovation Report will have you covered with the trends, news and features you'll need to stay on top of an ever-changing marketplace. Investors Show Little Patience for Travelzoo's Asia-Pacific Investments There's nothing wrong with a company investing and pivoting, as Travelzoo is doing yet again. There is something wrong when a company controlled by a founder doesn't reboot with new leadership. Allegiant Air's Remedy to High Fuel Prices: Buy More Efficient Jets Good riddance. The MD-80 had its moment in the 1980s and 1990s, but manufacturers are producing much more efficient (and quieter) airplanes now. College Football's Big Score for Local Tourism They say college football is like a religion. Its worshippers are creating a whole new category of tourism across the country during the fall. American Airlines Makes Elite Status Harder For These Credit Card Holders Use it or lose it. That is apparently the reason American Airlines is making it more difficult now for some card holders to earn elite status as perks are removed. Six Flags' Future in Dubai Is Now Uncertain Six Flags still considers international licensing an important driver of revenue growth, despite some roadblocks along the way. Back in the U.S., where most of its parks are located, weather put a damper on quarterly earnings. Skift Table: Why Employees Like Tipping Screens at Counter-Service Restaurants Custom tipping screens from Toast, Square, and similar digital point-of-sale systems can, in some cases, double an employee's paycheck. It's not a perfect system, but in an extremely tight labor market, it can be a big selling point. Airlines Rack Up Big Margins From Premium Seat Sales A skeptic might say airlines are doing so well selling premium seats because their standard offering is getting worse. There's some truth to that. But airlines have also gotten better at targeting passengers with the right offers for them. Planners Brace for Complicated New Era Boom times for event planners have come along with a prolonged period of dysfunction in the sector. And more challenges are yet to come. Popular Now JetBlue's Battle to Remain Dominant in Boston A few years ago, Delta Air Lines expanded in Seattle and tried to take share from Alaska Airlines. Surprisingly, Alaska has held on to most of its customers. Now, Delta is trying a similar strategy in Boston. JetBlue has a big customer base there. Will JetBlue's loyalists stick around? Hilton Debuts New Hostel-Inspired Brand, Motto So, it's not being marketed as a "hostel on steroids," as Hilton CEO Chris Nassetta once described it, but Motto by Hilton is more or less a lot of what we've seen before, albeit with a few twists. Qatar Airways CEO Puts Pressure on Oneworld Qatar's departure from the Oneworld alliance could translate into some trickier international flights and connections for travelers on American, British and a dozen other airlines. 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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