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Thursday, January 11, 2018

U.S. Tourism's Bad Year + Travel Warning Overhaul + CES Biz Travel Lessons

January 11, 2018 View in browser

Note From the Editor

When a strategy isn't working, conventional wisdom says to find a new one that will. The State Department is throwing out its travel warning and alerts and replacing them with travel advisories for every country, in hopes that travelers will better understand the system. Also in Washington, D.C., there are new numbers showing the impact of last year's dip in international arrivals. Final figures aren't out yet, but spending by foreign visitors was down 3.3 percent through November; this is more fodder for U.S. Travel's new coalition meant to make inroads with the White House on the importance of international tourists.

Elsewhere in travel, Europe Editor Patrick Whyte reports that NH Hotels has walked away from a merger with BarcelΓ³ as it pursues others to reinvigorate its cash flow. Airlines, however, have found a successful strategy during the past decade with bag fees, which we look back on today.
Last Chance to RSVP to Attend Skift's 2018 Megatrends Magazine Launch
Join us in NYC this upcoming Tuesday Jan 16th at 6:00pm for the unveiling of Skift Megatrends 2018, our fourth annual print magazine identifying the top trends that will shape travel in the year ahead. Reserve your spot now.
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Top Stories
U.S. Tourism Confronting Its Worst Year Since the Financial Crisis
It's becoming clearer that 2017 has gone down as one of the worst and most challenging years for U.S. tourism in recent memory. In 2018, many destinations will likely step up their marketing of discounted options to get more foreign feet and spending power through their doors.

Corporate Travel Can't Afford to Miss the Next Wave of Consumer Technology
Consumer technology is undergoing a transformation, powered by artificial intelligence and voice commands. Corporations should pay attention to how their travelers' behavior shifts in order to stay in front of upcoming trends.

U.S. State Department Overhauls Travel Warning System
It's a complicated world and the State Department is trying to make it a little less complicated for U.S. travelers wondering if it's safe to travel somewhere. There will likely be a learning curve to understand the new system and how other countries respond to them.

Bag Fees Were the Most Successful Airline Business Model Change of the Past Decade
In the past decade, airlines have successfully convinced flyers to pay for everything from seat assignments to checking bags. But some of their most loyal customers are fuming.
Travel Brands Should Stand Up For the Values They Believe In
Sponsored by Oath
Travel brands are increasingly standing up for the values they share with their customers—and are finding that doing so offers new ways to connect. Brands with an authentic voice make the greatest impact as the market continues to reward the risk takers.
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NH Hotels Turns Down BarcelΓ³ Merger Offer But Is Open to Others
NH Hotels may have turned down this approach, but it has not closed the door on others. And with minority shareholder HNA Group looking to raise cash, it wouldn't be a surprise to see another offer sooner rather than later.

British Airways Plan to Add 'Pre-Reclining' Seats Actually Makes Sense — Airline Innovation Report
We all wish British Airways hadn't decided to shrink seat pitch. But once it did so, it was smart to go with so-called pre-reclined seats. When there's so little space between seats, passengers don't need another passenger reclining into them.

CES and the Future of Events — Meetings Innovation Report
CES keeps getting bigger and bigger, but the importance of face-to-face meetings remains a focus.

White Castle Partners With Grubhub as Delivery Moves Toward Exclusivity
The next big competition in online delivery might be for exclusivity with large, national chains.
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Exclusive: TripAdvisor Reorganizes Business Units in Attempt to Revive Its Prospects
It is widely acknowledged that TripAdvisor needed to reinvigorate its business and product lines after a difficult transition to hotel metasearch and instant booking. The company believes the new internal structure will give its units that enhanced focus.

New Skift Research Report: Venture Investment Trends and Startup Opportunities in Travel 2018
Venture capitalists invested a record amount in travel startups in 2017. The industry is no stranger to disruption, but we may be seeing some of the greatest changes of the last two decades. Our latest research report is a deep dive into these emerging trends with insights for founders, incumbents, and investors.

Airlines Turn to Private Messaging to Avoid Social Media Blowups
Airlines and their passengers are embracing private messaging to resolve issues. That's good for customers, who don't need to wait on hold for an agent. And it's helpful for airlines too, because agents can respond to more than one message at a time.
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