Trivago's Ad Pinch + Hilton Talks Tariffs + Norwegian's Pain Is Ryanair's Gain

The Travel Industry's Daily Agenda-Setting Newsletter

July 26, 2018

Editor's Note In a live-by-the-sword-die-by-the-sword conundrum that permeates the online travel industry, advertising showed its ability to dictate corporate strategy on Wednesday. Trivago, which relies on other travel companies to buy advertising on its site, said it was hurt by those companies paring back their spending. As a result, Trivago said it would be cutting back on its own advertising, which it had proudly touted through memorable TV spots for years. The relationships are a bit of a pretzel, but that is online travel for you. All of this led Trivago to post a loss that widened by 17 percent in the second quarter, and to announce a 3 percent headcount reduction, writes Executive Editor Dennis Schaal below. Parent Expedia touted Trivago as a rising star in its large portfolio, but a year later Trivago is looking to shed costs as fast it can to find the way to profit. Its stock closed out the day on Wednesday up 2 percent, so somebody still believes in its star power. — Tom Lowry, Managing Editor Tapping Into Hotel Suites to Compete in an Era of Airbnb Sponsored by Suiteness Hotels have long underutilized their high-value inventory, which means losing out on a huge opportunity to compete with vacation rental platforms. Suiteness, a new solution to the hotel marketplace, helps guests get the space they need and helps hotels increase their average booking value. Read More Top Stories Trivago Lays Off Staff in Strategy Shift to Emphasize Profitability Over Growth A lot of Trivago's problems, including an advertising diss from Booking Holdings, are beyond the company's control so it is doing what it can, namely reducing advertising spend and headcount in an attempt to get into the black. Speaking of Booking Holdings, Trivago may need a dot-com-like Priceline comeback to right the ship. Hilton CEO Doesn't See Any Negative Impact From Potential Trade Wars It's all quiet for now, but what happens when the tariffs expand beyond China and into Europe? Ryanair Plans to Capitalize on Norwegian's Problems With Norwegian and others out of the way, Ryanair would have access to more pilots and probably be able to reduce its aircraft costs. Six Flags Wants to Expand Its Kid-Sized and Adventure Park Concepts Beyond China Six Flags is going beyond the typical theme and water park offerings with kid-focused and adventure options in China, and it makes sense to bring those concepts to other markets. But it's also wise to make sure the parks are delivering what customers want before investing in building them elsewhere. British Airways Owner Poaches Flybe Executive to Run Low-Cost Carrier Level IAG has big plans for Level and with a new dedicated CEO, we can expect further expansion. The only question is what would happen to the carrier if the airline group added Norwegian to its growing family. Skift Table: The Cost of Remodeling a Fast-Fine Concept It's hard to go a week without hearing of a restaurant that has newly embraced some type of fast-casual, fast-fine, fine-casual model. Here, we look at the costs associated with actually making that leap through the lens of a regional Southern sandwich chain. Travelzoo Stock Price Tumbles as Costs Devour Profit CEO Holger Bartel has been angling his deals company into a smarter business model. But the cost of Travelzoo's investments continues to drag down earnings. Investors responded by shaving 30 percent off the company's share price on Wednesday. Digital Revolution for Smaller Meetings Is Still a Work in Progress Avoiding digital tools to help manage simple meetings is a big missed opportunity. The good news is that more meeting planners and travel managers plan to experiment with new technology over the next year. Are Investors Ready to Forgive U.S. Regional Airlines? U.S. bankruptcy law is more forgiving than in many countries, which is why many airlines have had multiple iterations. Now, eight years after filing for bankruptcy, Mesa Air Group again wants to be traded on public markets. Assuming it goes forward with an IPO, it'll be interesting to see if investors return. Popular Now Expedia's Hotel Boss on Becoming a Global Platform We still think there's a pretty good chance that we'll see Expedia-branded hotels in the near future if not sooner. Hotel Direct Bookings Remain Flat Despite Big Marketing Push Overall guest satisfaction with hotels in North America is at an all-time high. Still, that doesn't mean the hotel industry should be congratulating itself; there's still work to be done. American Airlines Legend Bob Crandall on How Mergers Led to Increased Inequality Bob Crandall called it in the late 1970s, saying airline deregulation would be the ruination of U.S. aviation. You can credit the retired American Airlines chairman and CEO with consistency as he argues that airline mergers — and mergers in general — have contributed to capital accumulation at the expense of workers, and the demise of small cities. 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 © 2018 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