Airbnb is looking to further incorporate artificial intelligence into its business. And on Tuesday, it announced it has acquired GamePlanner.AI, a company founded by a creator of Siri, writes Travel Technology Reporter Justin Dawes. 

Airbnb CEO Brian Chesky said his company has been rebuilding its app with a focus on AI, and that the GamePlanner.AI team will focus on accelerating certain projects. Airbnb recently unveiled a new AI-powered photo tour tool for hosts. 

Airbnb didn’t reveal the acquisition price, but a CNBC report valued the deal at close to $200 million. 

Next, the chief operating officer of Riyadh Air, Saudi Arabia’s new airline, believes it can take advantage of the growing travel demand in the kingdom. But the company isn’t looking to compete with Emirates to be a global hub, writes Middle East Reporter Josh Corder.

Riyadh Air Chief Operating Officer Peter Bellew told Skift the airline’s main goal is to make going from point-to-point easier for travelers. He added he doesn’t see Riyadh Air, which is scheduled to launch in the middle of 2025, becoming a super connector. Riyadh Air hopes to fly to more than 100 destinations by the end of the decade. 

Meanwhile, Corder reports Riyadh Air hasn’t announced any orders at the ongoing Dubai Airshow. Bellew said the company is primarily focused on recruiting staff at the moment.

Finally, travelers haven’t been booking trips to Turkey in large numbers recently, writes Global Tourism Reporter Dawit Habtemariam. 

Several tour operator executives said they’ve seen bookings for Turkish trips dry up. Kelly Torrens, Kensington Tours’ vice president of product, said many travelers don’t feel comfortable traveling in the region despite Turkey not being near the Israel-Hamas conflict. Jacada Travel founder Alex Malcolm said he’s had to explain the situation to travelers to make them feel comfortable about traveling in Turkey. 

G Adventures Vice President Yves Marceau said if bookings continue to remain weak, tour operators will have to trim their inventory in Turkey. 

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Americans are gearing up to travel in large numbers for the Thanksgiving holiday next week. This Thanksgiving could be the busiest for the U.S. air travel for 18 years, writes Global Tourism Reporter Dawit Habtemariam. 

Travel organization AAA says that more than 4.7 million Americans will fly for Thanksgiving, the highest number since 2005. AAA also found flight bookings on the Tuesday before Thanksgiving appear higher than normal. That’s possibly because Americans working remotely can take advantage of cheaper airfares on off-peak days.

Habtemariam notes both American Airlines and United forecast this Thanksgiving will be their busiest ever. United will fly nearly 4,000 flights daily on average during the holiday period. 

Next, Emirates Airlines has reached a deal with Boeing to order $52 billion of aircraft, writes Middle East Reporter Josh Corder. 

Emirates ordered 90 jets from Boeing as part of the megadeal, which was announced on day one of the Dubai Air Show. The deal brings Emirates’ total orders to 295 aircraft. In all, more than 200 new aircraft orders were placed on the first day of the airshow. 

Emirates is set to receive new Boeing 777 aircraft that take flights up to 18 hours, enabling the airline to establish direct connections between Dubai and cities on six continents. 

Finally, GetYourGuide has made waves in the tours and activities sector. And its Chief Financial Officer Nils Chrestin believes there’s an opportunity for somebody to build a hundred billion company in the sector, writes Travel Experiences Reporter Selene Brophy. 

Brophy reports that GetYourGuide is one of the dominant online travel marketplaces for experiences. Chrestin said in an interview with Skift that GetYourGuide has seen considerable growth over the last year and a half. However, he said the company has no immediate plans to go public. 

Meanwhile, in addition to being the clear market leader in Europe, Chrestin said GetYourGuide has seen business boom in the U.S. and North America in general.

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Booking.com took a step to diversify its offerings on Thursday. The company launched cruises in the U.S. via a partnership with cruise agency World Holdings, reports Executive Editor Dennis Schaal. 

Schaal writes Booking.com offering cruises is part of its efforts to be a larger force in the U.S., the world’s largest cruise market. A company spokesperson said Booking.com’s cruises would offer customers access to exclusive offerings and deals on its platform. Schaal adds that Booking.com customers would be able to choose from more than 10,000 sailings on 30-plus lines. 

Next, Americans have gone overseas in large numbers this year. So what have been the most popular destinations for U.S. travelers? Flight booking data reveals Cancun and London are Americans’ top international destinations so far this year, reports Senior Hospitality Editor Sean O’Neill. 

Roughly 17.5% of all flight bookings from U.S. cities to international destinations from January through August were for Cancun. U.S.-Cancun bookings hit 91% of 2019 levels. Meanwhile, London was the second-most popular destination from U.S. airports with 8.5% of bookings.

Meanwhile, New York City was the top domestic destination for U.S. travelers with roughly 4% of flight bookings.

Finally, Wizz Air has experienced enormous growth coming out of the pandemic. But that growth is set to come to a halt next year, reports Edward Russell, editor of Skift publication Airline Weekly.

The Hungary-based airline has been boosted by an increase in seats in London and Italy as well as the arrival of dozens of new Airbus jets. However, Russell notes that Wizz has been hit hard by engine issues affecting a large number of its jets. Wizz expects that at least 45 of its roughly 200 planes will be grounded in January. The airline has also suspended flights to Israel. 

Meanwhile, Wizz recorded a $560 million operating profit and 17.1% operating margin in the six months ending in September.

Airbnb released its latest set of product enhancements on Wednesday — including Guest Favorites, new badges that identify customers’ favorite homes, reports Executive Editor Dennis Schaal.

Schaal writes that Airbnb will place a Guest Favorites badge on 2 million of its properties. Those badges will help travelers pick stays based on homes’ ratings. Schaal notes that hosts will benefit from several other features as well. Airbnb said hosts will be able to create AI-powered photo tours of their homes in seconds. 

In addition, Airbnb said it’s overhauling ratings and reviews to make them more guest-friendly. Guests will be able to sort reviews by when they were written and their rating scores.  

Next, Las Vegas’ Sphere arena opened to much fanfare in September, headlined by a U2 concert. But will it be a profitable venue? Newly released data highlighted the risks and rewards of the $2.3 billion structure, writes Travel Experiences Reporter Selene Brophy.  

While Sphere Entertainment CEO James Dolan expressed optimism about the Sphere’s potential, Brophy notes analysts are uncertain if it will generate enough revenue to offset the enormous initial investments. Revenue from the Sphere’s opening didn’t cover its first quarter direct operating expenses.

However, one media executive said the Sphere was on its way to becoming a global landmark due to the publicity it’s already received. Brophy adds its owners are hopeful upcoming major events in Las Vegas will help expose visitors to the venue. 

Finally, Singapore Airlines is coming off a strong September quarter. But the company is not resting on its laurels as its rivals continue their recoveries, reports Edward Russell, editor of Skift publication Airline Weekly.

Singapore Airlines posted a $589 million operating profit during the quarter. Company executives attributed the success to strong peak summer travel demand and lower fuel prices. And Russell writes the carrier is developing a multi-part strategy to maintain a competitive advantage, including extending its network of airline partnerships around the world. 

Russell adds that Singapore Airlines is working to increase connectivity over the city-state’s Changi Airport. Singapore Airlines and budget subsidiary Scoot plan to serve 23 destinations in China by December. 

Some analysts have argued that Choice Hotels International is too reliant on acquisitions to grow. But despite its ongoing push to acquire Wyndham, Choice believes the organic growth of its development pipeline is healthy, reports Senior Hospitality Editor Sean O’Neill. 

Choice CEO Patrick Pacious said during its earnings call on Tuesday that he’s encouraged by the state of its pipeline. He noted that Choice averaged more than four openings per week through September. However, Joseph Greff, a J.P. Morgan analyst, said Choice Hotels’ legacy room count has registered, at best, only modest footprint growth. 

As for its third quarter performance, O’Neill writes Choice Hotels generated $92 million in net income.

Next, Microsoft and travel technology company Amadeus are working together to develop artificial intelligence-related travel products. Travel Technology Reporter Justin Dawes highlights three of those innovations. 

Cyril Tetaz, Amadeus’ executive vice president of airline solutions, outlined what Microsoft and his company have in store in an interview with Skift. Their initiatives include personalized airline homepages for customers, a system for airline crew rescheduling, and a platform to simplify the work of an airline analyst. 

Tetaz added that Amadeus has many other initiatives in the works with Microsoft. 

Finally, luxury hospitality brand Inspirato is continuing to see losses mount. But the company believes it can become profitable by cutting costs, writes Short-Term Rental Reporter Srividya Kalyanaraman.

Kalyanaraman reports Inspirato is burning cash at $15 million per quarter. It’s also grappling with a decrease in revenue. But Chief Financial Officer Robert Kaiden said Inspirato will save $50 million by the end of first quarter next year by cutting costs. He noted that roughly $30 million of those savings are expected from pruning the portfolio and terminating leases. 

Inspirato posted a net loss of $25 million in the third quarter. Its revenue also decreased 11% from last year. 

Airbnb has seen its listing numbers tumble in New York City due to a regulatory crackdown. But the short-term rental giant believes boutique hotels can help fill the gap, reports Executive Editor Dennis Schaal. 

Airbnb CEO Brian Chesky said during the company’s recent earnings call that adding boutique hotels to its New York City inventory was an opportunity given the decline in short-term rental listings for homes. He noted that boutique hotels are already listed on HotelTonight, the app Airbnb acquired in 2019. However, despite the possible boutique hotel push, Chesky said Airbnb’s core business will always be houses. 

Next, timeshare company Hilton Grand Vacations has offered to buy Bluegreen Vacations in a deal that could be worth $1.5 billion, reports Senior Hospitality Editor Sean O’Neill. 

Hilton Grand Vacations will offer $75 a share in an all-cash transaction. O’Neill reports Hilton Grand Vacations, which was spun off from Hilton in 2017, is looking to strengthen its position in the vacation ownership and experiences sector. Hilton Grand Vacations runs resorts primarily in the U.S., Europe and the Asia-Pacific region.

Finally, Egypt was on track for a record tourism year in 2023. But it’s seen rising cancellations recently from American tourists due to the Israel-Hamas war, writes Global Tourism Reporter Dawit Habtemariam. 

Habtemarian reports that Egypt had welcomed roughly 10 million tourists in the first eight months of this year. However, travel companies that take American travelers to Egypt have reported a surge of recent cancellations. Kelly Torrens, an executive at Kensington Tours, said the current season will be lost for most tour operators working with the U.S. market.

Although some tour operators are optimistic travel to Egypt will increase in 2024, Torrens acknowledged that bookings for Egypt trips next year are low compared to previous years. 

2023 has been a wild ride for investors in travel companies, with those stocks on the edge of a bear market. How bumpy has the year been? Senior Research Analyst Seth Borko turns to the Skift Travel 200, an index tracking the stock market performance of the global travel industry. 

Borko writes that while travel has been a volatile industry this year, travel investors have made money in 2023. The Skift Travel 200 is up 6% from this point last year after being down 20% in 2022. In addition, Borko notes that stocks in cruises and tours, travel’s best performing sector so far in 2023, are up 26%. 

Next, Expedia Group rode a strong third quarter in its business-to-business and business-to-consumer segments to record revenue and profitability, reports Executive Editor Dennis Schaal. 

The company reported an adjusted net income of $778 million, the highest for any quarter in its history. Expedia Group also generated $3.9 billion worth of revenue during the third quarter, a 9% jump from last year and a quarterly record as well. Schaal adds the company also accomplished a couple of key goals, including launching its One Key loyalty program in July.

Finally, Hyatt remains optimistic that its large hotel pipeline in China will pay dividends despite the country’s economic difficulties, reports Senior Hospitality Editor Sean O’Neill. 

Although China is currently experiencing both a commercial property and municipal debt crisis, O’Neill reports Hyatt leaders are still confident in their strategy there. Hyatt has 40% of its hotel pipeline in China. CEO Mark Hoplamazian said during its third quarter earnings call he believes Hyatt will be able to maintain both net room and pipeline growth. 

Meanwhile, Hyatt said that overall hotel demand in the third quarter was down from 2019 levels by the mid-to-high teens, but that’s an improvement. At the start of the year, demand was down 60%. 

Airbnb had a strong third quarter, recording its highest ever quarterly profits and setting a company record for revenue, writes Travel Technology Reporter Justin Dawes.

The company reported net income of $1.6 billion, excluding a one-time income tax benefit. It also generated $3.4 billion worth of revenue, an 18% jump from last year. Dawes reports those record numbers were driven by 113 million bookings during the third quarter, a 14% year-over-year increase. 

In addition, Airbnb said it saw a 19% jump in its active listings last quarter, with Latin America and Asia-Pacific representing the regions with the highest growth. 

Next, American Airlines is looking to boost profitability as it flies to more underserved U.S. cities and enhances its loyalty program, writes Travel Experiences Reporter Selene Brophy.  

American CEO Robert Isom said at the Skift Aviation Forum on Wednesday the carrier would increase service to smaller U.S. cities, citing Roanoke, Virginia and Lubbock, Texas as examples. Isom added that American was looking to strengthen its loyalty program, which lags behind competitors. He called it an “untapped opportunity.” 

Finally, United Airlines strongly believes that the international travel boom hasn’t peaked, reports Edward Russell, editor of Skift publication Airline Weekly. 

United Chief Commercial Officer Andrew Nocella said at the Forum on Wednesday that the company sees more opportunity for growth overseas. United recently ordered hundreds of new Boeing 787s and unveiled several transatlantic routes for next summer. Russell writes United saw record profits for both transatlantic and transpacific travel in the third quarter. 

However, Russell notes many airline industry insiders wonder if the international boom will continue. In addition, long-haul international routes cost more to operate than domestic flights, possibly leading to large losses. 

Maui’s western region will fully reopen to tourism on Wednesday, two months after it was devastated by a massive wildfire. But Global Tourism Reporter Dawit Habtemariam writes the island still faces a long road to recovery.  

Sherry Doung, executive director of the Maui Visitors & Convention Bureau, said the organization wasn’t expecting large numbers of travelers to come to western Maui. Scheduled airline seats to Maui for November and December are still substantially below 2022 levels. While Habtemariam reports that the huge post-disaster decline in tourism to Maui has stopped, visitor numbers aren’t expected to substantially increase for some time. 

Next, JetBlue Airways had a brutal third quarter, as weather-related disruptions and rising jet fuel costs dented its profits, reports Associate Editor Rashaad Jorden. 

JetBlue posted a $129 million net loss, excluding one-time accounting charges. The company reported during its earnings call on Tuesday that it generated $2.4 billion in revenue, an 8.2% decrease from the same period last year. JetBlue Chief Financial Officer Ursula Hurley described the magnitude of air traffic control and weather-related delays as staggering. 

However, the news coming out of the earnings call wasn’t all negative. JetBlue President Joanne Geraghty said the company has seen a surge in corporate bookings since Labor Day.

Finally, Colorado legislators held a public hearing on a proposed bill that would significantly impact short-term rental properties in the state, writes Short-Term Rental Reporter Srividya Kalyanaraman.

The bill, if passed, would result in short-term rental units being classified as a residential real property or a lodging property based on its use the previous year. Kalyanaraman reports that how a unit is classified would have a big impact on taxes that owners ultimately pay, with a substantial increase in the tax rates for short-term rentals.

Episode Notes

Visa processing delays have hurt the travel industry’s recovery, especially in the U.S. and Europe. Associate Editor Rashaad Jorden turns to Ask Skift, our artificial intelligence chatbot, for more information about how lengthy visa waits are impacting tourism. 

Jorden reports visa delays for the U.S.’ top inbound markets top 400 days on average. U.S. Travel Association CEO Geoff Freeman said at the recent Skift Global Forum that the long visa wait times make the U.S. an unwelcoming environment for travelers and the U.S. is losing ground in the race to attract tourists. 

Meanwhile, lengthy visa waits for travel to Europe are driving more Indian travelers to visit destinations closer to home. One India-based travel executive said it’s taken travelers as long as 45 days to land an appointment for a Schengen visa. 

Next, the Four Seasons recently enhanced its latest marketing campaign that showcases employees’ efforts to enhance customers’ stays. 

Senior Hospitality Editor Sean O’Neill said the Four Seasons is looking to unveil more guest-centric tech, including mobile keys for all guest rooms. The company is also working to enable guests to pay check-out invoices from their phones. 

However, Marc Speichert, the Four Seasons’ executive vice president, said the hotel isn’t looking to add any large properties to its portfolio. 

Finally, African travel executives believe the continent’s growing middle class could significantly boost tourism, especially domestic tourism, writes Travel Experiences Reporter Selene Brophy.

Brophy reports that South Africa in particular has had a surge in domestic tourism. The sector has seen a 31% jump in overnight trips during the first four months of 2023. And domestic travel spending in the country has increased 41% in the same period. 

Analysts believe the growth could be replicated around Africa. The World Bank estimated that the continent was home to a pre-pandemic middle class of 170 million people. In addition, Brophy writes Africa has the youngest population in the world, with more than 60% of Africans under the age of 25.