Good morning from Skift. It's Tuesday, January 25, in New York City. Here's what you need to know about the business of travel today.
Skift Daily Briefing Podcast
Listen to the day’s top travel stories in under four minutes every weekday.
Today’s edition of Skift’s daily podcast discusses the role remote workers may gain as hotels rethink business travel, Japan’s questionable tourism season, and Cathay Pacific’s financial struggles.
Here’s what you need to know about the business of travel today.
Consulting giant Deloitte believes remote workers will have a major impact on hospitality brands in the next several years, and it says there’s potential for companies to use subscription models to tap into their increasing power, reports Corporate Travel Editor Matthew Parsons.
Deloitte published its 2022 travel outlook report last week, and one of its authors — the company’s vice chair Eileen Crowley — said that a major reason subscription models have struggled in the past stems from limited opportunities for travel. However, Deloitte sees remote workers traveling more in the new year, which could enable companies to use subscription models to attract the growing segment.
The report also outlined other noticeable trends in travel to pay attention to in years to come. While it predicted business travel demand will improve significantly when workers return to offices in greater numbers, staffing struggles experienced by many companies in the industry will likely delay its wider recovery.
We go to Japan next. Although it hasn’t reopened to tourists yet, several tour operators are still selling trips to the country, writes Editorial Assistant Rashaad Jorden.
Jeff Roy, the executive vice president for Collette, said the company has clients on the books to travel to Japan this March and April, which represents the peak demand period for the country due to the popular cherry blossom season. Roughly 63 million people traveled to and within Japan to view their bloom annually in the pre-Covid era.
However, time is running out for tour operators to know if Japan will reopen in time for them to conduct those trips. Roy said Collette ideally wants to know six to eight weeks prior to planned departure dates so it’ll be aware of specific requirements for visitors while an executive at another tour operator said it aims to inform guests between 45 and 60 days prior before departure if a tour is unable to depart.
We conclude today with Cathay Pacific Airways’ financial struggles. The Hong Kong carrier is back in the red after its government enacted stricter travel restrictions and quarantine rules to combat the Omicron variant, writes Airlines Reporter Edward Russell.
Cathay Pacific said on Monday that it anticipates a monthly cash burn of anywhere between $128 million and $193 million from February following capacity cuts in response to the tighter restrictions. The airline projects operating about 2 percent of pre-pandemic passenger capacity in January as since the start of the new year, it’s been forced to suspend flights to eight countries — including popular destinations such as the UK, U.S. and Australia — due to the renewed travel curbs. In addition, Cathay has no domestic market, complicating its path to a recovery.
The airline is also currently the subject of a government investigation following a report that two crew members who broke self-isolation rules sparked a Covid outbreak in the city.
Have a confidential tip for Skift? Get in touch