One Clever Hotel Ad, A Resort Brand’s Climate Warning and Avoiding AI Hype

Good morning from Skift. It’s Friday, June 27. Here’s what you need to know about the business of travel today.

Ritz-Carlton campaign recently won advertising’s top prize for luxury ads at a prestigious festival in Cannes, France, reports Senior Hospitality Editor Sean O’Neill.

The Ritz-Carlton’s “Late Checkout” campaign took home a Gold Lion at the Cannes Lions International Festival of Creativity, beating out 181 other brands in the luxury category. The ad, which cost less than $1 million to produce and distribute and features actor Josh Hutcherson, became the most-shared content across parent company Marriott International’s luxury portfolio last year. 

O’Neill writes Ritz-Carlton’s win highlights the opportunities for luxury hotel brands willing to embrace creative risk. The campaign avoided traditional media buys and opted to prioritize long-form content instead of 8-second, vertical video bites for TikTok. 

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Next, Spain-based hotel group Iberostar says climate change is the biggest risk to its business. The company is also calling for more investment in the tourism sector to counter its impact, writes Climate Reporter Darin Graham. 

Chief Sustainability Officer Gloria Fluxà Thienemann said at the London Climate Week this week that Iberostar operates more than 80% of its portfolio in exposed areas like beachfront regions. Thienemann added Iberostar is intensifying efforts to protect its properties, especially in the Caribbean. 

Thienemann also said the cost of action to deal with climate change will be much less than the cost of inaction. A recent World Travel and Tourism Council report estimated that the travel industry will need up to $250 billion to combat climate change. 

Finally, What do travel investors really think about AI, startups, and the future of travel? Skift editor-in-chief Sarah Kopit spoke to three venture experts for insights at the Skift Data+AI Summit earlier this month.

One takeaway: Avoid AI hype, and focus on solving real problems. Investors are turned off by pitches that focus too much on AI but lack market understanding. “It’s a tool; it’s not a solution,” said one investor. 

Another investor said startups could disintermediate search engines like Google or online travel agencies — if they offer real value to travelers and suppliers. The biggest winners in prior industry-transforming tech revolutions often came onto the scene later in the process, building upon knowledge from the first waves of new companies.  

Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.