Skift Travel News Blog

Red Sea Global (RSG), the developer behind The Red Sea and Amaala in Saudi Arabia, has launched an adventure travel brand for guests aimed at offering unique sporting activities at its destinations.

Akun, which comes from the Arabic meaning of “to be”, will operate and manage various adventure experiences out of its destinations, including electric biking, trail running and hiking, all in line with the responsible ethos of the group. 

Having already signed two partnership deals with Bungy New Zealand and Air Sports Group, Akun is Red Sea Global’s third subsidiary business to be announced this year following the launch of its water sports and diving brands, WAMA and Galaxea, in February.

“At Red Sea Global, we believe the experiences available for our guests are just as important as the destination itself, and this new brand will provide them with world-class experiences in land and in connection with the sky above. Akun will offer a diverse range of ‘bucket-list’ adventures set in, over and throughout breath-taking sea and landscapes, and each builds on the exciting sense of exploration we nurture at our destinations,” said John Pagano, group CEO of red sea global. 

At the Skift IDEA Awards, we are looking for the projects defining the future of leisure tourism, destination marketing and the visitor experience, including those defining the future of day tours, activities, and experiences.

If you have an exciting initiative to share, head to the Skift IDEA Awards website and start your submission today.

Airbnb has been out there a lot these last couple of weeks talking about its new product updates and launches, and CEO and Co-Founder Brian Chesky has been surprisingly open about what went wrong from the original vision, how he runs the company and what’s coming in the company’s AI-driven future, even beyond its core.

Now in a new interview on The Verge’s Decoder podcast, while he goes over the familiar territory he has talked about to me and others in recent days, he also articulates that his future vision for Airbnb is. Worth reading/listening to the short clip, and gives hints to community and connection, which currently is more varpoware in Airbnb’s main product than reality, as being the main focus going ahead, in areas beyond its core of accommodation.

“Our vision for this company is the following: that Airbnb is a marriage of art and science, that we’re a truly creatively-led company. Our two core values are basically design creativity married with technologies and then this idea of community and connection. A company with this real humanistic feel that you come to Airbnb, we ask you a series of questions.

We learn about you. We understand who you are, what you want. We design these incredibly simple interfaces, and then our job as a host is we develop these really robust matching algorithms, and then we can match you to whatever you want. 

And so if we can build this incredibly robust identity system, if we can have the most robust profiles, almost like a physical social network where we can connect people together in this community, if we can use AI to augment customer service, to deeply understand and resolve your issues within seconds, not just minutes or hours, and we can then build these incredibly simple interfaces where we match you to whatever you want in your life, that’s basically the idea of where we’re trying to go. And Jony Ive and his team, they’re working on things just in that area.”

flydubai has unveiled the latest evolution in its premium business class offering, ‘The Business suite’, which is set to be introduced on select flights within its network.

The Dubai-based carrier is the launch customer for this brand-new seat, having worked in close collaboration with Safran Seats, a leading manufacturer of aircraft seats and JPA Design, a design company operating in the transportation, interiors, and product design arenas.

Announced at the 2023 Arabian Travel Market, the first aircraft featuring the new Business Suite is expected in November, with flydubai anticipating the new offering being available on up to six aircraft by the first quarter of 2024.

The new suites have been designed exclusively for single-aisle aircraft, and will allow direct aisle access for every passenger, providing guests the option to have a fully-closed suite experience or a more traditional open plan seat. The new pods will also feature discreet stowage solutions, ambient lighting and an increased on-board entertainment package.

“flydubai is committed to exceeding expectations. Our business and product offerings have evolved from the initial no-frills model over the past 14 years to cater to the ever-growing needs of our customers and the markets we operate to,” said Ghaith Al Ghaith, chief executive officer at flydubai.

“We have come a long way since the introduction of our first Business Class offering in 2013, which has served us well… we are proud to unveil a new premium product which rivals the Business Class experience offered by many airlines on wide-body aircraft. We will continue to invest in innovation to enhance the customer experience across our growing fleet.”

At the 2023 Skift IDEA Awards, we are looking for the projects defining the future of aviation, airlines, and the traveler experience.

If you have an exciting initiative to share, head over to the Skift IDEA Awards and start your submission today!

The Middle East welcomed 15 percent more international tourists in the first three months of 2023 than it did for the same period in 2019, according to the UN World Tourism Organization’s latest data. 

Over 230 million people traveled internationally in the first quarter of 2023, more than double for the same period of 2022 and which is 80 percent of its pre-pandemic level, according to the UN World Tourism Organization.

Europe reached 90 percent of its pre-pandemic level in the quarter. That region’s recovery was driven by strong intra-region demand.  Africa was at 88 percent and the Americas were at about 85 percent. Asia Pacific was at 54 percent, but the UNWTO expects this will accelerate thanks to China’s reopening.

While the global tourism industry heads toward recovery, there are risks ahead. UNWTO experts pointed to the uncertainty around the global economy, high inflation, rising oil prices and the Russia-Ukraine war as factors that could impact the recovery.

UNWTO also revised its 2022 data and found that over 960 million tourists traveled last year, which was two-thirds of its prep-pandemic level.

In 2022, international visitor spending reached 64 percent of its pre-pandemic level.

As the global hospitality industry continues to bounce-back post pandemic, Hilton has launched a new brand campaign to boost hiring inspired by the very individuals that make your stay happen – Hilton team members.

The campaign, which has been designed to showcase ‘the jobs, the people, and – most importantly – the impact and joy that hospitality jobs offer’, features real Hilton employees and takes inspiration from what the team love about their jobs.

Far more than just their front-line job titles, when employees were asked about their roles they saw themselves as ‘Flavor Maestros’, ‘Date Night Directors’ and ‘Cocktail Creation Artists’, with these playful titles cleverly integrated into the campaign imagery and supporting video, which you can take a look at below.

“What makes Hilton such an amazing place to work is the passion and dedication of our people, and we’re continuing to build on that through our new ‘Every Job Makes the Stay’ campaign,” said Laura Fuentes, executive vice president and chief human resources officer, Hilton.

“We chose to make team members the stars of this campaign because who better than them to speak authentically about what’s it’s like to work at Hilton. They are the heart of our business and the best ambassadors to help us find talent for our growing teams.”

Hilton have also released a Q&A with Fuentes regarding the campaign.

The campaign was created in partnership with advertising agency TBWA\Chiat\Day\New York, which also assisted in developing the “Hilton. For The Stay” platform, which we previously reported on here.

At the 2023 Skift IDEA Awards, we are looking for advertising campaigns that have been created with the intent to drive action.

Do you have a marketing campaign that deserves to be celebrated? Head to the Skift IDEA Awards and start your submission today.

TUI Musement continues to carve its place in the growth flywheel of parent company TUI Group, with the launch of its digital TUI experiences platforms to take the brand beyond Europe and into the world.

Sebastian Ebel, chairman and CEO of TUI Group, said TUI’s activities segment continues to support the group strategy of bringing new customers into the TUI ecosystem during an earnings call on Wednesday. Musement, which saw +185 percent year-on-year growth for business-to-customer experiences sold in quarter two of 2023, will continue to build its own unique experiences across 100 key cities.

Ebel outlined how its digital platform rollout would also support its TUI Blue asset-light growth, with the ongoing development of its own product.

TUI’s acquisition into Musement saw great investment in Milan, Spain and France, but the company would now be rolling out products for Germany, England, and the Far East, for example.

“We are targeting a hundred key cities at the moment in the world so that you don’t only get the best offers in Majorca but also when you are in Berlin,” said Ebel. “We are building more and more of our own products because we can sell as a merchant, but it’s more attractive if we produce the products on our own or make them unique through special relationships and to build further the Tui Collection.”

TUI’s tours and activities reported a near doubling in the number of excursions and activities booked during the second quarter ending March 31, with 1.3 million experiences sold and an estimated 0.7 million more than in the prior-year quarter.

Musement has reduced its underlying earnings before interest and taxes (EBIT) loss to -$13.9 million in the period under review, compared to -$19.92 million in the prior year. TUI Musement also benefited from increased guest transfers, with a total of 3.4 million transfers in destinations. You can read more about TUI’s focus on dynamic packaging and second-quarter earnings here.

The Vienna Tourist Board has launched UnArtificial Art, a marketing campaign designed to ‘promote the city’s 100+ museums in order to “See the Art behind AI Art”’.

The new campaign sees famous figures from the world’s most acclaimed artists transformed into the internet’s universally adored animal – the cat – using the power of Artificial Intelligence. 

One such example featured in the campaign is a mash up of Gustav Klimt’s ‘Kiss’, which sees the much adored lovers transformed into cats, still wearing the intricately decorated robes and positioned in the iconic lovers embrace.

“With so much artificial intelligence (AI) invading lives – particularly with programs like DALL-E or Midjourney that allow anyone to create “works of art” – Vienna wants to remind visitors of who made that all possible in the first place” said Norbert Kettner, Vienna Tourist Board’s CEO.

“The campaign aims to show that AI art is only possible because an algorithm references real works made by real humans, and the originals can often only be seen in Vienna. The Viennese Modernism movement that revolutionized the artworld over a century ago continues to live on and affect today’s art through the algorithms that guide AI creations,” he continued.

As part of the campaign, the Vienna Tourist Board has also released a short film with art expert Markus Hübl, which aims to showcase the art that made AI possible. You can view the video below:

This isn’t the first time AI has been used in a marketing campaign, with VisitDenmark turning to the power of artificial intelligence for a marketing campaign launched earlier this year.

At the Skift IDEA Awards, we are looking for advertising campaigns created with the intent to drive action.

If you have an initiative to share, head to the Skift IDEA Awards and start your submission today.

The Hawaii Tourism Authority plans to move forward with its plans to award an expensive contract to market Hawaii to the U.S. mainland, despite not being allocated funding from the legislature for the next two years. The decision was made at a board meeting Tuesday, according to Honolulu Star Advertiser (paywall). The contract is worth up to $51.3 million.

The other contracts the agency plans to move forward with are one for destination management, which is worth $34 million, and another for marketing to Canada, which is worth $2.8 million. All contract winners will be selected on May 22nd. Each contract spans at least two years. 

When it comes to funding, the agency has a rough road ahead. Last week, it was left out of the official state budget at the end of the legislative session. It will get funds from money set aside by lawmakers for deferred maintenance projects. Requests for funds will have to be approved by the governor and lawmakers.

The contracting process for the U.S. market has been far from smooth. It’s been delayed by legal disputes, canceled by an outgoing public official and forced to restart.

A major point of contention was the award of the contract to a native community non-profit over Hawaii Visitors and Convention Bureau, which has historically won the U.S. marketing contract. Another was that it was combined with destination management under one contract.  These moves are part of the agency’s attempts to take a more sustainable approach to tourism that takes resident needs and interest more into account.

The failure to award the contract was one of the reasons lawmakers almost dissolved the agency in the recent legislative session.

Swiss duty-free retailer Dufry on Wednesday reported a 113.4% jump in first-quarter turnover, supported by its acquisition of Italian motorway caterer Autogrill.

The retailer, which operates more than 2,300 shops at airports, on cruise liners, in seaports and other tourist locations worldwide, has benefited from a strong rebound in global travel, particularly in Europe and the U.S., since pandemic-related lockdowns were lifted.

The company reported a 113.4% jump in its first-quarter turnover to 2.35 billion Swiss francs ($2.64 billion), compared with 1.12 billion a year earlier.

Sales in the Asia-Pacific region soared 276.9% in the quarter, driven by the easing of restrictions in China.

The quarterly sales were 10% ahead of consensus, J.P.Morgan analyst Harry Gowers said in a note, but added no changes to outlook might dampen the share reaction.

“We wouldn’t be surprised if the shares are muted today having had a strong rally into results and no upwards changes to guidance,” Gowers said.

Dufry expects positive developments throughout 2023, but said it maintained a “prudent approach”, considering potential changes in the economic environment, operational challenges and impacts on consumer sentiment and travel spending.

Its shares were flat in early trading.

Dufry completed the deal to buy a 50.3% stake in Autogrill from Edizione in February, followed by a mandatory takeover offer for all shares.

“Autogrill integration and initiatives to realise full synergies underway,” it said, adding the mandatory offering was progressing as planned. ($1 = 0.8889 Swiss francs)

(Reporting by Ozan Ergenay and Anastasiia Kozlova in Gdansk; Editing by Kim Coghill, Milla Nissi and Louise Heavens)

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Budget hotel chain operator Oyo has announced its intention to expand its UK presence with plans to increase its number of hotels to over 200 by the end of this year.

As part of this expansion, Oyo will be adding more than 50 properties to its portfolio in the country by 2023, including in Leeds, Brighton, and Plymouth.

Oyo is currently in advanced-stage negotiations with over 30 hotels as it plans to bring more hotels into its platform this year, said Puneet Yadav, head of Oyo UK.

The company presently operates over 150 small hotels in 65 cities throughout the UK, with Otterburn, Folkestone, Worcester, Swansea, Crewe, Kidderminster, Solihull, Peterhead, and Boston as its latest additions.

In 2022, the company’s UK operations generated revenue that surpassed 2019 levels, with a 140 percent increase from 2021. Additionally, Oyo observed a 50 percent rise in revenue per available room compared to 2021.

Last year, the company expanded its platform in the country by adding 40 hotels. London, Birmingham, Torquay, Great Yarmouth and Manchester are its top markets in UK, according to Oyo.

The company currently has 27 hotels in London region on its platform and 38 in the Midlands region.

Talking about the interest from hotels owners, Gautam Swaroop, CEO of OYO International, said, “Our result-oriented tech stack has been a draw for many entrepreneurs in the UK who are looking to improve and scale their hotel business,”

Swaroop said the expansion would enable many small businesses in the region to manage their business with ease.

Oyo has presence in over 35 countries globally. It owns a vacations home business in the European Union called Oyo Vacation Homes, which operates legacy brands such as DanCenter and Belvilla.

Strengthening its portfolio as a full-stack vacation homes provider, last year the company acquired Croatia-headquartered Direct Booker and Denmark-based vacation rental operator — Bornholmske Feriehuse.

Rating agency Moody’s Investors Service stated this week that Oyo is expected to maintain sufficient liquidity buffers to sustain its operations until it becomes cash flow positive over the next 12 to 18 months, supported by a robust recovery in travel demand and cost optimization measures.