Skift Travel News Blog

There’s been well-deserved excitement in travel tech circles in recent years about everything from the New Distribution Capability to chatbots and the arrival of generative AI, but the reality is that much of what passes for travel technology is still backwards these days.

Here are a few recent examples:

Avis: Rental Counter Can Be Unavoidable

Avis informed me a few days ago that I couldn’t modify an upcoming reservation at Newark Airport to add electronic toll charges because I made the reservation using points. In a chat, the Avis agent assured me I could add E-ZPass at the counter — although there are often elongated wait times there.

In November at Phoenix Sky Harbor Airport, as an Avis Preferred member, I was supposed to be able to view the app and go directly to the parking lot to retrieve my rental car, but that didn’t happen. Eventually, an Avis agent at the car rental counter told me I hadn’t been able to go directly to the car in the parking garage because I arrived during an employee shift change, and the cars were not in place and ready. The wait for the cars was at least 45 minutes at the rental counter.

JetBlue Ticket Modifications: You Need to Cancel and Rebook

In early January, I tried to modify a JetBlue flight booking at JetBlue.com, but wasn’t able to. During a text chat, JetBlue told me in what I think was an automated answer that since I booked the flight with points, I’d have to cancel and rebook it to make the change. “TrueBlue point bookings are managed online,” JetBlue stated. “Changes require you to cancel and rebook. Points are returned to the TrueBlue account. Bags/seats are refunded to the original payment.”

If I had booked the original flights with dollars instead of TrueBlue points, I probably would have been able to easily modify the booking online. But don’t airlines want their customers to join their loyalty programs, and redeem those points? Instead, there is a disincentive when points functionality lags.

Avianca Blames the ‘System’ on Multi-City Booking Issue

About a week ago, I wanted to book a multi-city itinerary on Avianca.com, but there was no option to do so. I was looking to book Punta Cana-Cartagena-Medellin-Punta Cana. I complained on Twitter in frustration, and Avianca kindly messaged me within minutes of my tweet that its customer service agents would reach out, which they did. But after a back and forth with one of the agents over a couple of days, he informed me that the Avianca “system” wouldn’t allow him to make the multi-city booking, either. The agent said I should try booking the tickets separately.

I did book the flights separately — but with another airline. 

Can’t Bypass the Front Desk at a Hilton Property

In November, I reserved a room for a few nights at a Hilton Garden Inn in New Jersey. A Hilton email informed me I could use the Hilton Honors app for a contactless arrival. The idea was to skip the front desk, head to my assigned room, and unlock the door with my phone.

When I arrived at the property, a very nice front desk employee informed me that for security purposes I would have to show her an ID so it turns out at this particular property, at least, there would be no bypassing the front desk. She then handed me a couple of card keys for my room door.

Moral of the Story?

Despite all the boasts from airlines, hotels, and car rental companies about seamless this or frictionless that, the reality is often more traditional and clunky. The travel industry still finds itself plagued by outdated, legacy technology or more modern applications that sometimes aren’t well thought out.

The U.S. leisure and hospitality sector in January continued to make strides in recovering from the pandemic disruption, according to a robust U.S. labor market report on Friday.

U.S. employers added 517,000 workers to payrolls in January, the Labor Department said. About 15,000 of those jobs were in travel accommodation, while 99,000 were at restaurants and bars.

Despite hikes in inflation and interest rates and a spate of tech-sector layoffs, job growth in the travel lodging sector remained strong. The month’s performance of 15,000 jobs was better than the 10,000 hotel jobs added in December, as Skift reported.

Yet the travel accommodation sector still has a hill to climb to regain its pre-pandemic employment levels. In January 2023, about 1,618,000 workers were employed in travel accommodations (hotels, motels, casino resorts, and bed and breakfasts). The comparable figure for travel accommodation in January 2019 was 1,945,500, or about 17 percent higher.

“Today’s jobs report—in which 25 percent of all new jobs were added in the leisure and hospitality sector—is further evidence that travel is essential to the U.S. economy,” said U.S. Travel Association President and CEO Geoff Freeman.

The leisure and hospitality sector has nearly 2 million open jobs, the association estimated. Tighter rules on immigration and temporary work visas in recent years have helped to constrain the labor supply.

Travelers make multiple purchases in preparation for their trip, a consideration Tripadvisor believes should be noticed by marketers. The company honed in on the purchasing intent of its audience and found that despite rising prices, plans to travel is on par with 2019 levels.

Tripadvisor’s latest research report, with some 5,000 respondents across six countries, indicates purchasing behavior of travelers and its influence across industries is being overlooked.

It’s one thing that the pandemic did not disrupt in travel.

The intent when planning a trip is broader than flights, accommodations, and activities, according Tripadvisor.

“Part of the fun for travelers is the planning (and spending!) before a trip. Consumers find travel is a great excuse to buy new clothes, special toys, or just the right gear.”

Of those surveyed, the most bought item in preparation for a trip is clothes (89 percent), followed by luggage (72 percent), and electronics (62 percent). Tripadvisor stated these are “not one-off purchases, with respondents (luggage being an exception) buying these items at least 2-3 times in the past three years before traveling.”

And while three-quarters of those surveyed do plan to reduce discretionary spending, cuts to travel plans are a no-go “with saving for future vacations the top priority.”

The CEO of London’s Heathrow Airport, John Holland-Kaye, will step down from his post later this year the airport announced Thursday. His departure comes after nine years at the helm of the UK’s busiest airport.

Holland-Kaye’s departure comes after a chaotic rebound in travel from the coronavirus pandemic. Last year, Heathrow was forced to implement flight caps during the peak summer travel season that were largely attributed to understaffing. While the situation eased in the fall, blame was largely placed on the airport for not hiring enough in advance of what many forecast to be a robust summer season.

However, prior to the Covid pandemic, Holland-Kaye is credited with successfully navigating Heathrow’s long-term expansion plan through various political and legal challenges to approval. The $17 billion (£14 billion) plan includes a third runway, as well as terminal and other facility expansions. And, while approved before the crisis, most airports have found it necessary to move forward with pre-pandemic expansion plans amid the robust return of travelers.

Holland-Kaye will stay on as CEO of Heathrow until a successor is appointed, the airport said.

The number of international visitors to the U.S. reached 4.6 million in November, up 61 percent year over year, according to the National Travel and Tourism Office. November’s volume represented 76 percent of pre-pandemic November 2019’s.

Last month, the National Travel and Tourism Office reported international visitor spending rose 57 percent year over year to $15.9 billion in November. From January to November, international visitors to the U.S. spent more than $146 billion, up more than 103 year over year.

U.S. Canada, Mexico, the UK, Brazil and Germany were the largest contributors in terms of international visitors for November. Those countries made up 69 percent of total international volume for the month. Among the U.S.’s top markets, Colombia, Ecuador and the Dominican Republic were the only countries to experience a drop in their inbound volume to the U.S.

In November, total Americans traveling abroad reached 6.7 million, up 41 percent year over year and represents 92 percent of pre-pandemic November 2019. From January to November 2022, American trips abroad totaled 73 million, up 69 percent year over year. Americans traveling abroad spent more than $15.2 billion in November, according to the National Travel and Tourism Office.

Europe continues to be a strong destination for American travelers. The number of American trips to Europe in November rose 89 percent year over year. Europe received over 14.6 million visitors throughout the first eleven months of 2022, making it the second largest market for outbound U.S. travel in that period. 

U.S.-based meeting, event and office provider Convene has bought etc.venues, which now expands its footprint in the UK.

Convene said the deal, announced on Wednesday, makes it the “largest provider of premium meeting and event venues in the U.S. and UK.”

Terms of the deal were not disclosed, but according to reports is worth $246 million.

The combined entity will now offer 38 locations across the two countries.

“Over the next few months, we will begin taking steps to fully integrate our operations but, for now, things will continue ‘business as usual’ for our clients with no immediate changes to existing events, programming, packages, pricing, nor operations – besides, of course, the fact that we are delighted to have nearly 40 venues available for bookings across the U.S. and UK,” the company said in the statement.

Meanwhile, events and hospitality technology provider Cvent is reportedly looking into selling, with the company valued at more than $4 billion according to reports.

Indian Hotels Company (IHCL) plans to reach a portfolio of 300 hotels by 2025, it said on Tuesday when reporting its earnings.

“We are looking to open 18 hotels a year,” said CEO and managing director Puneet Chhatwal. He cited plans to grow through conversions and new construction across India and in West Asia and Europe. The company plans to invest about $60 million a year for the next few years specifically for hotel development.

India’s largest hotel operator — with brands such as Taj and Ginger — had its highest-ever net profit in the quarter that ended on December 31. The Tata Group-backed company reported consolidated net profit of $46.8 million (3.83 billion rupees) on revenue of about $206 million (16.86 billion rupees).

“We are very pleased to report our Q3 [third quarter] results with a record level on all key parameters, revenue, EBITDA, EBITDA margin, PAT, strong free cash flows and being net cash positive,” Chhatwal said.

The strong performance followed hard on a previous quarter that was also a company record thanks to a surge in post-pandemic travel. Hotel occupancy was up 27 percent on average from pre-crisis levels, while average room rates were up by 27 percent compared with 2019 levels.

“With the month of January gone by almost tonight, we see the momentum continuing,” Chhatwal said. “We have a fair idea and depth of the business on the books and the pick up the way it is coming. The outlook is very strong.”

For more context on CEO Puneet Chhatwal, read Taj Hotels CEO on the Sweeping Strategy Behind Delivering Best-Ever Financials.

Plusgrade, a Montreal-based company that helps travel businesses persuade travelers to spend more, has acquired UpStay, a growing provider of upgrade and ancillary revenue solutions for hotels, Plusgrade said Tuesday. Financial details of the transaction were not disclosed.

Ancillary revenues refers to revenues generated apart from a company’s primary products and services, such as advertisements or secondary products. These sources of income can enhance or differ from the company’s main offerings.

Plusgrade, the global leader in ancillary revenue solutions, is adding hotel upgrades to its existing portfolio of ancillary revenue and loyalty products. This follows the company’s acquisition of Points, a loyalty ecommerce platform, which closed at $385 million in June 2022. The brand, backed by various private equity firms, hopes to become a global ancillary revenue powerhouse through acquisitions.

“We have been accelerating this mission through a series of innovations, launches and acquisitions, and have come into 2023 as a powerhouse for the global travel industry,” said Ken Harris, Plusgrade CEO. The company plans to use Upstay’s hospitality expertise and technology for upselling additional on-property amenities or services to deliver more value for its 200+ travel and financial services partners across the globe.

Upstay, founded in 2019, has received the 2022 World’s Best Hotel Tech Startup at the World Travel Tech Awards and the 2021 People’s Choice Innovation Award at the Phocuswright Travel Awards for its innovative technology. Its solutions are two-way integrated with over 30 PMS [property management system] vendors, booking engines, and channel managers.

Ancillary sales have propelled the travel industry’s pandemic recovery. Car Trawler projected a 56 percent year-over-year increase in ancillary revenue from 2021 to reach $102.8 billion in 2022. Almost half of all travelers are using ancillary services to improve their travels.

The two companies will operate under Plusgrade going forward.

Abel Zhao, co-founder & CEO of FreeD Group, a technology innovator that specializes in proprietary enterprise application solutions, has acquired 75-year-old Connexus Travel from the parent company of Cathay Pacific, Swire Group. Financial details of the acquisition were not disclosed.

Founded in 2015, FreeD Group is a travel technology startup offering proprietary SaaS solutions for sales and marketing. The company uses AI [artificial intelligence], big data and machine learning technologies to deliver end-to-end digital solutions connecting platforms, brands and service providers.

“We see tremendous growth potential for Connexus because of its long history of excellent services and the synergies that will be generated between Connexus and FreedD,” said Zhao in the press release. “The positive outcomes we envisage include business opportunities spanning travel services, e-commerce, marketing services and brand loyalty programs, all of which will be underpinned by a comprehensive range of digitalized services and solutions. Ultimately, we anticipate Connexus Travel to follow in the footsteps of FreeD Group and transform into a global brand.”

Headquartered in Hong Kong, FreeD has over 250 professionals from 22 different regions across the globe and operates in more than 10 markets globally. FreeD clients and partners include major names such as Google, BMW, FIFA World Cup, Samsung, China Mobile and LG.

The startup raised a $15 million Series B in June 2022, led by Daiwa ACA APAC Growth Fund and ACA Partners Pte. Ltd. Investors also included Hong Kong property developer Chinachem Group, Hong Kong Science & Technology Parks’ Corporate Venture Capital Fund, Radiant Tech Ventures and startup accelerator SOSV’s Select Fund.

The acquisition of Connexus Travel follows the startup’s strategy for targeting expansion in Seoul and Shanghai. Established in 1948, Connexus Travel was to first travel management company (TMC) to be registered in Hong Kong, offering services from hotel and travel packages to ticket bookings and visa applications for both domestic and foreign tourists. The company has offices in Beijing and Shanghai and obtained a local licence in Beijing in 2009. After 70 years of operation, Connexus Travel has become a trusted name for corporate, leisure and MICE travel.

“We will leverage our position as a market leader and the development plans with FreeD to expand our services not only in Hong Kong and China, but also to the markets where FreeD currently operates,” said Eric Lau, general manager of Connexus Travel.

The startup also plans to expand its digital solutions to reach the Americas, Europe and the Middle East.

Just half of companies located in North America are seeing international bookings recover to their pre-pandemic levels, according to a new poll.

This latest data from the Global Business Travel Association delivers a dose of reality for the travel industry. Most travel agencies are predicting an eventual 70 percent recovery.

The picture is a little better in Europe, where six in 10 companies report a return to 2019 booking levels. Asia Pacific and Latin America are ahead with 65 percent and 77 percent respectively.

The survey polled 217 travel manager members, and they tend to represent bigger corporations. In some ways the association’s State of Global Business Travel report, published Tuesday, backs up reports that it’s the smaller enterprises driving the recovery (explaining why the world’s biggest corporate travel agency, American Express Global Business Travel, has restructured to hone in further on the segment.)

The report also follows bullish airline outlooks, including Delta Air Lines which said corporate travel business was now flatlining at around 80 percent of 2019 levels. There’s a clear discrepancy with the association poll here, but again this could be linked to smaller firms that do not have a managed corporate travel program that are among the carrier’s top international bookers.

However, Southwest Airlines said its managed corporate travel was expected to hit 2019 levels by March. That full recovery is still far off association’s poll results for domestic U.S travel: it found 69 percent of corporations had recovered to pre-pandemic domestic booking numbers, leading both Europe and Asia Pacific by three percentage points. Again this suggests it’s perhaps those smaller companies racing ahead to meet clients face-to-face or attend conferences.

The Global Business Travel Association poll was conducted between Jan. 16 and Jan. 23.