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Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Airlines

American Airlines Is Phasing Out Its VIP and Corporate AirPass Program

1 year ago

American Airlines is no longer accepting new or renewal contracts for AirPass, its VIP-corporate membership scheme. However, “program functionality” will end by March 31, 2024.

Airpass was a prepaid travel program, and had been in existence for more than 40 years (it used to be called AAirPass, and at one point offered unlimited flights.)

Individual and shared memberships started at $10,000 per person, but dropped to $5,000 during the pandemic. It offered fixed rate pricing, no change fees, lounge access, status, and other benefits like Wifi subscriptions, Admirals Club access and in-flight amenities.

Now the airline is shutting it down, and the airline said refunds can be requested, or balances can continue to be used until the end of the contract.

No reason was given on its website, but with the widespread abolishment of change fees, AirPass may not have remained as relevant as it did prior to the pandemic.

Travel Technology

Yanolja Profit Rises as Travel Rebounds in Korea and Asia Pacific

1 year ago

Yanolja said this week it expected that a post-pandemic rebound in international travel will continue to boost its twin businesses of online travel sales via a superapp and software sales to hotels and other travel companies. The South Korea-based startup has made progress on both ambitions since 2011, when it received a $1.7 billion investment from the Softbank Vision Fund in a transaction that valued Yanolja at the time at approximately US$9 billion.

The privately held travel company in South Korea reported this week some of its financial results for the third quarter, saying it had experienced “high growth rates in all business areas.”

Yanolja recorded consolidated sales of approximately $147 million (192.2 billion Korean won) in the quarter, a 112 percent jump from the same period a year.

Unlike many travel startups, the company is profitable. Yanolja reported an adjusted earnings before interest, taxes, depreciation, and amortization, of about $8.1 million (10.6 billion Korean won).

Roughly half of the company’s growth has been partly driven by its software business, which had a 32 percent year-over-year increase to $71 million in sales in the quarter. For more context on the travel software sales, see Skift’s story Decoding Yanolja Cloud and Its Hotel Software Strategy.

The mid-sized company said it has been staffing up for roles in product management, software engineering, and user experience design, and has cash on hand to make acquisitions.

Jongyoon Kim, CEO of Yanolja, will discuss the company’s overall strategy and business performance at Skift Global Forum East in Dubai on December 14. Kim joined Yanolja in 2015 as chief strategy officer and in 2021, was elevated to CEO. He has previously worked at McKinsey & Company, Google, and 3M. Many industry analysts wonder if Kim will be able to guide the ambitious tartup to a successful initial public offering someday, and if so, when.

Short-Term Rentals

Airbnb Increases Efforts to Boost Short-Term Rentals in Multifamily Buildings

1 year ago

Building on initiatives that had mixed results in the past, Airbnb is debuting an Airbnb-Friendly Apartments program to enable long-term renters in multifamily buildings where landlords permit it to list their rooms or apartments on Airbnb.

Sentral Wynwood in Miami participated in Airbnb’s new Airbnb-Friendly Apartments Program. Source: Airbnb

For both guests and hosts, one of the things the program aims to do is avoid the all-too-frequent situation where guests have to pretend they are part of the host’s visiting family or a close friend because the building doesn’t allow Airbnb rentals.

The newest incarnation of the program enables long-term renters to browse for multifamily buildings that allow Airbnb short-term rentals, get in touch with the management of the building, and, like other first-time hosts, get access to experienced hosts to help with starting out on Airbnb and listing their apartments.

“Renters interested in hosting a spare room, or their entire apartment when they’re out of town, can browse more than 175 Airbnb-friendly apartment buildings, subject to availability, in 25+ markets across the U.S., including Houston, Phoenix, and Jacksonville,” Airbnb stated as part of the announcement.

The company added that renters participating in this multifamily building program over three months hosted an average of nine nights per month and earned an average of $900 net of Airbnb and landlord fees.

Airbnb has had issues with some of these sorts of arrangements in the past. Several years ago, for example, Airbnb enabled a Miami-area developer, Niido, to use the Airbnb brand and enable tenants to host short-term rental guests, but other tenants felt blindsided by the arrangement, and Airbnb eventually sued the developer.

Tourism

U.S. Travel Launches Website Spotlighting Visa Delay Damage

1 year ago

The U.S. Travel Association has launched a website to highlight the negative impact of long visitor visa interview wait times—which now exceed an average of 400 days—is having on global travelers and U.S. businesses. Called USVisaDelays.com, the website lists stories of those affected, loss in industry spending, visitor wait times, impacted markets and a policy fact sheet. 

Users can also submit their own story as a traveler or a business owner. “There are no better voices to tell the personal toll of America’s de facto border closure than the people, families and American businesses directly impacted by egregious visa wait times,” said U.S. Travel Association President and CEO Geoff Freeman. 

The U.S. is projected to lose nearly $7 billion in travel spending in 2023 and not see a full recovery in international inbound travel until 2025, according to U.S. Travel.

The website also calls on the Biden administration to take action and provides policy recommendations. “The Biden administration must focus on what is in its control and take immediate action to lower wait times, “said Freeman. “We simply cannot afford to give travelers any reason to avoid visiting the United States.”

U.S. Travel will launch custom versions of the website in both English and Portuguese next week.

Online Travel

ResortPass Adds $26 Million in Celebrity-Backed Funding

1 year ago

Luxury hotels and resorts, with all their amenities, are usually the playgrounds of the rich and famous and are reserved exclusively for overnight guests who pay top dollar to stay there. 

However, a group of celebrity funders are boosting ResortPass by $26 million to build out its day-pass marketplace for establishments that want to allow guest to come and relax with them for the day.

The demand for local experiences, not too far from home, has surged as post-pandemic travel recovers. The six-year-old startup, now bolstered in its current round of funding by the likes of Jessica Alba and Gwyneth Paltrow (both avid investors in wellness, health and beauty), said the intention is to build its marketplace so guest more easily access amenities such as pools, spas and fitness centers without the hefty overnight price tag.

ResortPass offers some 900 brands such as the Ritz Carlton, Four Seasons and Westin and gives hotels free listings on its marketplace while charging a subscription for its SaaS software to manage access for day trippers.  

While some would argue the model removes the exclusivity for overnight guests, the startup’s business model is to monetize underutilized inventory and work with these hotels to determine price points on par with the caliber of the services and amenities.    

ResortPass has also received backing by Airbnb’s syndicate, AirAngels, with the intention to grow new market access for travelers wanting to tap into a destination’s day experiences.

The Series B funding round was co-led by Declaration Partners and 14W, bringing ResortPass’s total funding to $37 million. Early backer CRV also participated in the financing, along with new investors such as William Morris Endeavor, Adam Grant and Brian Kelly of The Points Guy.

Predominantly focused on U.S. destinations, ResortPass’ recent expansion covers the Caribbean, Mexico and the U.S. territory of Puerto Rico. With its newly acquired funding, ResortPass expects to expand its partnerships into Europe and the Asia-Pacific region. 

Tourism

U.S. International Inbound Travel Won’t Fully Recover Until 2025

1 year ago

International inbound travel to the U.S. is projected to be at 63 percent and 75 percent of its pre-pandemic volume in 2022 and 2023, respectively, according to the U.S. Travel Association’s biannual forecast. At this rate, international travel won’t reach pre-pandemic levels until 2025.

The projected slump is worse than USTA’s June forecast of international travel reaching 67 percent of pre-pandemic 2019 levels and 82 percent in 2023, respectively, reflecting the loss of $8 million more visitors and $28 billion in spending over those two years.

The slow recovery is due to the ongoing delays at U.S. embassies to process visitor visas. First-time visitor visa applicants have to wait over average of 400 days in the top 10 source markets for travel to the United States, and markets such as Brazil, India and Mexico have experienced worsened wait times in recent months, according to the U.S. Travel Association.

Hotels

Kerzner to Debut Fitness Lifestyle Hotel Brand Siro, Starting in Dubai

1 year ago

Kerzner International has unveiled its new brand Siro, a set of fitness-themed lifestyle hotels. The developer said on Wednesday that it has slated to open its first property in a tower in One Za’abeel, a luxury community in Dubai, U.A.E., in the last months of 2023.

Kerzner, a developer and operator of hotels, casinos, and residential units, said that Siro One Za’abeel will have a fitness center across two floors that will include the latest gym equipment and studios for yoga and meditation. A so-called “recovery lab” will offer cryo, infrared, and oxygen therapies along with acupuncture and coaching in mindfulness.

CEO Philippe Zuber said his company consulted with top international athletes, including Olympic athletes Ramla Ali and Adam Peaty and footballers for the team A.C. Milan, in designing the brand’s details and amenities.

A rendering of where the first Siro hotel will be. Exterior of the planned tower at at One Za’abeel, a luxury community in Dubai, U.A.E. Source: Kerzner International.

Ithra Dubai is principal developer of the hotel and the whole One Za’abeel project.

Other lifestyle wellness brands and properties include IHG’s Even Hotels, Equinox Hotels in the U.S., and Swissotel The Stamford in Singapore.

A rendering of the fitness center at the first Siro hotel, which will be in a tower at One Za’abeel in Dubai, U.A.E. Source: Kerzner International.

Tourism

Movie Star Ed Norton Is Launching a Luxury Eco-Camp in Kenya With Former Six Senses President

1 year ago

Movie actor Ed Norton is working with the former president of Six Senses on developing a new eco-resort in Kenya.

“There’s going to be an announcement in the spring, about a new, global luxury brand,” he revealed on stage at the World Travel and Tourism Council Global Summit, held in Saudi Arabia this week.

“A good friend of mine who ran Six Senses from its inception, up to when InterContinental Group bought it, and my friends at the Discovery Land Development Corporation, they have a big announcement in the spring. And we’re working with them to build state-of-the-art sustainable camps in Kenya, that will come over the next couple of years.”

According to reports, Bernhard Bohnenberger, former president of Six Senses and now CEO of Discover Collection, has worked with Norton on selecting three safari lodges and one beach resort.

Norton shared the news while speaking with Fahd Hamidaddin, CEO of the Saudi Tourism Authority, about which resorts were taking sustainability seriously.

He revealed that the camps in Kenya would fully electrified and features electric vehicles, while water would be sustainably sourced and only locals would be employed. Norton said he wanted the camps to act as a model for what can be done.

The “Fight Club” actor, who has spent many years as an environmental activist and social entrepreneur, also acts as ambassador to the Kenya Tourism Board.

CORRECTION: An earlier version of this article stated the Six Senses founder was involved. This updated version includes a report on Bohnenberger.

Tourism

U.S. Senior Official Defends Government’s Lack of a Tourism Agency

1 year ago

A senior U.S. official found himself explaining to world leaders how tourism works within the U.S. government.

Brand USA Global Marketplace Sponsor Pavilion
One part of Brand USA’s new “global marketplace” where sponsors can interact with customers. Source: Brand USA.

While the World Travel and Tourism Council Global Summit, held in Saudi Arabia this week, welcomed tourism ministers from around the world, one speaker defended his country’s political approach.

Speaking during the “Reducing the Footprint of Travel & Tourism” panel, Mark Keam, deputy assistant secretary for travel and tourism Industry, International Trade Administration, was asked if the country would benefit from a cabinet level specific tourism/culture person?

“The U.S doesn’t have a tourism minister,” Keam replied. “I have the role as deputy assistant secretary for travel and tourism in the United States government, which is the functional equivalent of the ministry of tourism, but we don’t call it that, because in the U.S. we don’t have ministries.”

The assistant secretary was quizzed following an earlier remark by a panelist during the summit that the U.S. was “difficult to engage” with.

“But the reason I think we have it in somewhat better shape is that we’re part of the U.S. Department of Commerce, which is a government and private sector-facing agency,” Keam continued. “But we’re also part of the International Trade Administration, which is about bringing international travelers into the U.S. to raise money.”

Earlier in the day, Greg O’Hara, founder and senior managing director at travel investor Certares, was probed by CNN’s Richard Quest on why the U.S. tourism industry, which was “so crucial,” punches at a relatively low weight when ministers sit around cabinet tables.

“They don’t even have a tourism minster. They don’t have a secretary of tourism in the United States. It’s difficult to find people to talk to,” O’Hara replied. “Other people have tourism ministries, but they’re not allocated capital.”

But speaking later, Keam said that travel and tourism was discussed at the highest level.

“Having different boxes within the government is less important than what the functionality is,” the assistant secretary said. “From my perspective, the fact we are talking about travel and tourism at the highest level in our government is important enough. Frankly, the travel and tourism industry is such a big part in the U.S., at 2.9 percent of our gross domestic product, that across the board we hire so many people. It doesn’t matter which box of the agencies you’re in.”

The U.S. does have Brand USA, a public-private partnership to promote international visitation, which was founded in 2010 when there was no such promotional body on a national level. 

Travel Technology

Mastercard to Invest in Fintech Company Conferma Pay

1 year ago

Mastercard is planning to make a minority investment in Conferma Pay, a fintech company acquired earlier this year by Sabre Corporation.

The new partnership with Mastercard will allow Conferma Pay to expand the use of virtual cards for business-to-business travel payments.

Sabre acquired Conferma Pay for $72.5 million in August 2022, according to a filing in September with the U.S. Securities and Exchange Commission.

UK-based Conferma Pay provides software and commercial deals to help the travel industry move to virtual cards, through which account information is issued for one-time use in an effort to shield the buyer’s identity when making online purchases and prevent fraud. Virtual cards also allow travel buyers and suppliers to more easily track and reconcile payments. 

(Skift has covered this in its recent megatrend Travel Payments Find Path to Painless.)

Conferma Pay said it connects issuers to more than 700 travel management companies, all the major global distribution systems, and more than 100 online booking tools. The company said it is fully integrated with all the major card brands and works with more than 50 banking partners, allowing them to issue virtual cards in nearly 100 currencies.

Conferma Pay will continue to operate independently. Sabre’s Virtual Payments platform integrates the Conferma Pay services. 

“The payments industry is in the midst of a revolution and there is an increased need for travel companies to better manage the whole payment experience,” said Roshan Mendis, chief commercial officer for Sabre Travel Solutions, in a statement. “Companies in the travel space — including travel management companies, travel agencies, corporations, issuers, and technology partners — need sophisticated solutions and seamless connections. Sabre is taking strategic steps to fulfill the needs of our industry, beginning with the acquisition of Conferma Pay.”