Hilton’s Strategy Shift, Spirit’s Furloughs and Sri Lanka’s Fee Drop

Good morning from Skift. It’s Tuesday, July 29. Here’s what you need to know about the business of travel today.

Hilton has made changes to its corporate travel strategy, targeting small- and medium-sized businesses as part of its push to increase direct bookings, writes Senior Hospitality Editor Sean O’Neill. 

Travelers from those businesses now account for 85% of Hilton’s corporate bookings, up from 76% in 2019. O’Neill notes the shift has been fueled both by faster post-pandemic recovery among smaller companies and Hilton’s targeted outreach.

The hotel giant last year launched Hilton for Business, a platform designed to deepen direct customer ties. Hilton also recently introduced a messaging platform across its global portfolio, enabling business travelers to communicate directly with hotels before, during, and after their stays.

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Next, Spirit Airlines said on Monday it would furlough 270 pilots and reduce its flight schedule, writes Airlines Reporter Meghna Maharishi.

Spirit said it was taking those steps as part of its efforts to return to profitability after exiting Chapter 11 bankruptcy in March. The furloughs will go into effect on November 1, and they come after the carrier furloughed 186 pilots last year partly due to Pratt & Whitney engine issues grounding part of its fleet. 

In addition, Spirit’s pilots’ union said 140 pilots will be downgraded to first officer, changes that will take effect October 1. 

Finally, Asia Editor Peden Doma Bhutia explains how Sri Lanka is making it easier for inbound tourists from 40 countries. The country is planning to removing all fees for visas from countries including the United States, Canada, Germany, and others, but it will still require foreigners to obtain them before entering the country.  

Sri Lanka has an ambitious goal to increase tourism to 3 million visitors in 2025, an increase of nearly 50% over 2024 numbers. The visa fee waiver expands on a smaller program rolled out in March 2023 that offered free 30-day visas on arrival for seven countries, including India, China, and Russia, provided travelers applied for electronic travel authorization in advance. Until now, most tourists outside South Asia have paid $50-60 for a short-stay visa.