Good morning from Skift. It’s Friday, January 3, and our first briefing of 2025. Here’s what you need to know about the business of travel today.
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Episode Notes
2023 was the year of revenge travel, while the following year was one of normalization in the travel industry. So what does 2025 have in store for the travel industry? Head of Research Seth Borko answers that question and more in Skift Research’s latest report, Global Travel Outlook 2025.
The report features a survey of travelers from five countries, with Borko noting the results bode well for the industry. Respondents plan to spend 9% more on travel in 2024, with travelers in India expecting to spend 14% more – the biggest increase in the survey. However, Borko writes the industry will face several challenges in the new year, including higher labor costs and slow economic growth in Europe and China.
Next, Accor is beefing up its luxury portfolio as part of its plan to close the gap on rivals Marriott and Hilton, reports Senior Hospitality Editor Sean O’Neill.
O’Neill notes at least 10% of Accor’s more than 800,000 rooms are in the luxury segment, a 4 percentage point jump from the end of 2015. And Accor CEO Sébastien Bazin has plans this year to launch the Orient Express, a brand of hotels, trains, and yachts. Orient Express will be Accor’s second brand after Raffles in the ultra-luxury segment, which includes rooms that typically sell for over $1,000 a night.
Finally, Executive Editor Dennis Schaal has more details about vacation rental management company Casago’s agreement to acquire Vacasa for around $128 million.
Schaal reports Casago plans on trying to sell off some of the merged company’s local operations and enter into franchise agreements with the new owners. That would enable the new company to make money by selling off local assets and earn franchise fees after the sales.
Schaal adds that the announced deal price could be adjusted downward depending on homeowner churn and Vacasa’s liquidity.
