This podcast episode from Skift covers three main topics in the business of travel: Expedia Group’s altered outlook, Booking Holdings’ success with connected trips, and the fight over privacy at U.S. airports. Expedia Group has adjusted its growth outlook for 2024 due to slow recovery at its vacation rental brand Vrbo. The company’s first-quarter profit margins remained steady, but struggles at Vrbo and Hotels.com led to a lower full-year guidance. Changes to Hotels.com’s loyalty program were also cited as a factor in the brand’s sluggish performance.
Booking Holdings has been focusing on selling “connected trips,” where travelers can book multiple aspects of their trip through the platform. The company has seen modest growth in these types of transactions, particularly in attractions and rental cars. However, the goal of connected trips may not be realized in the next few years, as a majority of travelers still use Booking Holdings platforms solely for individual bookings.
In the realm of privacy concerns, a bipartisan group of U.S. Senators is pushing for restrictions on facial recognition technology at U.S. airports. The senators argue that this technology poses a threat to civil liberties and is currently in use at over 80 airports with plans for expansion. The U.S. Travel Association, however, supports the expanded use of facial recognition technology, highlighting the divide in opinions on the issue.
In terms of Expedia Group’s challenges, the company’s tech migration that aimed to bring together all major brands has not yet paid off as expected. The slower-than-expected recovery at Vrbo and the impact of changes to Hotels.com’s loyalty program have contributed to a revised growth outlook for the company. Incoming CEO Ariane Gorin has acknowledged these challenges and is working on strategies to address them.
Booking Holdings’ success with connected trips is evident in the growth of these transactions, with over 50% increase from the previous year. CEO Glenn Fogel highlighted the strong growth in sales of attractions and rental cars as part of connected transactions. However, the company faces the challenge of shifting a majority of travelers who currently use the platform solely for individual bookings towards booking connected trips. This shift may take time and may not be fully realized in the near future.
The debate over the use of facial recognition technology at U.S. airports highlights the ongoing tensions between privacy concerns and security measures. While some senators are advocating for restrictions on biometric technology to protect civil liberties, the U.S. Travel Association believes in the benefits of expanded facial recognition. This issue reflects the broader conversation around the balance between security and privacy in the travel industry and beyond.
