The podcast on the business of travel covers three main topics: the evolution of in-flight Wi-Fi, Airbnb’s struggles with experiences offerings, and factors influencing a tourism board’s success. In-flight Wi-Fi has seen significant improvements over the past 20 years, with airlines now offering various connectivity options to keep travelers connected in the skies. Airbus has also introduced the HBCplus system in 2022, making it easier for airlines to provide in-flight Wi-Fi. Additionally, airlines have started offering free Wi-Fi to loyalty program members as a way to enhance the in-flight experience for passengers.
Airbnb has faced challenges with its experiences offerings, but the company’s Chief Financial Officer, Ellie Mertz, has shed some light on what went wrong and how they plan to address these issues. Mertz mentioned that Airbnb needs to ensure that experiences are appropriately priced and that timing and personalization are crucial for the success of their experiences product. She also highlighted the need to understand that consumers do not always book everything – flights, lodging, cars, etc. – from a single platform, which has impacted the success of Airbnb’s experiences segment.
The podcast also delves into the pay of top bosses at U.S. destination marketing organizations, with a review of the salaries of over two dozen executives. Global Tourism Reporter Dawit Habtemariam notes that the link between CEO pay and the performance of a tourism board is influenced by various factors. It can be challenging to assess how much credit should be given to destination marketing organizations for the success of tourism, as tourists may visit for reasons unrelated to marketing efforts. Meetings and conventions play a significant role in driving tourism, with industry experts emphasizing the importance of these events in attracting visitors.
While some CEOs of destination marketing organizations may be considered underpaid or overpaid, there is no one-size-fits-all approach to determining executive compensation in this sector. Factors such as the effectiveness of marketing strategies, the impact of external factors on tourism, and the collaboration with key stakeholders all play a role in the success of a tourism board. Vijay Dandapani, a member of NYC Tourism’s board of directors and CEO and president of the Hotel Association of New York City, highlighted the importance of collective communication with meeting planners in driving tourism. Overall, the value of destination marketing organizations in promoting tourism varies depending on individual circumstances and factors.
