Skift Take
Great early morning from Skift. It’s Wednesday, February 23, in New York City. Here’s what you need to understand about business of travel today.
Rashaad Jorden
Today’s edition of Skift’s day-to-day podcast goes over the cuts behind IHG’s favorable profits season, European leaders’ efforts to manage environment modification, and TripAdvisor’s efforts to save its subscription plan.
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Subscribe Episode Notes Here’s what you require to understand about the business of travel today
. And now, here’s what you need to understand about business of travel today.
IHG Hotels & Resorts revealed on Tuesday it went back to profitability last year, however how did the business arrive? One major step it took was dropping underperforming hotels from its portfolio, composes Hospitality Reporter Cameron Sperance.
IHG reported a $494 million revenue for 2021, in contrast to its $153 million loss the previous year. Its return to being in the black was accelerated by a business initiative to dispose struggling hotels from 2 brands, Vacation Inn and Crowne Plaza. The company had actually revealed early last year it was reviewing hotels across both brand names for possible removal. IHG cut a combined 151 hotels from Holiday Inn and Crowne Plaza. In addition, approximately 70 percent of hotel rooms IHG deleted came from the two brands.
Next, European authorities are presenting numerous propositions to resolve climate modification as part of the European Union’s mission to reach carbon neutrality by 2050. However, many travel companies are pushing back due to their concerns that the proposed legislation might unjustly punish the business travel sector, reports Corporate Travel Editor Matthew Parsons.
The European Commission has actually revealed about a dozen proposals as part of its Fit for 55 plan, which is developed to reduce greenhouse gas emissions by 55 percent by 2030, compared to 1990 levels. The propositions consist of a new carbon tax, airline reporting requirements and policies for cleaner energy. In addition, seven European nations are calling on larger increases in the minimum quantity of sustainable air travel fuel airline companies should use in the future.
As the expense of adopting sustainable fuel will be a major issue for organizations in the travel industry, executives from the Global Company Travel Association have stated they’ll send crucial agents to describe to policymakers the significance of corporate travel. Parsons writes that the trade body will argue that appreciating sustainability doesn’t mean quiting on travel and that economies need individuals to take a trip for company. Furthermore, the organization wants to see concrete evidence that any new charges or taxes enforced will be bought green energy instead of just being utilized by governments as a hassle-free way to raise cash.
Lastly, Tripadvisor CEO Steve Kaufer promoted the company’s new Tripadvisor Plus subscription membership program for reduced hotel spaces last year as a possible billion dollar service. However regardless of its objectives coming nowhere near fulfillment, Kaufer still thinks his business can run a successful travel subscription program, reports Executive Editor Dennis Schaal.
Kaufer informed investors in February 2021 that Tripadvisor Plus could become a billion dollar service if it could draw in 10 million consumers paying $100 to sign up. However, Tripadvisor was required to scrap the Plus service design in part since hotels bristled at numerous rate parity violations. Kaufer, though, said recently that Tripadvisor is still committed to producing a successful travel subscription program, especially as the company is carrying out studies to find the best market fit for such an offering.