U.S. Travel Slump, Accor Taps Mbappé and Airbus' Orders
On today’s pod we look at good tourism news everywhere but the U.S., Accor’s bet on Mbappe’s appeal, and Airbus’ activity at the Paris Air Show.
Good morning from Skift. It’s Tuesday, June 17. Here’s what you need to know about the business of travel today.
Global travel showed modest growth in April, but the U.S.’ struggles are weighing down the broader industry, writes Research Analyst Saniya Zanpure.
The latest Skift Travel Health Index revealed that while global travel activity rose 1% from March, North America slumped 5%. That decline was partly due to weaker U.S. consumer sentiment and reduced travel spending.
But Zanpure notes that 5 million Americans are expected to visit Europe this summer despite a weaker U.S. dollar making overseas travel costlier.
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Next, Accor is turning to French soccer star Kylian Mbappé to encourage travelers to book directly instead of via online travel agencies, writes Hospitality Reporter Luke Martin.
Accor recently launched a new marketing campaign featuring Mbappé to promote its ALL loyalty program. But Martin writes the real goal of the campaign isn’t to build brand awareness — it’s about getting customers to bypass online travel agencies, which typically charge commissions of 15% to 25%.
The Paris-based hotel group faces pressure from larger rivals Marriott and Hilton, both of which have built loyalty programs that are more than twice as large. Accor plans to measure the campaign's effectiveness through booking increases and repeat stays, not just brand awareness metrics.
Finally, Airbus dominated a subdued first day of the Paris Air Show following last week’s Air India crash, reports Airlines Editor Gordon Smith.
Smith notes Boeing adopted a much lower profile and a Boeing source told Skift the planemaker is focused on supporting its customers instead of announcing orders. Boeing CEO Kelly Ortberg canceled his visit to the event.
Meanwhile, Airbus wrapped day one of the air show with a total of 132 firm orders and won deals over Boeing and Brazilian-based rival Embraer. Smith writes the big long-haul news from the first day was Riyadh Air ordering 25 Airbus jets, with options for up to 25 planes.
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