This week's Update features stories detailing recent fourth quarter earnings releases by TripAdvisor, Airbnb, Marriott and Sabre. Enjoy.
HotelPlanner Cancels Planned
Merger
("HotelPlanner.com SPAC Merger Called Off," February
14, 2022 via Business Travel News)
It seems like only yesterday when many of our clients were left
speculating as to what might come out of the newly announced merger
and IPO of group booking platform, HotelPlanner, discount booking
platform, Reservations.com and SPAC Astrea Acquisition Corp. There
is no need for further speculation as the three companies announced
last week that they have called off the planned merger. In their
statement announcing the cancelation, the three companies offered
no details as to the reasons behind the decision. One could
speculate that HotelPlanner's and Reservation.com's
differing reputations in the market might have played a role.
Booking.com Outsources Customer
Service
("Booking.com ignites anger after customer service
outsource move," February 14, 2022 via Phocus Wire)
According to internal announcements at Booking.com, Booking.com has
elected to outsource approximately 2700 call center support
positions to a third party, Majorel. Callous cost cutting
measure or, as Booking.com claims, a move to leverage
"industry-leading customer service expertise" for a
rapidly evolving business model? What does this move mean for
suppliers and customers of Booking.com? Only time will tell.
Supply Remains a Challenge for
Airbnb
("Airbnb Looks to Recruit More Hosts to Meet Demand After
Record 2021," February 16, 2022 via Skift) (subscription may
be required)
While many of Airbnb's fourth quarter key financial metrics
(e.g., revenue and net profit) exceeded pre-pandemic 2019 levels,
challenges growing Airbnb's rental inventory continue to plague
the rental platform. Despite recent ad campaigns lauding its many
hosts and improving the host onboarding process, inventory levels
at Airbnb have remained largely stagnant at four million homes over
the past several years. According to Airbnb, approximately 90
percent of its existing hosts are individuals, which will remain
the primary area of focus for Airbnb for growing its inventory over
the next year (and not through professional property managers or,
notably, hotels).
Hopper Extends Sabre Strategic
Partnership
("Hopper expands strategic technology partnership with
Sabre," February 14, 2022 via Finanzen)
Another weekly Update and another Hopper story. Sabre and Hopper
announced last week that they were renewing and expanding the
parties' long-term strategic partnership. According to the
announcement, Sabre will serve as Hopper's primary (not
exclusive) GDS and technology partner.
Other news:
The Tripadvisor Earnings Call That Became
a Sales Pitch for Viator
February 17, 2022 via Yahoo Finance - Top Stories
Tripadvisor's fourth quarter earnings call with financial
analysts amounted to a sales pitch for its potential Viator initial
public offering - or other options under discussion with third
parties that Tripadvisor said are taking place in
"parallel."
Marriott Direct Booking Share Up vs. OTA
Channels
February 16, 2022 via Phocus Wire
Marriott International says it has grown its direct channels
"more meaningfully" than the online travel agency
channel.
Sabre Plots Recovery as Profits
Lag
February 15, 2022 via Phocus Wire
Sabre says it expects adjusted EBITDA to exceed pre-pandemic levels
only by 2025, as travel continues its slow recovery from the impact
of the coronavirus.
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