Skift Take

Travel’s biggest CEOs are carefully considering this moment, as travel returns, to think about how they can take action and reimagine their companies, and the industry, for the better. Undoubtedly, it’s a critical time in travel. The question is: how will we use it?

Skift

For the past two years, the discussions at Skift Global Forum have understandably focused on how travel will recover from and bounce back out of the pandemic. This year is different. Optimism is in the air among many CEOs, though with a watchful eye on the economy. This means we can return to the big picture discussions around innovation, driving change, and fulfilling travel’s role as one of the world’s largest economic drivers, now with sustainability front and center.

In addition to hearing from the game-changers across travel, what are some of travel’s most consequential leaders doing to pursue a better vision for the future for travel? Here are three leaders we are keen to hear from at Skift Global Forum and why:

Peter Kern: Democratizing The Travel Ecosystem

In the last two years, Peter Kern has worked hard as a turnaround CEO at Expedia. After breaking down silos within the company, Kern has now set his sights on a vision and strategy to democratize travel’s ecosystem and removing the barrier for smaller entrants to play a role in travel bookings. As consumers are broadening their trusted sources for recommendation and buying decisions, what happens when creators and even DMOs can also have a platform to directly drive demand? We’ll hear more on stage, as well as Peter’s focus on traveler experience and expanding Expedia’s offerings.

Bruce Poon Tip: The Transformational Power of Travel

Tour operators have always had a direct connection to people and cultures through their work. Perhaps that’s why they are often at the forefront when it comes to sustainability and thinking about people first in our industry. Having been a founder and leader in travel for over 30 years, G Adventures’ Bruce Poon Tip has always carried a strong view on what travel could be doing better. Recognizing the critical nature of this time we are in as an industry, Bruce will present his views on how travel can embrace being a transformational industry as opposed to constantly seeking more growth and more travelers. This time is travel’s chance to get it right and not return back to the pitfalls of the past. Will we take it seriously?

Tony Capuano: Transforming The Brand and Driving Impact

Marriott? Well yes, though big companies have a reputation for moving slowly, Tony Capuano has not wasted time in taking action at Marriott since being appointed CEO last year. Hotels globally are working quickly to adapt to a world where the ways in which we live, work, and travel are blurred — or The Great Merging, as we call it. Naturally, sustainability will also be a key topic area, and how can big brands affect real change? We’ll hear more on the big changes afoot strategically and operationally at Marriott, how choppy economic waters will impact travel, and macro trends that will be felt across the industry.

Talk To Us

What’s missing here? You. We need you to take part and join the conversation at this event. On the fence about attending or how you can participate? Get in touch and we’d be happy to answer your questions: [email protected]

Join Us in September

Sign up today for Skift Global Forum, happening September 19-21 and find out why it is the can’t-miss event of the year. Everything will take place at The Glasshouse — a stunning new venue on the West Side of Manhattan and one of the top new event spaces in NYC — where we will welcome 750+ attendees for stage discussions, networking, receptions, and more.

Register today via the Skift Global Forum registration page. Single tickets are $1,695 each, and group tickets for two or more start at $1,500 each. Subscribers to Skift premium products get even deeper discounts and exclusive access to online attendance. Read more on our Subscriber Access page.

Skift Take

MakeMyTrip is moving its focus from retail customers to go deep into the hinterland by tapping into small travel agents across India. In a country where online penetration is still low, will this bet pay off?

Peden Doma Bhutia

In its quest to win new customers, India’s MakeMyTrip is looking to tap into corporate travel, and its networks of franchisees and small travel agencies.

Traditionally focused on retail customers, the online travel company is now looking to improve its outreach to customers in India’s hinterland by tapping into small travel agencies across the country for last-leg booking via its platform and franchise stores.

“Our target is to double the booking contribution coming from these demand segments from about 7 percent last year to around 15 percent over the next few quarters,” co-founder and Group CEO, Rajesh Magow said during the company’s fiscal 2023 first quarter earnings call on Wednesday.

With work patterns gradually getting back to pre-pandemic normal. MakeMyTrip expected corporate travel demand momentum to further pick up in the coming quarters, aiding overall demand recovery for the travel industry.

MakeMyTrip noted a uptick in the online buying behavior of Indians which bodes very well for companies like them as most segments of the Indian travel industry have traditionally had low online penetration. 

Calling India an under-penetrated travel market, MakeMyTrip noted a huge scope of growth as there is a higher willingness to travel and book online among the young working population with increasing disposable income.

Talking about making small inroads in adjacent markets like the Gulf Cooperation Council (GCC) countries, MakeMyTrip noted that its initial focus has been in the UAE. “Our first target is to be the leading OTA (online travel agency) in UAE by the end of this fiscal year. The first quarter has been good for us. Our gross bookings grew 2.3 times quarter-on-quarter organically, albeit on a low base,” Magow noted.

Even as MakeMyTrip reported its highest-ever quarterly adjusted operating profit of more than $16.5 million, the online travel company noted that increased airfares, as a result of high aviation fuel prices, continue to impact recovery.

The operating profit mark in MakeMyTrip’s fiscal 2023 first quarter, which ended June 30, compared with an operating loss of $8.2 million a year earlier when the pandemic severely impacted operations. Revenue grew 335 percent year-over year to $142.7 million in the first quarter.

However, the company expects travel, both domestic and international, to recover fully to pre pandemic levels by the end of 2022.

“Apart from the short-term positive outlook on demand recovery, we believe there are significant tailwinds supporting robust growth in the travel industry over the medium term of next three to five years,” Magow, said.

MakeMyTrip noted that its investments in India to increase supply would be primarily directed towards bringing more and more small service providers and accommodations onto its platform as well as ground transport services like rail and intercity cabs. 

With accommodation service providers in about 1,900 cities, the company aims to have accommodation supply in over 2000 cities before the end of this fiscal year. 

The company saw strong revenue growth across the board in flights, hotels and packages, and bus ticketing compared to a year ago when pandemic caused airlines and hotels to greatly reduce operations. 

“We witnessed strong recovery during the first quarter of fiscal year 2023, largely attributable to increased demand for travel during the summer holiday season and pent-up demand for leisure travel,” Magow said.

Executive Editor Dennis Schaal contributed to this report.

Skift Take

Spirit rejecting Frontier’s merger deal is stunning considering Spirit had given indications it preferred a merger with Frontier after JetBlue’s repeated offers.

Rashaad Jorden

Spirit Airlines announced on Wednesday during the company’s second quarter earnings call that the company’s planned merger with Frontier Airlines is off, paving the way for Spirit to accept JetBlue’s offer to buy the Florida-based carrier if terms can be reached.

The Spirit-Frontier-JetBlue trifecta has been one of the most closely watched developments in mergers and acquisitions this year across the travel sector.

“While we are disappointed that we had to terminate our proposed merger with Frontier, we are proud of the dedicated work of our Team Members on the transaction over the past many months,” said Ted Christie, president and CEO of Spirit Airlines. “Moving forward, the Spirit Board of Directors will continue our ongoing discussions with JetBlue as we pursue the best path forward for Spirit and our stockholders.”

Frontier and JetBlue officials could not immediately be reached for comment.

Spirit and Frontier had agreed to merge this February in a deal valued at the time at $6.6 billion (including the $2.9 billion equity value of Spirit as well as net debt and operating lease liabilities), but JetBlue came in and offered to buy Spirit in its attempt to become the fifth largest airline in the U.S. JetBlue has sweetened its bid three times, and its latest all-cash offer is valued at close to $3.8 billion, including a $400 million reverse break-up fee.

“JetBlue now appears victorious in its pursuit of Spirit. All that’s left is negotiating details with Spirit’s management,” said Jay Shabat, senior analyst at Airline Weekly, a Skift brand. “Spirit’s shareholders have spoken.”

Spirit, while it was in discussions with both Frontier and JetBlue, had repeatedly come out in favor of the merger with Frontier, citing a lower regulatory approval risk. But Frontier CEO Barry Biffle sent a letter last month to Christie and Spirit General Counsel and Secretary Thomas Canfield expressing concern about Spirit’s lack of support for the deal with Frontier. Spirit had delayed the shareholder vote on the proposed merger four times.

Spirit’s stock jumped another 2 percent in after-hours trading following a 4 percent gain during the trading day.

Skift Take

The Pope recently visited Alberta to apologize for the abuse of Indigenous people in Canadian residential schools. While apologies don’t always do the job, it’s better than nothing. Still, Julie Pellissier-Lush of The Indigenous Tourism Association of Canada called it just a stepping stone.

Sonia Menken

The rich stories of various Canadian Indigenous groups are slowly being uncovered and told with more and more pride after years of trauma. As the first inhabitants of Canada, it is important to raise awareness and help them gain more representation while also paying attention to the healing process.

On Prince Edward Island, Indigenous peoples make up two percent of the population, and one of the more widely known is the The Mi’kmaq (Mi’kmaw, Micmac or L’nu, “the people” in Mi’kmaq) who have been living on the land for at least 12,000 years. 

The Indigenous Tourism Association of Canada (ITAC) is working hard to mend the severed ties between Indigenous groups and other folks who call the island home. The ITAC’s Knowledge-Keeper Julie Pellissier-Lush is not only PEI’s Poet-Laureate, but also the author of the best-selling novel, “My Mi’kmaq Mother.” She writes, acts, and helps promote the bountiful experiences within Mi’kmaq culture. 

Pellissier-Lush was born in Summerside, PEI, and then moved around a lot with her father after her mother died of lymphatic cancer. She didn’t come back to the island until 2005 and by that time she had three children to bring with her. She’s been on the island since, and said “once you’re here and you’re born here, it’s really hard to push it away. You always end up coming back.”

Dorothy Stark, Pellissier-Lush’s grandmother, married David Bernard who was a residential school survivor. They had a difficult life, but loved each other and had 17 children, one of the older ones being Pellissier-Lush’s mother. At that time, things were tough. It was essential to gather oysters, clams and lobster to survive, and then in the winter, they made baskets to sell within the community so that they had enough money to buy flour and milk. “And of course potatoes as well which are still a staple across all of PEI,” added Pellissier-Lush. 

The Pope on Monday visited Maskwacis, Alberta, to apologize for “evil committed by so many Christians in Canada’s residential schools.” The voices of Mi’kmaqs are being amplified, drawing attention to the generations of pain that they endured so many years ago, but an apology isn’t usually enough. 

Skift spoke this week to Pellissier-Lush. The following conversation was edited for clarity and length.

Skift: Who are the Mi’kmaq people and what is their story?

Pellissier-Lush: We are the Mi’kmaq people of PEI, the L’nu. And we have been here from time immemorial. We were here when there was still ice formed over this big continent. We would chase the wildlife for food and make camp in the evenings and sit under the stars and share our stories. That’s how we pass down our culture, our knowledge, and tradition — through the stories that we share. 

Skift: Can you tell me about some traditional Mi’kmaq cultural practices?

Pellissier-Lush: There’s numerous different cultural practices that we do, and a lot of them are borrowed from other nations. The Sweat Lodge is where we go to pray and where we do different circles. For example, we have talking circles where different individuals come and hold a token, something like a stick or a feather which grants them the ability to speak without anyone interrupting. It’s a great practice of patience to remember the words you want to say as others speak. We also do this in healing circles with our Indigenous justice program where the victim will work things out with the perpetrator, talking to figure out the best way for restitution. We have powwows, or Mawiomis, where we get to gather and share our language, songs, dance, and other traditions. We open it up to everybody on the island. Our powwow drum didn’t actually come back to PEI until 1986. So, we feel a little bit behind the eight ball, but it’s still good. We started it with one drum and one gathering. Now I think we have five Mawiomis across the island here in PEI because we have Lennox island, the native council one, the Aglit one, we used to have one with the Mi’kmaq Confederacy, which is the tribal council here in PEI, as well as UPEI’s Mawiomi day where everybody gathers. Sundance is another tradition where people dance for a certain number of days without food or water. We also have the full moon ceremony, which is the only time we are supposed to cut our hair. So there are different, amazing ceremonies and traditions that are still being passed down. Not all of them are Mi’kmaq, but being the first to be colonized, I think we were the first to lose a lot of the things that we had originally had.

Skift: What is the relationship like between Mi’kmaq folks and others who live on the island?

Pellissier-Lush: I think it’s getting better. There’s more opportunities for us to share because we’re being invited to different events to speak our truths. I feel that with each opportunity the door opens a bit wider for reconciliation. We’re still working on the recommendations for the calls to action with the Truth and Reconciliation Committee, so ther, so we are definitely not quite there yet. With that being said, I think we are moving forward. Just little steps, one bit at a time.

Skift: What are some of the ITAC’s missions to promote interest in Mi’kmaq culture and help them gain more representation on the island?

Pellissier-Lush: They are working on a webpage that will encompass a lot of ideas, one being a one stop shop for all of our Indigenous artisans. They are trying to make a place for people to access the work of our quill makers, basket makers, story tellers, and theater groups.  So if you are traveling to PEI and you’re interested in the Indigenous part of the island then you’d be able to go to a web page to access events or places where cultural activities are being offered. The ITAC wants to implement videos of crafters creating moccasins, baskets, claywork and beadwork onto the webpage so that people can not only find out where to find these things, but can actually see the work these artisans produce. The ITAC is also working on raising money to fund artisans that struggle to afford business cards, and other objects to make their spaces look presentable.

Skift: How do you feel about the Pope’s apology?

Pellissier-Lush: That’s a tough one. I think our community is really split on that. We are still feeling a lot of pain that had to be tucked away for so many years and it’s finally allowed to come out. Some people feel as though the apology didn’t encompass enough to make it stick, to make it real, to make an impact with the Indigenous people that are survivors and the generations that follow. The trauma gets passed down when you have a residential school survivor who has never been allowed to be around family, never knew about love, was ridiculed for being who they are, and then they grow up and try to raise a family. The result of not knowing how to hug your children and say I love you is intergenerational trauma where the following generations are impacted. So did the Pope go far enough in his apology? I don’t know. I think that it’s really where you are in your healing journey, and if it was enough for you or not. To me, it is a stepping stone. It is the start of acknowledging those wrongs and starting to heal. Did it go far enough? I don’t know. From what I’ve been hearing there is still so much hurt that maybe it didn’t.