Skift Take
In today’s podcast, we discuss the history of in-flight Wi-Fi, Airbnb’s struggles, and factors that influence tourism board success.
Rashad Jorden
Good morning from Skift. It’s Friday, May 31st, and we’re here to tell you what you need to know about the travel industry today.
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Episode Notes
The market for unlimited in-flight Wi-Fi connections is set to boom as airlines look to make it easier for travelers to stay connected while in the air. Reporter Ajay Awtaney provides background on the history of in-flight Wi-Fi.
Outany wrote that in-flight internet connectivity has come a long way from the “horribly slow service” of more than two decades ago. As technology has improved over the past two decades, airlines have used advertising and sponsorship deals (such as partnerships with streaming services) to make in-flight Wi-Fi more affordable. More airlines, such as Delta Air Lines, now offer free Wi-Fi to members of their loyalty programs in recent years.
Additionally, Airbus will launch its HBCplus system in 2022, making it easier for airlines to offer in-flight Wi-Fi.
Second, Airbnb hasn’t said much about its Experiences service amid its recent woes, but its chief financial officer, Ellie Mertz, did explain what went wrong and how it plans to fix the issues, Editor in Chief Dennis Schaal wrote.
Asked at the Bernstein conference why Airbnb Experiences hadn’t been a success, Mertz said that outside of package tours, consumers don’t go to the site and book a flight, a hotel and a car all at the same time.
Mertz also said Airbnb needs to ensure experiences are “priced right,” and that right timing and personalization are key to the success of the experiential product.
Finally, Skift recently looked at compensation for the top 20+ people in tourism marketing organizations in the U.S. However, global tourism reporter Dawit Habtemariam points out that the relationship between CEO compensation and tourism board performance could be driven by a number of factors.
Habtemariam reported that it was difficult to assess how much credit a destination marketing organization should receive for tourism, adding that tourists may visit for reasons unrelated to marketing.
One place where the value is more evident is in meetings and conventions. “Those are so important, and they’re the only organizations that have a collaborative conversation with meeting planners,” says Vijay Dandapani, a board member for the New York City Convention and Visitors Bureau and CEO and president of the New York City Hotel Association.
But we can’t take it too broadly: As one former DMO leader told us, “Some of these CEOs are probably low-paid, and some are probably high-paid.”
Photo credit: The exterior of a JetBlue plane promoting Viasat’s in-flight Wi-Fi.
