Skift Take
Today’s podcast looks at Xbox’ lessons for the travel industry, Elliott Investment Management’s message for Southwest, and Blackstone’s latest UK acquisition.
Good morning from Skift. It’s Thursday, June 27, and here’s what you need to know about the business of travel today.
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Episode Notes
A Microsoft executive believes Xbox can teach the travel industry several things about the customer experience, writes Travel Technology Reporter Justin Dawes.
Shane O’Flaherty, a Microsoft executive who spoke this week at hospitality tech event HITEC, said Xbox has found ways to drive digital engagement with consumers. O’Flaherty explained that Xbox tracks every player’s movement and constantly presents them content that will improve their experiences.
So how might that approach work in travel? O’Flaherty provided an example of a hotel that knows some guests love whiskey might create an impromptu tasting event and send a note about the event to those guests.
Next, activist investor Elliott Investment Management has blasted Southwest Airlines for its weaker second-quarter financial outlook, writes Airlines Reporter Meghna Maharishi.
Elliott, which took a nearly $2 billion stake in Southwest earlier this month, argued the carrier is led by a team unable to adapt to the modern airline industry. Elliott added that Southwest more or less admitted it was struggling to adjust to a new environment. The hedge fund has also been calling for major leadership changes at Southwest, including the resignations of CEO Bob Jordan and chair Gary Kelly.
Meanwhile, Maharishi notes Southwest expects to record operating revenues for the second quarter.
Finally, real estate investor Blackstone has acquired Village Hotels from private equity firm KSL Capital Partners. The deal is part of Blackstone’s strategy to expand its footprint in the United Kingdom, writes Senior Hospitality Editor Sean O’Neill.
The companies haven’t revealed the price or deal terms, but O’Neill notes the transaction is valued at around $1 billion. The deal adds 33 properties to Blackstone’s portfolio in the UK. Meanwhile, Village Hotels CEO Gary Davis said the deal would also enable his brand to expand.
Producer/Presenter: Jane Alexander