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Monday 16 November, 2020
TOP STORY
JetBlue to diversify into short-term rentals
American low cost airline JetBlue Airways has announced it is diversifying its travel product offerings into short-term rentals with an as-yet unnamed industry partner.
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5. Airbnb subject of class action lawsuit from Michigan firm
Editor's comment
16•11•20 Welcome to the latest ShortTermRentalz newsletter!
• Airlines branching out into accommodation offerings may not be a new phenomenon but the news that American low cost airline JetBlue Airways is diversifying its travel product offerings into short-term rentals illustrates how brands are trying to expand customer choice and loyalty with the ‘connected trip’ to find new revenue streams to survive in the current absence of international travel.
The likes of Easyjet [easyHotel] and Ryanair [Ryanair Rooms] already have their own budget hotel chain affiliates through their holding companies, others offer comprehensive holiday package deals, and American Airlines has established a partnership with Hyatt Hotels Corporation. An increasing number of airlines are now providing complimentary transit hotel options for travellers on extended layovers.
This will be JetBlue's first venture into accommodation offerings [with an unnamed partner], beyond other travel verticals such as car rentals, ride-sharing, cruises and travel insurance, but it will not be the last.
After announcing a third-quarter loss of $578m last month, JetBlue and its competitors will become even more aggressive in this vertical as they seek to return to profitability following a difficult year. The company has already confirmed its planes will soon return to 85 per cent capacity and with the appetite for domestic travel showing no signs of letting up, travel products will converge more than ever before.
• Meanwhile, news of potential vaccines for Covid-19 has been met with cautious optimism by those in the travel industry, rising hopes that vaccination could end the pandemic and signal a reopening of the sector, amid claims that some including the Moderna vaccine announced today show almost 95 per cent protection.
While it is clear that the recovery of travel is largely dependent on the success of such vaccines, brands should also be conscious of how they word and adapt their messaging in light of this ray of light, as we learned from our Q+A with OptiMine Software CEO Matt Voda this week.
Brands that are successful post-Covid are likely to be the most agile in the "new normal" travel ecosystem, by being able to build brand awareness and create campaigns to book demand from customer segments that are reaching the confidence point to book longer-term travel.
Those businesses receptive to the significant shifts in which we now consume media, make purchasing decisions and utilise analytics to effectively measure their performance will be better placed to establish themselves as "top-of-mind" for consumers post-pandemic.
If you have a story you want us to tell the industry, please click here or contact me at my email below.
Paul Stevens, editor
paul@internationalhospitality.media
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