Good morning from Skift. It’s Friday, April 18. Here’s what you need to know about the business of travel today.
A federal judge ruled that Google engaged in anticompetitive behavior by tying its ad server and ad exchange tools to protect its monopoly in online advertising, violating the Sherman Antitrust Act, writes executive editor Dennis Schaal. While the ruling didn’t directly address long-standing complaints from travel advertisers like Expedia and Trivago, it may eventually shift the power dynamic in digital advertising.
These travel companies have criticized Google for prioritizing its own travel services and replacing organic links with paid ads, prompting them to diversify ad spending through platforms like TikTok. If the ruling holds, travel advertisers could gain more leverage and potentially higher returns on their advertising investments. Google plans to appeal the decision, defending its tools as competitive and user-friendly.
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Next, the travel industry is grappling with a wide range of challenges, and Senior Research Analyst Pranavi Agarwal examines the impact of a possible recession on major hotels and online travel agencies.
We are already beginning to see downward revisions to consensus revenue forecasts by Wall Street analysts. Among major Western hotel groups, Hyatt, which leans most heavily toward the luxury segment among its peers, has experienced the largest share-price decline. But if there is a recession, Skift Research expects the luxury segment to be more resilient than it was during past downturns. Agarwal adds the midscale and economy sectors typically hold up better.
As for online travel agencies, Booking Holdings has fared better than Expedia, in large part due to its greater exposure to Europe and Asia.
Lastly, a new poll from the Global Business Travel Association reveals deep concerns about the Trump administration’s policies, writes Contributor Clara Awuse.
Nearly one-third of global travel managers (29%) surveyed said they expect a drop in business travel volume this year, with the average decline projected at 21%.
And more than half of respondents cited higher business travel costs as their primary concern. The next biggest concern was visa and documentation complications.
