Skift Travel News Blog

Booking.com said last week that it is working to help travelers choose more environmentally sustainable travel options through a new partnership with climate tech company CHOOOSE.

The Amsterdam-based Booking Holdings (NYSE: BKNG) marketplace helps travelers book lodging and a range of transportation options. 

The software made by Oslo-based CHOOOSE, which shares various pieces of emission-related info about specific bookings, can be integrated into other travel software platforms. Other clients of the company include SAP, Amadeus, Skyscanner, Southwest, Air Canada and more, according to its website. 

The goal of the new global partnership is to increase traveler awareness about the carbon implications of their trips, with the ultimate goal of allowing travelers to choose different carbon offsetting options through Booking.com, the companies said. The partnership will focus first on accommodation and later move to other products and services, including flights. 

Booking.com referenced its 2022 study showing that half of travelers say recent news about climate change has influenced them to make more sustainable travel choices. The company last year announced a program that would provide a badge to partners that have implemented a combination of sustainable practices.

“Together with CHOOOSE, we can provide information in a more transparent manner, and through trusted climate projects, can offer another way for travelers to make more mindful travel decisions,” said Danielle D’Silva, head of sustainability for Booking.com, in a statement. 

Tripadvisor will replace longtime chief financial officer Ernst Teunissen with Michael Noonan, a former Booking Holdings vice president of finance, effective October 31.

Tripadvisor, who several months ago saw the appointment of Matt Goldberg as CEO, replacing Steve Kaufer, said Teunissen, who served as chief financial officer for the past seven years, will leave “to pursue other interests.”

In addition to his chief financial officer role, Teunissen also served as chief executive of Tripadvisor brands Viator, The Fork and Cruise Critic.

Tripadvisor said Noonan, who has three decades of finance experience, most previously served as chief financial officer of the health app Noom. He was in that role since October 2020.

Tripadvisor didn’t say who, if anyone, might assume Teunissen’s role at Viator, The Fork and Cruise Critic. He will stay on through the first quarter of 2023 for transition purposes.

“I would like to thank Ernst, also on behalf of our Board of Directors, for his many valuable contributions over the past seven years, and personally for the counsel he has provided through my own onboarding,” Goldberg said in a statement. “His guidance, especially through the volatile pandemic period, has been key to our strong financial position.  Moreover, his leadership of Viator, TheFork, and Cruise Critic, has driven strong revenue growth for these strategic businesses coming out of the pandemic.”

Amsterdam-based Booking.com said it had to rescind several job offers made to Iranians living in Iran because of complexities in the international hiring and relocation process of would-be employees living in that country.

A Booking Holdings spokesperson responded to a Skift inquiry on the subject after Maede Rajabi posted on LinkedIn that “Booking.com rescinded my signed contract one day before my flight to Amsterdam and 5 days before my start date. It happened on September 9, 2022. Same scenario happened to other people from my country, Iran.”

Rajabi introduced the post as “a short story about racism in Booking.com.”

The Booking.com spokesperson said the online booking company “employs many Iranian nationals.”

But hiring Iranians currently living in Iran apparently ran afoul of certain regulations or possibly sanctions against Iran, although the company didn’t cite specifics.

The spokesperson said “mobility vendors [were] unable to effect the necessary part of the hiring and relocation process.”

Booking.com stated that the issue had nothing to do with discrimination, and it is looking into ways to assist Iranians who were subject to the rescinded job offers.

Booking.com expanded the geographic reach of its tours and activities offerings in Asia by entering a long-term strategic partnership with Klook, Booking.com announced Monday.

“Klook experiences are now live in over 175 cities, across over 30 markets on Booking.com, and the majority of these are available in Asia and Oceania,” Booking.com stated as it cited Klook as “the category leader for experiences in Asia.”

Booking.com is headquartered in Amsterdam, and Klook is based in Singapore.

Booking.com already had provider agreements with TUI’s Musement, based in Europe, and Tripadvisor’s Viator, which is headquartered in the U.S.

Booking.com sister company Priceline last week announced that it, too, hooked up with Musement to access tours and activities.

Nearly three dozen tours and activities operators, reservation systems, and distributors debuted a non-profit association geared to formulate connectivity standards.

The 501c3 association, Open Connectivity for Tours, Activities & Attractions intends to promote an open source specification “to enable reservation and ticketing system providers and tour, activity and attraction ticket sellers to connect their systems for more efficient distribution,” the group announced Tuesday.

Founding members of the group include Arival, Checkfront, Gateway Ticketing Systems, Go City, Holibob, Peek, Tiqets, TUI Musement, Ventrata, Xola and Zaui.

Several major booking platforms, including Viator, GetYourGuide, Klook, Booking.com and Expedia weren’t part of the launch announcement.

Airbnb mothballed its experiences business — and ceased investing in hotels — at the beginning of the pandemic, but CEO Brian Chesky said earlier this week that Airbnb will begin to invest in its experiences business again in 2023 after a two-year pause.

“It’s ready to invest like significantly in this business again,” he said.

Trotting out another e-commerce buzzword after discussing funnels, namely “flywheels,” Chesky argued that Airbnb’s homes and experiences businesses would invigorate each other.

“We have some really exciting things in the roadmap,” Chesky said, including for 2023. “And I think that experience is a great flywheel for homes because, again, the number one thing in travel is you want to have direct traffic, booking something unique that you can’t find anywhere else.”

Booking.com: Attractions Won’t Be a ‘Huge Money Spinner’

Booking Holdings Chief Financial Officer David Goulden, speaking at an Evercore technology conference September 8, noted that the company transitioned from a “homegrown acquisition strategy” for tours and activities — when it acquired Fareharbor in 2018 — to a partnerships model, such as through deals with TUI Musement and Viator.

He added that the market size and transaction values for attractions are not as substantial as for accommodations or flights.

“So I don’t think it will be a huge money spinner for us, but it’s certainly something that will create, I think, a lot of value for our customers, therefore, something we want to continue to focus on,” Goulden said.

Ted Clements, FareHarbor’s acting CEO who served as chief operating officer for the last three years, will step down from these positions in September, Skift has learned.

Staff was informed of the move Tuesday, and no replacement has been named. Clements plans to stay in Amsterdam, headquarters for sister company Booking.com, and may pursue new opportunities, according to the announcement.

Rob Ransom, senior vice president, global strategy and business development for Booking Holdings, made the internal announcement, and said he would play a more active role in FareHarbor.

FareHarbor more than doubled its revenue during the years Clements served as chief operating officer, according to the announcement.

Tours and activities are key to Booking Holdings’ connected trip strategy, which aims to provide a hassle-free travel experience throughout the journey.

Booking Holdings acquired FareHarbor, a tours and activities technology and distribution platform, in 2018 for $139 milliion net of cash acquired and $110 million in stock.

FareHarbor co-founders Lawrence Hester and brother Zachary Hester left Booking Holdings in July 2021. Max Valverde, who served as FareHarbor CEO from 2019 to 2021, likewise left Booking at that time.

FareHarbor’s strategy has evolved over the last few years, evolving from an exclusively build-your-own strategy model in the early days under Booking Holdings to include FareHarbor outsourcing some of that work to partners such as TUI’s Musement and Viator in recent years.

The changing of the guard at FareHarbor comes as Google is getting more aggressive in building its own “things to do” business with an emphasis on big attractions. Booking engines such as FareHarbor and Peek participate in Google’s offering.

Watch out for updates.

Financial services firm Citi is launching Citi Travel later this year. The travel booking platform will be powered by Booking.com and its Rocket Travel subsidiary.

The portal is set to replace its existing City Thank You Travel Center website, and will offer hotel, air, and car hire options.

“Leveraging the scale and range of Booking.com, the new Citi Travel provides an unmatched breadth of hotel reservation options,” the companies said in a joint statement. “With more than 1.4 million hotels available worldwide — ranging from boutiques to beloved chains — there is the right option for every budget, vacation type and preference.”

Banks are continuing to develop travel products to gain more loyalty from their customers, giving them more options to spend their points. Capital One has recently invested in Hopper as well as private jet startup Aero.

Earlier this year, JP Morgan bought luxury travel agency Frosch, while in Nov. 2021, U.S. Bancorp acquired Will Smith-Backed TravelBank for $200 million.

Google Travel’s flight and hotel offerings gained the most desktop traffic market share in the U.S. during the pandemic while Tripadvisor lost the most on a percentage basis, according to Similarweb’s June data.

“Google Travel now owns one-fourth of all (U.S.) desktop visits to top travel sites,” Similarweb said.

In its earnings call about second quarter financials Tuesday, Google said travel and retail were the drivers of its advertising revenue during the period.

The following chart shows Google Travel’s U.S. desktop market share increased 6 percentage points to 24 percent in the first half of 2022 compared to the first half of pre-pandemic 2019.

U.S. Desktop Market Share Traffic Gains/Losses H1 2019 Versus H1 2022

Source: Simillarweb

“Booking has also gained 2 percentage points of share in the U.S., and only Kayak (-1 percentage point), Delta (-4 percentage points), and TripAdvisor (-5 percentage points) have lost share,” Similarweb said.

There are two points to keep in mind: These numbers don’t include traffic from mobile devices, and traffic to Google Travel often gets sent along to online travel agency advertisers.

Much of the attention regarding the euro’s historic fall has focused on Americans getting cheaper vacations in Europe — and the converse for EU residents — but the euro’s reaching parity with the U.S. dollar obviously has business consequences too — and Booking Holdings will likely have to deal with a material adverse impact.

In a research note Wednesday, Jake Fuller of BTIG wrote that he expects an “11 point headwind” to Booking’s growth in bookings in second quarter results and through the rest of 2022 because of volatility in the euro and British pound.

BTIG estimated that Booking Holdings generates about 55 percent of its bookings in Europe. The company doesn’t break out the percentage. “Within Europe, we assume an 85-15 split between the euro and British pound,” the note said.

Booking Holdings’ exposure to the euro “is likely material, should impact the 3Q guide, and does not appear to be reflected in consensus numbers for the year,” the research note added.

Geography has played a major role in how various online travel agencies fared during the pandemic.

Expedia Group benefited throughout much of the pandemic when the U.S. domestic travel market boomed, particularly for stays in vacation rentals.

On the other hand, Booking Holdings suffered because Europe was slower to rid itself of lockdowns than the U.S., and now Booking has to cope with the euro falling to a low it hasn’t seen in two decades.

From a variety of reports, Booking Holdings appeared to be gaining market share in June, but the euro crisis could blunt some of the progress.