Understanding China's Current Travel Boom

25.08.2023 - 13:27 / skift.com / Scott Kirby / Ed Bastian / Rashaad Jorden / Sean Oneill / Varsha Arora

Good morning from Skift. It’s Wednesday, June 14. Here’s what you need to know about the business of travel today.

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Travel demand among Chinese citizens has surged since Beijing eased the country’s strict Covid-era curbs in January. So how can travel brands tap into one of the world’s most lucrative markets? Skift Research examines in a new report what strategies companies should take to attract Chinese travelers.

Senior Research Analyst Varsha Arora writes Skift Research explored various stages of the Chinese travel journey, including planning and booking. The report also touches on the general economic outlook for Chinese travelers, including their widespread optimism. The report concludes with key takeaways for destination marketing organizations, which Arora notes provide valuable tips on how to engage Chinese travelers. 

Next, a growing number of real estate investors are looking to combine hotels with members clubs. However, Gansevoort Hotel Group President Michael Achenbaum warns blending a hotel with a club is more difficult than it seems, reports Senior Hospitality Editor Sean O’Neill. 

Achenbaum acknowledged the challenges while speaking at a recent hotel conference, citing his own experiences with the members club model. He said investors shouldn’t focus on finding the coolest people for members clubs, which usually charge an annual fee for access to co-working spaces and food and beverage offerings. Achenbaum said that investors should instead concentrate on finding the right people who will truly use the various spaces.  

Achenbaum also noted another challenge of blending a hotel with a members club: Determining access for facilities, adding that not giving hotel guests access to certain spaces can be a problem. 

We end today looking at the highest-paid U.S. Airline CEOs for 2022, a year that featured a new twist for calculating executive salaries. United Airlines’ Scott Kirby took the top spot, bringing home $10 million, reports Contributor Kristin Majcher. 

Kirby replaced Delta Air Lines chief Ed Bastian as the highest paid U.S. CEO in 2022, both in terms of total pay package and a new method for determining executive salaries. A new U.S. Securities and Exchange Commission rule requires major, public companies to disclose a “compensation actually paid” figure. Majcher writes the new measure reflects the changing value of company shares, which usually represent a significant portion of an airline CEO’s compensation.