Airbnb's Pay-Later Bet, Airline Cyberattacks and a $12.5B Air Traffic Overhaul
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Good morning from Skift. It's Thursday, July 3. Here's what you need to know about the business of travel today.
Airbnb is testing a new feature — Reserve Now, Pay Later — that enables some guests in the U.S. and Canada to make a reservation without paying anything at the time of booking, reports Executive Editor Dennis Schaal.
Prior to these tests, Airbnb guests have either paid the total price at the time of booking or some properties have allowed a partial payment up-front. Airbnb is testing the feature because affordability is a top priority for guests.
The host's experience does not change under the new feature because in the event of a non-payment or cancellation, hosts would receive any payout that their cancellation policy calls for.
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Next, the U.S. Senate on Tuesday advanced a budget bill that includes $12.5 billion in funding for air traffic control upgrades, with allocations for radar system replacements, runway safety technologies, and the continued modernization of the FAA's infrastructure.
Airlines Reporter Meghna Maharishi reports that the bill earmarks $1 billion to support consolidation efforts of terminal radar approach control facilities, also known as TRACONs. Another $100 million is set aside for consolidating air route traffic control facilities.
The provisions are also part of the Trump administration's calls for a complete overhaul of the air traffic control system. The bill will go back to the House for approval of the amended version.
Finally, multiple airlines have reported experiencing cyber attacks on their IT systems ahead of the busy Fourth of July travel weekend in the U.S., writes Airlines Reporter Meghna Maharishi.
Hawaiian Airlines and Canadian carrier WestJet have confirmed that they both suffered cyber attacks in the past week. Australia's flag carrier Qantas said on Tuesday it experienced a cyber attack that breached a third-party customer service platform although the company stated the breach has since been contained.
The FBI recently said that a hacking group called Scattered Spider had started targeting the airline sector. An executive at a cybersecurity firm said that Scattered Spider tends to focus on one sector at a time for a few weeks.
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