While it’s increasingly rare to spot a tie in the workplace, this once-essential accessory could be making a comeback in less-expected settings.
3 minIN 2019, Christian Conner was pondering buying a membership to Soho House, a social club in Manhattan’s Meatpacking District. The then-28-year-old media consultant showed up for a tour of this playground for the hipster elite in his classic “preppy with a twist” uniform—sport coat, trousers and one of his prized Gucci ties. All was going swimmingly, he recalled, until his guide turned to him and said, “Hey, you should take off your tie. We want to create a more casual atmosphere and discourage people from wearing ties.” Mr. Conner was gobsmacked. “I thought, this is crazy. This tie is cool as hell, so why would you tell me not to wear it?” (When asked for comment, a Soho House representative sent a link to the House Rules page of its website which requests that members and guests “keep it casual.”)
Interest in ties has been waning for some time, but the last two years of schlubby-comfy pandemic dressing have particularly dimmed their future. Business formal has taken on a near-death mien, and for many months, our collective dance card of tie-required events like weddings, bar mitzvahs and blowout birthday fetes was effectively erased. Even as we’ve approached a new normal, fewer and fewer back-to-the-office and party dress codes call for a smartly knotted tie. Can this once-essential accessory be saved?
Certain men feel strongly that it should, yet even some professionals who once wore ties daily now hesitate to sport them to work for fear of being teased. Investor George Birman, 33, of Shelter Island, N.Y., spent years building out his tie repertoire for business dinners, client meetings and the like. His prized collection now sits “neatly folded in its drawer,” lonely and dusty, he said. “And if I show up to the office with a tie these days, someone will make a joke and ask, ‘How was your interview?’”
Even so, the tie market isn’t quite catatonic. According to Macy’s men’s general business manager Sam Archibald, ties are having “healthier…momentum than what we expected” in 2022 so far. The days of widespread office-mandated ties may well be over, but “occasion-based” ties are moving. “You see less of what you would see as a ‘banker’s tie’ and much more business in what I would call ‘casual neckwear,’ said Mr. Archibald. “Brights and prints are definitely working. Floral neckwear is working for us.”
Smaller retailers also have noticed the shift to party-time ties. Larry Mahoney, longtime manager of the Andover Shop, a menswear store in Cambridge, Mass., remembers when ties were a “prominent part of any well-dressed man’s wardrobe,” and you wouldn’t dare head to the office, dinner or a professional engagement without one around your neck. “I would say that maybe 10 years ago, the tie started to begin its decline, although it did hold its ground for a while.” Today, the shop’s tie business, he said, is driven more by men heading to events than businessmen.
The tie can also still be found on the fringes of culture, in communities that historically haven’t worn ties. Leon Elias Wu, founder of Los Angeles gender-inclusive custom suiting brand SharpeHaus, sees the tie as less of a sober, wear-to-work proposition these days and more of a novelty fashion statement, especially when its traditional maleness—and its traditional function as a tool to help one fit in—is undercut. “Just throwing on a tie because it’s an occasion doesn’t work for everybody,” he said. “But look at what Avril Lavigne did with the tie 20 years ago—it can totally be used to make a statement,” whether you’re a formal guy, a female rocker or just a person trying to stand out.
Ties aren’t just formal fashion accessories—they can hold sentimental value. Here, notable neckwear devotees shed light on the ties they’ll forever hold dear.
Interior Designer
“I’m a creature of my upbringing—of my preppy years growing up in Virginia when I had every color Izod shirt, every color Polo shirt, wore them religiously and washed all of them until they were pastels. I remember this beautiful ritual of my father standing behind me and showing me how to tie different tie knots—and I still have this blue and yellow repp stripe tie from Eljo’s in Charlottesville.”
Television Personality and former New York Giants Defensive End
“Most of my ties remind me of special moments. When I went up to space [with Jeff Bezos on Blue Origin in 2021] I got some space ties with spaceships and stars and rockets…That’s the great thing about a tie. It can have its own individual story. It’s something you can share or keep close to yourself…But the one tie I’ll never part with is a black tie. A straight-up black tie.”
Restaurateur
“I have about 75 ties, and 90% of them are Hermès. But I have this one Hermès tie that my sister gave me. She is an art dealer with very meticulous taste. It has a red background with little blue-and-white turtles. She gave it to me when I was straight out of college and whenever I wore that tie to an interview, I had a 100% success rate in landing the job.”
Reprinted by permission of The Wall Street Journal, Copyright 2021 Dow Jones & Company. Inc. All Rights Reserved Worldwide. Original date of publication: May 10, 2022.
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AI-powered travel agents are challenging online booking platforms, but Airbnb’s exclusive listings and direct customer relationships could give it an edge. Its next challenge: turning repeat guests into loyal customers through stronger rewards and innovation.
3 min
AI agents like Muse can already find you the cheapest hotel room in Paris. But they can’t locate a cheaper version of that Catskills cabin you’ve been eyeing, because it might only be available on Airbnb ABNB -1.43%decrease.
Investors should pay attention to that distinction. When Meta Platforms META 3.38%increase launched its Muse agent last month, travel stocks including Booking Holdings BKNG -1.19%decrease, Expedia and Airbnb all fell sharply.
Airbnb, though, has a real chance to emerge as a winner from the upheaval. The catch: Its stock already reflects above-industry growth. To justify its valuation, Airbnb will need to turn repeat customers into loyal ones.
Online travel companies make much of their money by simplifying search and collecting fees on bookings. AI agents threaten that model.
But not all travel marketplaces are equally exposed. Booking and Expedia largely sell hotel rooms that travelers can also book directly or through competing sites. If an agent can find the same room elsewhere, it has little reason to favor either Booking or Expedia.
Booking and Expedia also sell sponsored listings that steer travelers toward particular properties. Wells Fargo estimates those will account for about 8% of Expedia’s revenue and a much higher percentage of profit next year.
Airbnb has more ways to adapt. More than half its listings are available only on its platform, and more than 90% of its traffic comes directly to its app or website.
The customer relationship doesn’t end after booking, either. Bernstein analyst Richard Clarke notes that 90% of Airbnb guests go on to message their hosts about arrival times, keys or local taxes, giving Airbnb a connection to both sides of the transaction.
How the companies have responded to the possible agentic future is telling.
Expedia quickly signed on as a Muse partner. Airbnb hasn’t, and Chief Executive Brian Chesky says AI chatbots have so far been a boon, sending customers to Airbnb’s website.
Chatbots might work for buying paper towels, he quipped at a Skift conference last month, but people enjoy planning trips. He argued that browsing dozens of homes isn’t something a text-based chatbot is well suited for.
Still, the AI jitters arrived just as Airbnb was persuading investors it deserved its pricey multiple. For years after its 2020 initial public offering, the stock—which trades around 25 to 30 times forward earnings—went nowhere. Investors saw a mature operator trading at a growth premium.
This year, Airbnb growth seems to be accelerating. The stock jumped in August after the company raised its full-year revenue-growth guidance with its second-quarter results. Wells Fargo analyst Ken Gawrelski credits a run of product improvements under a revamped leadership team.
Among the changes: letting guests reserve now and pay later, adding hotels, and a redesigned home page and app. Investors were also betting on what comes next, including thousands more hotels, car rentals and, eventually, advertising.
The irony is that some of those growth drivers push Airbnb closer to the kind of business Booking and Expedia run—the kind of business AI agents could threaten. Even if AI agents capture a large share of travel planning and booking, Airbnb would capture the demand. But it and others would slowly lose control over how customers find and choose properties.
That would undermine the advertising opportunity investors are counting on. The bigger point for Airbnb and other marketplaces is that losing control of customer acquisition could mean surrendering some of their pricing power and margins.
To bulletproof itself, Airbnb might look to another e-commerce giant that has so far kept AI agents at arm’s length: Amazon.
Like Amazon, Airbnb has a loyal customer base and hard-to-match supply. But it has nothing like Prime membership to make customers think twice before taking their business elsewhere.
That is where loyalty comes in. Business travelers stick with Hilton or Marriott because enough nights earn them perks. Leisure travelers rarely accumulate stays with one chain. Airbnb has millions of listings and plenty of repeat customers, but no broad rewards program. It has begun experimenting with credits on hotel stays, but it should make loyalty a priority, not just a promotion.
Airbnb also plans to launch its own AI agent next year. But travelers using an agent might still want it to search Airbnb, Vrbo, Booking and hotel websites alike, rather than limit itself to one company’s inventory.
Eventually, Airbnb might have to strike deals with agent makers, using its unique homes as leverage to negotiate favorable terms, says Gawrelski. Such deals, along with rewards for loyal guests, could over the long term eat into the company’s roughly 13% take rate, he adds. But if they bring in enough additional bookings, the trade-off could be worthwhile.
History offers a reason not to panic. The shift from desktop to mobile unsettled investors in Alphabet and Amazon, but both emerged as major beneficiaries. Companies with valuable assets can come out of a platform shift stronger, if they adapt quickly enough.
Airbnb has homes the bots can’t easily replace. Now it needs to give guests a reason to insist on booking them there.
