TRAVELS TOUR

TAKE A TRIP

year

TOUR

Tui sees record bookings as travel recovery remains on track

by Tracy J. Chu

Holiday firm Tui has cheered a record jump in bookings for summer 2023 as demand for overseas breaks continues to rebound.

The travel giant said it nearly halved losses in its first quarter to December 31 to 153 million euros (£134 million) down from losses of 273.6 million (£241.3 million) a year earlier.

It carried 3.3 million customers in the quarter, up by one million on a year ago, and said it had seen “significant” bookings with record days for holidays sold online in both the UK and Germany.

Tui said booking numbers in the last four weeks surpassed levels seen before the pandemic struck, up by 5% for winter 2022-23 and 10% ahead for summer 2023, despite higher prices.

But the figures come after industry data on Monday showed Tui was overtaken by rival Jet2holidays to become the UK’s largest tour operator for the first time.

Data published by the Civil Aviation Authority showed Jet2holidays is licensed to provide package holidays to 5.9 million people in the year to the end of September.

That is compared with 5.3 million for Tui.

But Tui’s chief executive Sebastian Ebel said bookings were “encouraging” and reiterated the firm is set to see a “significant” jump in underlying earnings over the full year.

He said: “Our strategy is clear: quality, cost discipline and winning market share.”

He added: “We agreed on a clear programme in late summer, which is currently being implemented.

“The swift implementation of the strategy is having an effect.

“At the same time, we see the encouraging booking momentum for summer 2023, especially in the last few weeks.

“Both factors strengthen our expectations: We want to significantly increase our underlying EBIT (earnings before interest and taxes) in the full year 2023.”

Demand for holidays has so far ramped up despite

… Read the rest
Read more
HOTEL

Hotel prices 60pc higher for King’s coronation in London, says Trivago

by Tracy J. Chu

Accommodation search website Trivago has revealed that London hotels have ramped up their prices by nearly two-thirds for the King’s coronation.

rivago chief executive Axel Hefer told the PA news agency that the group has seen hotel prices in the capital jump by 60pc year on year for coronation day on May 6, with prices hitting £254/€286 a night for early bookers.

This compares with £154/€173 per night for the same day last year.

But as hotels increase their prices to capitalise on the expected surge in visitors surrounding Charles’s coronation, Trivago said booking trends suggest that many visitors may be shunning London on the day of the ceremony.

Its bookings data shows that the search share for the capital for the day of the coronation is lower than for the weekend before and the one after the ceremony, while searches for London are also down 8pc compared with the same day last year.

Trivago said that “given the very high prices, people would rather avoid traveling to the UK capital on the day of the coronation”.

Mr Hefer said that, while coronation day is an outlier in terms of prices this year, the group is seeing hotel prices continue to rise generally across the board.

He said hotel prices are rising by low single digits to high single digits this year, on top of increased prices in 2022.

Travellers are combatting the higher prices by switching to cheaper destinations, such as Istanbul, Morocco and Portugal, as well as domestic staycationing, while also beginning to book shorter stays.

But they are also showing signs of trading down, with Trivago seeing trends of holidaymakers opting for lower star ratings on hotels and cheaper accommodation to help bring down costs.

Mr Hefer said people are unlikely to ditch holidays altogether

… Read the rest
Read more
HOTEL

London hotel prices 60% higher for King’s coronation, says Trivago

by Tracy J. Chu

Accommodation search website Trivago has revealed that London hotels have ramped up their prices by nearly two-thirds for the King’s coronation.

Trivago chief executive Axel Hefer told the PA news agency that the group has seen hotel prices in the capital jump by 60% year on year for coronation day on May 6, with prices hitting £254 a night for early bookers.

This compares with £154 per night for the same day last year.

But as hotels increase their prices to capitalise on the expected surge in visitors surrounding Charles’s coronation, Trivago said booking trends suggest that many visitors may be shunning London on the day of the ceremony.

Its bookings data shows that the search share for the capital for the day of the coronation is lower than for the weekend before and the one after the ceremony, while searches for London are also down 8% compared with the same day last year.

Trivago said that “given the very high prices, people would rather avoid traveling to the UK capital on the day of the coronation”.

Mr Hefer said that, while coronation day is an outlier in terms of prices this year, the group is seeing hotel prices continue to rise generally across the board.

He said hotel prices are rising by low single digits to high single digits this year, on top of increased prices in 2022.

Travellers are combatting the higher prices by switching to cheaper destinations, such as Istanbul, Morocco and Portugal, as well as domestic staycationing, while also beginning to book shorter stays.

But they are also showing signs of trading down, with Trivago seeing trends of

… Read the rest
Read more
TOUR

Jet2holidays overtakes Tui to become UK’s largest tour operator

by Tracy J. Chu

Jet2holidays has overtaken Tui to become the UK’s largest tour operator for the first time.

Data published by the Civil Aviation Authority shows Jet2holidays is licensed to provide package holidays to 5.9 million people in the year to the end of September.

That is compared with 5.3 million for Tui.

Becoming the UK’s largest tour operator is a significant milestone

Steve Heapy, Jet2holidays

Jet2holidays will operate its largest summer programme this year, featuring 65 destinations.

Chief executive Steve Heapy said: “Becoming the UK’s largest tour operator is a significant milestone in the history of Jet2holidays, but it will not change a single thing that we do.

“Our continued success is because we have the best team in the industry who work tirelessly to look after our customers, and we will never lose sight of that fundamental principle.”

The Leeds-based company, launched in 2007, was widely praised for its handling of customer refunds for trips cancelled due to coronavirus restrictions.

Tour operators determine how many passengers they are licensed to provide package holidays to based on a combination of bookings already received and expected future sales.

Jet2holidays decided to increase its total for the year to the end of September by around 600,000 in response to recent demand.

Atol protects package holiday customers if their travel organiser fails by ensuring they are not stranded abroad or lose money.

Jet2holidays’ sister airline Jet2.com celebrated the 20th anniversary of its first flight – from Leeds Bradford airport to Amsterdam – on Sunday.

… Read the rest
Read more
TOUR

Jet2holidays overtakes Tui as top tour operator for first time

by Tracy J. Chu

Jet2holidays Aircraft

Jet2holidays has overtaken Tui to become the UK’s largest tour operator for the first time.

Data published by the Civil Aviation Authority shows Jet2holidays is licensed to provide package holidays to 5.9 million people in the year to the end of September.

That is compared with 5.3 million for Tui.

Jet2holidays will operate its largest summer programme this year, featuring 65 destinations.

Chief executive Steve Heapy said: “Becoming the UK’s largest tour operator is a significant milestone in the history of Jet2holidays, but it will not change a single thing that we do.

“Our continued success is because we have the best team in the industry who work tirelessly to look after our customers, and we will never lose sight of that fundamental principle.”

The Leeds-based company, launched in 2007, was widely praised for its handling of customer refunds for trips cancelled due to coronavirus restrictions.

Tour operators determine how many passengers they are licensed to provide package holidays to based on a combination of bookings already received and expected future sales.

Jet2holidays decided to increase its total for the year to the end of September by around 600,000 in response to recent demand.

Atol protects package holiday customers if their travel organiser fails by ensuring they are not stranded abroad or lose money.

Jet2holidays’ sister airline Jet2.com celebrated the 20th anniversary of its first flight – from Leeds Bradford airport to Amsterdam – on Sunday.

Press Association – Neil Lancefield

Similarly tagged content:

… Read the rest
Read more
HOTEL

A Snapshot of 2023 Hotel Rates: Not Pretty

by Tracy J. Chu

Hilton President and CEO Christopher Nassetta maintains an active presence in the meetings market through stage appearances at events such as Professional Convention Management Association’s Convening Leaders conference, held last month in Columbus, Ohio.  At that conference, he said that “the world is open again and there is a huge pent-up demand for our product, so I think [the hotel industry] can weather the slowing macro environment.”

A few weeks after Convening Leaders, Nassetta led his company’s latest earnings call that reported Q4 2022 results across Hilton’s 18 brands. With a $333 million profit for Q4 completing a year where Hilton realized $1.3 billion in profit, Nassetta’s conclusions regarding the 2023 lodging market probably were not what meeting planners want to hear.

In that February 9 call, Nassetta noted that Hilton’s overall occupancy rate for 2022 was 69 percent, compared to 76 percent in 2019. However, “we can get back [to the 2019 rate] tomorrow if we want. We could drop rates [to get there]—but we don’t want to do that,” he said, hilton-ceo-hotel-deals/?utm_source=pardot&utm_medium=newsletter&utm_campaign=news-junkie&utm_term=organic”according to this article from travel watchdog website The Points Guy. “We are trying to manage really effectively, particularly given the environment of inflation and everything else, to drive the best bottom-line results for [our hotel] owners.” 

HiltonNassetta0223.jpgFurther, “we’ve assumed not a crash landing but sort of a soft-to-bumpy landing in the U.S. with a moderate recessionary environment in the second half of the year,” added Nassetta (at right). As a result, “we continue to believe we will have good pricing power, at least through this year, because there’s no [guest-room] capacity additions really coming into the market.”

Planners, you’ve been warned.

… Read the rest
Read more
TRAVELLING

Crypto group Circle ends $9bn deal to go public through Bob Diamond’s Spac

by Tracy J. Chu

Stablecoin group Circle has ditched plans to go public in a $9bn deal through a blank-cheque company chaired by former Barclays chief executive Bob Diamond, underlining how successive crises have hit the crypto sector.

The tie-up, which was initially forged during the crypto bull market in July 2021 and was expanded early this year, was seeking a valuation of $7.65bn to $9bn. Circle and Concord Acquisition, Diamond’s US-listed special purpose acquisition vehicle, said on Monday they had “mutually agreed” to end the merger.

The collapse of the Circle deal comes after the failure of digital asset exchange FTX, which knocked a crypto industry that was already under pressure from rising interest rates and a series of bankruptcies of big-name firms.

Concord had until December 10 to finalise the deal to buy Circle, something that would have taken the latter public on the New York Stock Exchange.

“We are disappointed the proposed transaction timed out; however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important,” said Jeremy Allaire, Circle chief executive. Diamond added that he would “continue being an advocate for the company as it continues to grow”.

Circle’s USD Coin is the second-largest stablecoin on the crypto market, with a valuation of around $43bn, according to data from Circle, falling from more than $55bn in June 2022 after investors pulled out of the crypto market.

Stablecoins play a key role in connecting traditional and crypto markets, with most tracking the value of a major currency such as the dollar. Crypto traders use them like cash between making bets. Stablecoin operators typically earn interest on the traditional assets that underlie their tokens, with a higher supply in circulation boosting revenue. The group said on Monday that it

… Read the rest
Read more
TRAVELLING

How to avoid inflation’s ‘Grinch pinch’ this year

by Tracy J. Chu

Inflation, rising interest rates and recession risks are less welcome during the holidays than crazy uncles, uninvited guests and that person who bought Thanksgiving pie at the supermarket.

But high prices, bigger price tags, heavier debt-carrying costs and economic uncertainty are here this year, and they will make most of us as uncomfortable as that uncle belching and unbuckling his pants when the Thanksgiving meal is done.

The question for consumers is how they will handle these unwanted guests, and how they keep financial concerns from ruining the holidays.

While there are dozens of studies showing how consumers have been feeling about inflation, what the research really seems to show is a disconnect between the complaints people are voicing and the actions they’ll be taking.

Roughly one in five Americans expects to feel pressured to spend more money than they are comfortable with buying gifts this year, according to a Bankrate.com study, with younger generations feeling pushed more than their elders. About 30 percent of all adults say they will need either a “buy now, pay later” plan or will take on credit-card debt that they won’t pay off for multiple cycles to complete their holiday shopping.

A WalletHub survey showed that 50 percent of Americans say that Santa won’t be as generous this year, due to inflation.

But other research from both of those firms and others suggests that having those worries is not the same as acting on them.

While half of the people said Santa will be less generous, just over one-quarter of respondents said they expect to spend less than last year on holiday shopping. Several other polls from shopping sites showed that most consumers believe that, in the end, they will do no more than hold the line on spending from 2021 levels.

The worry

… Read the rest
Read more
TRAVELLING

Ex-Arizona State golfer Linn Grant unable to travel to U.S. due to vaccination status

by Tracy J. Chu

Linn Grant has competed in only six events on the LPGA this year but played well enough to rank 51st on the Race to the CME Globe. That means the young Swedish star is well inside the top-60 mark needed to qualify for the season-ending CME Group Tour Championship next week, which offers a record-setting $2 million first-place prize and $7 million purse.

Grant currently leads the Race to Costa del Sol ranking on the Ladies European Tour thanks to four victories, including the co-sanctioned Scandinavia Mixed, where she became the first woman to win on the DP World Tour.

Yet Grant, undoubtedly one of the hottest players in golf this year, won’t be making the trip to Naples, Florida, because U.S. travel restrictions won’t let her in the country as she is not vaccinated against COVID-19. Tennis star Novak Djokovic was not able to compete in the U.S. Open over the summer for the same reason.

Grant, 23, gave the following statement to Golfweek through her management team:

“Under normal circumstances I would naturally love to partake in the CME. Like everybody else out there it is a clear goal to play the season-ending event, especially this year when CME is putting out the biggest check in women’s golf history. In isolation it is of course fantastic for us players, but more importantly it is a clear statement that shows direction of the true worth of women’s golf.

“Nevertheless, with travel restrictions to enter the U.S. for unvaccinated still remaining, it is still not an option for me to play LPGA events in the U.S. This is the sole reason I am not playing the CME.

“I understand some people want to know why I am not playing in the U.S. I respect that. The simple reason is

… Read the rest
Read more
HOTEL

Choice Hotels Looks to Transcend Budget Image by Going Upscale

by Tracy J. Chu

Skift Take

Choice Hotels is eager to expand its portfolio more broadly. But a move upmarket is not without risk.

Sean O’Neill

Choice Hotels‘ recent acquisition of Radisson’s Americas business looks like a post-pandemic statement of intent. The $675 million deal will help shift the company’s portfolio mix upmarket.

“Currently, every new unit entering our portfolio has continued to generate, on average, twice the revenue as a unit leaving it,” said Dominic Dragisich, chief financial officer, in a Monday earnings call. “The addition of approximately 60,000 Radisson America’s domestic rooms open or in the development pipeline as of the end of the third quarter marks the next chapter in Choice’s higher revenue per room growth trajectory.”

Adding hotels that generate more revenue has already bolstered the Rockville, Maryland-based company. Choice Hotels forecasted that its full-year 2022 adjusted earnings before interest, taxes, depreciation, and amortization — a measure of profit — would rise by more than 25 percent versus its full year 2019, which had been its pre-pandemic peak.

In the third quarter, Choice generated a net income of $103.1 million on $414.3 million in revenue. Net income was down 12 percent year-over-year as higher costs mainly related to the merger weighed on profit. Revenue was up 28 percent year-over-year. 

The Shrinking Economy Segment

A strategic move upmarket underscores the comparatively sluggish long-term growth of the U.S. economy segment.

Choice Hotels’ brands — from its flagship Comfort to roadside stables like Rodeway Inn — have been like fast-casual restaurants. Its brands are, for the most part, tolerable, well-priced, and, most crucially, consistent. This formula has enabled Choice to grab a significant chunk of business from inconsistent independent roadside hotels in the U.S., a fragmented sector.

Yet the economy segment for overnight travelers has been shrinking, executives said. In the

… Read the rest
Read more