The type of accommodation you choose during your travels can often make or break a trip.
25.08.2023 - 15:03 / skift.com / Pranavi Agarwal
Many of the major hotels and online travel agencies have reported financial results for the first half of the year. The common message: Demand for travel remains robust, even as there is worry about an uncertain global economy and recession fears.
While the U.S. led the global travel recovery coming out of the pandemic, the strength in global demand has now shifted to Europe and Asia. In Europe, increasing demand for international travel from U.S. travelers continues to allow expanding prices, while Asia benefits from a surge in demand from the first waves of unrestricted travel in the region.
Asia, which for so long was the laggard in the global recovery, is now posting the strongest year-on-year performance of any region. It’s largely following a similar playbook to what we saw in the U.S. and Europe – where excess consumer savings and huge pent-up demand saw a surge in bookings and prices, particularly for leisure focused luxury resorts.
Companies originally hurt by exposure to Asia are now reaping the rewards. Accor (which derives about a third of its revenue from Asia and nearly half from Europe) is outperforming all other major hotels and OTA companies – posting nearly 40% revenue growth and 120% EBITDA growth in the first half of 2023, as seen in the chart below.
Since 2019, the majority of the major hotel groups have grown both their top and bottom lines by double digits. Increased operational efficiencies through the pandemic are seen in expanding EBITDA margins at Hilton and Marriott in particular over the past four years.
The OTAs too have grown their top line materially versus pre-pandemic levels, with Booking Holdings growing its revenue near 40% in the first half of 2023 vs the first half of 2019.
However as a reflection of the increasing competitiveness of the online travel landscape, Booking’s EBITDA is still 20% below 2019 levels, with margins dropping from 43% in the first half of 2019 to just 26% in the first half of 2023, largely due to Booking’s expansion into the U.S. market through low-margin segments such as flights and the development of its connected trips vision through the lower take-rate generating merchant model.
Expedia, being less exposed to the high pricing growth in Europe and the rapid recovery in Asia grew its top line less than its closest competitor Booking, with the majority of its revenue growth stemming from its B2B business rather than a growth in gross bookings in the first half of 2023. However unlike Booking, Expedia has expanded its EBITDA margins since 2019, largely due to stricter cost-cutting practices.
Airbnb has grown its top line versus 2019 levels more than any company, largely aided by the surge in demand for short-term rentals through the
The type of accommodation you choose during your travels can often make or break a trip.
The city of Oxford revolves around its university, England’s most prestigious alongside Cambridge. Because teaching started in the city in the 11th century, Oxford is filled with historic colleges, many hundreds of years old, and all incredibly beautiful in their architecture. Visitors to the city can walk the cobblestone streets that weave around the colleges, libraries, churches, and museums, and even take tours of the colleges’ lecture halls, chapels, and dining halls. But a day trip isn’t enough to get a good feel for Oxford. Even if the city is only 50 minutes away by train from London, you need to stay in a hotel in Oxford, England, for and take the time to fully explore this one-of-a-kind city.
Wyndham Hotels & Resorts has this week announced the opening of the 60-room Wyndham Grand Krakow Old Town—the very first Wyndham Grand in Poland. The property is located in a historic townhouse in the heart of the Old Town of Krakow which makes it an attractive option for guests looking for a luxurious hotel that’s comfortably within walking distance of the iconic landmarks of the city.
Orlando is gearing up for an extraordinary autumn filled with Halloween thrills and fall festivities. With 93 days of frightful scares and family-friendly fun at theme parks and attractions, savory culinary experiences and vibrant cultural celebrations throughout the destination, Orlando presents an exceptional lineup of fall events for visitors of all ages. “From experiencing a taste of our dining scene at a discounted price to the Halloween thrills that you can only find in the Halloween Vacation Capital, Orlando offers something for every traveler this fall,” said Casandra Matej, president and CEO for Visit Orlando. “Lively local events, ranging from our local LGBTQ+ pride celebration to our Hispanic heritage celebration, round out the diverse offerings.”
Sandals Resorts International (SRI), parent company of Sandals Resorts and Beaches Resorts, took home 13 awards at the 30th Annual World Travel Awards Caribbean & The Americas Gala Ceremony on August 26th.
If you follow the short-term rental industry, you would have read or heard Sonder touting itself as “a leading next-generation hospitality company that is redefining the guest experience through technology and design” countless times.
Yanolja said this week it expected that a post-pandemic rebound in international travel will continue to boost its twin businesses of online travel sales via a superapp and software sales to hotels and other travel companies. The South Korea-based startup has made progress on both ambitions since 2011, when it received a $1.7 billion investment from the Softbank Vision Fund in a transaction that valued Yanolja at the time at approximately US$9 billion.
Malaysia’s Capital A has submitted plans for a corporate restructuring, which will involve the merger of its low-cost airline AirAsia with long-haul carrier AirAsia X.
Hotel company Sonesta said on Tuesday it would launch a new brand, Sonesta Essential, and offer a just-added brand, The James, to developers.
Google made changes to Google Flights and Hotels related to transparency in hotel reviews and pricing under pressure from the European Commission — but stopped short of making those modifications elsewhere in the world.
Ireland is taking the next step in its comeback as the country’s tourism board recently unveiled a new $84 million marketing campaign with the goal of boosting visitor revenue beyond pre-pandemic levels.
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here, now.