US hotels spin travel demand into gold as airlines struggle

A person exits the Four Seasons Hotel, which was later clarified by President Donald Trump’s official Twitter channel as not the Four Seasons location talked about for the authorized group’s press convention, in Philadelphia, Pennsylvania, US November 8, 2020. The press convention was held on the Four Seasons Total Landscaping firm in Philadelphia. REUTERS/Mark Makela

Register now for FREE limitless entry to Reuters.com

Aug 5 (Reuters) – Staff shortages, airport chaos and better gasoline prices have triggered earnings at US airlines like JetBlue Airways to land beneath analysts’ expectations whereas resort chains together with Marriott International are reporting double-digit revenue progress.

Despite cutbacks in different classes resulting from recession worries, customers are desirous to travel after the pandemic proceed to guide flights and hotels. Hotels have been capable of flip this demand into elevated profitability much more successfully than airlines.

David Tarsh, a spokesperson for travel knowledge analytics firm Forward Keys, stated the issues confronted by airlines and airports are more durable to resolve than these within the lodging trade.

Register now for FREE limitless entry to Reuters.com

“In the case of labor in hospitality, your scarcity might be extra with less-skilled employees than within the case of the aviation trade,” he stated. “If you are wanting cabin crew and also you’re wanting safety folks on the airport, you possibly can’t simply improve wages and all of a sudden fill these roles. People additionally must be skilled.”

US carriers are struggling to offset greater prices such as gasoline even as booming travel demand has given them sturdy pricing energy.

JetBlue Airways Corp (JBLU.O) on Tuesday reported a quarterly adjusted lack of 47 cents per share in comparison with analysts’ predictions of an 11-cent loss.

United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O) and Delta Air Lines Inc final month reported quarterly earnings beneath analysts’ expectations.

Meanwhile, resort bookings are surging. Marriott International Inc (MAR.O) on Tuesday topped Wall Street estimates for quarterly income and earnings, helped by greater occupancy ranges and room charges as vacationers booked extra group travel and longer stays. learn extra

Last month, Hilton Worldwide Holdings (HLT.N) noticed revenue rise above pre-pandemic ranges. On Wednesday, MGM Resorts International (MGM.N) reported revenue 25% greater than within the second quarter of 2019 and stated employees scarcity issues gave the impression to be easing.

“Generally talking, we’re in first rate form. We usually are not operating round with our hair on fireplace, if you’ll, anymore,” stated MGM Resorts CEO Bill Hornbuckle in Wednesday’s earnings name.

Host Hotels & Resorts Inc (HST.O), which operates hotels below the Four Seasons, Grand Hyatt and Ritz Carlton manufacturers, reported earnings of 36 cents analysts per share, greater thans’ predictions.

“We’re up into the double digits by way of complete income (progress) for Thanksgiving. And truly, for Christmas, we’re seeing a strong pickup as effectively,” stated Host CEO Jim Risoleo on a name for analysts on Thursday.

Register now for FREE limitless entry to Reuters.com

Reporting by Gigi Zamora; Editing by Anna Driver and Cynthia Osterman

Our Standards: The Thomson Reuters Trust Principles.

.

Leave a Reply