Travel & Tourism

Air France check-in lacks logic for AccorHotels

4 Jun 2018

Buying the French government’s 450 mln euro stake in the ailing airline might help it get tough with unions. But the hotel group would not enjoy any strategic benefits. That AccorHotels is even considering the purchase shows the state’s continuing sway over the private sector.

Samsonite short case piles up Hong Kong’s baggage

24 May 2018

An experienced stock sceptic has laid into the $6 bln luggage-maker’s governance and accounting. It’s a bigger and better-known company than the Chinese minnows typically targeted. For a market relaxing standards to broaden its appeal, Samsonite gives investors more to unpack.

UK’s costly royal wedding is worth every penny

18 May 2018

The marriage of Prince Harry to Meghan Markle may cost taxpayers as much as 30 mln pounds. If the transatlantic union prompts a small increase in American tourism, the expense can be recouped. In an era of isolationism and political volatility, it’s an efficient soft power boost.

Singapore Airlines is cruising comfortably

18 May 2018

The $10 bln flag carrier beat forecasts with a 148 pct jump in annual earnings. Its overhaul is working, and a plan to absorb regional arm SilkAir looks sensible. There is more to do, but the group can afford to take its time evaluating growth options, including India.

India is prize worth keeping for Uber

20 Apr 2018

The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.

Viewsroom: The biggest loser, China or the U.S.?

10 Apr 2018

A volley of words threatens a trade war between PRC leader Xi Jinping and U.S. President Donald Trump. Developing China has much at risk in fighting with the world’s largest economy. But American businesses are vulnerable too. Plus: Meituan goes all-in with local services.

Canines chase cars, except in case of eHi’s buyout

9 Apr 2018

The Chinese auto-rental agency has been a dog since its IPO in 2014. While travel is growing in the People’s Republic, that hasn’t translated into a robust business. Still, compared to similar species like Car Inc, eHi's public owners will be fortunate to exit free of bite marks.

Chinese visitors can hit nerve tariffs don’t reach

5 Apr 2018

Levies on imports will slow the flow of TVs and medical devices into the United States. They could also thin the already-falling influx of tourists from China. America collects more from them than from all its exports of soybeans, and that number could pass $50 bln by 2022.

Travelport must hope Elliott inspires others

26 Mar 2018

Paul Singer's hedge fund has put the travel-tech company in play by taking a 12 pct stake, and may even make a bid. The risk is Elliott could bully the company into a bad deal, but the potential to boost margins makes it a ripe target. Shareholders should welcome wider interest.

Ctrip may lose altitude as China travels

7 Mar 2018

The $25 bln online travel agency built a dominant position by aggressively buying small rivals. Now ones backed by giants Alibaba and Tencent are taking off in far flung cities, where tourism is booming. Ctrip's early lead looks precarious now it will have serious competition.

Old activist needs to rent new strategy for Avis

16 Feb 2018

Hedge fund SRS is waging a proxy fight for three seats on the car-rental company’s board. Avis is a ripe target, having struggled with price pressures and missed targets. But an eight-year investor with two directors in place already isn’t the most persuasive agent of change.

Air India’s turnaround could use some spice

7 Feb 2018

Prospective owners of the soon-to-be privatised national carrier could learn from SpiceJet. Co-founder Ajay Singh brought the low-cost airline back from the brink by improving punctuality and refocusing the route network. That has helped to deliver record earnings.

Ryanair buyback can only cushion so much turbulence

5 Feb 2018

The no-frills airline boosted earnings in the three months to December but faces a squeeze from pilot salary demands and still-low fares. A 750 mln euro share buyback will smooth the bumps for investors. But it cannot offset the transition to a lower-growth, higher-cost future.

Ryanair pilots are key to regaining European crown

11 Jan 2018

Lufthansa overtook the Irish carrier to become Europe’s largest airline in 2017. Though acquisitions boosted the German group, Ryanair’s target of 200 mln passengers by 2024 depends on steady expansion. Unless it can win over irate pilots, its growth prospects will be grounded.

Myanmar tourism stock soars away from crisis

8 Jan 2018

Hot-air balloon operator Memories Group had a strong debut after reversing onto the Singapore exchange. The shares jumped 60 pct amid an ongoing Myanmar military campaign condemned by the UN as ethnic cleansing. Investor optimism is hard to square with the political realities.

Alitalia needs help to regain cruising altitude

1 Dec 2017

The insolvent airline has attracted bidders including Lufthansa and easyJet. Its 12,000 staff make it look bulky compared to budget carriers. Though the Italian government opposes drastic layoffs, further cost-cutting is necessary to return the carrier to financial health.

Qatar Airways gets seat for any Cathay dealmaking

5 Nov 2017

The Middle Eastern group is buying 9.6 pct of the troubled Hong Kong outfit for $661 mln. Building small stakes in rival airlines rarely works well. But should top shareholder Swire seek to sell, it now has a second party to play off against Air China, Cathay’s other big backer.

Placing new wagers may sustain Macau’s hot streak

1 Nov 2017

High-rollers flocking to the tables helped gaming revenue jump 22 pct last quarter to $8.3 bln. Everyday punters are a smarter bet, though, for Sands, Wynn and other casinos. Despite stiffer competition for such customers, their larger numbers and fatter margins improve the odds.

Qantas has clear skies ahead

26 Oct 2017

The Aussie airline briefly unsettled investors by warning of stiffer competition, rising fuel costs and a few months of lower growth. But the domestic outlook is good and its market position is strong. Despite a breakneck rally, Qantas's share price is still grounded in reality.

Meituan orders up help to be China’s next web star

20 Oct 2017

The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.