Travel & Tourism

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.

Taj Mahal spat is a towering political folly

19 Oct 2017

A ruling party lawmaker says "traitors" built the landmark. An official sightseeing booklet omitted it. Yet tourism is one of the best ways to create jobs in India. Playing religious politics with a top visitor attraction is a disservice to Premier Modi's development mantra.

Mantra should have reservations over Accor bid

9 Oct 2017

Accor has offered $917 mln for the Australian hotel group. The French suitor’s bid looks cheap set against previous deals in the sector, and given the financial benefits Accor could reap. Mantra’s board could afford to ask for a bit more before handing over the keys.

Wanderlust, not shopping, drives China tourism 2.0

9 Oct 2017

More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.

Xi Jinping can’t get Chinese planes to run on time

29 Sep 2017

As millions of Chinese people set forth to travel during the "Golden Week" holiday starting Sunday, many could spend more time in the departure lounge than on the beach. Their airports are the world's most delayed, but instead of reforming airspace, Beijing prefers fiddling data.

Barcelona attack targets Spain’s strongest spot

18 Aug 2017

Tourism is a pillar of the recovering Spanish economy, making the deadly assault on Las Ramblas a strike on prosperity as well as people. But previous attacks elsewhere in Europe show confidence bounces back, and the domestic economy is more resilient than it has been for years.

Scuba instructors teach a private-equity lesson

22 Mar 2017

With their $2.5 trln of assets, buyout shops have been struggling to find promising new targets. Instead, they increasingly pass companies among themselves. A deal for scuba service PADI by families and endowments shows how some investors are cutting out the middlemen.

White House circles America’s welcome wagons

2 Mar 2017

Donald Trump has become the world’s antagonizer-in-chief, questioning the One China policy and imposing travel bans. Interest in visiting the United States, where foreign tourists spend $250 bln a year, has plunged since he took office. A damaged image will hurt the economy.

Ctrip maps route to become China’s next web giant

23 Feb 2017

A near-monopoly in online travel makes Ctrip an attractive bet on Chinese tourism. Better-than-expected results and punchy growth targets have also impressed investors. If the $24 bln outfit stays on course, it may join Baidu, Alibaba and Tencent among China's online elite.

AIG digs out of lengthy Stowe snow-blindness

21 Feb 2017

The insurer is offloading the Vermont resort, built by its founder because he hated waiting in line. For Vail Resorts, the $50 mln deal nearly completes its American ski roll-up. Investors should welcome anything that helps focus management at AIG, which lost $3 bln last quarter.

Hong Kong loses its luxury scarcity value

3 Feb 2017

Tourist arrivals from mainland China rose 3.6 pct over the New Year, and Chinese consumer spending is accelerating. If only that were enough for luxury companies who have hung their hat on the city's unique charms. Luxury isn't quite passé, but buyers have moved further afield.

Ctrip pays luxury fare to see more of the world

24 Nov 2016

China's top online travel agent will buy Skyscanner for $1.7 bln in its first big push overseas. The British "metasearch" engine gives Ctrip a big base of travellers who compare prices across airlines and travel agents. Reaping sizeable benefits from the deal will be a long haul.

Making pilots shareholders may save Lufthansa

23 Nov 2016

The carrier's pilots are striking to get a 20-pct pay rise that Lufthansa, dogged by high costs, cannot afford. Paying them in shares might end the gridlock. The airline would save cash, and entrepreneurial spirit in the cockpit could soften the pilots' outlandish demands.

Indian online-travel M&A could use a roadmap

19 Oct 2016

Shares in U.S. listed MakeMyTrip jumped 50 pct on the back of a $1.5 bln merger with ibibo, a private rival backed by Naspers. That is despite the pair offering almost no details. It shows how desperate investors are to see a reduction in competition and a path to profitability.

EasyJet misery a foretaste of European airmageddon

6 Oct 2016

Growing overcapacities fuelled by cheap oil, security scares and Brexit jitters are hitting even highly efficient airlines like easyJet hard. The low-cost carrier expects a 28 pct fall in pre-tax profit. Less nimble rivals like Lufthansa and Air France can brace for worse.