Travel & Tourism

Ryanair’s valuation can climb to a higher altitude

6 Nov 2023

Soaring demand means the 18 bln euro airline’s earnings are above even pre-pandemic levels. Investors’ recession fears have prevented Ryanair’s share price from reflecting the good cheer. Still, history suggests budget vacations are among the last things that consumers cut.

China’s consumers look more golden closer to home

9 Oct 2023

Domestic tourists splurged $103 bln over Golden Week, marking the busiest holiday in five years. Yet fewer consumers are venturing further afield, including to Hong Kong, while those who do spend less. That’s a smaller problem for Beijing than it is for the rest of the world.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Debt ballast slows cruise ships’ return

28 Jun 2023

Royal Caribbean will launch the world’s biggest ship next year, and the firm shouldn’t have trouble finding passengers. Operating profit could surge well beyond pre-pandemic levels too. But debt larded on during lockdowns will continue to weigh down cruise companies.

Pricey services are weary ratesetters’ last battle

1 Jun 2023

The rising costs of flights, restaurants and concerts are hampering central bank efforts to drag consumer price inflation back down to 2%. In the US the post-pandemic consumption boom is fading. In Europe and the UK, though, higher wages are prolonging the fight.

Disney can play Scrooge with Florida

19 May 2023

The $170 billion media company has cancelled a $1 bln project in the state, favoring California. If political wrangling between the two sides continues to intensify, the House of Mouse’s pullback from Florida promises even more pain for Governor Ron DeSantis.

India’s airline turbulence will be felt abroad

17 May 2023

Go is the second carrier to go bust since 2019 despite a booming $12 bln industry. Blame price wars and debt-fuelled expansion. The airline’s legal battle with foreign lessors like Sumitomo will be messy too. It will raise the costs on efforts to turn India into an aviation hub.

Chinese tourists return with lighter wallets

3 May 2023

More than 240 mln people are visiting mainly domestic spots like Shanghai and Hong Kong during the Labour Day festivities. It’s slightly more than pre-Covid levels, but spending is lower as many find cheaper ways to have fun. That bodes ill for an already weak retail revival.

Airbnb swerves tech rout with constant change

2 May 2023

The $77 bln travel company weathered the pandemic and is now navigating a tech valuation bloodbath. Its co-founder Nathan Blecharczyk told The Exchange podcast that lessons learned during Covid-19 about disruption and never sitting still are key to its future.

MGM’s bet on Asia’s next Macau may age well

26 Apr 2023

The US casino operator will open Japan’s first casino. It isn’t an obvious destination for gambling: Sands and Wynn stayed away, preferring Singapore and the UAE. But the Osaka resort could be as big a money spinner for the operator as its properties in the Chinese hub.

Capital Calls: Microsoft/Activision, Subscriptions

24 Mar 2023

Concise views on global finance: The software giant convinced UK regulators to drop one of two major concerns about its $69 bln deal. Meanwhile, the U.S. Federal Trade Commission has picked an easier — and less controversial — fight than its antitrust crackdown.

Cathay’s people problem is Hong Kong’s too

10 Mar 2023

The carrier may struggle to hire fast enough to ramp up capacity. Higher salaries would be an obvious fix to lure back crew scarred by endless quarantine. In the meantime, Cathay will remain a globe-trotting reminder of the reopened city’s isolation for longer than anyone wants.

IAG takeoff weighed down by debt dilemma

24 Feb 2023

With net debt above its market value, the $9 bln British Airways owner could use a rights issue. But it’s also back in the black after a painful pandemic, and deals may yield cost savings. Boss Luis Gallego has to work out which path is likely to annoy long-term investors least.

Capital Calls: Starbucks

21 Feb 2023

Concise views on global finance: The $123 billion coffee chain’s new patent filing speaks to popular TikTok campaigns for more bespoke beverages – and other labor challenges. 

High-flying airlines still face stiff headwinds

25 Jan 2023

EasyJet shares surged on improved expectations, as rising numbers of holiday-goers look set to push the sector back into the black. But recent meltdowns show air travel has an increasing problem with tech glitches. It’s premature for investors to settle back in their seats.

Macau bounces into Year of the Rabbit

19 Jan 2023

Spring has sprung in the casino hub with the end of China’s zero-Covid. Operators will return to profit. Yet from Sands to SJM, balance sheets are stretched. How quickly they are repaired depends on if punters spend as much as before. Pandemic policies will leave other scars too.

Capital Calls: AstraZeneca

9 Jan 2023

Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.

Capital Calls: Southwest, U.S. jobs and wages

6 Jan 2023

Concise views on global finance: Financial bumpiness caused by the airline’s major flight disruptions should be temporary, partly due to limited competition; slower U.S. wage growth raises the chances that the Fed won’t have to crush the labor market to bring down inflation.

Capital Calls: Amazon, Flying cars

5 Jan 2023

Concise views on global finance: The $855 billion e-commerce giant's layoffs could actually help its antitrust defense; Stellantis’s possible $150 mln investment in Archer Aviation is less crazy than it seems.

Return of Chinese tourists will be turbulent

4 Jan 2023

Retailers and hoteliers from Macau to Paris will welcome travellers again. Pent-up demand augurs a full recovery in $255 bln of annual spending even if flight capacity and testing requirements slow the pace. But Beijing's policies may reshape where and how money is spent.