It’s official! People are traveling again!
While many of us have known for some time that travel is on the uptick, the recent quarterly earnings announcements confirm our own suspicions.
Recent quarterly sales findings in the retail sector have been disappointing, with executives from everyone from Macy’s to Nordstrom to Target reporting anemic sales figures, thanks in large part to the consumer market spending less on clothing.
But if people aren’t spending money on clothes then what are they spending their money on?
The consumer research arm of Thompson Reuters knows the answer: nesting and travel.
Consumers are foregoing clothes and investing in bigger ticket items: cars, homes and experiences – travel.
And these figures hold true in earnings reports. Hotel owners Marcus (IHG, Starwood, Hilton, Pfister, Heidel House, Grand Geneva and Timber Ridge), Royal Caribbean Cruises and Boyd Gaming (who owns more than 20 casinos) show earnings growth rates of 344.4%, 185%, and 130% increases respectively.
This also holds true with what we’ve been seeing as of late. The tide is turning from buying “things,” and Millennials, plus the older end of Generation Z (and younger Gen Z who are influencing their Gen X parent’s spending decisions) are flexing their interest in travel.
Is your hotel ready for an influx of guests?