Positive trading continues: highlights from recent travel company announcements

In the past few weeks, listed travel companies have been sharing their quarterly trading updates.

We’ve listened to them all, and the message has been overwhelmingly positive, including reports of record revenues and profits.

Booking windows also appear to be normalising and higher prices don’t seem to be affecting demand.

We think these quotes sum up the current market sentiment.

Transcript

1. Positive trading continues: highlights from recent travel company announcements Positive trading continues: highlights from recent travel company announcements May 2023
2. In the past few weeks, listed travel companies have been sharing their quarterly trading updates. We've listened to them all, and the message has been overwhelmingly positive, including reports of record revenues and profits. Booking windows also appear to be normalising and higher prices don't seem to be affecting demand. We think these quotes sum up the current market sentiment.
3. "We saw strong consumer demand with acceleration in international and big city travel and more of Asia reopening... record lodging levels driving gross bookings up 20% year- over-year, revenue up 18% to its highest ever first quarter levels." Source: Expedia 2023 Q1 Earnings Release Peter Kern, Chief Executive Officer
4. Forward bookings are at 96% of the same position in 2019 and at 26% higher average selling prices. UK summer bookings are +10% vs 2019 with c.64% already sold. Source: TUI FY23 Q2/H1 results
5. The premium segment continues to perform strongly, with growth in both volume and booking values. Booked TTV for 5* holidays was +17% YoY, and more than double pre-pandemic levels... volumes in the value segment have not yet recovered to pre- pandemic levels. Source: On the Beach H1 23 results
6. Booking windows returning to normalised levels. Summer ‘23 revenue per seat expected to be +20% on prior year Source: easyJet H1 2023 trading update
7. "Nights and experiences booked increased 19% in Q1 compared to a year ago... we also saw guests booking trips further in advance... more guests are travelling overseas and returning to cities. Cross-border gross nights booked increased 36% in Q1 compared to last year." Source: Airbnb Q1 2023 financial results Brian Chesky, Co-Founder and CEO
8. "The company is generating significantly more bookings at meaningfully higher prices than in prior years... consumer spending onboard, as well as pre-cruise purchases, continue to exceed 2019 levels." Source: RCG Q1 2023 earnings call Jason Liberty - Chief Executive Officer
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