Travel Industry Headlines: 17 Nov 2022 | NEXT Travel Stream

Travel Industry Headlines: 17 Nov 2022 | NEXT Travel Stream

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Marriott reports record third quarter results and  sees no signs of a Slowdown we have all their CEOs   comments shortly Hotel technology was accelerated  three to four years during the pandemic now   hoteliers are building on those platforms with  new Services we'll tell you what to expect next   saber reported improved bookings in the third  quarter but while the recovery and Airline it   bookings is almost complete the GDs recovery  continues to limp along all the details on that   coming up and U.S outbound travel continues  to Boom a strong dollar has Europe and Latin   America on sale and travelers are taking full  advantage of the discounts I'm Tracy Lindley   and these are your travel industry headlines  Marriott CEO Tony capuano agrees with other   travel industry Executives there's no signs of  a Slowdown Marriott's system-wide revenue is now   fully recovered with luxury hotels outperforming  all segments rates and occupancy are both up that   has the world's largest hotelier approaching  their pre-coveted business mix of 60 corporate   and 40 percent leisure and the group business is  a major contributor it just continues to grow 2022   group bookings are up 30 percent compared to 2019.  Marriott expects companies will continue to book   meetings at a higher post pandemic rate that's  driven by a need to bring together all the new   remote workers and build a common culture  take a listen as capuano and the Marriott   Executive team discuss their latest results and  the strong outlook for the remainder of the year   thank you all for joining us this morning  we had an outstanding third quarter   Rose above 2019 levels for the first time since  the pandemic began up nearly two percent rev Park   compared to 2019 improved sequentially from the  second quarter in every region around the world   Global occupancy Rose to 69 percent while ADR out  pays 29 by a 2019 excuse me by a remarkable 10   percent compared to pre-pandemic levels worldwide  rev par in September reached a new monthly high   water mark increasing more than four percent  or nearly seven percent excluding greater China   during the quarter Leisure demand  remains strong well above 2019 levels   in the U.S and Canada full-service group revenue  for the quarter showed continued growth ending up   three percent over the same quarter in 2019.  fourth quarter Full Service Group revenue is   currently pacing up four percent but is likely  to improve further given the strong last minute   group bookings that we've seen all year the trend  towards last minute bookings has led to meaningful   compression and pricing power helping group ADR  for new bookings rise each quarter this year   at our managed hotels in the U.S ADR for in  the year 40-year group bookings made in the   third quarter Rose 17 percent compared to same  year bookings made in the 2019 third quarter a   significant jump from the six percent increase we  saw in the first quarter ADR for group bookings   made in the third quarter for 2023 outpace 29 2019  third quarter bookings for events in 2000 by 24.  

business transient demand also continued to  improve during the quarter although it still lags   2019 levels third quarter business transient room  nights in the U.S and Canada were 11 below 2019.   we are currently in the midst of our special  corporate negotiations for 2023 and are very   pleased with how they are progressing after  two years of holding rates steady the early   results look positive for at least High single  digit year-over-year rate growth third quarter   day of the week Trends continue to suggest that  Travelers are combining Leisure and business trips   in fact the average length of a transient business  trip has increased meaningfully and year-to-date   is up more than 15 percent compared to 2019.  with borders reopened in most countries around   the world Rising cross-border travel helps spur  the man during the quarter especially in Europe   and in the Caribbean and Latin America or Cal  region cross-border yes it's accounted for 15   of our Global room nights in the third quarter an  uptick from 12 in the first quarter of this year   in 2019 18 of travel to our properties was  from cross-border guests so we anticipate   additional upside from international travel  especially from greater China once stringent   travel restrictions are relaxed given rapidly  Rising interest rates and growing concerns about   a possible Global recession we are closely  monitoring consumer and macroeconomic trends   there is no doubt that the hospitality industry  is impacted by economic cycles and with transient   booking Windows averaging only about three  weeks Trends could change relatively quickly   however we have yet to see signs of a Slowdown in  global lodging demand in fact we've seen just the   opposite booking Trends remain very healthy  given sustained high levels of employment   consumer Trends prioritizing experiences versus  Goods pentuck travel demand and a high level   of consumer savings travel spending has been  incredibly resilient in October demand remained   strong across our regions with the exception  of Greater China where Trends are still low   our powerful Marriott bonvoy program grew to 173  million members at the end of the third quarter   the program achieved record penetration levels  in the quarter reaching 60 percent in the U.S  

and Canada and 53 percent globally members also  continue to engage with our program credit cards   which had another solid quarter after recently  making significant enhancements by adding new   benefits to many of our us cards sign ups have  well-exceeded expectations this led to record   new cardholder Acquisitions as well as record  spending for the first nine months of this year   we also introduced two mid-tier cards at the end  of September which should help Drive strong growth   going forward while much smaller fee contributors  than our U.S Chrome co-brand cards we have   similarly seen record growth internationally  this year in new card members and total card   staff this has been particularly driven by China  where we've had great traction after launching our   first cards there in July our bonboy members  have been increasingly interacting with the   platform through our direct digital channels which  helps boost owner and franchisee profitability   since 2019 our share of room lights  book through direct digital channels   has increased more than five percentage points  to 38 percent while our distribution through   OTAs has risen by less than a percentage point  to 12 percent the power of envoy and our direct   channels has also been evident in our latest  offering the Ritz Carlton yacht which made   its inaugural Voyage from Barcelona last month  remarkably around two-thirds of all the bookings   for this incredible brand extension have been  through direct channels which is many times   above the rates most Cruise companies experience  additionally bonboy members account for more than   half of the yacht bookings we look forward to  more shifts joining the portfolio in the future   shifting to the development front our pipeline  grew for the fourth quarter in a row totaling   more than five hundred and two thousand rooms by  the end of the third quarter citing activity in   the quarter remains healthy in most regions of the  world our development team continues to be laser   focused on conversions a particularly bright spot  in the development story conversions represented   21 of room signings and 27 percent of remote  things in the quarter we are very enthusiastic   about the level of conversations on conversions  including for multi-unit conversion opportunities   outside the greater China we were pleased to  see new construction starts take up nicely   in the third quarter while not yet back to 2019  levels new construction starts in the U.S reach   the highest quarterly levels since the pandemic  began for full year 2022 we now expect gross Rose   growth for approximately 4.5 percent compared to  our prior expectation of closer to five percent   the change is primarily a result of fewer expected  openings in Greater China as the lockdowns there   have extended construction timelines the good  news is that we have not seen deals in Greater   China or in any of our regions falling out  of the pipeline at a higher than usual rate   with just two months left in the year we now  expect deletions at the bottom end of our prior   guidance deletions could be about one and a half  percent for 2022 or one percent excluding the 50   basis point impact from our exit from Russia so  our net rooms growth for 2022 is likely to be   around three percent or three and a half percent  before factoring in the deletions in Russia   we're always looking at opportunities that  help broaden the offering for our guests   as well as our owners and franchisees last  month we announced our agreement to acquire   the city Express brand portfolio which is  currently comprised of 152 hotels with over 17   000 rooms in the Cali region we are quite  bullish on the moderately priced mid-scale   space which has meaningful growth potential upon  closing this transaction we will immediately   gain a significant foothold in this high growth  segment in Cala while also becoming the largest   hotel company in the region our next question will  come from geographs at JPMorgan your line is open   uh good morning everybody um I was hoping you  could talk about 2023 uh Group business on the   books uh for next year and maybe talk about it  maybe a little bit differently than than maybe   how you've talked about it in the past I was  just wondering how much of of group for 2023   is on the books to make sure it's a percentage  of what you anticipate the total to be and then   maybe you can just talk about uh in segments in  terms of when that was booked so to get a sense   of of pricing how much of 23 group was booked in  22 how much of it was booked in 21 how much it   was booked prior to 21 and obviously you know  how much would you anticipate in the year for   the year just just given the relative strength  of group of late thank you yeah of course so   um let me start macro and then I'll try to get a  little more precise in reference to your specific   question uh 2023 group revenue on the book is  currently pacing down about 11 uh relative to   19 although candidly you heard lean these comments  about the the short booking window uh on transient   uh similarly short booking window on group and so  I don't know that looking at that down 11 percent   is is particularly relevant even for Q4 this  year we're up four percent and we think that   will likely improve through the quarter given the  strength of short-term bookings and the trade that   many of our customers are making for flexibility  and they're they're willing to pay higher rate   when I look deeper into what's on the books for  2023 room nights are down in the High Teens ADR   is actually um close to about 10 percent and  then I think your second question was really   about when that business is being booked but I  I guess I'll try to give you some 2022 data that   is uh hopefully indicative of the trends we're  seeing about 50 percent of the group business   we've seen year to date in 2022 was booked in the  year for the year that's about double what we saw   uh pre-pandemic where typically we'd see about  25 of our total group volume being booked in the   year fourth year and our next question will come  from Brant Montour with Barclay your line is open   hey good morning everybody thanks for taking  my question um so maybe uh good morning so so   when you when you think about corporate transient  recovery and specifically focusing on your largest   accounts the larger corporates in the U.S what  is the tone uh that you kind of get back from  

them when you talk to them about how they're  planning for the future obviously we know that   near term you're seeing good Trends but you know  we hear and see headlines regarding um especially   in Tech uh some larger companies pulling back on  on expenses and things like that I'm just curious   um you know how you feel about uh some  some of that uh some of those things   sure so um at a macro level we are are again  encouraged by the sequential quarter over   quarter Improvement in business transient  you'll recall that in the U.S and Canada BT   was down almost 25 in the first quarter uh  that dropped to 13 in Q2 and and just down   11 in Q3 as we've discussed in the past uh  small and medium-sized companies which are   about 60 percent of those BT room nights are  fully recovered and in fact in Q3 their room   nights were up about 10 when you pivot to the  the larger companies uh your comments are right   uh special corporate which tends to be a lot of  those big companies their room nights were down   about 17 in the quarter and when you start  to look at the specific tiers within special   corporate you brought up check as an example  they were down about 23 percent in the court trying to respond more qualitatively in terms  of what we're hearing from them I think it's   really embedded in the short booking window they  absolutely talk about the value of face-to-face   interaction with each other with their customers  with their clients but they are also again much   like our group customers willing to trade a bit of  of pricing for flexibility and then the last thing   I would say to try to address your question we  are relatively early in the special corporate rate   negotiations but what we're seeing in terms of the  the pricing and our growing confidence that we're   going to end up at least with high single digit  year over year rates is pretty encouraging as well   their final question will come from Dwayne  benningworth with evercore isi your line is open   hey thank you so much nice to speak with you  on the um on the business transient commentary   which I think you said down 11. I wondered if  you could provide some Regional color uh where   where would you mark that recovery across uh you  know the geographies that you touch and then just   as we think about the shape of that recovery  curve you know we've seen some nice sequential   Improvement here but should we be thinking about  a plateau you know through early next year when   we have new new sort of budget Cycles or are there  regions where you still think sort of sequential   Improvement into 4q on BT is on the table sure  so let's let's talk I'm going to reference that   to Tony's comments about where roughly 60 of  our BT uh in Q3 was from small and medium-sized   companies and and that frankly is sprinkled all  over the country so that's going to be everywhere   from New York to uh Tulsa to you know smaller  markets that are at limited service hotels rather   than uh the larger special corporate accounts  obviously are more headquartered in the urban   uh large cities the the thing I will say is we've  continued to see progress as we moved along when   you think of for example you think of New York  City which has moved quite nicely during the year   um with the Improvement in BT where they were down  29 in q1 today New York City was actually three   percent higher in Q3 than 2019 team so I I think  you will continue to see the progress uh the the   trends in BT are similar both uh internationally  as well as in the U.S I I do think as we move into  

2023 a lot of this will depend on the state of  the economy so kind of having a prediction about   exactly where BT will go is tough to pinpoint we  do look for continued Improvement and think it   will ultimately get back to where it was but the  exact timing of that uh hard to say and then the   last thing I'll point out is just the reality  that we have seen in moderate in terms of its   rate of improvement as we've moved into Q3 and  I would expect to see that moderation continue   like most Services hospitality is quickly  getting absorbed into your phone hotels   invested heavily in remote check-in and  other technology during the pandemic   McKinsey estimates that the pandemic pulled  Hotel technology forward three to four years   hoteliers were forced to rapidly respond to  Consumers new expectations during the pandemic   82 percent of hoteliers say they implemented at  least one new technology during the pandemic most   of those Investments were in either contactless  experiences or process automation contactless   Investments included self-service check-in  mobile keys and digital payments while chat   Bots and guest messaging services Top the list  of process automation Investments labor shortages   also drove a need for new contactless check-in  and messaging platforms those labor shortages   continue and most experts believe that will lead  to further advances such as facial scan check-in   and robot concierges anything to expedite service  and provide a non-labor-dependent solution where   possible about 30 percent of hoteliers added chat  Bots to their websites in the past few years those   services are improving and enable 24 7 fulfillment  of service and information requests texting is how   the world communicates and hoteliers are quickly  going where the consumer is the consumer also   expects to customize their in-room experience  advances within room technology are enabling   guests to control the TV temperature and lighting  from their phones the possibilities are endless   consumer technology Trends are enabling most of  these in advances many expect robotics to drive   the next wave of efficiency but whether guests  want a robot concierge or housekeeper is not clear   robot Smiles tend to leave people a little cold  and their life stories are well rather lifeless saber GDs bookings are struggling to recover  with the loss of Expedia to Amadeus and a slow   recovery in large corporate travel third quarter  bookings were just 57 percent of 2019 volumes a   greater mix of international bookings help to  boost revenues but it was still a disappointing   quarter saber CEO Sean Menke reported that  asia-pacific bookings improved the most of   any region as Hong Kong and Taiwan relax travel  restrictions the airline it business is performing   well with 96 percent of Airline direct bookings  recovered and saber continues to invest in its   migration to the Google Cloud over the next  year the company expects substantial savings   from that investment but overall investors  were discouraged by saber's slow recovery   and saber shares fell 10 percent on the news  take a listen as CEO Sean Menke and president   Kurt Eckert shared their perspective  on Sabers long road to recovery foreign that our air booking volumes improved considerably  throughout the quarter volumes specifically in   July were impacted by both Airline and Airport  operational constraints as the quarter progressed   we saw solid improvements which translated  into our best quarter of recovery since the   onset of the covid-19 pandemic these  positive Trends continued in October   the current strength is attributable to the global  recovery with Asia Pacific the most pronounced   the Total distribution booking recovery in the  third quarter was 57 versus the same period in   2019. this equates to a 64 revenue recovery as a  result of the higher booking rate achieved in the   third quarter of 2022 versus the third quarter of  2019. higher Revenue per booking resulted from a   continued Improvement in international travel  IT solutions passengers boarded recovered 96   percent in the third quarter versus the same  period in 2019 Hotel CRS transactions in Q3   were 104 compared to the same period in 2019. our  key metrics remain strong in October specifically  

as of the 26th of October distribution bookings  were 60 versus the same period in 2019. passengers   boarding excluding ravix volumes were at 86  percent and CRS transactions were at 109 percent   last quarter we noted 100 million annualized  Revenue opportunity if our asia-pacific region   were to recover to the average recovery of  the other regions I am very pleased to say   we are starting to see further positive signs  in this region particularly in international   markets which have been the slowest to recover as  we've discussed before International bookings are   generally more profitable than domestic bookings  for saver accordingly as International fine   returns more fully we expect our profitability to  improve within APAC our bookings Improvement has   been most pronounced in Taiwan and Hong Kong where  travel restrictions have recently been relaxed   Hong Kong bookings started Q3 at just 16 percent  of the same period in 2019 by the end of the   quarter the recovery there was 29 percent Taiwan  is an even better story with a quarter starting   at 17 recovery and ending at 45 although we are  aware of the concerns regarding global economic   growth we don't see evidence of a Slowdown in  either Leisure or corporate demand in fact we have   seen fares globally remain very strong and well  above the fairs prior to the covid-19 pandemic   we see the effect for domestic and international  flights as detected here but also for leisure   travel which tends to book well in advance  of departure and for closing corporate travel   our own internal review Affairs being sold  at walk up Advance purchase between 7 and   21 days and 21 days and Beyond are well above  2019 levels it is also important to note that   the average Fair disparity between the purchase  date is very small historically there has been a   more pronounced difference in the average  fares based on Advanced purchase periods   higher airfares encourage Airlines to increase  the number of seats they plan to fly in fact we   are seeing this materialize with the large U.S  network carriers current marketing schedules   loaded for these carriers in the first quarter  of 2023 reflects an increase in total seats to   be flown of 1.6 percent versus 2019. this compares  to Total seats being down 11 and 9 respectively   in the third and fourth quarter of 2022 versus the  same period in 2019 more importantly International   growth is outpacing domestic growth in the first  quarter of 2023 seats to be flown internationally   are currently up 3.4 percent versus being down  approximately 10 percent and approximately 3.5   percent in the third and fourth quarters of 2022  versus the same period in 2019. in short even with   the recovery to date we believe the opportunity  presented by a normalization of travel from covid   is significantly larger than the effect of any  prior economic recession on global passenger   traffic historically the largest calendar year  drop in global passengers was only about three   percent we estimate Global passenger traffic in  2022 will likely be about 1.5 billion passengers  

below what we would expect in a normalized year  unaffected by coven obviously this is far greater   than the 3 percent let me now turn the call over  to Kurt to walk you through the latest regarding   our technology transformation and a few commercial  highlights Kurt thank you Sean and hello everybody   we made Solid progress in the third quarter  toward our 2022 technology milestones   and our Tech transformation remains on track  to achieve stated goals by the end of 2024.   as a reminder our two key technology  milestones for 2022 are number one   to exit our saber-managed data  centers and migrate to Google Cloud   and two to offload passenger name record a  customer reservations database from the Mainframe   to Google cloud and to begin client migrations  in the third quarter we migrated Hospitality   Solutions Enterprise Central reservation  system to Google Cloud in October we migrated   the property management system which means we  have fully transitioned all of our cynicsis   to Google Cloud this important accomplishment is  expected to make our Hospitality business more   agile improve velocity and unlock the benefits  of Greater scalability provided by Google Cloud   additionally we expect that the cost bubble  associated with these actions will Abate   by year end setting up for better financial  performance for Hospitality Solutions in 2023   during the third quarter we also migrated  all Air shopping from AWS to Google Cloud   this was the final step on a long journey  with initial migration starting in 2017   when we moved the first workloads into our data  centers we now have the processing capacity we   expect to need and can focus additional energy on  product enhancements that we expect will generate   additional value for saber and our customers  and finally we decommissioned and emptied   our data center in Plano Texas we have also  decommissioned more than 70 percent of the servers   in our three other data centers in  Louisville Austin and Carrollton   as we have outlined before this technology  transformation is a key driver of the expected   savings and margin Improvement Outlook that we  have provided for 2025. in October we announced   distribution agreement renewals with two of the  largest airlines in the world American and United   these agreements continue our long-standing  relationships with these Flagship carriers and we   plan to collaborate to utilize saber technology  and solutions to help Advance their retailing   objectives while also meeting travel buyers need  for efficient workflows choice and transparency   we also strengthened our relationship with  BCD travel one of the largest corporate travel   management companies in the world as part  of this new agreement BCD will increase its   commitment to saber and will invest in joint  technology development over the coming years   we look forward to continuing our relationship  with BCD and we expect booking conversions to   accelerate in Q4 and through the first half of  2023 in connection with BCD and our previously   announced expanded relationships with  American Express Global business travel   and Hopper we believe these expanded  relationships will benefit content suppliers   and travelers alike and our first question Matthew  Broome with musical group your line is open   you know what what was the mix between corporate  and Leisure and international domestic during the   quarter Matt it's a couple things are happening  I think when you I'm going to break it down sort   of short whole Long Haul and what we're sort  of seeing because it does help if you remember   the beginning of the pandemic really we saw the  Leisure is the recovery short haul um you know   for a period of time and part of what we have  Illustrated is actually the Gap closing meaning   short haul business has recovered on the corporate  side of the equation you know what we're watching   very closely Now is really the international  side and this is why we look at the capacity   and what's taking place and there's sort of the  combination of leisure and corporate with that   I would still say Leisure is driving that but as  capacity continues to be thrown in by the carriers   and that's why I noted the three largest carriers  in the U.S and international capacity their strong   belief as it relates to just corporate recovery  corporate travel recovery because they need the   front half the cabin to be filled so that's sort  of what we're seeing right now uh okay thanks and   then um maybe just on the uh Global business  travel group um that partnership have you seen   some volume from that that punishment ramp up  during the quarter or or perhaps in October   Matthew thank you we're seeing uh initial  conversions from the uh gbt partnership we   will see those conv conversions accelerate in Q4  and basically through next year um likewise we're   going to see BCD and Hopper volume beginning to  accelerate uh during this period collectively   this is a Tailwind for 2023. and the next  question comes from Judd Kelly with Oppenheimer  

um can you talk about just how  the stronger dollar is impacting   um long-haul travel and so if you look at it  relative to the strong dollar I think the one   thing that we definitely have been seeing is  uh that those you know individuals within the   United States traveling overseas um that has been  actually called out by uh the major carriers here   in the United States relative to what they  think is driving some of that strong demand   um if you think maybe more long-term uh because I  think it gets into is there an impact long term I   think the important thing that we keep you know is  really trying to drive everybody back to is sort   of where we are in the recovery cycle that's why  we call out you know from a normalized perspective   we're sort of down 1.5 billion passengers and even  with you know some of the headwinds that we're   seeing beyond the inflation side are concerned  about recession you know the things I keep coming   back to and pointing out is you know what we're  seeing as it relates to the global global regions   and the recoveries that we're seeing in the global  regions and I am ecstatic about what we're seeing   in aipac right now uh Leisure continues to be  strong but I would tell you is on the business   side and this is just looking at the TMC so  this is more specific to the United States but   we've seen actually a progression of improvement  has taken place coming out of the third quarter   into the month of October that there's been a  step up so as that continues to recover we will   be the beneficiary of that the other thing that  continues to be out there is just higher average   fares right we are just not seeing average fares  came down they came down for a period of time uh   call it in the July August time frame when we saw  some uh the issues associated with the operation   but we've seen those sort of improve as well and  that essentially compression that's taking place   there and we're seeing that capacity being thrown  into the marketplace so again all the signs that   we're seeing outside of what's happening with  evaluation of the US dollar we think that's a   Tailwind for you know specifically the U.S  airlines but we're just looking more on the   global macro perspective uh and again we're seeing  just green signs relative to what 2023 looks like   got it and then just I guess as the airlines kind  of get back to normal um you talk about you know   where your conversations are progressing  with on your solution segment and Airline   sort of are they opening up back up like contract  negotiations for you know I.T Solutions thank you   Chad this is Kurt uh thank you um so first of all  we think we're very well positioned for medium to   long-term growth within the airline IC segment  the big phenomena that we're seeing is a real   focus by carriers especially the network carriers  on becoming better at merchandising and retelling   there is you may have heard of something called  the one order Vision which has been put out by   ayata effectively on behalf of the global Airlines  and where in conversations with a number of   Airlines about helping them solution against that  opportunity so we're very excited about uh the   ability to advance the the marketplace together  with a number of our customers and Prospects one   moment please our next question comes from Victor  Chang with Bank of America your line is open   thanks for looking at my questions a couple  of my May um so first of all I'll keep provide   a bit more color on bookings recovery of our  region given I'm just looking at the trend uh   one percentage Point Improvement in the last two  months and presumably about about the bulk of that   is coming from a track uh so is it fair to assume  that emea or U.S recovery uh has someone flattened  

yeah let me let me help you sort of with what we  have been been seeing so what I would tell you is   the months of September and October you know in  October was probably the best month of recover   that we have seen and this is on a global basis  on what's taking place uh let's start with APAC   if you remember APAC at the beginning of the year  was you know down and call it the 80 range uh what   we've seen with aipac uh to date and it's really  looking at the September October time frame uh   they're recovering or they're down uh less than 40  percent now so you're thinking about a city sixty   percent recovery uh what we're seeing in the emea  marketplace has been one that it's um probably   at the top end of recovery but we have seen it  flatten out a little bit part of that is if you   dig into the capacity that is being flown by some  of the major carries within Europe that is slow so   we're watching you know what's happening there in  the first quarter as well uh Latin America after   being hit you know with some significant cases of  covet has continued to improve greatly in what's   happening and then the U.S as we look at it this  is where we're looking at essentially the capacity   improvements and what's taking place we're seeing  incremental improvements in the bookings but it's   not the big steps that we were seeing before  here's what happened this week in travel history thank you foreign foreign King U.S travel indicators are  holding steady Airline traffic   outbound travel inflation and  virus cases remain at similar   levels to October let's take a look  at some of the key travel indicators here's the latest passenger data reported by  the Transportation Security Administration   2022 numbers are shown in Orange and the 2019  passenger counts are in bloom this week the   seven day average is down just three percent  from 2019 levels that's slightly up from a   month ago and traffic looks like it will improve  further into the holidays data reported by the   U.S travel Association highlights the impact of  inflation on travel prices the October travel   price index was up 11 versus last year and 18  from 2019. airfares are up 43 since last October   but just 9 versus 2019 while fuel prices are up 18  versus last year and a staggering 43 since 2019.   lodging prices have cooled off Rising just six  percent versus last year but 12 from 2019 that   compares to the bottom line overall U.S consumer  price index that's risen 8 from last October and  

16 from October 2019. Airline and hotel executive  state record demand will keep prices elevated the   U.S office occupancy rate an indicator of business  travel recovery has been trending up since Labor   Day average U.S office occupancy is at 48 now  near its high since the beginning of the pandemic   occupancy levels vary widely by U.S region  Texas continues to lead the country in office   occupancy Austin at over 62 percent is at the top  of all major Metro areas average occupancy across   the country was 47.5 percent New York Chicago  and Los Angeles occupancy has been increasing  

steadily and now sit at about 45 or better and  while improving over the past month San Jose   Philadelphia and San Francisco still have some of  the lowest occupancy rates of top U.S Metro areas   for the international trade Administration October  international travel to the U.S improved what   remains down about 24 or almost 1.3 million  arrivals versus 2019. about 50 of that Gap is   from Asia where arrivals remain 62 down from  2019. European arrivals are down 22 percent

U.S departures to International countries  remain strong in October as the U.S dollar   strengthened U.S outbound is fully  recovered to 2019 levels departures to   Mexico have soared up 40 in October versus  2019 and South American departures are 18   Europe was still down 8 versus October 2019  while Asia continues to lag down 44 percent virus cases remain well down from the  Omicron peak in January but have begun   their seasonal increase versus last week  U.S cases are up six percent we'll see if   we have the large Spike we experienced  last January with the Omicron variant   U.S vaccination rates have leveled off with  228 million or 98 of the U.S population fully   vaccinated but as of mid-november only  12 percent of U.S adults had received  

the updated bivalent booster these numbers  should increase as we head into Peak flu season   based on the strong sales data reported by  Airlines traffic is expected to improve into   the holidays we're currently forecasting November  and December traffic will reach or exceed 2019   levels for the first time since the pandemic we'll  update our forecast as more data becomes available

2022-11-25 14:46

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