Travel boom boosts hotels & cruise operators on Wall Street

The post-pandemic recovery of international travel, particularly to Europe, is anticipated to be a positive development for hotels and cruise operators on Wall Street.

Despite rising costs and inflation, travel companies are experiencing a surge in earnings as consumers prioritise leisure spending.

Notably, ocean and river cruise lines are among the biggest beneficiaries of this trend, with investors eagerly awaiting the quarterly results of Hilton Worldwide Holdings and Royal Caribbean Cruises.

Travel industry’s resilience amid inflation

• Hotels, resorts and cruise line sub-industry set for a 407% jump in Q2 earnings.
• Consumers consider travel as an essential expenditure, remaining undeterred by high inflation.
• Ocean and river cruise lines witness the largest year-over-year spending increase among retail sub-segments, even when accounting for inflation.

Cruise lines show promise on Wall Street

• Royal Caribbean’s Q2 revenue is expected to rise 56%, reaching $3.4bn YoY.
• Cruise companies like Carnival, Royal Caribbean and Norwegian Cruise Line Holdings see substantial stock price increases.
• Investors show strong interest in cruise lines as a value-driven vacation option.

Hotels face mixed performance

• Hilton Worldwide Holdings is projected to report $2.6bn in Q2 revenue, boosted by Europe and Asia.
• US hotel demand remains below pre-pandemic levels, impacted by stronger dollar attraction in Europe.
• Record nightly rates for on-shore accommodations may help offset revenue challenges.

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