Hospitality and tourism are major drivers of the world’s economy and we saw a shutdown during COVID and then an reopening afterwards. It was not surprising during the reopening there was chaos because many employees did not return to the jobs in hospitality and tourism. Many of the jobs tend to be structured towards the low end of the pay scale and there were other choices, which meant fewer people doing all the jobs necessary to ensure hospitality and tourism works. This year it is better and as the weather changes to more summer weather, there is a desire to return to what was normal routines.

In an article by Sarah Young and Federica Mileo of Reuters, the larger airlines in Europe – British Airways and Air France-KLM reported bumper bookings despite a cost of living increases.

IAG or International Airlines Group owner of British Airways, Iberia, Vueling and Aer Lingus airlines cautioned the problems on the horizon are possible strikes and lack of staff. The strikes are duel to the higher cost of living, however summer bookings are very good. In addition, the other major airlines in Europe – Luthansa, easyJet and Ryanair have reported strong summer bookings.

IAG expects its profits to come in the top end of the $2.6 billion to $3.4 billion forecasted. The top end is a 90% improvement from last year.

Holiday Inn owner IHG plc reported a 33% jump in 1st quarter revenue per available room.

In China, COVID restrictions have been lifted and travel is benefiting in the Asia-Pacific region.

Linking to dividend paying stocks, as the economy returns to what was normal, part of the normal flow of people is during the good days of spring – summer and fall, people move about or use hospitality and travel. All the companies have multiple price points, but they use the same metric – passenger in the seat and guest in the bed or occupancy rates. If you are traveling and the aspect is normal practice, observing can help you determine how the companies are doing financially.

There are more questions than answers, till the next time – to raising questions.