Disney, Visitor Recovery Still in Progress but Per Capita Spending Surges 40% Compared to 2019
Airbnb, Summer Season Bookings Up 25% Compared to 2019
[Asia Economy Reporter Kim Hyunjung] Despite record-high inflation, leisure demand in the U.S., including travel and dining out, is rising, showing signs of a sharp increase in related spending.
The Wall Street Journal (WSJ) reported on the 17th (local time) that Americans are significantly increasing activities that satisfy their 'desire to consume.' WSJ explained, "With local COVID-19 related restrictions and guidelines easing and unprecedented fiscal measures underway, the desire to spend on travel, sports, dining, and theme parks is also emerging from the pandemic."
Marriott International, Expedia Group, Coca-Cola, MGM Resorts International, and others recently told analysts that signs of large-scale consumption are appearing as the COVID-19 situation improves. Anthony Capuano, CEO of casino operator Wynn Resorts, said, "Premium customers who were held back from 2020 through the first half of 2021 are returning to travel and spending," adding, "Demand for Marriott’s luxury hotels is surging."
Christine McCarthy, Chief Financial Officer (CFO) of Walt Disney, explained, "Theme park visitors have not yet returned to pre-pandemic levels, but spending per visitor is 40% higher than in 2019." Airbnb announced that summer season bookings this year have increased by 25% compared to 2019. Brian Chesky, CEO of Airbnb, recently stated in a conference call, "We are very optimistic about the rebound in demand for both international and domestic city travel." Robert Isom, President of American Airlines, said last month, "Demand has not decreased; it has only been delayed."
There are also signs that dining out demand is increasing. Ramon Laguarta, CEO of Pepsi Bottling Group, said, "Consumption at home remains high, but the restaurant business is accelerating."
Earlier, the University of Michigan’s Consumer Sentiment Index recorded its lowest level in a decade during the first week of February amid record inflation. However, Robert Frick, Corporate Economist at the Navy Federal Credit Union, the largest credit union in the U.S., analyzed that consumer sentiment about financial conditions does not align with spending levels during the pandemic, and there is no sign that this gap will narrow.
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