Yahoo Finance July 4 holiday travel shaping up to be strong, top hotel execs predict
With another solid jobs report in the books, top travel execs are wasting no time predicting a strong July 4 holiday weekend and back half of the year as consumers continue to spend briskly on services as opposed to goods.
"I was just looking at some July 4 data. Revenue per available room is up about 10%. Forward bookings through the end of the year look particularly strong," Marriott International (MAR) CEO Anthony Capuano told Yahoo Finance Live (video above) in a Monday interview.
The bullish outlook was echoed on the same day by Marriott's long-time rival.
"Demand is strong across the board, I don't care where you are in the world," Hilton (HLT) CFO Kevin Jacobs said on Yahoo Finance Live. "We don't have months and months of visibility in our business, but from what we can see it's going to be another strong summer."
Other anecdotal evidence suggests consumers are prepared to overlook higher prices for a hotel and an airplane flight and travel a good bit this summer.
Flight searches are up 25% overall for June through August compared to the same time last year, according to fresh data from travel booking portal Expedia (EXPE). Interest is up triple digits for more expensive trips to international destinations across Europe and Asia.
"We're seeing a ton of demand," Expedia CEO Peter Kern told Yahoo Finance.
Meantime, American Airlines (AAL) just last week lifted its second quarter outlook, citing continued strong demand and lower fuel costs.
What is shaping up to be a good July 4 holiday travel period comes alongside mixed readings on the economy.
The US economy added 339,000 non-farm payroll jobs in May, per the latest from the Bureau of Labor Statistics. It marked the largest increase in jobs since January.
The headline jobs numbers were revised higher for the prior two months.
US consumer confidence, however, slipped to a six-month low in May on softening expectations around the labor market.
"We maintain our call for a US recession in Q4 as the lags from tighter monetary policy really start to hit. As we've felt for a while, you have to respect the lag and be patient. Markets on the other hand are anything but and want instant gratification. That's what makes it an interesting time now and for the next few months ahead," warned Deutsche Bank economist Matthew Luzzetti in a client note on Tuesday.
Shares of the major travel companies reflect the uncertain economic outlook amid still high inflation and elevated interest rates.
The stock prices of the aforementioned Marriott and Hilton are down slightly in the past month. Airbnb (ABNB) has shed 2%. American Airlines is up 7.2%, while Expedia has tacked on a cool 10%.
"We don't have our heads in the sand. If the economy slows, we think we'll slow on a lag. But it doesn't surprise me demand is going to be really strong through at least the summer and maybe beyond," added Hilton's Jacobs.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on the banking crisis? Email brian.sozzi@yahoofinance.com
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
