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GMA Network
10 hours ago
- Business
- GMA Network
Americans slow to book summer travel amid discount hunting
Tourists gather to watch the sunset over the south rim of Grand Canyon National Park near Tusayan, Arizona, May 16, 2025. REUTERS/ Rebecca Noble NEW YORK — This year's hottest summer travel trend? Waiting for deals. Americans are scaling back travel plans from flights to drives or waiting to book only if the price is right, a tell-tale sign of an industry slowdown that's got travel companies worried. Hotel summer bookings are either flat or falling from last year, and airline bookings are down even though airfares have also declined, as economic concerns fuel a pullback in spending. Travel companies including Delta Air Lines, Marriott International, and online travel agency Booking Holdings have withdrawn or revised their 2025 annual forecasts as US demand softens. Airbnb flagged shrinking booking windows as consumers take a "wait-and-see" approach and book trips closer to their check-in dates. That has left companies with less visibility into the second half of the year. Delta said in early April it was premature to project the full year given macroeconomic uncertainty. United Airlines said there's a reasonable chance that bookings could weaken. "It's very clear that consumers are waiting to make decisions, including for the summer," Southwest Airlines CEO Robert Jordan said at the Bernstein Annual Strategic Decisions Conference in late May, adding that demand was stable but lower than expected in January. US summer flight bookings are down 10% year-over-year, according to Flighthub, an online travel agency, even though airfares have dropped. "You can't keep an airline seat on the shelf in a warehouse. If you don't fill that seat tomorrow and the airplane flies, it's gone," Steve Hafner, CEO of Kayak, a Booking Holdings unit, told Reuters. Average summer flight prices declined 7%, with flights to long-haul destinations like Sydney, Australia 23% cheaper year-over-year, according to Kayak. Hotel bookings have "actually fallen off and it gets weaker like a month out," Hyatt Hotels H.N CEO Mark Hoplamazian told an audience at the NYU International Hospitality Investment Forum on Tuesday. "By the time you get to that month, it recovers." Summer bookings in major US cities are flat-to-down year-over-year, according to data from CoStar. Average room rates are expected to rise roughly 1.3% in 2025, down from a 1.8% increase in 2024. "We're not getting that crazy pricing power we got in the early days of the recovery," Marriott CEO Anthony Capuano said, adding that the company was still seeing revenue per available room increase. Weaker dollar Travelers may start to find deals, such as a free third night for staying two nights, as hoteliers look to fill rooms, said Jan Freitag, national director of hospitality analytics at CoStar Group. That's what Jackie Lafferty is hoping for. Her summer plans have shifted from a possible family vacation in Hawaii or Florida to her home state of California instead. "By the time we broke down the cost of the flights, the hotel and the rental car, it looked expensive, it felt unreasonable," said Lafferty, a Los Angeles-based public relations director. The dollar's weakness has driven up the cost of overseas vacations. In March, American travelers surveyed by Deloitte had planned to increase budgets for their longest summer trip by 13%. By April, Deloitte's survey found Americans planned on spending about the same as last year. "The dollar is just not going as far and I think people are starting to realize that," said Chirag Panchal, CEO of the Ensuite Collection, a Dallas luxury travel concierge. The dollar has fallen about 10% since mid-January, when it was its strongest in more than two years. Panchal's clients, who had booked big trips to Europe last year, are either staying domestic or going to closer destinations like Canada or the Caribbean. "We might go international at the end of the summer. If we do, it will be last-minute and spur of the moment based on cheaper flights," said Rachel Cabeza, 28, an actor and fitness instructor based in New Jersey. For now, her only summer plan is a getaway to Martha's Vineyard in nearby Massachusetts. — Reuters
Yahoo
13 hours ago
- Business
- Yahoo
Americans slow to book summer travel amid discount hunting
By Doyinsola Oladipo and Aishwarya Jain NEW YORK (Reuters) -This year's hottest summer travel trend? Waiting for deals. Americans are scaling back travel plans from flights to drives or waiting to book only if the price is right, a tell-tale sign of an industry slowdown that's got travel companies worried. Hotel summer bookings are either flat or falling from last year, and airline bookings are down even though airfares have also declined, as economic concerns fuel a pullback in spending. Travel companies including Delta Air Lines, Marriott International, and online travel agency Booking Holdings have withdrawn or revised their 2025 annual forecasts as U.S. demand softens. Airbnb flagged shrinking booking windows as consumers take a "wait-and-see" approach and book trips closer to their check-in dates. That has left companies with less visibility into the second half of the year. Delta said in early April it was premature to project the full year given macroeconomic uncertainty. United Airlines said there's a reasonable chance that bookings could weaken. "It's very clear that consumers are waiting to make decisions, including for the summer," Southwest Airlines CEO Robert Jordan said at the Bernstein Annual Strategic Decisions Conference in late May, adding that demand was stable but lower than expected in January. U.S. summer flight bookings are down 10% year-over-year, according to Flighthub, an online travel agency, even though airfares have dropped. "You can't keep an airline seat on the shelf in a warehouse. If you don't fill that seat tomorrow and the airplane flies, it's gone," Steve Hafner, CEO of Kayak, a Booking Holdings unit, told Reuters. Average summer flight prices declined 7%, with flights to long-haul destinations like Sydney, Australia 23% cheaper year-over-year, according to Kayak. Hotel summer bookings in major U.S. cities are flat-to-down year-over-year, according to data from CoStar. Average room rates are expected to rise roughly 1.3% in 2025, down from a 1.8% increase in 2024. "Travel is certainly under some pressure because people are not feeling as comfy as they once did," said Michael Chadwick, CEO of Fiscal Wisdom Wealth Management. WEAKER DOLLAR Travelers may start to find deals, such as a free third night for staying two nights, as hoteliers look to fill rooms, said Jan Freitag, national director of hospitality analytics at CoStar Group. That's what Jackie Lafferty is hoping for. Her summer plans have shifted from a possible family vacation in Hawaii or Florida to her home state of California instead. "By the time we broke down the cost of the flights, the hotel and the rental car, it looked expensive, it felt unreasonable," said Lafferty, a Los Angeles-based public relations director. The dollar's weakness has driven up the cost of overseas vacations. In March, American travelers surveyed by Deloitte had planned to increase budgets for their longest summer trip by 13%. By April, Deloitte's survey found Americans planned on spending about the same as last year. "The dollar is just not going as far and I think people are starting to realize that," said Chirag Panchal, CEO of the Ensuite Collection, a Dallas luxury travel concierge. The dollar has fallen about 10% since mid-January, when it was its strongest in more than two years. Panchal's clients, who had booked big trips to Europe last year, are either staying domestic or going to closer destinations like Canada or the Caribbean. "We might go international at the end of the summer. If we do, it will be last-minute and spur of the moment based on cheaper flights," said Rachel Cabeza, 28, an actor and fitness instructor based in New Jersey. For now, her only summer plan is a getaway to Martha's Vineyard in nearby Massachusetts. Sign in to access your portfolio
Reuters
13 hours ago
- Business
- Reuters
Americans slow to book summer travel amid discount hunting
NEW YORK, June 3 (Reuters) - This year's hottest summer travel trend? Waiting for deals. Americans are scaling back travel plans from flights to drives or waiting to book only if the price is right, a tell-tale sign of an industry slowdown that's got travel companies worried. Hotel summer bookings are either flat or falling from last year, and airline bookings are down even though airfares have also declined, as economic concerns fuel a pullback in spending. Travel companies including Delta Air Lines (DAL.N), opens new tab, Marriott International (MAR.O), opens new tab, and online travel agency Booking Holdings (BKNG.O), opens new tab have withdrawn or revised their 2025 annual forecasts as U.S. demand softens. Airbnb (ABNB.O), opens new tab flagged shrinking booking windows as consumers take a "wait-and-see" approach and book trips closer to their check-in dates. That has left companies with less visibility into the second half of the year. Delta said in early April it was premature to project the full year given macroeconomic uncertainty. United Airlines (UAL.O), opens new tab said there's a reasonable chance that bookings could weaken. "It's very clear that consumers are waiting to make decisions, including for the summer," Southwest Airlines (LUV.N), opens new tab CEO Robert Jordan said at the Bernstein Annual Strategic Decisions Conference in late May, adding that demand was stable but lower than expected in January. U.S. summer flight bookings are down 10% year-over-year, according to Flighthub, an online travel agency, even though airfares have dropped. "You can't keep an airline seat on the shelf in a warehouse. If you don't fill that seat tomorrow and the airplane flies, it's gone," Steve Hafner, CEO of Kayak, a Booking Holdings unit, told Reuters. Average summer flight prices declined 7%, with flights to long-haul destinations like Sydney, Australia 23% cheaper year-over-year, according to Kayak. Hotel summer bookings in major U.S. cities are flat-to-down year-over-year, according to data from CoStar. Average room rates are expected to rise roughly 1.3% in 2025, down from a 1.8% increase in 2024. "Travel is certainly under some pressure because people are not feeling as comfy as they once did," said Michael Chadwick, CEO of Fiscal Wisdom Wealth Management. Travelers may start to find deals, such as a free third night for staying two nights, as hoteliers look to fill rooms, said Jan Freitag, national director of hospitality analytics at CoStar Group. That's what Jackie Lafferty is hoping for. Her summer plans have shifted from a possible family vacation in Hawaii or Florida to her home state of California instead. "By the time we broke down the cost of the flights, the hotel and the rental car, it looked expensive, it felt unreasonable," said Lafferty, a Los Angeles-based public relations director. The dollar's weakness has driven up the cost of overseas vacations. In March, American travelers surveyed by Deloitte had planned to increase budgets for their longest summer trip by 13%. By April, Deloitte's survey found Americans planned on spending about the same as last year. "The dollar is just not going as far and I think people are starting to realize that," said Chirag Panchal, CEO of the Ensuite Collection, a Dallas luxury travel concierge. The dollar has fallen about 10% since mid-January, when it was its strongest in more than two years. Panchal's clients, who had booked big trips to Europe last year, are either staying domestic or going to closer destinations like Canada or the Caribbean. "We might go international at the end of the summer. If we do, it will be last-minute and spur of the moment based on cheaper flights," said Rachel Cabeza, 28, an actor and fitness instructor based in New Jersey. For now, her only summer plan is a getaway to Martha's Vineyard in nearby Massachusetts.
Time of India
5 days ago
- Business
- Time of India
Quick commerce now accounts for 20% of ecommerce sector in India: Walmart International CEO
Quick commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, according to Kathryn McLay , CEO of Walmart International . 'That's a part of ecommerce that we want to be playing in,' she said at the Bernstein Annual Strategic Decisions Conference, reaffirming Walmart 's growing focus on the segment through its Indian arm Flipkart . Amid this push, Flipkart's Indian marketplace entity has received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings. The funds come as Flipkart accelerates investments into Minutes, its quick commerce vertical, which is targeting 800 dark stores by the end of 2025. Earlier this month, Flipkart Minutes vice president Kabeer Biswas told ET that the company had already reached the halfway mark on that rollout. McLay also stated that Walmart was not prioritising near-term profitability for its India ecommerce businesses — Flipkart and fashion platform Myntra — over market share and growth. Close on the heels of expanding services to Singapore, Myntra received a cash infusion of Rs 1,062.5 crore ($124 million) from its parent entity. 'We're excited about their growth. We are not so focused on profitability that we would trade off market share and growth for the future,' she said. 'You take the balance of all of that, and we will get there at the right time.' She added that while Flipkart's path to profitability may not be linear, Walmart has achieved success with similar models in other markets — not just at the broader business level, but within individual channels like quick commerce. Walmart had led a $1 billion funding round in Flipkart in 2023, committing $600 million to the round. Despite rapid growth, quick commerce continues to form a modest portion of India's overall retail sector. As ET reported on May 19, six of the country's top fast-moving consumer goods (FMCG) firms — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products, and Marico — reported a combined Rs 4,400 crore in quick commerce sales for FY25, accounting for just 2–4% of their overall revenues. A recent report by HSBC Securities projects the gross order value of India's quick commerce market to touch $35–40 billion by FY26. Flipkart faces stiff competition in the space from the likes of Blinkit (owned by Eternal), Swiggy 's Instamart, Zepto, Amazon, BigBasket (backed by Tata Digital), and Reliance's JioMart. Domicile shift, IPO roadmap, financials Flipkart is also in the process of shifting its domicile from Singapore to India — a move that group CEO Kalyan Krishnamurthy called a 'significant step toward aligning more closely with the economic and regulatory landscape' during a recent townhall. The reverse flip comes ahead of a planned initial public offering in 2026. For FY24, Flipkart Internet reported operating revenue of Rs 17,907.3 crore, a 21% year-on-year increase, while its net loss narrowed by 41% to Rs 2,358 crore. Its fashion vertical Myntra turned profitable for the first time in FY24, posting a net profit of Rs 31 crore compared to a loss of Rs 782 crore in the previous year. Myntra's revenue rose 15% during the fiscal. The platform is also extending its reach beyond India. While facing fresh competition in the local market following Shein's re-entry via a Reliance tie-up, Myntra is expanding to Singapore through Myntra Global. It has also launched M-Now, a rapid delivery service for fashion and home goods.
Economic Times
5 days ago
- Business
- Economic Times
Quick commerce now accounts for 20% of ecommerce sector in India: Walmart International CEO
ETtech Kathryn McLay, CEO, Walmart International Quick commerce now accounts for 20% of India's ecommerce market and is growing at a rate of 50% annually, according to Kathryn McLay, CEO of Walmart International. 'That's a part of ecommerce that we want to be playing in,' she said at the Bernstein Annual Strategic Decisions Conference, reaffirming Walmart's growing focus on the segment through its Indian arm this push, Flipkart's Indian marketplace entity has received a cash infusion of Rs 2,225 crore (around $260 million) from its Singapore-based parent, according to regulatory filings. The funds come as Flipkart accelerates investments into Minutes, its quick commerce vertical, which is targeting 800 dark stores by the end of 2025. Earlier this month, Flipkart Minutes vice president Kabeer Biswas told ET that the company had already reached the halfway mark on that rollout. McLay also stated that Walmart was not prioritising near-term profitability for its India ecommerce businesses — Flipkart and fashion platform Myntra — over market share and growth. Close on the heels of expanding services to Singapore, Myntra received a cash infusion of Rs 1,062.5 crore ($124 million) from its parent entity. 'We're excited about their growth. We are not so focused on profitability that we would trade off market share and growth for the future,' she said. 'You take the balance of all of that, and we will get there at the right time.' She added that while Flipkart's path to profitability may not be linear, Walmart has achieved success with similar models in other markets — not just at the broader business level, but within individual channels like quick commerce. Walmart had led a $1 billion funding round in Flipkart in 2023, committing $600 million to the rapid growth, quick commerce continues to form a modest portion of India's overall retail sector. As ET reported on May 19, six of the country's top fast-moving consumer goods (FMCG) firms — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products, and Marico — reported a combined Rs 4,400 crore in quick commerce sales for FY25, accounting for just 2–4% of their overall revenues.A recent report by HSBC Securities projects the gross order value of India's quick commerce market to touch $35–40 billion by FY26. Flipkart faces stiff competition in the space from the likes of Blinkit (owned by Eternal), Swiggy's Instamart, Zepto, Amazon, BigBasket (backed by Tata Digital), and Reliance's JioMart. Domicile shift, IPO roadmap, financials Flipkart is also in the process of shifting its domicile from Singapore to India — a move that group CEO Kalyan Krishnamurthy called a 'significant step toward aligning more closely with the economic and regulatory landscape' during a recent townhall. The reverse flip comes ahead of a planned initial public offering in 2026. For FY24, Flipkart Internet reported operating revenue of Rs 17,907.3 crore, a 21% year-on-year increase, while its net loss narrowed by 41% to Rs 2,358 crore. Its fashion vertical Myntra turned profitable for the first time in FY24, posting a net profit of Rs 31 crore compared to a loss of Rs 782 crore in the previous year. Myntra's revenue rose 15% during the fiscal. The platform is also extending its reach beyond India. While facing fresh competition in the local market following Shein's re-entry via a Reliance tie-up, Myntra is expanding to Singapore through Myntra Global. It has also launched M-Now, a rapid delivery service for fashion and home goods.
