Latest news with #consumerconcerns
Travel Daily News
18 hours ago
- Business
- Travel Daily News
Consumer concerns impact Summer travel bookings
Travel advisors report shifting consumer behavior due to economic and geopolitical concerns, with rising travel costs prompting budget-conscious booking strategies. ORLANDO, FLA. – Consumer concerns about the economy and geopolitical situation are sparking changes in travel bookings, according to a new survey of advisors affiliated with TRAVELSAVERS and NEST agencies. The networks revealed the survey results at their Travel Market conference, taking place June 4 to 7 at Hyatt Regency Grand Cypress Resort in Orlando. Travel Expense Top Client Concern The high cost of travel is the top concern clients are mentioning now, cited by 50 percent of the responding advisors. Related, 41 percent named inflation and rising prices as a client concern. Lack of consumer confidence in the economy was mentioned by 34 percent. Geopolitical anxieties were cited by 29 percent of the respondents, with 26 percent saying clients are worried about safety in certain regions. 'Regardless of their financial situation, we know that consumers are still eager to travel this year,' said Kathryn Mazza-Burney, TRAVELSAVERS Chief Sales Officer and NEST President. 'Given these prevailing headwinds, advisors are a traveler's best friend. A professional advisor can design a memorable, enjoyable trip that accommodates a range of budgets and preferences.' Advisors Shape Lower-Cost Options Uneasy travelers are turning to advisors for expert assistance in lowering the cost of trips, employing a variety of tactics to decrease spending. Selecting less expensive destinations was named by 35 percent of advisors, as was flexibility with travel timing to secure lower fares. Using loyalty points to fund travel was cited by 34 percent. Thirty-two percent of advisors reported that clients are taking fewer trips, and 26 percent said clients are taking shorter vacations. 2025 Sales Predictions Shift As a result of this changing behavior, advisors are adjusting their forecasts for 2025 sales. Forty-six percent predicted sales will rise this year, while 22 percent envisioned them staying at 2024 levels. Thirty-two percent foresee their sales decreasing. Last fall, 79 percent of advisors anticipated higher sales in 2025, compared with 18 percent who predicted sales would stay at 2024 levels. At that time, only four percent envisioned a slight decrease. Summer Bookings Largely Flat With some consumers taking a wait-and-see approach to travel, hoping their personal situation improves, summer sales are generally in line with last year. Thirty-six percent of advisors said their summer travel bookings are up from last year, while 39 percent reported sales are down. One-quarter of the respondents said sales are level compared to summer 2024. The Summer of Staying Close to Home Topping the summer travel list, advisors reported a mix of perennial European hot spots alongside destinations in the Americas. Almost half the advisors named Italy, followed by Alaska. Rounding out the top five were the Dominican Republic, Cancun and Greece. When asked which destinations advisors recommend to ease client concerns, North American locales largely took center stage. Alaska moved into first place, bumping Italy to second. Portugal, Canada and Hawaii also ranked in the top five, followed by Orlando, Cancun and the Dominican Republic. 'Wherever travelers are venturing this summer, advisors will be able to book them a trip with superior value,' commented Mazza-Burney. 'With their close supplier connections, advisors can secure exclusive discounts and promotions as well as complimentary amenities. Those benefits help travelers stretch their budgets even further at this time.' Survey Results 2025 Sales (results from April/May 2025) 34% predict sales will increase somewhat 12% predict sales will increase significantly 22% predict sales will stay the same 26% predict sales will decrease somewhat 6% predict sales will decrease significantly 2025 Sales (results from October/November 2024) 52% predict sales will increase somewhat 27% predict sales will increase significantly 18% predict sales will stay the same 4% predict sales will decrease somewhat Summer Bookings 14% up 10% or more from last summer 22% up between 1% and 9% from last summer 25% the same as last summer 25% down between 1% and 9% from last summer 14% down 10% or more from last summer Client Concerns 50% high cost of travel 41% inflation/rising prices 34% lack of consumer confidence in the economy 29% geopolitical issues 26% safety in certain regions Vacation Budgeting 35% selecting less expensive destinations 35% being flexible with travel timing for lower fares 34% using loyalty points to pay for travel 32% taking fewer trips 26% taking a shorter vacation Top Summer Travel Destinations 46% Italy 41% Alaska 21% Dominican Republic 21% Cancun 19% Greece Top Advisor Recommendations for Summer Travel 36% Alaska 23% Italy 19% Portugal 17% Canada 17% Hawaii Advisors from TRAVELSAVERS and NEST agency affiliates in the U.S. and Canada took the survey from April 22 to May 9, 2025.
CNET
6 days ago
- Business
- CNET
Tariff Impacts Are Real: I Found 12 Companies That Have Confirmed Price Hikes
Whether it's already happened, or coming in the near future, you can definitely expect higher prices from these companies. James Martin/CNET In a lot of ways and for a lot of products in the US, the biggest impacts of President Donald Trump's aggressive tariff plans are still a ways off in the near future. Still, numerous companies have already hiked prices or said that they will be hiked in the near future. The fact of the matter is that tariffs -- a tax placed on the importing of certain products into a country -- will ultimately cause prices to go up, with Walmart characterizing these eventual price hikes as "inevitable" during its earnings call last month. Given Trump's push to place historically high tariffs on goods from almost every country in the world, you can also expect these price hikes to hit a huge variety of products. This truth has begun to sink in for a lot of Americans, if a recent survey conducted by CNET is anything to go by. According to the results, about 38% of consumers feel pressured to make certain purchases before tariffs cause them to go up in price. About 10% said that they had already made certain purchases out in the hope that they'll avoid a future price hike, and 27% said they had delayed purchases for products that cost more than $500. Overall, these concerns about prices were felt the most around popular tech pieces like smartphones, laptops and home appliances. To help you keep score, I've pulled together a list of all the companies that have either confirmed or warned of price hikes due to Trump's tariffs. You can expect new names to be added here as other companies make such announcements. Continue on for all those details, and for more, find out why it's best if you wait on buying a new iPhone. Best Buy Without getting into specifics, Best Buy CEO Corie Barry told the Wall Street Journal late last month that it has already raised prices on certain products as part of its response to the tariffs. e.l.f. Known as an affordable option in the beauty world, e.l.f. announced in late May that it would be implementing a $1 price hike across its product line in response to the tariffs. CEO Tarang Amin claimed that the reaction from customers was positive, on account of the company's transparency. "We're not trying to pull anything over on anyone," Amin told Fortune. "This is exactly what we're facing, and they understand." Macy's Speaking to CNBC in late May, Macy's CEO Tony Spring said that price hikes will be implemented on some products due to tariffs, while also emphasizing that other tactics -- like discontinuing certain products altogether -- will also be a response to rising costs. Mattel Known for brands like Barbie and Hot Wheels, Mattel sounded the alarm over likely price increases during an early May earnings call. While it's unclear how much the toymaker's prices have increased since then, the company told investors that it would be, "where necessary, taking pricing action in its US business," or to put it plainly, raising prices for consumers to mitigate the impact of tariffs. Nikon Camera-maker Nikon will introduce price hikes in response to Trump's tariffs, effective June 23. This move will only target lenses and accessories the company makes and sells, so the cameras themselves are safe for now. "We will be carefully monitoring any tariff developments and may adjust pricing as necessary to reflect the evolving market conditions," a statement from Nikon explained. "We wish to thank our customers for their understanding and know that we are taking every possible step to minimize the impact on our community." Ralph Lauren Sales at the luxury goods retailer Ralph Lauren have apparently remained steady amid recent uncertainty, but the company is still forging ahead with a plan to combat tariff impacts by raising prices more than it had already intended to, according to the Wall Street Journal. Shein and Temu Trump's tariffs have made a notable target of China, hitting the country with a 30% rate only after initially hiking it all the way to 145%. Online retailers like Shein and Temu rely on direct shipments from markets like China in order to offer the rock-bottom prices that made them famous, so it's little surprise now that they've had to raise prices. The Trump administration has furthered the issues faced by these companies by doing away with a rule known as the "de minimus" exception, which used to exclude smaller purchases under $800 from import taxes. With that rule gone, Trump's China tariffs will now apply to both bulk orders of industrial building materials and those shoes you've been looking to buy from Shein. Subaru Subaru has hiked prices across almost its entire line. The increase ranged from $750 to $2,055, depending on the model, with only the EV Solterra avoiding any change. As has become a trend with some companies, Subaru avoided attributing the price hikes to Trump's tariffs, citing only the common refrain of "market conditions." Trump has notably disparaged companies that explicitly lay the blame for price hikes on his policies. "The changes were made to offset increased costs while maintaining a solid value proposition for the customer. Subaru pricing is not based on the country of origin of its products," a Subaru spokesperson said in a statement to Car & Driver. Stanley Black & Decker In an earnings report published April 30, toolmaker Stanley Black & Decker addressed "Price Actions in Response to US Tariffs," stating that it had "implemented an initial price increase in April and notified our customers that further price action is required," and was also looking into ways to shift its supply lines to minimize the impact of tariffs. Volvo The price impact of tariffs at Swedish automaker Volvo are confined, for now, to just one model: the electric EX30. Initially it was set to start at $34,950 in the US -- a competitive price for an EV -- but tariffs targeted at imported cars forced the company to raise the price to $46,195, a 32% bump. Walmart The biggest grocery chain in the US, Walmart is perhaps the most prominent company yet to announce imminent price hikes due to Trump's tariffs. During the company's earnings call in May, CEO Doug McMillan said price hikes would begin by the end of May and impact things like food, electronics and toys. For more, see why buying refurbished tech helps you dodge tariffs and helps the planet.
News.com.au
16-05-2025
- Business
- News.com.au
Criterion: As the travel sector loses altitude, acquirers fly in for the kill
Recent sector downgrades highlight consumer concerns about tariffs and cost of living pressures Webjet Group's depressed valuation has attracted a private equity bidder with a lowball offer Despite the pressures, the key travel stocks are better placed financially than in previous downturns Like a rapidly fading post-holiday suntan, the post-pandemic travel boom has been abruptly curtailed. Tariff and cost-of-living concerns have crimped travel budgets, while there's evidence that haphazard US customs policies are deterring visitors there. As sure as night follows day – although not necessarily on an overseas flight – acquirers are sniffing out unloved stocks. This week, private equity group BGH lobbed a non-binding for flight booking portal Webjet Group (ASX:WJL) which demerged from its business-to-business hotel arm Web Travel Group (ASX:WEB) last October. BGH's offer came after the group built a 10.76% relevant stake in Webjet. On a nostalgic note, that was with the help of 1980s corporate raiders Ariadne Australia and Gary Weiss. Adding to the intrigue, Helloworld Travel (ASX:HLO) has accrued a surprise 5% Webjet Group stake. In the meantime, the out-of-sorts Kelsian Group (ASX:KLS) is in the process of selling its legacy Kangaroo Island ferry business and other tourism assets, in favour of focusing on commuter transport. Losing altitude The corporate manoeverings come amid earnings downgrades from the key operators. Early this month, Flight Centre cited 'short term results volatility brought about by uncertain (cyclical) trading conditions, including the recent changes to US trade and entry policies.' Things were going OK until March, when US 'policy changes' started to impact both corporate and leisure sales. Corporate Travel Management (ASX:CTD) then said full year revenue was likely to be 4% softer than forecast, with underlying earnings likely to be down $30 million relative to expectations at the half year results. The company cites 'broad economic and tariff uncertainty in North America and Asiahas led to reductions in client activity resulting in slower growth than expected during what is traditionally the busiest period of the year.' Helloworld last week trimmed its full year guidance to underlying earnings of $52-56 million, down from the previously indicated $56-62 million. Helloworld's outbound US bookings are only marginally down, while there's strong demand for premium seats across the board. Not everyone is sharing the cost-of-living pain, evidently. Tapering airfares tell the story According to UBS, as of March domestic airfares had fallen an average 9%, reversing the momentum of 2024. International fares fell an average 4%, or 11% in the case of Virgin. At face value, cheaper airfares are positive for demand, but not if folk are unwilling to travel because of geopolitical and economies uncertainties. The trends suggest that travellers are eschewing long-haul trips, in favour of destinations such as Bali, Fiji, Hawaii and Japan. This is consistent with cost-of-living pressures as well as reports of chronic overtourism in favourite European spots. Merger mania If last year's Webjet bifurcation was aimed at making the businesses easier to take over, it has succeeded in its objective. While BGH's 80-cents-per-share tilt was at a 40% premium to Webjet's 'undisturbed' share price, the stock has traded above that level. RBC Capital markets notes Webjet has $100 million of net cash worth 26.7 cents a share – one-third of BGH's offer price of 80 cents per share. The firm opines that even without a takeover premium, Webjet shares are worth $1.05 to $1.30 a share. With a suitable control premium, the board would start talking turkey at $1.26 to $1.50 a share. Not even close! Don't panic, we're not going down The downturn doesn't mean that that travel stocks should be avoided. On the contrary, they tend to overreact to both good and bad conditions. Insofar as Australians are more likely to take a domestic break, the conditions are amenable to local plays such as Experience Co (ASX:EXP), which runs skydiving venues and tree walks. Experience Co this week reported soggy trading because of soggy weather, but notes an 'opportunity to capitalise on sentiment generated by recent US tariff changes'. Helloworld benefits from the enduring strength of cruising, with bookings expected to be 40% higher this year. Like a tired hotel room, there's room for a lick of paint. As part of a much-needed 'brand refresh', Webjet Group plans to double its ticket turnover to $3.2 billion by 2030, including a push into hotel and package offerings. The players are more resilient financially than during the 2007 GFC, or pandemic. In the early days of the plague, Flight Centre executed a $700 million emergency capital raising. Now the company is buying back $200 million of its own shares. There's no need to assume the brace position - but expect some more turbulence and keep the seat belt buckled just in case.
E&E News
12-05-2025
- Automotive
- E&E News
Democratic NY lawmaker readies clean car delay proposal
ALBANY, New York — An upstate Democrat wants to delay a mandate for car makers to sell more electric passenger vehicles. Assemblymember John McDonald said he'd introduce a two-year delay of the regulations, citing consumer cost concerns and the potential loss of federal tax incentives. 'The reality is, if the federal government is truly going to eliminate the $7,500 rebate, that makes it very difficult for the average person to really make that decision on electric vehicles,' McDonald said. 'It doesn't mean we shouldn't continue to march toward that goal, but instead of going 70 mph, we might need to go 45 for a bit, maybe take a couple years to still get to the same destination.' Advertisement Car dealers and automakers have been lobbying to delay the regulations, which follow California's clean car rules. The state-level program already faces an existential threat in Washington.
