Americans want to travel and are eager to be apart, companies say

Officials say with declining daily new Covid-19 cases, easing restrictions and the strongest consumer finances in recent history, Americans are finally ready to splurge on everything from travel and sporting events to restaurants, cruises and theme parks. emerging from the pandemic.

Companies including Marriott International Inc., Expedia Group Inc., The Coca-Cola Co. and MGM Resorts International recently told analysts that business was already improving from the Omicron plunge and signals an American public eager to stay big.

Wynn Resorts Ltd. “Premium customers who, after joining the first half of 2020 and 2021, are traveling and re-spending with a vengeance,” CEO Craig Billings said Tuesday of the latest quarter.

As more Americans travel, Marriott is seeing more demand for its high-end properties, CEO Anthony Capuano said Tuesday on a conference call with analysts.

At The Walt Disney Company’s theme parks, business returned in the most recent quarter, with revenue from both domestic and international parks more than doubling year-over-year. Chief Financial Officer Christine McCarthy said last week that attendance is still below pre-pandemic levels, but those are showing they are spending 40% more per capita than in 2019.

“We’ve got really strong domestic demand,” CEO Bob Chapek told analysts.

As more Americans venture out, some places are waiving mask requirements. Disney said that starting Thursday, masks will be optional for fully vaccinated visitors to Disney’s outdoor and indoor locations, except for enclosed transportation.

Earlier this week, organizers of the 2022 Stagecoach Festival said they would no longer require negative COVID-19 tests or proof of vaccination from attendees, and Coachella Valley Music and Arts Festival organizers said they would no longer need masks, vaccinations or Negative will not be needed. test in the event.

Aramark, which helps run sports stadiums and other major venues, said attendance at National Football League games was strong throughout the season. The company is gearing up for attendance during the Major League Baseball season to exceed pre-pandemic levels, CEO John Zillmer said last week.

“There is a lot of demand for baseball. We think it will do well this year,” Mr. Zillmer told analysts, although he noted that there was a need to resolve a months-long labor dispute with players before the season began. A successful season is dependent on the league.

There are signs that Americans may start easing spending in the coming months. The University of Michigan’s consumer sentiment index fell to its lowest level in a decade during the first weeks of February amid a historic rate of inflation. But according to Robert Frick, corporate economist at the Navy Federal Credit Union, consumer sentiment about their financial situation hasn’t matched their strong level of spending during the pandemic, and there is little sign of the gap closing.

Travis Berninger, a 31-year-old pharmacist from Orlando, Fla., said she and her husband, a pet store manager, are on their first major vacation in six years, a seven-night voyage to the Caribbean with Royal Caribbean Cruises Ltd. ,

“Being able to work through the pandemic made us feel like we could afford a real vacation. We are planning to book the next cruise while we are at it,” he said, adding that he would like to take another cruise before the end of 2022.

MGM Resorts said attendance at major conventions such as the CES tech conference in January was hurt by the Omicron edition, but after a small drop, the company’s further hotel bookings are well above pre-pandemic levels. And MGM’s 65-plus crowd has now reached pre-pandemic levels in terms of room nights, CFO Jonathan Hulkyard said. The company is looking at more domestic visitors in the coming year.

Airbnb Inc. said that it expects an uptick in international travel this year.

“We’re really optimistic about cross-border travel rebounding and urban travel rebounding,” Airbnb CEO Brian Chesky told analysts on a conference call on Tuesday.

CFO David Stephenson said the company has booked 25% more nights for this summer season compared to 2019.

“We’re just seeing strong demand for travel. People are gearing up to travel this summer.”

Companies reported that people are eating out at restaurants as restrictions are lifted and daily cases are falling. PepsiCo Inc. CEO Ramon Laguarta said domestic consumption remains high, but business at restaurants is picking up.

The company said last week that Coca-Cola’s sales volume in its away from home business exceeded 2019 levels for the first time in the latest quarter.

According to Peter Kern, CEO of Expedia Group Inc., the hassle of traveling right now is weighing on travel demand, rather than the fear of falling ill.

Of the Omicron meltdown, he said last week, “What we noticed most notably is that the issues that developed were really inconvenience issues.” The border was closed, the airlines were out of service because the pilots and crew We’re sick, things of that nature, but consumers’ fears about travel were minimal, and in fact, it was a matter of inconvenience to health issues.”

Airlines recently reported that despite a temporary setback from Omicron, Americans’ demand for air travel remains strong.

American Airlines Group Inc. President Robert Isom, who will take the reins as chief executive in March, told analysts last month, “We don’t see demand as anything more than a delay—we don’t think it has subsided.”

Alaska Air Group Inc. said it expects to be in pre-pandemic capacity by summer. “I know there are inflationary concerns,” Alaska Air Group chief commercial officer Andrew Harrison said last month. “But it didn’t have the effect on the demand economy that we had originally feared.”