Succinct Summation of the Week's Events

Succinct Summation of the Week’s Events:

Positives,

1)Initial jobless figure came in lower than expected by 7k at 233k vs 250k last week. The 4 week average though did rise to 241k from 238k as a print of 223k came out of the calculation. That’s the highest since last August.

2)The WCI Shanghai to Rotterdam trip for a 40 ft container fell $271 w/o/w to $7,929. On this recent run up it peaked at $8,267 a few weeks ago and compares with just under $1,700 at the beginning of the year. The Shanghai to LA route price dropped $239 w/o/w to $6,501, lower for a 4th week after topping at $7,512. It started the year at $2,100. 

3)Helped by the drop in mortgage rates, refi's jumped 16% w/o/w after dropping by 7.2% in the week before.

4)From Six Flags: They had record attendance in the quarter of 8.6 million guests vs 8.3 million in the same quarter last year. "The increase in attendance was the direct result of several factors, including a larger season pass pace; the continued recovery of the group channel, including our school and youth business, which has now recovered back to pre-pandemic levels; and lastly, stronger general demand in the markets where we introduced impactful new rides and attractions for the 2024 season…Food and beverage spending during the quarter was up 3% vs the comparable 3 month period last year. The improved F&B spending was driven by an increase in average transactions per guest and an increase in the average transaction value, reflecting the guest willingness to buy up for higher quality offerings."

5)From Expedia: "The travel environment was healthy in the 2nd quarter, and like the last few quarters, we saw stronger demand internationally relative to the US. Compared to last year, we grew room nights mid-single digits in the US, low double digits in Europe, and in the high teens for the rest of the world. Prices held up for both hotel and vacation rentals, but we saw continued pricing pressure for air and car."

6)From Hilton: "In the quarter, system wide RevPAR increased 3.5% y/o/y, above the midpoint of guidance due to robust group performance, continued recovery in business transient, and easier holiday comparisons…Leisure transient RevPAR continued to exceed prior peaks, supported by solid summer travel demand, particularly in international markets.”

7)From Wynn Resorts: At Wynn Las Vegas, "demand has remained healthy in 3Q with RevPAR up and slot handle broadly in line y/o/y during July despite this year having two fewer weekend days…the booking window is relatively short other than for group and then certain special events, F1 in particular...we're not seeing anything of concern per se with respect to Q4. F1 specifically, which I know was mentioned extensively again on a previous call (the MGM one), F1, they're really top notch operators. And unlike last year when they heavily marketed throughout the year, they just started their big marketing push for the race this month, August. So I'm sure the race will be well executed." In their Macau business, they had 99% hotel occupancy in the month of July. On the outlook, "Q3 continues to pace very well. It's solid. August and September look even better than July. And when we look to Q4, pacing well for the year, will be the best year we've ever had in group and convention and '25 seems to be pacing actually ahead of that, all with strong ADR growth."

8)From Avis Budget: "The environment for our business remains robust with record setting 2nd quarter volume in the Americas. Pricing improved sequentially in May and June from April, with June exiting down 2% y/o/y, but still up significantly compared to 2019 with the Americas showing positive signs for summer pricing."

9)From Uber: "While our consumers tend to be higher income, we're not seeing any softness or trading down across any income cohort. Were the current macroeconomic fears to materialize, we're confident that Uber can perform well because of the countercyclical nature of our platform."