BUSINESS NEWS
Booking reports rises in Q3 hotel and flight sales
Booking Holdings reported an 8% increase in booked room nights year on year in the three months to September and a 9% rise in the value of gross bookings in third-quarter results last week. The company posted a total
transaction value of $43.4 billion, revenues of $8 billion and a net profit of $2.5 billion, in line with the same period the previous year. Chief executive Glenn Fogel said
the growth in room nights “exceeded our expectations, driven primarily by stronger performance in Europe”. Booking spent $2.1 million on marketing in the same period and
Glenn Fogel
Lufthansa’s Q3 revenues climb to €10.7bn but yields fall by 3.5%
had total operating expenses of more than $4.8 billion. It reported selling 13 million
airline seats in the quarter, up from nine million the previous year, a rise of 38%, and Fogel said: “Flights are an important component for many of the connected trips our travellers are booking. We continue to see growth in Connected Trip transactions. These increased by over 40% year over year in the third quarter [to] a high single-digit percentage of Booking’s total transactions.”
Lufthansa Group reported an operating profit of €1.3 billion for the three months to September, with quarterly revenue of €10.7 billion the “strongest in the company’s history”. Chief executive Carsten Spohr
hailed “another strong summer” and noted “demand remains high” with bookings for the fourth quarter “at a high level compared to the previous year, particularly in premium classes”. However, Spohr said: “Delayed
aircraft deliveries, punctuality issues in Germany and regulatory disadvantages are impacting our core brand [Lufthansa].” The group also comprises Swiss, Eurowings, Austrian Airlines and Brussels Airlines.
Spohr launched a ‘turnaround’
programme at Lufthansa in July, aimed at saving €1.5 billion through cost- cutting, optimising the network and increasing flexibility and automation, after issuing a profit warning. The group results showed a
5% increase in quarterly revenue year on year and a net profit of €1.1 billion, albeit down from €1.2 billion the previous year. Group airlines carried more than
40 million passengers in the quarter, up 6% year on year, but average yields fell 3.5% amid heightened competition. Average yields in Europe were only down 0.4% but fell by 14% in the Asia-Pacific region.
Cruise groups post record quarters $1.1BN
Ian Taylor and Ella Sagar
Two of the world’s largest cruise groups reported record quarterly results last week as booming demand in the sector shows little sign of flagging. Norwegian Cruise Line Holdings
(NCLH) reported a third consecutive record-breaking quarter for the three months to September, with president and chief executive Harry Sommer hailing an “exceptional performance” as “sustained robust demand continued into the third quarter”. The company, which operates
Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, reported “exceptionally solid demand and pricing” across all three lines and all regions, but in particular for Alaska, Canada and New England sailings.
travelweekly.co.uk NCLH upgraded its full-year
results guidance for the fourth time this year in light of the latest figures. It reported advanced ticket sales
for the quarter were up 6% on the previous year and Sommer hailed “robust pricing, increased pre-sale packages and capacity growth”. The company also highlighted
“stronger-than-anticipated” onboard revenue, particularly from shore excursions, with pre-booked onboard revenue up on last year and almost double the level of 2019. Sommer said cabins were
“essentially fully sold” for the next 12 months with pricing above or in line with this year. However, he said: “We don’t focus on record booked position, we focus on record yield. I can’t take booked position to the bank. Booked yield is 100% our focus.” He confirmed new NCL ship Norwegian Aqua is on course to
Royal’s net profit for the third quarter, up 10% year on year
launch in early 2025, with Oceania’s Allura and Regent’s Seven Seas Prestige also in the pipeline. However, he said: “Longer term
we’ll stick with moderate capacity growth, low to mid-single digit yield growth and low inflationary cost growth.” Also last week, Royal Caribbean
Group posted third-quarter results ahead of its previous guidance, with quarterly revenue hitting $4.9 billion and net profit $1.1 billion, up from $1billion in the same period last year. The group, parent company
of Royal Caribbean International, 7 NOVEMBER 2024 55
Celebrity Cruises and Silversea, reported “higher pricing across key products, particular strength for European and Alaskan itineraries, and better onboard revenue” as well as stronger pricing on “close-in” sales. Group president and chief
executive Jason Liberty noted “exceptional third-quarter results and increased full-year expectations” amid robust demand and said: “We see elevated demand continuing.”
Harry Sommer
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