Travel group Amadeus says bookings are recovering; Booking Holdings Says Quarterly Revenue More Than Tripled

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Spain’s travel booking group Amadeus said the number of air bookings it received continued to pick up in the second quarter, notably resuming in June, its best month since the start of the COVID-19 pandemic.

Amadeus air bookings by travel agents were still down 67.6% in the three months ending June compared to the same period in 2019, before the COVID-19 pandemic, but it marked an improvement from the 79.2% contraction recorded in the first quarter of 2021.

No figures were released for the second quarter of last year.

“Airline reservations and boarding passengers have gradually improved each month and accelerated in June, which was the best performing month since the start of the pandemic,” Chief Executive Officer Luis Maroto said in a statement.

International plane reservations have jumped around the world ahead of the northern hemisphere’s summer vacation season, but demand is still fragile amid concerns over COVID-19 mutations, said earlier this month here the International Air Transport Association (IATA).

Passenger demand in June was still 60% lower than pre-crisis levels in 2019, but increased nearly three times compared to the same period last year, according to IATA.

Amadeus said its second-quarter adjusted net loss fell 90% to 23.6 million euros, from a loss of 231 million euros a year earlier, which was the company’s first quarterly loss. in a decade.

Analysts had expected a loss of 48 million euros, according to Refinitiv.

Amadeus has also confirmed that it is on track to deliver its € 550m cost reduction plan in 2021, € 50m more than a year ago.

He also said he expects his capital spending in the third and fourth quarters to be broadly stable from 2020.

The company, which sells online booking software to airlines and travel agents, ended the second quarter with available cash of 3.36 billion euros, up from 3.80 billion euros at the end of March.

Reservation Holdings Inc

Meanwhile, online travel agency Booking Holdings Inc said its quarterly revenues have more than tripled and exceeded estimates, due to strong demand in Europe and the United States, as more and more people were planning their long-delayed getaways.

Shares of the company, down 6% for the year, rose nearly 4% in aftermarket trading on a smaller adjusted quarterly loss, aided by the vaccine rollout and easing of restrictions on travel.

The travel industry has seen a return in demand faster than expected, with economies rebounding from a downturn due to a pandemic.

However, the highly transmissible variant of COVID-19 Delta which has led to an increase in cases in several countries could thwart the recovery.

The United States has decided to maintain existing travel restrictions despite months of lobbying from airlines.

Booking, based in Connecticut, said Asia, where vaccinations were low and cases high, was the least recovered region in July and continues to be down significantly from 2019 levels.

He said fears of a pandemic are moving people away from overcrowded hotels to alternative accommodation such as home stays, adding that nearly a quarter of the listings on his Booking.com platform were for such accommodation at home. end of quarter.

“People are looking for more alternative accommodation than in the past. In the future, this will continue,” Managing Director Glenn Fogel told Reuters.

Overnight stays, a measure of the occupancy rate at any property, jumped 59% in the second quarter from the previous three months, driven by strong demand in Europe and the United States.

As adjusted net loss narrowed to $ 105 million from $ 443 million a year earlier, Booking posted a larger-than-expected loss of $ 2.55 per share, from estimates of $ 2.04. , with operating expenses nearly doubling.

Revenue climbed to $ 2.16 billion, beating Wall Street estimates of $ 1.90 billion, according to IBES data from Refinitiv.

News by Reuters, edited for Hospitality Ireland by Conor Farrelly. Click on subscribe to register for Hospitality Ireland printed edition.


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