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Industry Update Summary May 2012
Analysts: Deepak Jain
TravelStats | Published: July 2012
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Publication Summary

Everyone is suddenly worried about the economy, including us. As recently as our Webinar in May, we argued that the economy had perhaps four months of bullish runway left before concerns about the presidential election and the many fiscal decisions that must be made after November 6 become more pressing. This is especially the case as tax cuts expire and scheduled spending cuts are set to take effect at the New Year. And it's a big deal, since estimates are that the full panoply of austerity built into current law would reduce gross domestic product by 4% or more next year – assuming, not outlandishly, that Congress can't make decisions about a combination of taxes and spending that would do better.

Instead, the weak economy seems to have arrived early. There are now three months of shaky U.S. job growth, Europe is slipping into at least a moderate recession (with some countries doing much worse) and economists are cutting forecasts for the second half. Bank of America Merrill Lynch sees U.S. growth slipping late in the year. That's a recipe for weak confidence, for both consumers and businesses.

Table of Contents

8 Pages

Introduction

Industry Update Summary

Hotel Industry Update

Hotel Performance

Airline Industry Update

Online Travel Update

Airline Performance

Airline Hotel Comparison