Consumers may be feeling the impact of high prices at the store, but they are still willing to spend on travel. Disney reported an 11% increase in parks and experiences revenue during the second quarter, with attendance rising at its US and Hong Kong Disneyland resorts. The company’s chief financial officer, Hugh Johnston, expressed optimism about continued strong growth due to healthy bookings. Disney is also focusing on expanding its theme parks, with plans for an “Avatar”-themed experience at Disneyland in California and a $60 billion investment in parks, cruises, and experiences over the next decade. Other players in the travel industry, such as Delta Air Lines and United Airlines, have also reported strong demand and anticipate a record-breaking spring and summer travel season.
Marriott International raised its full-year earnings guidance in the first quarter, citing a 4.2% increase in global revenue per available room from the previous year. The company’s chief financial officer, Kathleen Oberg, is optimistic about continued sturdy travel demand and economic trends through 2024. However, some executives, including those at Disney, have cautioned that the travel boom seen after Covid restrictions were lifted may be fading. Uncertainties in the economic environment, such as high inflation rates and slowing growth in gross bookings, could also impact the industry. Expedia Group lowered its full-year guidance due to a normalized global travel market and a transition away from pandemic-driven recovery.
FTX, a failed crypto exchange, announced a proposed reorganization plan aiming to pay back most of its creditors in full. The plan, which still needs court approval, would resolve disputes with governmental and private stakeholders without lengthy litigation. FTX faced a major downfall in November 2022, leading to bankruptcy after depositors rushed to withdraw their funds. The former CEO, Sam Bankman-Fried, was found guilty of fraud and conspiracy, including stealing billions from FTX customers and defrauding lenders. He was sentenced to 25 years in prison in March.
Tesla will shut down its Berlin factory to all employees on Friday to prevent potential protests against a planned expansion. The decision to pause production lines was originally announced in January, but with anticipated protests, the company has extended the break to all workers on that day. Opponents of CEO Elon Musk’s plans to increase the factory’s production capacity are planning protests over concerns about clearing forests and straining local water supplies. The protests are part of a four-day demonstration by a coalition of anti-capitalist groups. André Thierig, a senior manufacturing director at the Tesla factory, confirmed the planned production shutdown in response to the protests.