Another addition to the HHH Dictionary: K-shaped recovery, where companies serving affluent customers thrive, while those targeting low and middle-income consumers fall behind. And in Q4, the travel industry is living it.
Winners: Delta, United, and Southwest are forecasting record holiday quarters, driven by premium international travel and high-spend customers. Amex users are still swiping freely, and luxury travel bookings are up double digits.
Losers: Hilton, IHG, and Wyndham are all reporting soft U.S. demand and falling RevPAR. Wyndham cut its full-year guidance after a rough Q3. Gen Z and millennial travelers are pulling back, and brands like Spirit and Frontier are feeling the squeeze.
The takeaway? If your business depends on volume over margins, this isn’t your recovery. But if you’re selling to the top of the K, things are looking just fine.
Hope you’re taking notes, all these new buzzwords will be showing up on the HHH final exam 😉
