This past week, several hospitality corporations caused market volatility by suggesting that consumers are pulling back from 2023 spending levels with their brands. Conveniently missing from their comments was that, just maybe, their offerings no longer hold the same appeal as they once did; that consumers are just as interested in traveling...just not to these particular products.
Take AirBnb's claim that market demand for travel is softening. Then why aren't branded hotels sounding the same alarm? Could it be that the STR platforms have allowed marginal players into their mix, causing those of us that initially loved the experience to think twice, three times before booking because we've been burned by experiences that were not even close to what was promised? Our last three rentals have encouraged us to go back to branded and boutique hotels...and I'm sure we're not the only ones. So...it's not the consumer. It's a decline in product quality.
Or Disney's excuse for their Theme Parks posting flat numbers YTD. You can say it's consumers pulling back, but (as reported in the WSJ) a longtime regular customer opines, "Disney has gotten ridiculously expensive. And I ate much better in Italy for much cheaper."
Consumer demand will naturally flatten somewhat after the post-COVID fueled spike and with the American presidential election weeks away. But, let's not send the economy into a dizzy by broad-based claims that it's the consumer...when it might be the quality and price of the product.
Just sayin...
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