The outbreak of the pandemic is an unforeseen disaster for the global tourism industry. Therefore, in the “Forbes” annual ranking of the world’s largest listed companies, it is not surprising that most well-known companies in the hotel and cruise industry have dropped hundreds of places.
Marriott dropped more than 400 places on the new Global 2000 list to 868th. Hilton dropped more than 700 places to 1541. Carnival dropped from the top 00 list last year to No. 1,114 this year. Royal Caribbean, MGM Resorts and Las Vegas Sands did not perform much better and fell dramatically in our rankings, which are based on combined scores measured by weights such as revenue, earnings, assets and market value.
New York Citys tourism and entertainment industries are struggling under pandemic restrictions
The worst case of the pandemic may appear in the rearview mirror of the Marriott hotel chain. (Photo: Noam Galai / Getty Images) GETTY IMAGES
“COVID19 has had an impact on our business that we never imagined,” Marriott President Stephanie Linnartz said on the companys latest earnings call. He goes on to describe 2020 as “the most challenging year in our company’s history so far.”
Latest industry-wide earnings report reveals extent of damage. Marriott reported that in the last nine months of 2020, revenue was close to $ 2.2 billion and a net loss of $ 128 million was a far cry from the $ 274 million in net revenue of $ 5.4 billion on the same. 2019 period. The figures for the cruise industry are even more obvious. After earning $ 1.9 billion in revenue in 2019, Royal Caribbean has a net loss of $ 5.8 billion in 2020.
However, the worst loss is almost certain to occur in the rear view mirror. With vaccination rates rising steadily and consumers eager to get back to normal, the economic outlook for tourism is turning optimistic. For example, Carnival reported that its bookings in the first quarter of 2021 were 90% higher than in the fourth quarter of 2020.
However, in terms of planning the road to recovery, investors appear to be more optimistic about hotel companies than about cruise lines. In recent weeks, the share prices of Marriott, Hilton and MGM Resorts have risen to 10-year highs. At the same time, Carnival and Royal Caribbean stock prices are still at least 35% below their January 2020 highs.
In hospitality, catering and other areas of the entertainment industry, the main changes caused by the pandemic are also the determining factor. The power of the three newcomers to this year’s Global 2000. The 4,444 casino and gaming companies Flutter Entertainment, Evolution Gaming, and Penn National Gaming have benefited from the recent boom in online gambling, one of which is due in part to the same factors that have driven the continued rise in rates. intraday transactions: that is, the sudden appearance of a group of suppressed bored people sit at home and do nothing.
Cleveland Indians v Chicago White Sox
The FanDuel owner has entered the world’s top 2000 this year. (Photo: Ron Vesely / Getty Images) GETTY IMAGES
Flutter is an Irish company founded in 2016 by the merger of Paddy Power and Betfair. Today, their brands also include FanDuel and PokerStars. After more than doubling his income from 2019 to 2020, he made his debut at No. 1,180 on this year’s list. Evolution, which focuses on online casino products, was ranked 1,635 after revenue growth of 53% and profit growth of 90%.
“We ended the eventful 2020 with a high profile,” Evolution CEO Martin Carlesund said when the company released its year-end financial update, which is very different from Marriott’s Linnartz. “I’m particularly pleased that we continue to see positive momentum in the number of players and the level of participation.”
Although travel companies have fallen in the global 2000 rankings and online gambling companies have risen, some of the world’s largest fast food brands are satisfied Stick to it. The pandemic has prompted large-scale closures and layoffs of most catering industries, but McDonald’s, YUM! Brands and Chipotle avoided the most serious damage by focusing on delivery and delivery of orders.
McDonald’s ranks 201st in this year’s list, and is the highest-ranked company in the hotel, restaurant and leisure industries. The annual income in 2020 is 14% lower than the previous year. But this seems to be a hurdle on the road: McDonald’s sales in the first quarter of 2021 exceeded the number in the first quarter of 2019.
In addition to recent investments in technology and new adoption of delivery and online orders, CEO Chris Kempczinski cited the company’s franchise-based model as a reason for his resistance in his recent earnings call.
“If we are not a locally owned, locally managed system rooted in the communities in which we operate, it is hard to imagine how we will adapt to the changing environment of the past year,” he said.

By Peter

Leave a Reply

Your email address will not be published. Required fields are marked *