Originally Posted by
florin
There is no going back. Predictive data analytics allows airlines to change their flying patters and adjust pricing, schedules and equipment with incredible accuracy. In the past 2-3 years I've been on many flights that had every seat occupied in Y. (That includes A380s.) Load factors are through the roof thanks to all the info now available. If travel drops, I don't think airlines will drop the prices too much or otherwise chase travelers; instead they'll find ways to slim down (reduce flights, park some planes, furlough some staff) while maintaining profitability.
Hotels are a different animal; I don't know how far they will go to drop their prices tho.
I think you're right about the airlines. Prices are very reasonable now. I just wonder how low their share prices go, when the numbers drop.
As for Starriott, I think they will choke on the acquisition and wonder why they got that big. I don't think investors will flock to them, or the airlines, during the next large correction in the market. Plus occupancy number still matter, I think.
So any guess on when the next downturn happens, or am I dead wrong that one is around the corner?