The financial crisis of 2007 to 2010 has crippled a lot of enterprises. Many businesses have either closed down or resorted to downsizing. Lots of properties were foreclosed and people were suddenly out of jobs. Promising programs and innovative construction projects were halted. But even in these unfortunate turn of events, something positive and unexpected happened. Companies that are engaged in the travel and leisure industry delivered earnings that surprised economy analysts.
For example, certain cruise lines revenues climbed up to about 12 percent more than last year, earning about 40 cents per share. For Wall Street, which was anticipating a loss of 5 cents, this increase was a pleasant surprise. In addition, booking volumes of some cruise lines increased up to 20 percent and net costs per average cruise were down to 2.2 percent. Travel agencies also had their share of increase in revenue and stock value. Because they offered attractive discounts, packages, and moneysaving deals to stay afloat, people took the bait. Thus, many agencies reported earnings of 15 cents per share, 8 cents more than analysts were looking for. Revenues of some major online travel agencies even topped out at 24 percent. Hotels also had their share of financial triumph. Some delivered an increase of 11 cents per share.
These are impressive numbers but what caused the increase of profits and stocks? Analysts determined a variety of factors. First is increased corporate travel so executives can check on ailing branches. Second is the sudden influx of Asian tourists who found travelling to countries affected by the crisis more financially viable because of more relaxed entry requirements, which helped draw more tourists to aid their economies. Lastly, executives of travelrelated companies remained optimistic and bullish because of the fact that travel, like food, is a necessary commodity.