Deliverable 1 - Core Managerial Finance Concepts and Data
vargasperez
getIndustryReport.pdf
1Mergent by FTSE Russell
F O L LO W U S
ICB code 5700
Travel and Leisure
A company and industry analysis
North America
MARCH 2020
Current Environment • The US travel and leisure sector declined slightly, with tourist arrivals totaling 37.08 million in the first six months of 2019, 1.70% down from 37.72 million a year earlier.
• In the six months ending in March 12, 2020, the top travel and leisure stocks in the US fell by 34.28%.
• In the six months ending in March 9, 2020, key Canadian travel and leisure stocks fell by 22.77%.
• Hoteliers continued a deal-making spree as the hotel industry became more competitive. • Marriott International (NASDAQ: MAR) continued to reign as the world’s largest hotel company.
• Blackstone REIT Inc, a subsidiary of Blackstone Group Inc (NYSE: BX), a private equity company acquires Bellagio Hotel & Casino, a subsidiary of MGM Resorts International (NYSE: MGM), a hotel company for US$4.25 billion.
Industry Profile • The US travel and tourism sector is among the country’s largest service industries, comprising several inter-related businesses such as lodging properties, airlines, casinos, restaurants, cruise lines, car rental firms, travel agents and tour operators, among others.
• The travel industry contributed 2.90% of total GDP and directly generated about US$170.90 billion in taxes for local, state and federal governments in 2018, according to the US Travel Association.
• The US travel and leisure sector employed 16.72 million in September 2019. • The market capitalization of the top US travel and leisure companies totaled US$397.90 billion on March 9, 2020.
• The market capitalization of the top Canadian travel and leisure companies totaled C$27.41 billion (US$19.76 billion) on March 6, 2020.
Market Trends & Outlook • Hotel companies are venturing into regions such as Asia-Pacific and East Asia to take advantage of its opportunities and long-term growth prospects and to broaden their customer base and market share.
• Cruise companies are overhauling their fleet to improve capacity and passenger experience. • The home-sharing model has become extremely popular in recent years and appears to be going from strength to strength.
• Canadian travel and leisure companies seek to benefit from the emergence of the cannabis tourism industry in Canada.
• Canada’s domestic tourism sector is likely to grow, with improving domestic demand, a weak Canadian dollar and other market drivers.
CURRENT ENVIRONMENT UNITED STATES • Sector Overview • Sector Performance • Sector Indexes • Leading Companies • Mergers, Acquisitions and Alliances
CURRENT ENVIRONMENT CANADA • Sector Overview • Sector Performance • Leading Companies • Mergers, Acquisitions and Alliances
INDUSTRY PROFILE UNITED STATES • Industry Size and Value • Employment • Market Capitalization
INDUSTRY PROFILE CANADA • Industry Size and Value • Market Capitalization • Employment • Trade Activity
ENVIRONMENTAL, SOCIAL AND GOVERNANCE • Hoteliers’ Focus on Sustainable Operations
• ESG Investment in Leisure and Travel Will Continue to Grow
• Company ESG Ratings
MARKET TRENDS & OUTLOOK UNITED STATES • Hotel Companies Expand Overseas • Cruise Companies Upgrade Their Fleet • Home-Sharing Grows in Popularity • Market Outlook
MARKET TRENDS & OUTLOOK CANADA • Canada’s Cannabis Tourism Grows • Culinary Tourism Continues to Develop • Indigenous Tourism Thrives • Market Outlook
CURRENCY CONVERSION TABLE THE SCOPE OF THIS REPORT KEY REFERENCES COMPARATIVE DATA INDUSTRY REPORTS COVERAGE
Contents Key Points
2Mergent by FTSE Russell
Travel and Leisure
http://www.mergent.com
http://www.mergentindustryreports.com/
Copyright Copyright 2020 by FTSE Russell All Information contained herein is copyrighted in the name of FTSE Russell and none of such information may be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, redistributed or resold, or stored for subsequent use for any such purpose, in whole or in part, in any form or matter or by any means whatsoever, by any person without prior written consent from FTSE Russell.
Disclaimer All information contained herein is obtained by FTSE Russell, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information is provided “as is” without warranty of any kind. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY INFORMATION IS GIVEN OR MADE BY FTSE RUSSELL IN ANY FORM OR MANNER WHATSOEVER. Under no circumstances shall FTSE RUSSELL have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to, any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analyzing, editing, transcribing, transmitting, communicating or delivering any such information, or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if FTSE Russell is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information.
Travel and Leisure North America
Publisher FTSE Russell
Director John Pedernales
Research Analyst Norman Lau Sze Siang
Website http://www.mergentarchives.com/ http://www.mergentindustryreports.com/
Customer Service 1800 342 5647 or 704 559 7601 email: [email protected]
Sales Enquiries For sales inquiries contact your local Mergent Representative
The North America Industry Reports are published by FTSE Russell, headquartered in Fort Mill, South Carolina, USA. Each industry sector report is updated every six months. FTSE Russell, a leading provider of global business and financial information on publicly traded companies, operates sales offices in key North American cities as well as London, Tokyo and Melbourne.
3Mergent by FTSE Russell
Travel and Leisure
Trade groups that represent thousands of businesses and millions of jobs also aim to collaborate with the US Government to improve tourism in the US with measures such as endorsing friendlier visa and border-security policies. Other
organizations involved in the coalition include the International Association of Exhibitions and Events, the National Restaurant Association and the National Retail Federation.
Sector Overview
The US travel and leisure sector declined slightly, with tourist arrivals totaling 59.56 million in the first nine months of 2019, 1.30% down from 60.34 million a year earlier according to the National Travel and Tourism Office (NTTO). Travel and tourism contributed US$1.10 trillion to the country’s economy in 2018, the US Travel Association reported. Tourist arrivals from China also fell slightly due the setbacks in trade relations between China and the US. Tourist arrivals from China amounted to 1.43 million in the first six months of 2019, down 3.38% from 1.48 million last year according to the National Travel and Tourism Office (NTTO). NTTO figures showed that leisure travel spending in the US totaled US$761.70 billion in 2018, comprising of 69.25% of total travel spending in the US. The US Government has been stepping up efforts to further improve the travel and leisure industry as it gains prominence in the US economy.
Current Environment United States
Table 1: Closing Share Prices for Leading US Travel and Leisure Companies
Company September 12, 2019 March 12, 2020 Percentage Change Hilton Worldwide (NYSE: HLT) US$94.77 US$76.72 -19.05%
McDonald’s (NYSE: MCD) US$212.15 US$170.13 -19.81%
Las Vegas Sands (NYSE: LVS) US$60.15 US$44.15 -26.60%
Marriott International (NYSE: MAR) US$132.51 US$93.71 -29.28%
Yum! Brands (NYSE: YUM) US$113.27 US$78.45 -30.74%
Starbucks Corporation (NASDAQ: SBUX) US$92.06 US$62.10 -32.54%
Southwest Airlines (NYSE: LUV) US$54.98 US$36.07 -34.39%
Booking Holdings (NASDAQ: BKNG) US$2,041.41 US$1,280.40 -37.28%
Delta Air Lines (NYSE: DAL) US$59.44 US$33.71 -43.29%
Carnival Corporation & Plc (NYSE: CCL) US$49.62 US$14.97 -69.83%
Average Rise/Fall -34.28% Source: Mergent Analysis
4Mergent by FTSE Russell
Travel and LeisureCurrent Environment United States
Sector Performance
From September 12, 2019, to March 12, 2020, the stock prices of major US travel and leisure stocks tracked by Mergent fell by an average of 34.28% over the period due to the slump in the travel and leisure sector caused by the COVID-19 virus outbreak. Carnival Corporation & Plc (NYSE: CCL) shares fared the worst among the top travel and leisure companies, with a price decline of 69.83%, from US$49.62 to US$14.97.
Sector Indexes The FTSE global equity index provides capital growth measurement data for the travel and leisure industry with mixed
review periods and considers the ancillary impact of the sector on the global and North American economies. It showed that the travel and leisure industry had a total return of -29.19% in the three months ended March 16, 2020. This indicates a decline in the overall travel and leisure industry in the span of three months. The industry had a -29.94% return in the year to March 16, 2020.
Leading Companies
Top travel and leisure companies — analyzed by Mergent based on their market capitalization — continued to progress in fiscal 2018. The total revenue of the mentioned conglomerates was US$194.66 billion, up 13.94% from US$170.84
Table 2: Index Performance of Travel and Leisure Industries (Total Return)
FTSE Index Name Value Return 1 Day 1 Week 1 Month 3 Months Year-to-Date
Travel and Leisure US$512.78 2.42% -14.79% -29.23% -29.19% -29.94% Note: Based on end-of-day data for the Total Return Index as of March 16, 2020 Source: FTSE Equity Index
Table 3: Financials of Leading Travel and Leisure Companies for Fiscal 2018
Travel and Leisure Companies
Revenue % Change
Net Income/Loss % Change2018 2017 2018 2017
McDonald’s (NYSE: MCD)
US$21.03 billion
US$22.82 billion
-7.84 US$5.92 billion
US$5.19 billion
14.07
Yum! Brands (NYSE: YUM)
US$5.69 billion
US$5.88 billion
-3.23 US$1.54 billion
US$1.34 billion
14.93
Las Vegas Sands (NYSE: LVS)
US$13.73 billion
US$12.88 billion
6.60 US$2.41 billion
US$2.81 billion
-14.23
Marriott International (NYSE: MAR)
US$20.76 billion
US$5.13 billion
304.68 US$1.91 billion
US$1.37 billion
39.42
Booking Holdings (NASDAQ: BKNG)
US$14.53 billion
US$12.68 billion
14.59 US$4 billion US$2.34 billion
70.94
Hilton Worldwide (NYSE: HLT)
US$8.91 billion
US$9.14 billion
-2.52 US$764 million
US$1.26 billion
-39.37
Starbucks Corporation (NASDAQ: SBUX)
US$24.72 billion
US$22.39 billion
10.41 US$3.55 billion
US$4.52 billion
-21.46
Delta Air Lines ( NYSE: DAL)
US$44.44 billion
US$41.24 billion
7.76 US$3.94 billion
US$3.58 billion
10.06
Southwest Airlines (NYSE: LUV)
US$21.97 billion
US$21.17 billion
3.78 US$2.47 billion
US$3.49 billion
-29.23
Carnival Corporation & Plc (NYSE: CCL)
US$18.88 billion
US$17.51 billion
7.82 US$3.15 billion
US$2.61 billion
20.67
Total US$194.66 billion
US$170.84 billion
13.94 US$29.65 billion
US$28.51 billion
4.00
Source: Mergent Analysis
5Mergent by FTSE Russell
Travel and LeisureCurrent Environment United States
billion in fiscal 2017 while total net profit totaled US$29.65 billion, up 4% from US$28.51 billion in fiscal 2017.
Marriott International (NASDAQ: MAR) was the top performer in terms of revenue. The company managed to significantly increase its revenue by 304.68% from US$5.13 billion to US$20.76 billion due to increases in the number of rooms from acquisitions. McDonald’s (NYSE: MCD) had the largest fall in revenue, recording a decline of 7.84% from US$22.82 billion to US$21.03 billion due to restructuring efforts. In terms of net income, Booking Holdings (NASDAQ: BKNG) recorded the largest rise of 70.94% from US$2.34 billion to US$4 billion due to bookings growth. Hilton Worldwide
(NYSE: HLT) had the largest fall in net income with a fall of 39.37% from US$1.26 billion to US$764 million.
Mergers, Acquisitions and Alliances
Travel and leisure mergers and acquisition (M&A) activity increased as the industry became more competitive, with companies increasingly willing to seek suitable companies with which to form strategic alliances and partnerships. Based on the disclosed figures below, the largest acquisition deal was Blackstone REIT Inc’s acquisition of Bellagio Hotel & Casino for US$4.25 billion.
Table 4: Notable Mergers and Acquisitions in the US
Announcement Date
Acquirer Target Deal Value Deal Status Form of the Transaction
Deal Purpose Country
October 18, 2019
Fore Gold Partners Llc, a privately-held lessor and acquirer of gold clubs
Portmarnock Hotel & Golf Links, a privately-held golf course operator
US$3 million
Completed Acquisition of Assets
Boost market presence and expand market
US- US
October 18, 2019
Wellington Equine Estates Llc, a privately-held equine farming company
Palm Beach Polo Golf and Country Club, a privately-held golf course operator
US$16 million
Completed Acquisition of Assets
Boost market presence and expand market
US- US
October 15, 2019
Privately-owned real estate company Blackstone REIT Inc, a subsidiary of Blackstone Group Inc (NYSE: BX), a private equity company
Privately-owned hotel company Bellagio Hotel & Casino, a subsidiary of MGM Resorts International (NYSE: MGM), a hotel company
US$4.25 billion
Pending Acquisition of Assets
Boost market presence and expand market
US- US
October 10, 2019
Real estate investment trust, Service Properties Trust (NASDAQ: SVC)
Kimpton Hotel Palomar, Chicago, a privately-held hotel company
US$55 million
Completed Acquisition of Assets
Boost market presence and expand market
US- US
October 10, 2019
2925 Indian Creek Dr Llc, a privately-held lessor of real estate property
Alden Hotel, Miami Beach, Florida, a privately-held hotel company
US$21.30 million
Completed Acquisition of Assets
Boost market presence and expand market
US- US
Source: Mergent Analysis and Refinitiv
6Mergent by FTSE Russell
Travel and Leisure
Tourism spending in Canada in second quarter 2019
amounted to C$24.30 billion (US$17.52 billion), up
2.19% from C$23.78 billion (US$17.15 billion) from
second quarter 2018. The industry remains committed
to market diversification. Significant progress has been
made through government initiatives, investment in new
open markets, improved visa facilitation and air access
agreements with other countries.
Sector Performance
From September 9, 2019, to March 9, 2020, ten out of
ten major Canadian travel and leisure stocks tracked by
Mergent experienced share prices decreases. The prices
of the stocks fell by an average of 22.77% over the period
due to the slump in the travel and leisure industry over
Sector Overview
Travel and leisure sector proving to be an essential pillar of the Canadian economy. Canada’s inbound travel and leisure sector was bolstered by growth in tourist arrivals from the emerging middle classes in Asia and Latin America, which were previously unable to or could not afford to travel abroad. Even though foreign visitors are pouring into the country, Canadians stuck close to home throughout 2019, due to a weaker local currency. The sector is over-reliant on domestic travel as more than 80% of its revenue derived from Canadians traveling within Canada.
Current Environment Canada
Table 5: Selected Companies’ Share Price Movements in the Six Months from September 9, 2019 to March 9, 2020
Travel and Leisure Companies Share Price on
Rise/Fall September 9, 2019 March 9, 2020
TWC Enterprises (TSX: TWC) C$13.13 (US$9.47) C$12.50 (US$9.01) -4.80%
Transat AT (TSX: TRZ) C$15.12 (US$10.90) C$13.05 (US$9.41) -13.69%
Pizza Pizza Royalty (TSX: PZA) C$10.12 (US$7.30) C$8.52 (US$6.14) -15.81%
Canlan Ice Sports (TSX: ICE) C$4.88 (US$3.52) C$3.94 (US$2.84) -19.26%
A&W Revenue Royalties Income Fund (TSX: AW_u) C$40.14 (US$28.94) C$31.63 (US$22.81) -21.20%
The Keg Royalties Income Fund (TSX: KEG_u) C$16.38 (US$11.81) C$12.41 (US$8.95) -24.24%
MTY Food Group (TSX: MTY) C$64.00 (US$46.15) C$47.93 (US$34.56) -25.11%
Restaurant Brands International (TSX: QSR) C$98.59 (US$71.09) C$71.42 (US$51.50) -27.56%
Boston Pizza Royalties Income Fund (TSX: BPF_u) C$17.33 (US$12.50) C$11.67 (US$8.41) -32.66%
Freshii (TSX: FRII) C$3.09 (US$2.23) C$1.75 (US$1.26) -43.37%
Average Rise/Fall -22.77% Source: Mergent Analysis
7Mergent by FTSE Russell
Travel and LeisureCurrent Environment Canada
the COVID-19 virus outbreak. Freshii (TSX: FRII) shares
had the worst performance among the top travel and
leisure companies, with a price decline of 43.37%, from
C$3.09 (US$2.23) to C$1.75 (US$1.26).
Leading Companies
Top travel and leisure companies — analyzed by Mergent
based on their market capitalization — continued to
progress in fiscal 2018. Revenues of the mentioned
conglomerates were CS$9.55 billion (US$6.89 billion),
with Great Canadian Gaming being the top performer.
The company managed to significantly increase its
revenue by 98.60% due to the acquisition and expansion
of new facilities. TWC Enterprises (TSX: TWC) had the
largest fall in revenue, recording a decline of 26.97% due
to a fall in gold club memberships.
In fiscal 2018, all top companies tracked managed to
record a total net income of C$1.06 billion (US$764.29
million), up 41.37% from CS$749.78 million (US$540.62
million). TWC Enterprises, based on Mergent analysis,
was the top gainer, where its net income came at
C$223.29 million (US$161 million), up 10,845.59%
from C$2.04 million (US$1.47 million) due to gains from
discontinued operations. Boston Pizza Royalties Income
Fund (TSX: BPF_u) was the worst performing company,
where the net income dipped 67.88% to C$8.67 million
(US$6.25 million).
Table 6: Financials of Leading Travel and Leisure Companies for the Fiscal 2018
Travel and Leisure Companies
Revenues % Change
Net Income % Change
2018 2017 2018 2017
Great Canadian Gaming (TSX: GC)
C$1.22 billion (US$879.66 million)
C$614.30 million (US$442.93 million)
98.60 C$151.20 million (US$109.02 million)
C$84.30 million (US$60.78 million)
79.36
Restaurant Brands International (TSX: QSR)
US$5.36 billion US$4.58 billion 17.03 US$612 million US$648 million -5.56
Pollard Banknote (TSX: PBL)
C$331.87 million (US$239.29 million)
C$285.65 million (US$205.96 million)
16.18 C$14.85 million (US$10.71 million)
C$16.78 million (US$12.10 million)
-11.50
TWC Enterprises (TSX: TWC)
C$165.94 million (US$119.65 million)
C$227.22 million (US$163.83 million)
-26.97 C$223.29 million (US$161.36 million)
C$2.04 million (US$1.47 million)
10,845.59
A&W Revenue Royalties Income Fund (TSX: AWU_u)
C$40.89 million (US$29.48 million)
C$35.67 million (US$25.72 million)
14.63 C$23.40 million (US$16.87 million)
C$21.96 million (US$15.83 million)
6.56
Pizza Pizza Royalty (TSX: PZA)
C$35.41 million (US$25.53 million)
C$35.61 million (US$25.68 million)
-0.56 C$26.89 million (US$19.39 million)
C$27.05 million (US$19.50 million)
-0.59
The Keg Royalties Income Fund (TSX: KEG_u)
C$29.66 million (US$21.39 million)
C$28.58 million (US$20.61 million)
3.78 C$29.22 million (US$21.07 million)
C$17.06 million (US$12.30 million)
71.27
Boston Pizza Royalties Income Fund (TSX: BPF_u)
C$45.61 million (US$32.89 million)
C$44.68 million (US$32.22 million)
2.08 C$8.67 million (US$6.25 million)
C$26.99 million (US$19.46 million)
-67.88
MTY Food Group (TSX: MTY)
C$353.30 million (US$254.74 million)
C$276.08 million (US$199.06 million)
27.97 C$98.58 million (US$71.08 million)
C$49.51 million (US$35.70 million)
99.11
Gamehost (TSX: GH) C$70.40 million (US$50.76 million)
C$68.20 million (US$49.17 million)
3.23 C$17.00 million (US$12.26 million)
C$16.70 million (US$12.04 million)
1.80%
Sportscene Group (TSX: SPSa)
C$103.99 million (US$74.98 million)
C$95.09 million (US$68.56 million)
9.36 C$3.07 million (US$2.21 million)
C$1.52 million (US$1.10 million)
101.97
Total C$9.55 billion (US$6.89 billion)
C$7.82 billion (US$5.64 billion)
22.12 C$1.06 billion (US$764.29 million)
C$749.78 million (US$540.62 million)
41.37
Source: Mergent Analysis
8Mergent by FTSE Russell
Travel and LeisureCurrent Environment Canada
Mergers, Acquisitions and Alliances
As the US travel and leisure industry became more
competitive, the number of mergers, acquisitions
and alliances increased. Travel and leisure companies
were eager to find suitable partners to form strategic
alliances. Based on the disclosed figures below, the
largest acquisition deal was VCM Ltd, a privately-held
intermediating company’s acquisition of American Hotel
Income Properties REIT LP (TSX: HOT.UN) for US$216
million.
Table 7: Notable Mergers and Acquisitions
Announcement Date
Acquirer Target Deal Value
Deal Status Form of the Transaction
Deal Purpose Country
October 16, 2019
Sandman Hotel Group, a privately-held hotel operator.
Portmarnock Hotel & Golf Links, a privately- held golf resort company
US$55 million
Completed Acquisition of Assets
Boost market presence and expand market
Canada- Ireland
August 28, 2019
Investment company DLC Holdings Corp (TSXV: DLC.V)
Blacktail Mountain Ski Area, a privately-held skiing facility operator
US$4 million
Pending Acquisition of Assets
Boost market presence and expand market
Canada- US
July 30, 2019
VCM Ltd, a privately-held intermediating company
Real estate Investment trust American Hotel Income Properties REIT LP (TSX: HOT.UN)
US$216 million
Pending Acquisition of Assets
Boost market presence and expand market
Canada- Canada
July 17, 2019
Investment company Planet Ventures Inc (TSXV: PXI)
First Eleven Ltd, a privately-held amusement arcade operator
US$9 million
Pending Acquisition of Assets
Boost market presence and expand market
Canada- UK
June 21, 2019
Asset management company Brookfields Asset Management (TSX: BAM.A)
Mayfair Hotel & Spa, a privately- held hotel operator
US$40 million
Completed Acquisition of Assets
Boost market presence and expand market
Canada- US
Source: Mergent Analysis and Refinitiv
9Mergent by FTSE Russell
Travel and Leisure
The travel industry contributed 2.90% of total GDP and directly generated about US$170.90 billion in taxes for local, state and federal governments in 2018, according to the US Travel Association. Direct spending by resident and international travelers amounted to US$323.30 billion while leisure travel spending contributed US$117.40 billion in taxes.
The US had 79.62 million international visitors in 2018, up 2.76% from 76.94 million in 2017, according to the National Travel and Tourism Office (NTTO). It also noted that international visitors spent US$170.30 billion at US destinations in the first eight months of 2019, 0.86% down from US$171.78 billion a year earlier.
Industry Size and Value
The travel and leisure sector has long been an important driver and a bellwether of the health of the US economy. It is among the largest service industries, comprising several interrelated businesses such as lodging properties, airlines, casinos, restaurants, cruise lines, car rental firms, travel agents and tour operators, among others.
Industry Profile United States
Chart 8: Americans Overseas Departures by Market Share
Source: National Travel and Tourism Office (NTTO)
17.00%
9.80%
6.70%
2.50% 3.70%
0.90%
2.70%
0.50%
19.10%
9.40%
6.70%
2.30% 3.50%
0.90%
2.60%
0.50%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Europe Carribean Asia South America
Central America
Oceania Middle East
Africa
2017 2018
10Mergent by FTSE Russell
Travel and LeisureIndustry Profile United States
The number of Americans visiting foreign countries rose to 93.04 million in 2018, up by 6.09% from 87.70 million in 2017, thanks to a strong US dollar making overseas travel cheaper. Spending by American travelers totaled US$186.51 billion, 7.34% up from US$173.76 billion in 2017, NTTO reported. This included US$144.46 billion in travel for all purposes including education and US$42.04 billion in passenger fares.
Employment
The sector generates more than US$1 trillion in economic output annually and is one of the country’s largest employers, providing jobs in transportation, hotels, restaurants, retail, entertainment and many other segments. The Bureau of Labor Statistics reported that it supported 16.72 million American jobs in
September 2019. The industry is also a major employer of younger workers, those without college degrees and those hurt by the financial crisis, with one out of every 18 Americans working, either directly or indirectly, in a travel or tourism- related industry.
Market Capitalization
The market cap of leading US travel and leisure companies tracked by Mergent totaled US$397.90 billion on March 9, 2020. McDonald’s had the largest share, 37.26%, followed by Booking Holdings (NASDAQ: BKNG), 16.64%; Las Vegas Sands, 10.53%; Marriot, 9.02%; Yum! Brands, 6.76%; Hilton (NYSE: HLT), 6.31%; Chipotle Mexican Grill Inc (NYSE: CMG), 5.05%; and Expedia Inc (NASDAQ: EXPE) with 3.23%.
Table 9: Travel and Leisure Employment (Seasonally Adjusted) (In thousands of employees)
Year Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2017 15,884 15,920 15,939 16,010 16,029 16,061 16,118 16,123 16,043 16,145 16,163 16,195 2018 16,208 16,233 16,244 16,262 16,300 16,343 16,378 16,395 16,371 16,450 16,489 16,554 2019 16,643 16,643 16,678 16,687 16,699 16,703 16,690 16,699 16,720 n/a n/a n/a
Source: Bureau of Labor Statistics
Table 10: Market Capitalization of Leading Companies on March 9, 2020 (In billions of US$) Company Market Capitalization Market Share McDonald’s Corp (NYSE: MCD) US$148.24 37.26%
Booking Holdings (NASDAQ: BKNG) US$66.20 16.64%
Las Vegas Sands Corp (NYSE: LVS) US$41.90 10.53%
Marriott International Inc (NYSE: MAR) US$35.88 9.02%
Yum! Brands Inc (NYSE: YUM) US$26.89 6.76%
Hilton Worldwide Holdings, Inc (NYSE: HLT) US$25.10 6.31%
Chipotle Mexican Grill Inc (NYSE: CMG) US$20.08 5.05%
Expedia Inc (NASDAQ: EXPE) US$12.86 3.23%
Darden Restaurants Inc (NYSE: DRI) US$10.71 2.69%
MGM Resorts International (NYSE: MGM) US$10.04 2.52% Source: Mergent Analysis
11Mergent by FTSE Russell
Travel and Leisure
Canada’s tourism spending totaled C$24.30 billion (US$17.52 billion) in second quarter 2019, 3.27% up from C$23.53 billion (US$16.97 billion) in 2018, thanks to high tourism activities. Domestic travel spending generated C$19.10 billion (US$13.77 billion) in second quarter 2019, 0.10% up from C$19.08 billion (US$13.76 billion) a year earlier,
driven by rises in accommodation and food and beverage services. Expenditures by international visitors in second quarter 2019 increased by 2.40% to C$5.25 billion (US$3.79 billion) from C$5.13 billion (US$3.70 billion) a year earlier due to rises in transportation, accommodation and food and beverage services.
Industry Size and Value
Ranging from small and medium-sized businesses such as hotels, lodges, wineries and spas operating in a single location to large corporations, the travel and leisure sector is one of the major contributors to the Canadian economy. Tourism’s contribution to GDP was C$33.90 billion (US$24.44 billion) in the first nine months of 2018, up from 5.90% in 2017, Statistics Canada reported.
Industry Profile Canada
Chart 11: Canada’s Travel and Leisure Spending in Second Quarter 2019
Source: Statistics Canada
Transportation, 41.83% (C$10.17 billion), 41.83%
Accomodation, 13.78% (C$3.35 billion), 13.78%
Food and beverage services, 15.14% (C$3.68 billion), 15.14%
Other tourism commodities, 14.03%
(C$3.41 billion), 14.03%
Other commodities, 15.22% (C$3.70 billion), 15.22%
12Mergent by FTSE Russell
Travel and Leisure
Tourism to places of aboriginal heritage provided C$2.50 billion (US$1.80 billion) in gross economic output, C$1.34 billion (US$966.18 million) in national GDP, C$817 million (US$589.08 million) in wages and more than C$63 million (US$45.43 million) in tax revenue to municipal, provincial and federal governments, O’Neil Marketing and Consulting study commissioned by the Aboriginal Tourism Association of Canada (ATAC) reported.
Among the five tourism and hospitality segments, total spending in second quarter 2019 was greatest on transportation which amounted to C$10.17 billion (US$7.33 billion), Statistics Canada reported. Transportation spending and gastronomy tourism is set to grow further in 2019, thanks to the improving economy and increase in disposable income among travelers.
Market Capitalization
The market capitalization of the top companies totaled C$27.41 billion (US$19.76 billion) on March 6, 2020, with Restaurants Brands (TSX: QSR) accounting for 78.55%. Next on the list was Great Canadian Gaming (TSX: GC) and MTY Food (TSX: MTY) with market capitalization worth C$2.07 billion (US$1.49 billion) and C$1.29 billion (US$930.13 million) respectively.
Employment
The travel and tourism industry support businesses and workers in every region and territory and many Canadians rely on tourism for their livelihoods in more than 400 occupations, which require various levels of skill, experience and education.
The Canadian Tourism Human Resource Council (CTHRC) forecasts the travel services industry expected a 14.20% rise in labor demand between 2010 and 2030 when there could be 49,000 year– round jobs in the sector.
The Indigenous Tourism Association of Canada forecasts employment to grow from 33,000 jobs in 2016 to 40,233 jobs by 2021. Tourism companies that operate in the segment are involved in a variety of businesses, including outdoor and adventure related activities, event and conference management and attraction-related products, experiences and services.
Trade Activity
Outbound Travel
According to Statistics Canada, the number of Canadian trips to the US totaled six million trips in
Industry Profile Canada
Table 12: Market Capitalization of Leading Companies as on March 6, 2020
Name Market Capitalization Market Capitalization in Percentage
Restaurant Brands (TSX: QSR) C$21.53 billion (US$15.52 billion) 78.55%
Great Canadian Gaming (TSX: GC) C$2.07 billion (US$1.49 billion) 7.55%
MTY Food (TSX: MTY) C$1.29 billion (US$930.13 million) 4.71%
Transat AT (TSX: TRZ) C$551.94 million (US$397.97 million) 2.01%
A&W Revenue Royalties Income Fund (TSX: AW_u) C$475.95 million (US$343.18 million) 1.74%
Pollard Banknote (TSX: PBL) C$451.08 million (US$325.24 million) 1.65%
TWC Enterprises (TSX: TWC) C$347.81 million (US$250.78 million) 1.27%
Boston Pizza Royalties (TSX: BPF_u) CS$281.40 million (US$202.90 million) 1.03%
Pizza Pizza Royalty (TSX: PZA) C$226.49 million (US$163.31 million) 0.83%
Gamehost (TSX: GH) C$184.44 million (US$132.99 million) 0.67% Source: Mergent Analysis
13Mergent by FTSE Russell
Travel and LeisureIndustry Profile Canada
first quarter 2019 up by 3% from 5.83 million trips in first quarter 2018. The number of Canadian trips abroad (not including trips to the US) totaled 3.30 million trips in first quarter 2019, or 0.30% down from 3.29 million in first quarter 2018.
Inbound Travel
Destination Canada estimated that international travelers, including those from the US, made 12.43 million trips to Canada in the first seven months of 2019, 4.60% up from 11.88 million trips a year earlier. The number of trips by US residents to Canada in the first seven months of 2019 increased by 5.10% to 11.12 million from 10.58 million in 2018. US travelers to Canada spent C$1.37 billion (US$987.81 million) in first quarter 2019 with accommodation comprising of 39.53% of the total expenditure.
14Mergent by FTSE Russell
Travel and Leisure
ESG is not new for the sector, with most companies meeting ESG requirements, taking sustainable practices seriously and contributing to solving environmental and social challenges to improve their corporate value.
Hoteliers’ Focus on Sustainable Operations
US hotel chains are taking sustainability seriously, with past efforts having an impact on emissions, water use, waste and costs. In 2018, Hilton Worldwide had reduced carbon emissions by 31%, energy consumption by 22% from 2008 levels and maintained certification to ISO 50001 (Energy Management), ISO 14001 (Environmental Management) and ISO 9001 (Quality Management) across our portfolio of more than 5,600 hotels. Hyatt International aims to reduce energy consumption and greenhouse gas emissions by 20% from 2006 levels by 2020. It seeks to divert 40% of waste from landfills and has set environmentally friendly guidelines for future property construction.
TripAdvisor (NASDAQ: TRIP) has more than 12,000 listed properties on its Green Leaders plan, which focuses on hotels and bed and breakfasts with environmentally friendly practices. Airbnb has
created an Office of Healthy Tourism initiative, intending to expand the company’s efforts to support green travel habits, empower communities economically and expand travel to lesser-known places.
ESG Investment in Leisure and Travel Will Continue to Grow
The US Government is expected to continue to play a big part in the global ESG community by implementing various regulatory and legal measures to expand ESG awareness among businesses and investors. On July 22, 2019, the US House of Representatives held its first ever hearing on environmental, social and governance (ESG) issues to focus on reporting requirements for US public companies due to increasing interest among investors for better ESG information and consistent reporting standards.
Company ESG Ratings
FTSE Russell has developed ESG Ratings to measure a company’s risk and performance across a variety of ESG areas. It uses a risk relative scoring method in which a company’s exposure to each theme influences indicator applicability
Environmental, Social and Governance
Travel and leisure companies are taking environmental, social, and governance (ESG) reporting seriously, with investors increasingly looking to reported results for guidance. Pension funds and other institutional investors look to ESG reporting to see how it affects a company’s performance and value. Good ESG policies can translate to better share price performances.
15Mergent by FTSE Russell
Travel and Leisure
and weighting rather than taking a generic or sector only approach. The ESG Ratings and data model allows investors to understand a company’s exposure to and management of ESG issues in multiple dimensions. Selected ESG ratings for leading companies in the sector are given below, with Yum Brands (NYSE: YUM) having the highest rating.
Environmental, Social and Governance North America
Table 13: ESG Ratings of Selected Leading Companies
Company Country ESG Rating Yum Brands (NYSE: YUM) United States 4.2
Marriott International (NASDAQ: MAR) United States 3.7
Southwest Airlines (NYSE: LUV) United States 3.6
Carnival Corp A (NYSE: CCL) United States 3.3
Starbucks (NASDAQ: SBUX) United States 3.3
McDonalds Corp (NYSE: MCD) United States 3.2
Hyatt Hotels (NYSE: H) United States 3.1
Royal Caribbean Cruises (NYSE: RCL) United States 3.0
Hilton Worldwide (NYSE: HLT) United States 2.9
TripAdvisor (NASDAQ: TRIP) United States 1.4 Source: FTSE Russell
16Mergent by FTSE Russell
Travel and Leisure
Hilton is expanding rapidly in Asia-Pacific and announced 120 new hotels in the pipeline in China, Thailand, Australia, Japan, India, South Korea, Malaysia, Indonesia and the Maldives. In April 2019, Hilton announced a collaboration with Granvista Hotels & Resorts Ltd, a privately-held hotel company to open the Hilton Sapporo Park, Hokkaido in 2023. The hotel will cater to both leisure and business travelers and take advantage of the expansion of the Shinkansen, Japan’s high- speed railway lines into Hokkaido. The 350-room hotel is located strategically in the central zone of Sapporo and will feature food and beverage outlets, banquet rooms, a chapel, a swimming pool and a gym. In June 2019, Hilton collaborated with Foreshore Investments Albany Pty Ltd in signing an agreement for the Hilton Garden Inn Albany, West Australia, Hilton’s first Garden Inn Hotel in Australia, which is set to open sometime in 2020. The Hilton Garden Inn Albany which caters to both business and leisure travelers will feature 108-rooms, a restaurant and bar, a gym and three meeting rooms. In June 2019, Hilton announced the signing of two new hotels in Bangkok, Thailand. The Hilton Garden Inn Bangkok located on the banks of the Chao Phraya River and the Canopy by Hilton located in the Sukhumvit district are slated to open in 2022.
Cruise Companies Upgrade Their Fleet
The North American cruise industry has grown significantly in capacity and number of passengers embarking from US ports since 2010 when the US economy began to recover from the recession. The largest cruise industry trade body, Cruise Lines International Association (CLIA), estimated that cruise demand grew by 20.50% from 2011 to 2016 and reported 26.70 million passengers globally in 2017, a 5.95% increase from 25.20 million in 2016. CLIA projects that 30 million passengers globally will embark on a cruise in 2019. In order to cope with increasing demand, cruise operators are actively overhauling their fleet to improve capacity and passenger experience.
Royal Caribbean Cruises (NYSE: RCL) has committed over US$370 million to renovate its Oasis of the Seas, Voyager of The Seas and Freedom of the Seas cruise ships. The Oasis of the Seas will get a newly designed pool deck, new waterslides, a new pool facility for children, a new karaoke, a music hall and a new bar. The Voyager of The Seas will get new waterslides, an improved spa, a new nursery, a laser tag facility, 72
Hotel Companies Expand Overseas
Hotel companies are venturing into regions such as Asia-Pacific and East Asia to take advantage of its opportunities and long-term growth prospects and to broaden their customer base and market share.
Market Trends & Outlook United States
17Mergent by FTSE Russell
Travel and LeisureMarket Trends & Outlook United States
new staterooms and a new premium lounge. The Freedom of the Seas will have two new waterslides, a newly designed pool deck, new food and beverage outlets, and renovated kids and teen areas.
Home-Sharing Grows in Popularity
The home-sharing model has become extremely popular in recent years and is going from strength to strength. One great success story has been Airbnb, where the business identifies travelers’ need for alternative to traditional options. The company’s success is reflected in its revenue, which has soared since it started almost a decade ago. Airbnb has expanded its offerings by including booking for hotels, high-end properties and introducing a rewards program to capture more market share.
With the impressive growth of this model hoteliers now cannot afford to dismiss the impact home- sharing is having on the lodging segment. While multinational hotel chains may all have global brand recognition, home-sharing has unique advantages. Home-sharing companies do not pay a cent on inventory as hosts just log into the websites and offer their rooms for listing, while big hotels pay billions on their inventories.
Marriott is fighting competition from Airbnb by launching its own home-sharing booking website in collaboration with property rental company Hostmaker. Its new home sharing website will feature 200 personally inspected properties in London that offer high speed internet, premium furniture and cooking equipment.
Home-sharing has become popular among the younger generation due to its cost-effectiveness and enables home-owners to earn additional income. Hotel companies now claim that the playing field is uneven as home-sharing companies can bypass regulations and taxes to which hotels are normally subject.
Market Outlook
Sector growth will be fueled by healthy rises in the number of travelers from emerging markets such as Brazil and China. Consumers have more optimistic attitudes to travel as the global economy continues to rebound, but they remain cautious in their travel spending. The health of the travel and leisure sector will depend largely on the continued positive shifts in employment levels and better international relationships than those in 2019.
Companies will be able to seek growth from foreign visitors, especially from the faster growing regions such as Asia-Pacific and Latin America. Hoteliers are targeting the unsaturated markets such as China, Russia, Brazil and Africa. Demand for hotels in the international market is greater than in the US and the recovery pace is faster. India is also becoming a hotspot for western hoteliers, as it is emerging as a global business hub, while major players are targeting Brazil because it primarily attracts affluent domestic tourists in the flush of an economic revival.
18Mergent by FTSE Russell
Travel and Leisure
Canadian tour operators have introduced cannabis- themed tours to capitalize on the legislation. The wide variety of tours includes everything from hiking to sightseeing paired with recreational cannabis consumption. Cannabis-themed restaurants and spas are also emerging as cannabis tourism gains traction in Canada. Entrepreneurs are also seeking to expand short-term property rentals which are cannabis-friendly. The first yearly “New Heights Cannabis Tourism Summit” was held in Canada on October 28, 2019 to help entrepreneurs gain knowledge on the details of the Canadian tourism industry. The summit showcased presentations from the experts on cannabis tourism and included sharing sessions with cannabis tourism trailblazers. The summit also included sessions covering topics such as the legal framework, popular trends, public relations and culinary cannabis.
Culinary Tourism Continues to Develop
Food serves to connect travelers with the land, heritage and local population and a growing
number of travelers are becoming interested in the various cuisines and cultures from other countries, planning vacations specifically to incorporate culinary experiences. By including local food and drink in travel and leisure, food tourism offers tourists an authentic taste while contributing to a sustainable local economy. Major drivers of this evolution have been wine, beer and food festivals.
Travel and gastronomy form a perfect symbiosis for some provinces in Canada, which are expected to gain more benefits than others. Culinary tourism is not restricted to gourmet cuisine but includes authentic and unusual food experiences and is an increasingly valuable tool to improve local economies and boost social and community development.
Ontario is well positioned to reap the rewards of culinary tourism. The non-profit, industry-driven Ontario Culinary Tourism Alliance (OCTA) believes that culinary tourism will be a leading contributor to a vibrant and sustainable tourism economy. It has devised a strategy to capitalize on growth and ensure that the sector is economically, culturally and socially sustainable. The industry could boost
Canada’s Cannabis Tourism Grows
On October 17, 2018, Canada became the second country in the world to announce the legalization of cannabis products for recreational consumption. The legislation was well received with cannabis-themed celebrations taking place in various provinces throughout Canada. Physical retail cannabis stores have started to open in Ontario, Canada’s largest province on July 3, 2019. Travel and leisure companies are keen to discover the effects of the legislation on the Canadian tourism industry and seek to benefit from the emergence of the cannabis tourism industry in Canada.
Market Trends & Outlook Canada
19Mergent by FTSE Russell
Travel and LeisureMarket Trends & Outlook Canada
tourism receipts from C$22 billion (US$15.86 billion) in 2009 to C$44 billion (US$31.73 billion) by 2020, the Ministry of Tourism, Culture and Sports of Ontario reported.
Indigenous Tourism Thrives
As tourist demand for authentic experiences grows so does the popularity of Canada’s indigenous and aboriginal heritage offerings. Indigenous tourism is a potential growth segment that could contribute significantly to the national economy. Government assistance and development is seen as way of improving the livelihood of more than 600 indigenous ethnic groups that have been sidelined economically for many years. A report commissioned by the National Aboriginal Economic Development Board found that the indigenous labor force was not deployed effectively and, if working at full capacity, could increase national GDP by 1.50%.
ATAC has launched a five-year plan to add C$300 million (US$216.31 million) to GDP, more than 40,000 workers to the indigenous labor force and debut 50 indigenous tourism operators who will be export-ready by 2021. The plan will concentrate on extensive development of indigenous tourism product offerings, training and promoting indigenous tourism in overseas markets, and on collaborating with other organizations.
On November 26, 2019, WestJet Airlines (TSX: WJA) announced a deal with the Indigenous Tourism Association of Canada (ITAC) to help market Canada’s indigenous culture and communities through its official magazine and inflight entertainment system. The deal will also see WestJet Airlines aiding the ITAC to improve indigenous tourism products and services to capture business from international travelers.
Market Outlook
Canada’s domestic tourism sector is likely to grow, with improving domestic demand, a weak Canadian dollar and other market drivers. Tourism is the largest service export in Canada, earning C$22.10 billion (US$15.93 billion) in annual export revenue in
2018 according to the Tourism Industry Association of Canada (TIAC), and industry players think that it should benefit from the same tax and regulation support as other export industries. Canada’s Federal Tourism Growth Strategy’s goals are to increase tourism revenues by 25% by 2025 and to make certain that growth in the visitor economy will exceed the growth of the national economy and create 54,000 new jobs. A new tourism campaign announced plans to increase the number of foreign visitors by 30% by 2021, aiming to stage additional promotional events, address travel issues and support travel and leisure businesses and operators.
The campaign also includes a new plan to ensure competitive air travel, investment to increase visa processing capacity and direct investment in and support of cultural products. In addition, public and private sector partners will work together to boost industry performance, enhancing Canada’s competitive advantage as a leading international destination.
20Mergent by FTSE Russell
Travel and Leisure
Currency Conversion Table
Currency exchange rates as of March 12, 2020
Currency Unit Units per US$ US$ per Unit
US Dollar ($) 1 1
Canadian Dollar (C$) 1.3869 0.7210
Source: Federal Reserve Bank of New York
21Mergent by FTSE Russell
Travel and Leisure
The Scope of this Report
This report looks at travel and leisure industry in North America, with a focus on the US and Canada. The report examines the current environment, profiles the industry and discusses key market trends and the outlook for the industry, using available data and an examination of key public companies. For comparative purposes, key financial results of leading companies in each country are presented in the data tables on the proceeding pages.
Research analysts draw on a range of credible industry and company data sources as well as news and information services to research and analyze the current trading environment, industry landscape and market trends and outlook for a particular sector. Primary sources are used, unless otherwise indicated, and include company data, e.g. annual reports and company financial results; macroeconomic and trade data; data and information from global and country regulatory,
industry and trade bodies; government data; and reports from industry organizations and private research organizations.
Industries covered by the Industry Reports are defined by the Industry Classification Benchmark (ICB) coding system and companies for each industry are identified using Standard Industry Classification (SIC) codes. This report involves the following ICB codes: 5751 Airlines; 5752 Gambling; 5753 Hotels; 5755 Recreational Services; 5757 Restaurants & Bars; 5759 Travel & Tourism
The following are the relevant SIC codes for the industry: 4724 (Travel Agencies); 4725 (Tour Operators); 5812 (Eating and Drinking Places); and 5813 (Drinking Places - Alcoholic Beverages); 7011 (Hotels and Motels); 7021 (Rooming and Boarding Houses); 7041 (Organization Hotels); 7514 (Passenger Car Rental); 7515 (Passenger Car Leasing); 7996 (Amusement Parks)
22Mergent by FTSE Russell
Travel and Leisure
Key References
Global
World Tourism Organization (WTO) The WTO is an intergovernmental organization that serves as a global forum for tourism policy and issues. http://www.world-tourism.org
World Travel and Tourism Council (WTTC) The WTTC is the organization of travel industry chief executives whose goal is to work with governments to realize the full economic impact of travel and tourism. http://www.wttc.org
United States
American Hotel and Lodging Association (AH&LA) The association represents the hotel and lodging industry in the US and provides its members with assistance in operations, educations and communications. http://www.ahma.com
Cruise Lines International Association (CLIA) CLIA, formed in 1975, is the world’s largest cruise association and is dedicated to the promotion and growth of the cruise industry. http://www.cruising.org/
International Trade Administration (ITA) The ITA is the US government agency for international trade. http://ita.doc.gov/
Office of Travel and Tourism Industries (OTTI) The OTTI is the national office for tourism research and policy issues in the US. http://www.tinet.ita.doc.gov
US Bureau of Labor Statistics (BLS) BLS is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics. http://stats.bls.gov/
US Travel Association (Formerly TIA) The US Travel Association represents the travel and tourism industry in the US and aims to promote and facilitate increased travel to and within the US, as well as providing research, analysis and forecasting for the industry. http://www.tia.org
US Department of Commerce (DOC) The DOC is the government agency that provides key information and statistical analysis of the US economy and industries. http://www.commerce.gov
US Department of State (DOS) The DOS represents the interests of the US Government around the globe and operates more than 250 US embassies and consulates worldwide. http://www.state.gov
Canada
Canada Border Services Agency (CBSA) The CBSA ensures the security and prosperity of Canada by managing the access of people and goods to and from Canada. http://www.cbsa-asfc.gc.ca
Canadian Tourism Commission (CTC) The CTC represents the tourism industry in Canada, with the main objective being to raise awareness of and interest in Canada as a premier tourism destination. http://www.canadatourism.com
23Mergent by FTSE Russell
Travel and Leisure
Canadian Tourism Human Resource Council (CTHRC) The CTHRC is a national organization that facilitates and co-ordinates human resource development that supports a globally competitive and sustainable Canadian tourism industry.
Canadian Tourism Research Institute (CTRI) The CTRI is an independently financed membership organization located at the Conference Board of Canada. http://www.conferenceboard.ca/ctri/
The Conference Board of Canada (CBOC) The CBOC is a not-for-profit and independent Canadian applied research organization. http://www.conferenceboard.ca
Industry Canada A department that aims to help build a dynamic and innovative economy by promoting industry and business growth and promoting a fair, efficient and competitive marketplace. http://www.ic.gc.ca/
Statistics Canada Statistics Canada is the national statistics agency that represents the official source of Canadian social and economic statistics. http://www.statcan.ca
Tourism Industry Association of Canada (TIAC) TIAC represents the interests of the tourism business community nation-wide. http://www.tiac-aitc.ca
Key References North America
24Mergent by FTSE Russell
Travel and Leisure
Comparative Company Data United States
Notes to Comparative Data All figures are in United States dollars. All figures are as reported by the company. N/A = Data Not Available. N/L = Not Listed Companies ranked by total revenue for the full year most recently reported.
Definitions Total Revenue = All revenues, including net sales, operating revenues, interest income, royalties, excise taxes etc. EBITDA = Earnings before interest, taxes, depreciation and amortization. EPS Cont Operations = Earnings Per Share as reported by company excluding extraordinary items. Total Current Assets = All assets expected to be realized within the next year, includes cash, accounts receivable and inventories. Long Term Debt = Debt due to be paid at a date more than one year in the future. Return on Equity = The company’s earnings divided by its equity (book value). Profit Margin = The company’s net income as a percent of revenues.
Company Name Country Ticker Exchange Primary SIC Other SICs
Disney (Walt) Co. (The) USA DIS NYSE 4841 7812 7996 4833 7313 4832
Starbucks Corp. USA SBUX NMS 2095 5812
McDonald's Corp USA MCD NYSE 5812 6794
Marriott International, Inc. USA MAR NYSE 7011 6512 6531
Las Vegas Sands Corp USA LVS NYSE 7011
MGM Resorts International USA MGM NYSE 7011 7996 6719
Avis Budget Group Inc USA CAR NYSE 7514
Darden Restaurants, Inc. (Un USA DRI NYSE 5812 5813
Wynn Resorts Ltd USA WYNN NMS 7011 7999 6719
Yum! Brands Inc USA YUM NYSE 5812
Melco Resorts & Entertainmen USA MPEL NMS 7011 7993 6719
Herc Holdings Inc USA HTZ NYSE 7359 7513
Company Name Total Revenue - FYE - 1 Total Revenue - FYE - 2 Total Revenue - FYE - 3 EBITDA - FYE - 1 EBITDA - FYE - 2 EBITDA - FYE - 3
Disney (Walt) Co. (The) $69,570,000,000 $59,434,000,000 $55,137,000,000 $19,082,000,000 $18,314,000,000 $16,955,000,000
Starbucks Corp. $26,508,600,000 $24,719,500,000 $22,386,800,000 $6,150,000,000 $7,064,800,000 $5,295,300,000
McDonald's Corp $21,025,200,000 $22,820,400,000 $24,621,900,000 $10,279,300,000 $10,858,200,000 $9,267,300,000
Marriott International, Inc. $20,758,000,000 $20,452,000,000 $15,407,000,000 $2,947,000,000 $3,511,000,000 $1,597,000,000
Las Vegas Sands Corp $13,739,000,000 $13,729,000,000 $12,728,000,000 $5,497,000,000 $4,889,000,000 $4,611,000,000
MGM Resorts International $11,763,096,000 $10,797,479,000 $9,478,269,000 $2,622,665,000 $2,656,011,000 $2,842,382,000
Avis Budget Group Inc $9,124,000,000 $8,848,000,000 $8,659,000,000 $2,525,000,000 $2,451,000,000 $2,446,000,000
Darden Restaurants, Inc. (Un $8,510,400,000 $8,080,100,000 $7,170,200,000 $1,169,200,000 $1,079,900,000 $950,400,000
Wynn Resorts Ltd $6,717,660,000 $6,070,160,000 $4,345,797,000 $1,245,236,000 $1,495,121,000 $1,015,482,000
Yum! Brands Inc $5,688,000,000 $5,878,000,000 $6,356,000,000 $2,428,000,000 $2,972,000,000 $1,962,000,000
Melco Resorts & Entertainmen $5,158,509,000 $5,284,823,000 $4,519,396,000 $1,199,202,000 $1,134,065,000 $941,674,000
Herc Holdings Inc $1,976,700,000 $1,754,500,000 $1,554,800,000 $656,900,000 $512,400,000 $480,200,000
Company Name Net Income - FYE - 1 Net Income - FYE - 2 Net Income - FYE - 3 EPS - FYE - 1 EPS - FYE - 2 EPS - FYE - 3
Disney (Walt) Co. (The) $11,054,000,000 $12,598,000,000 $8,980,000,000 6.68 8.4 5.73
Starbucks Corp. $3,599,200,000 $4,518,300,000 $2,884,700,000 2.95 3.27 1.99
McDonald's Corp $5,924,300,000 $5,192,300,000 $4,686,500,000 7.61 6.43 5.49
Marriott International, Inc. $1,907,000,000 $1,459,000,000 $808,000,000 5.45 3.89 2.78
Las Vegas Sands Corp $2,698,000,000 $2,413,000,000 $2,808,000,000 3.5 3.07 3.55
MGM Resorts International $466,772,000 $1,952,052,000 $1,100,408,000 0.82 3.38 1.94
Avis Budget Group Inc $165,000,000 $361,000,000 $163,000,000 2.08 4.32 1.78
Darden Restaurants, Inc. (Un $713,400,000 $596,000,000 $479,100,000 5.78 4.81 3.85
Wynn Resorts Ltd $572,430,000 $747,181,000 $241,975,000 5.37 7.32 2.39
Yum! Brands Inc $1,542,000,000 $1,340,000,000 $1,643,000,000 4.8 3.86 4.17
Melco Resorts & Entertainmen $351,515,000 $347,002,000 $175,906,000 0.24 0.24 0.12
Herc Holdings Inc $69,100,000 $160,300,000 -$19,700,000 2.43 5.66 -0.7
Company Name Total Current Assets - FYE - 1 Total Current Assets - FYE - 2 Total Current Assets - FYE - 3 Long-Term Debt - FYE - 1 Long-Term Debt - FYE - 2 Long-Term Debt - FYE - 3
Disney (Walt) Co. (The) $28,124,000,000 $16,825,000,000 $15,889,000,000 $38,129,000,000 $17,084,000,000 $19,119,000,000
Starbucks Corp. $5,653,900,000 $12,494,200,000 $5,283,400,000 $11,167,000,000 $9,090,200,000 $3,932,600,000
McDonald's Corp $4,053,200,000 $5,327,200,000 $4,848,600,000 $31,075,300,000 $29,536,400,000 $25,878,500,000
Marriott International, Inc. $2,706,000,000 $2,740,000,000 n/a $8,514,000,000 $7,840,000,000 $8,197,000,000
Las Vegas Sands Corp $5,305,000,000 $5,566,000,000 $3,197,000,000 $12,422,000,000 $11,874,000,000 $9,344,000,000
MGM Resorts International $2,526,778,000 $2,376,355,000 n/a $15,088,005,000 $12,751,052,000 n/a
Avis Budget Group Inc $2,174,000,000 $2,066,000,000 $1,817,000,000 $13,760,000,000 $12,794,000,000 $12,122,000,000
Darden Restaurants, Inc. (Un $892,600,000 $553,600,000 $587,900,000 $927,700,000 $926,500,000 $936,600,000
Wynn Resorts Ltd $2,641,376,000 $3,423,784,000 $2,990,367,000 $9,411,140,000 $9,565,936,000 $10,125,352,000
Yum! Brands Inc $1,207,000,000 $2,507,000,000 $1,505,000,000 $9,751,000,000 $9,429,000,000 $9,059,000,000
Melco Resorts & Entertainmen $1,957,462,000 $1,844,793,000 $2,279,554,000 $3,918,744,000 $3,773,345,000 $3,932,049,000
Herc Holdings Inc $400,400,000 $474,500,000 $371,700,000 $2,246,200,000 $2,250,000,000 $2,178,600,000
Company Name Return on Equity (Most Recent Yr) Profit Margin (Most Recent Yr) Date FYE - 1 Date FYE - 2 Date FYE - 3
Disney (Walt) Co. (The) 12.4374135 15.88903263 28/09/2019 29/09/2018 30/09/2017
Starbucks Corp. -57.75167678 13.57748052 29/09/2019 30/09/2018 01/10/2017
McDonald's Corp -94.66157484 28.17713981 31/12/2018 31/12/2017 31/12/2016
Marriott International, Inc. 85.70786517 9.186819539 31/12/2018 31/12/2017 31/12/2016
Las Vegas Sands Corp 52.01465201 19.6375282 31/12/2019 31/12/2018 31/12/2017
MGM Resorts International 7.167563203 3.968104995 31/12/2018 31/12/2017 31/12/2016
Avis Budget Group Inc 39.85507246 1.808417361 31/12/2018 31/12/2017 31/12/2016
Darden Restaurants, Inc. (Un 29.81693555 8.382684715 26/05/2019 27/05/2018 28/05/2017
Wynn Resorts Ltd 28.14136608 8.5212708 31/12/2018 31/12/2017 31/12/2016
Yum! Brands Inc -19.45495836 27.10970464 31/12/2018 31/12/2017 31/12/2016
Melco Resorts & Entertainmen 16.52371793 6.81427521 31/12/2018 31/12/2017 31/12/2016
Herc Holdings Inc 12.06565392 3.495725199 31/12/2018 31/12/2017 31/12/2016
25Mergent by FTSE Russell
Travel and Leisure
Comparative Company Data Canada
Notes to Comparative Data All figures are in United States dollars. All figures are as reported by the company. N/A = Data Not Available. N/L = Not Listed Companies ranked by total revenue for the full year most recently reported.
Definitions Total Revenue = All revenues, including net sales, operating revenues, interest income, royalties, excise taxes etc. EBITDA = Earnings before interest, taxes, depreciation and amortization. EPS Cont Operations = Earnings Per Share as reported by company excluding extraordinary items. Total Current Assets = All assets expected to be realized within the next year, includes cash, accounts receivable and inventories. Long Term Debt = Debt due to be paid at a date more than one year in the future. Return on Equity = The company’s earnings divided by its equity (book value). Profit Margin = The company’s net income as a percent of revenues.
Company Name Country Ticker Exchange Primary SIC Other SICs
Transat A.T. Inc Canada TRZ A TSX 4724 4725 4522 4512
Stars Group Inc Canada AYA TSX 7371
Great Canadian Gaming Corp Canada GCD TSX 7011 7993 7948 5812
MTY Food Group Inc Canada MYT TVX 5812 5499
Pollard Banknote Ltd Canada PBL TSX 6722 7999
TWC Enterprises Ltd Canada TWH TSX 4725 7999 6799
Sportscene Group Inc Canada SPS A TSX 5812
Gamehost Inc Canada GH TSX 5812 6512 7011
Allied Hotel Properties Inc Canada AHP TVX 7011 6513
Franchise Services Of North Canada FSN TVX 7514 6794
Forum National Investments L Canada FMNL F OTC 4724 4729
Company Name Total Revenue - FYE - 1 Total Revenue - FYE - 2 Total Revenue - FYE - 3 EBITDA - FYE - 1 EBITDA - FYE - 2 EBITDA - FYE - 3
Transat A.T. Inc $2,229,824,584 $2,169,716,591 $3,860,886,414 $20,165,468 $48,950,006 $268,665,007
Stars Group Inc $2,029,238,000 $1,312,315,000 $1,155,247,000 $171,844,000 $436,248,000 $278,810,000
Great Canadian Gaming Corp $896,617,297 $490,018,720 $763,311,270 $322,738,167 $168,311,818 $258,884,348
MTY Food Group Inc $264,285,695 $213,833,353 $274,402,237 $91,243,547 $74,031,171 $113,777,842
Pollard Banknote Ltd $245,292,022 $228,760,489 $332,412,355 $31,597,498 $32,777,729 $41,805,577
TWC Enterprises Ltd $126,773,314 $137,123,878 $308,673,428 $27,389,786 $3,737,958 $70,538,910
Sportscene Group Inc $92,441,154 $80,827,671 $118,986,334 $8,957,561 $7,644,380 $9,830,812
Gamehost Inc $51,843,719 $54,561,746 $93,122,897 $21,001,847 $22,494,755 $38,677,672
Allied Hotel Properties Inc $10,731,503 $10,574,928 $17,081,515 $1,770,470 $1,319,373 $2,195,328
Franchise Services Of North $9,627,460 $9,648,371 $9,649,333 -$54,499 $350,722 $450,024
Forum National Investments L $1,152,060 $1,860,006 $4,069,924 -$1,885,131 -$1,163,793 -$2,820,632
Company Name Net Income - FYE - 1 Net Income - FYE - 2 Net Income - FYE - 3 EPS - FYE - 1 EPS - FYE - 2 EPS - FYE - 3
Transat A.T. Inc -$23,188,542 $7,610,502 $177,762,811 -0.668082664 0.129469163 4.663364
Stars Group Inc -$108,906,000 $259,285,000 $135,550,000 -0.49 1.77 0.96
Great Canadian Gaming Corp $176,092,406 $68,361,719 $103,230,302 1.828482447 1.100807151 1.644137976
MTY Food Group Inc $74,356,971 $38,670,487 $73,358,350 3.057175607 1.79956535 3.650068252
Pollard Banknote Ltd $10,906,274 $13,388,368 $16,534,368 0.425911574 0.566357303 0.700780121
TWC Enterprises Ltd $163,971,550 $1,609,731 $22,314,456 5.999478552 0.055838044 0.822068988
Sportscene Group Inc $2,919,685 $2,344,042 $1,823,114 0.345880794 0.275859742 0.225075824
Gamehost Inc $13,364,811 $14,198,817 $23,314,416 0.506687907 0.542426712 0.889451692
Allied Hotel Properties Inc $750,486 $236,115 $194,062 0.007343303 n/a n/a
Franchise Services Of North -$9,152,441 -$412,617 $4,751,789 n/a n/a 0.04
Forum National Investments L -$168,974 $381,221 -$3,578,032 -0.010169531 0.009563521 -0.123916288
Company Name Total Current Assets - FYE - 1 Total Current Assets - FYE - 2 Total Current Assets - FYE - 3 Long-Term Debt - FYE - 1 Long-Term Debt - FYE - 2 Long-Term Debt - FYE - 3
Transat A.T. Inc $856,031,778 $880,991,962 $1,461,315,854 n/a n/a n/a
Stars Group Inc $1,041,425,000 $789,534,000 $690,387,000 $5,411,208,000 $2,353,579,000 $2,380,829,000
Great Canadian Gaming Corp $322,297,569 $290,597,134 $364,809,959 $463,803,018 $384,963,428 $644,582,946
MTY Food Group Inc $71,481,573 $81,239,516 $115,922,424 $201,458,108 $173,415,270 $317,724,403
Pollard Banknote Ltd $81,203,713 $72,167,481 $107,754,377 $85,003,138 $77,311,760 $101,910,949
TWC Enterprises Ltd $184,471,115 $10,961,008 $17,426,515 $108,279,940 $214,158,043 $336,514,614
Sportscene Group Inc $10,507,257 $12,009,860 $16,132,935 $11,657,687 $12,447,405 $18,101,098
Gamehost Inc $14,099,142 $15,235,809 $25,470,662 $11,528,986 $12,762,981 $24,257,773
Allied Hotel Properties Inc $742,408 $852,727 $1,844,938 n/a $13,066,102 $21,288,891
Franchise Services Of North $5,590,518 $4,839,406 $5,324,549 $258,424 n/a n/a
Forum National Investments L $157,872 $182,789 $525,843 $5,257,668 $4,855,144 $5,004,357
Company Name Return on Equity (Most Recent Yr) Profit Margin (Most Recent Yr) Date FYE - 1 Date FYE - 2 Date FYE - 3
Transat A.T. Inc -5.711475496 -1.039926731 31/10/2019 31/10/2018 31/10/2017
Stars Group Inc -2.624608409 -5.366842135 31/12/2018 31/12/2017 31/12/2016
Great Canadian Gaming Corp 51.0864934 19.63963964 31/12/2018 31/12/2017 31/12/2016
MTY Food Group Inc 15.72806094 28.13507199 30/11/2018 30/11/2017 30/11/2016
Pollard Banknote Ltd 12.62517214 4.446240663 31/12/2018 31/12/2017 31/12/2016
TWC Enterprises Ltd 51.2511304 129.3423232 31/12/2018 31/12/2017 31/12/2016
Sportscene Group Inc 10.12384305 3.158425586 25/08/2019 26/08/2018 27/08/2017
Gamehost Inc 16.30824373 25.77903683 31/12/2018 31/12/2017 31/12/2016
Allied Hotel Properties Inc 52.30296827 6.993294102 31/12/2018 31/12/2017 31/12/2016
Franchise Services Of North 121.6113983 -95.06599872 30/09/2016 30/09/2015 30/09/2014
Forum National Investments L -10.59370041 -14.66710214 30/09/2012 30/09/2011 30/09/2010
26Mergent by FTSE Russell
Travel and Leisure
North America NA Pharmaceuticals & Biotechnology
NA Construction & Materials
NA Travel & Leisure
NA Industrial Transportation
NA Media
NA Electricity
NA Aerospace & Defense
NA Chemicals
NA Real Estate Investment Trusts
NA Electronic & Electrical Equipment
NA Food Producers
NA Life Insurance
NA Software & Computer Services
NA Beverages
NA Fixed Line Telecommunications
NA Health Care Equipment & Services
NA General Industrials
NA Technology Hardware & Equipment
NA Nonlife Insurance
NA Banks
NA Industrial Metals & Mining
NA Automobiles & Parts
NA Financial Services
NA Oil & Gas Producers
NA Industrial Engineering
NA General Retailers
NA Personal Goods
NA Food & Drug Retailers
Asia-Pacific Aerospace & Defence
Automotive & Parts
Banking
Biotechnology
Chemicals
Construction & Materials
Consumer Products & Services
Electricity
Financial Services
Food and Beverage
Healthcare
Industrial Goods & Services
Industrial Materials
Industrial Metals
Industrial Transportation
Insurance
Media
Medical Equipment & Services
Non-Renewable Energy
Personal Care, Drug & Grocery Stores
Pharmaceuticals
Precious Metals & Mining
Real Estate
Renewable Energy
Retailing
Technology
Telecommunications
Travel & Leisure
Europe Aerospace & Defence
Automotive & Parts
Banking
Biotechnology
Chemicals
Construction & Materials
Consumer Products & Services
Electricity
Financial Services
Food and Beverage
Healthcare
Industrial Goods & Services
Industrial Materials
Industrial Metals
Industrial Transportation
Insurance
Media
Medical Equipment & Services
Non-Renewable Energy
Personal Care, Drug & Grocery Stores
Pharmaceuticals
Precious Metals & Mining
Real Estate
Renewable Energy
Retailing
Technology
Telecommunications
Travel & Leisure
Industry Reports Coverage
27Mergent by FTSE Russell
Travel and Leisure
Online
MERGENT ONLINE™ U.S. Company Data U.S. Company Archives Data U.S. Annual Reports International Company Data International Company Archives Data International Annual Reports Institutional Holdings Data Insider Trading Data Factsheets International Factsheets Factsheets Express Expanded Long-Term Debt Global Earnings Estimates Industry Reports D&B Million Dollar Database Plus
MERGENT ACTIVE™
MERGENT EVENTSDATA™ Corporate Action Data Corporate Dividend Data Indicated Annual Dividend Data Ex-Date Service Unit Investment Trust Data Corporate News Fixed Income Called Bond Data
MERGENT WEBREPORTS™
MERGENT EQUITY PORTRAITS™
MERGENT CORPORATE BOND PORTRAITS™
MERGENT HORIZON™
MERGENT MANUALS & NEWS REPORTS Industrial Manual and News Reports OTC Industrial Manual and News Reports OTC Unlisted Manual and News Reports Transportation and Public Utility Manual and News Reports Bank & Finance Manual and News Reports International Manual and News Reports Municipal and Government Manual Company Archives Manual International Company Archives Manual
MERGENT INVESTMENT GUIDES Dividend Record And Annual Dividend Record Unit Investment Trusts Service Bond Record & Annual Bond Record Industry Review
MERGENT HANDBOOKS & GUIDES Mergent’s Handbook of Commons Stocks Mergent’s Handbook Oof Nasdaq Stocks Mergent’s Dividend Achievers Index Guide
The preferred source for global business and financial information
For additional information regarding any of the following mergent products, please phone our customer service department at (800) 342-5647 or (704) 559-7601, e-mail: [email protected] or visit us online at www.mergent.com.
Mergent Products & Services
28Mergent by FTSE Russell
Travel and Leisure
Administrative Offices
www.mergentindustryreports.com
Mergent Business Press allows you, the end user, to view and order a wide variety of books that are available including Dun & Bradstreet®, Hoover’s™ and Harris as well as Mergent print publications. Mergent Business Press is also available as a mobile application for when you are on the go.
Our new web-based platform provides quick links to those publications and is an extremely easy-to-use search engine. With one click or keyword, you will be directed to the books that have all the information you/your organization have been looking for and require.
Online or mobile app
To access go to www.mergentbusinesspress.com
NEW YORK 60 Madison Ave, 6th floor New York, Ny 10010 (800) 342-5647 or (704) 559-7601
FORT MILL 580 Kingsley Park Drive Fort Mill, SC 29715 (800) 342-5647 or (704) 559-7601
29Mergent by FTSE Russell
Travel and Leisure
For more information about our indexes, please visit ftserussell.com.
© 2020 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE
International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt
Capital Markets Limited (together, “FTSE Canada”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed
Income LLC (“FTSE FI”) and (7) The Yield Book Inc (“YB”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI, YB. “FTSE®”, “Russell®”, “FTSE Russell®”,
“MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®”, “The Yield Book®” and all other trademarks and service marks used herein (whether
registered or unregistered) are trademarks and/or service marks owned or licensed by the applicable member of the LSE Group or
their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, FTSE Canada, Mergent, FTSE FI, YB. FTSE
International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.
All information is provided for information purposes only. The purpose of the industry reports is for general business and industry
analysis. Industry reports provide general sector information only and are not intended to furnish detailed information about the
prospects, creditworthiness or performance of any particular business. Nothing contained in our industry reports should be taken
as constituting financial or investment advice and no member of the LSE Group nor their respective directors, officers, employees,
partners or licensors make any representation regarding the advisability of investing in any issuer or any asset referred to in the
reports.
All information and data contained in this report is obtained by the LSE Group, from sources believed by it to be accurate and reliable.
However, such information and data is provided “as is” without warranty of any kind. No member of the LSE Group nor their respective
directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly
or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or of results to be obtained
from the use of this industry report or the fitness or suitability of industry report for any particular purpose to which it might be put.
Any representation of historical data in this report is provided for information purposes only and is not a reliable indicator of future
performance.
No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees,
partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent
or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing,
transmitting, communicating or delivering any information or data in this report or from use of this report or links to this report or
(b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in
advance of the possibility of such damages, resulting from the use of, or inability to use, such information.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use
and distribution of the LSE Group data requires a licence from FTSE, Russell, FTSE Canada, MTSNext, Mergent, FTSE FI and/or YB and/
or their respective licensors.
This industry report may contain forward-looking assessments. These are based upon a number of assumptions concerning future
conditions that ultimately may prove to be inaccurate. Such forward-looking assessments are subject to risks and uncertainties and
may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. Any
forward-looking statements speak only as of the date they are made and no member of the LSE Group nor their licensors assume any
duty to and do not undertake to update forward-looking assessments.
