Fitch Ratings-New York-07 December 2015: U.S. leisure companies will continue to benefit from consumer spending growth in 2016, aided by the trend towards more experiential, rather than material, purchases, according to a new Fitch Ratings report. The competitive environment for consumer wallet share remains intense and leisure companies must compete against varying alternatives, including retailers, technology services, and non-travel oriented entertainment.
For online travel agencies, consolidation will remain a theme in 2016 as companies capitalize on market fragmentation to improve scale and profitability and fend off new competition from non-traditional travel accommodations and distribution channels. M&A will supplement organic growth from higher online travel bookings penetration rates. Fitch expects gross bookings to grow at a low- to mid-teens rate during 2016.
Fitch's 2016 outlooks for the sector and its ratings are Stable, based on the expectation for moderate discretionary consumer spending growth, offset by rising competitive and technology risks. The 2016 Outlook includes Fitch's views on online travel agencies, cruise operators, video game publishers, and theme park operators.
The full report, '2016 Outlook: U.S. Leisure,' is available at www.fitchratings.com.
