China’s biggest food delivery platform is seeing a trend: more spending on experiences. “More and more consumers are willing to allocate a larger portion of their budget to travel,” Wang Xing, CEO of Hong Kong-listed Meituan , said Thursday during a first-quarter earnings call, according to a FactSet transcript. “Their demand is not only growing, also probably more diverse, which brings substantial opportunity for us,” he said. Meituan operates a hotel bookings and travel-related business, albeit far smaller than its food delivery operation. HSBC analysts on Friday raised their price target on the stock by 5 Hong Kong dollars (64 cents) to 170 Hong Kong dollars after an improved earnings outlook across all of Meituan’s segments. Mimicking U.S. The tourism industry’s growth, despite a more sluggish macro backdrop in China, is similar to what happened in the U.S. after the pandemic. American consumers have kept spending on experiences, including concerts and cruises . In a report last week about China’s consumer market potential, Bank of America Securities analysts chose hotel operator H World as one of its top picks. “We believe H World is best positioned to capture long-term growth in the China hotel industry given best-in-class execution,” the analysts said. “While RevPAR (revenue per available room) growth could remain under pressure near-term due to slower busi …
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[mwai_chat context=”Let’s have a discussion about this article:nnChina’s biggest food delivery platform is seeing a trend: more spending on experiences. “More and more consumers are willing to allocate a larger portion of their budget to travel,” Wang Xing, CEO of Hong Kong-listed Meituan , said Thursday during a first-quarter earnings call, according to a FactSet transcript. “Their demand is not only growing, also probably more diverse, which brings substantial opportunity for us,” he said. Meituan operates a hotel bookings and travel-related business, albeit far smaller than its food delivery operation. HSBC analysts on Friday raised their price target on the stock by 5 Hong Kong dollars (64 cents) to 170 Hong Kong dollars after an improved earnings outlook across all of Meituan’s segments. Mimicking U.S. The tourism industry’s growth, despite a more sluggish macro backdrop in China, is similar to what happened in the U.S. after the pandemic. American consumers have kept spending on experiences, including concerts and cruises . In a report last week about China’s consumer market potential, Bank of America Securities analysts chose hotel operator H World as one of its top picks. “We believe H World is best positioned to capture long-term growth in the China hotel industry given best-in-class execution,” the analysts said. “While RevPAR (revenue per available room) growth could remain under pressure near-term due to slower busi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
