Tilman Fertitta says shopper spending will probably be robust even after stimulus fades

Tilman Fertitta, Chairman and CEO of Landry, told CNBC on Tuesday that he expected consumer spending to remain strong for the remainder of 2021, even if the Initial thrust The stimulus provided by Covid earlier this year is fading.

In an interview on “Power Lunch”, said the billionaire restaurateur and casino operator tax refunds sent to Americans and payouts from newly created child advance will provide tailwind.

“You will likely continue to see money pouring into the economy for the rest of the year,” said Fertitta, whose sprawling hospitality empire gives him an in-depth look at how Americans spend money.

“Then I think we’re going to lose some of those consumers, but we’re going to start taking back the business customers and the conferences and the big party rooms in New York and LA and all of your big cities,” added Fertitta, noting he still believes the US economy is “truly” heading for another Roaring Twenties, “for a while”.

As the US economy recovers from the pandemic stalemate and more Americans are vaccinated, consumers are recovering on a large scale.

Mid-June, Brian Moynihan, CEO of Bank of America, told CNBC that consumer spending at that point this year was 20% higher than it was in 2019. Moynihan noted that stimulus money was a factor in spending numbers based on the volume of transactions on its customers’ debit and credit cards, as well as the payment network Cell.

Right now, said Fertitta, the Houston-based Landry’s group’s more expensive restaurants see a distinct strength.

“The funny thing about consumers is that they like the high-end. It’s the high-end steakhouses, the high-end seafood restaurants, ”said Fertitta. “It’s not yours [Rainforest Cafes] and your bubba gumps. it’s your Mastro and … your Morton. “All four of these restaurant brands are under the Landry umbrella.

Fertitta said rising oil prices are one thing to watch because it can affect how Americans spend their money. On Tuesday, West Texas Intermediate Crude Oil Futures reach a level not seen since November 2014, was trading at just under $ 77 a barrel before turning negative in the session.

The current national average in gas prices is $ 3.134 per gallon as demand for the reductions picks up in the pandemic era. according to AAA. At that time last year, the national average was $ 2,180 per gallon.

“Then the consumer starts looking, ‘If I pay $ 5 for gasoline, I might not be able to shop at a restaurant or I might not make it all the way to a casino,’ so it can have a huge impact on us,” said Fertitta . “But then the flights go up, maybe people go to closer places. And that’s how I’ve seen it help us when the gasoline goes up, and I’ve seen it where it hurts us. “

It is too early to say what will happen this time, he said, “but you cannot have inflation and everything at the same time.”

Desirous to journey, People e-book Solar Belt seashore, metropolis stays as pandemic fades

Miami Beach, Florida

Artur Debate | Moment | Getty Images

Interest in travel is growing as the pandemic subsides, and incarcerated Americans are dying to get back on the streets, according to two recent polls.

Travelers are thinking about booking trips to warm and sunny climes – be it cities in the sunbelt or beaches and national parks – and are also more open to planning trips abroad.

Separate surveys by the websites Booking.com and Skyscanner, which worked with loyalty platform Braze and app intelligence provider Apptopia, found that Las Vegas, Miami and Orlando, Florida are among the most popular travel destinations for potential US vacationers be searched online.

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Mark Crossey, US travel expert at Skyscanner, said Americans are looking for short domestic trips – 87% of trips booked on the site are for a week or less – and prefer locations with fewer pandemic restrictions.

“Both Florida and Nevada no longer have visitor travel restrictions and California expects its restrictions to be lifted soon,” he said. “All of these destinations enjoy warm summer weather and offer many activities for people to enjoy after a quiet year.”

Crossey said he expects Americans to continue traveling in their own backyard through 2021 and expects “a resurgence of overseas travel once international travel restrictions are relaxed and popular European destinations reopen”.

Skyscanner, Braze, and Apptopia’s top 5 destinations are actually all cities: Las Vegas, Orlando, Los Angeles, Miami, and New York. Everyone but LA and the Big Apple made it to Booking.com’s own list of top 10 summer travel destinations, which included coastal locations like Myrtle Beach, South Carolina and Ocean City, Maryland. The website’s survey found that 61% of people plan on walking in the sand sometime this summer.

Booking.com’s top 10 summer travel searches

Here are the 10 most searched for domestic destinations in the US in May for check-in in July and August:

  • Myrtle Beach, South Carolina
  • Las Vegas, Nevada
  • Orlando Florida
  • Destin, Florida
  • Panama City Beach, Florida
  • Ocean City, Maryland
  • Miami Beach, Florida
  • Miami, Florida
  • Key West, Florida
  • Virginia Beach, Virginia

Source: Booking.com

“New research from Booking.com shows that Americans want to get away this summer, and more specifically, a majority (62%) are optimistic that when it is safe to go to the beach again,” said Leslie Cafferty, senior vice president President and Head of Global Communications at Booking Holdings.

“With nearly 70% of Americans wanting to travel closer to home, it’s no surprise that US destinations like Myrtle Beach, Virginia Beach, Miami, Ocean City and Destin were among the most searched for vacations on Booking.com in May. in dates within 90 days. “

Like Skyscanner, Booking.com found that Americans now prefer shorter trips. 54% of respondents said they would prefer more short breaks to less longer stays. 61 percent also said, according to Booking.com, that travel is “critical to your emotional wellbeing”.

This agrees with the results of the Skyscanner-Braze-Apptopia survey, which asked not only Americans, but also people in the Europe-Middle-East-Africa and Asia-Pacific regions. Sarah Spivey, chief marketing officer at Braze, said that prior to Covid, 75% of US travelers said they care about vacations.

“This pre-pandemic importance reflects US consumers’ desire to travel when restrictions are lifted,” she said, noting that 33% of Americans are comfortable traveling, compared to 13% of Asia-Pacific and 20% of the Central European countries residents of East Africa. “While consumers from other regions seem more cautious, Americans are happy to travel.”

Spivey said the increased readiness in the US compared to other major markets is also reflected in increased use of online travel agency apps. The use of such smartphone apps has increased by 41% compared to times before Covid.

“The contrast between US [app] Usage than in Europe and Asia is due to an overall greater willingness to travel and subsequently to a stronger recovery in the travel industry, “she said.