Yahoo Financeยท2025-10-22 13:08Core Insights - The travel economy is experiencing a significant boom, particularly benefiting companies like Hilton and Delta, driven by upper-income consumers willing to spend more on travel experiences [1] Hilton - Hilton reported a net income of $421 million and adjusted EBITDA of $976 million for Q3 2025, with a slight decline of about 1% in system-wide revenue per available room [2] - The company added nearly 25,000 rooms and approved a record 33,000 for development, increasing its global pipeline to over 500,000 rooms, a 5% increase from the previous year [2] - Hilton is focusing on the luxury market, adding three high-end hotels weekly and reopening iconic properties like the New York Waldorf-Astoria, capitalizing on affluent travelers' spending [3] - The company views the AI boom as a long-term tailwind that will increase demand for hotel stays, as the growth in tech infrastructure requires accommodations for a large workforce [4] Delta Air Lines - Delta reported record revenue of $15.2 billion and earnings of $1.71 per share, maintaining steady costs and reducing debt [5] - Approximately 60% of Delta's revenue now comes from premium cabins, business travelers, and its partnership with American Express, up from less than half before 2020 [5] Consumer Trends - There is a notable divide in the consumer economy, with high earners, who account for about half of U.S. spending, continuing to book luxury travel options, while lower-income consumers are pulling back [6] - Luxury and upper-middle brands in travel and leisure are thriving, contrasting with struggles in other consumer discretionary sectors [6] - Hilton returned over $3 billion in cash to shareholders this year, while Delta raised its full-year forecast, indicating strong performance in the high-end travel market [7]