Current Affairs
February 18, 2024
Market Share of Hotels vs Airbnb and other Home Sharing Platforms
Hotel Rooms Or Homes?
by Tyler Durden
Friday, Feb 16, 2024 – 11:20 PM
Even with Airbnb posting a net loss of $500 million in its fourth quarter of 2023, the past year was a success story for the short-term rental platform, which increased its annual revenue to roughly $10 billion and net income to $4.8 billion.
Nevertheless, as Statista’s Florian Zandt details below, the hotel business is still far more important regarding the revenue generated in the travel and tourism sector.
You will find more infographics at Statista
As the chart above, based on Statista Mobility Market Insights data, shows, hotel accommodation has a larger revenue share in every one of the eight economies projected to generate the most revenue with cruises, package holidays, camping, hotels and vacation rentals.
Italy had the highest share of vacation rentals, which encompasses vacation homes and short-term rentals, in total market revenue with almost 16 percent. The relationship between Airbnb and the Southern European nation, in particular, is fraught. In November, Italian authorities seized 780 million euros from the online platform due to the suspicion of tax evasion. The case was settled in December with Airbnb agreeing to pay 576 million euros without admitting direct liability.
The tourism and travel industry in the United States, the United Kingdom and Japan will continue to rely heavily on hotel bookings in 2024 according to Statista analysts, with between 54 and 62 percent of the corresponding total market revenue being provided by this segment. Germany has one of the lowest combined revenue share of hotels and vacation rentals, which can be attributed to the country’s inhabitants’ fondness for package holidays.
Overall, analysts forecast that revenue in all market segments will amount to $927 billion worldwide in the upcoming year.
The United States, China and Germany alone are projected to contribute almost half of this revenue.
https://www.zerohedge.com/personal-finance/hotel-rooms-or-homes
February 18, 2024
The Rise of Pickleball
Today’s Topics Hello! In years gone by a game of golf, a bike ride or a dog walk might have topped the list of potential Sunday activities. But, today, hundreds of thousands of people across America are increasingly turning to pickleball, the racket sport that’s still taking America by storm. Boredom, the mother of invention
Tracing its roots all the way back to 1965 when it was invented by a group of 3 dads who couldn’t find a shuttlecock to play badminton on a summer’s day, pickleball has had a slow-then-fast-then-really–fast rise in America. On that day in Washington nearly 60 years ago, the trio improvised with what they had: table tennis paddles, a plastic ball, and a badminton court — a combination that, once the net was lowered a few feet, proved an entertaining and accessible game to a variety of ages and abilities.
From those humble beginnings, it took the sport decades to really capture people’s interest, spreading organically across America, eventually being played in every state by 1990. But, cut to the present day, and pickleball has taken the US by storm: according to the Sport & Fitness Industry Association, 8.9 million players played the sport in 2022, up more than 80% on the prior year, making it the fastest growing sport in America. 
Serving everyone
Arguably the main driver of pickleball’s popularity boom is its low-commitment versatility. Thanks to its perforated ball — which slows the game down — and smaller court, pickleball demands less raw athletic ability than many other sports, giving it a broad appeal, with many kids and seniors picking up the game.
In 2021, almost 73% of all record pickleball participants were ‘casual’ players who played fewer than 7x per year. In that same year, roughly 29% of pickleball players were aged 18-34 years old, while 21% were kids, ~20% were 35-54, and a whopping ~18% were 65+ — an astonishingly even demographic split for an increasingly mainstream sport. Out of those who play the most frequently, the older demographic was the dominant force, accounting for nearly one-third of that “core” player group.
Space invaders
Played on a badminton-size court, pickleball can be played indoors or outdoors, standing up or in wheelchairs, and it’s relatively space-efficient. In fact — much to the chagrin of die-hard tennis players everywhere (including Chartr’s editor) — you can nearly squeeze playing space for 4 pickleball courts in the same area needed for 1 tennis court.
To meet the booming demand, the SFIA estimates that a further 25,000 pickleball courts — equating to a $900m infrastructure investment — are needed to keep up with demand, on top of the ~44,000 courts that are estimated to already exist nationwide.
Check the rules
As the sport continues to pick up momentum at both a grassroots and professional level (yes, there are a lot of pro pickleball tournaments now), people are increasingly flocking to the first online port of call when you want a quick summary of something you’d never heard of until recently: Wikipedia.
It wasn’t until the Covid era when the paddle sport really ratcheted up in earnest. Since then, as pickleball’s grown into a bonafide passion for millions of people — rather than a faddy pandemic pastime (looking at you, breadmaking and online yoga) — page views on the sport’s Wikipedia page have soared, as curious players look up the rules, the sport’s history and why on Earth it’s called pickleball (nothing to do with pickles and everything to do with… rowing). Hits to the Wikipedia page even surpassed those of tennis in 2020, according to data from Pageviews.
Brokeback
Although the game can be enjoyed by all ages, pickleball is not without its risks. As its popularity has skyrocketed, so too have pickleball-related injuries: the American Academy of Orthopaedic Surgeons recently reported that bone fractures resulting from pickleball have increased 90x over the last 20 years, the majority of which resulted from falls in the 60-69 age group.
That may put a strain on doctors in Utah, Arizona, Minnesota and Florida, where data from Google Trends reveals search interest in pickleball has been the highest over the past 12 months.
Big pickle
It’s fair to say that the Super Bowl isn’t under threat as the jewel in corporate America’s sporting crown, but pickleball is increasingly big business. Manufacturers of pickleball equipment are selling hundreds of millions of dollars worth of paddles, shoes and apparel every year, while developers are eyeing up unused retail space, spending millions to convert them into prestige pickleball playing spaces around the country.
As the pro scene begins to take off, a battle for pickle supremacy has been quietly taking place between rival leagues. Last September two of the biggest — Major League Pickleball and the PPA Tour — announced a merger, with private equity investors injecting $50m into the combined venture.
Although prize funds at most pro events remain relatively small, top players can reportedly make 7 figures from sponsorship deals, prize money and appearance fees.
Love it or hate it, we haven’t had peak pickleball yet.
Not a subscriber to Chartr?
Sign up for free below.
Subscribe
February 15, 2024
Panama Canal Primer
Panama Canal Traffic By Shipment Category And Tonnage
by Tyler Durden
Wednesday, Feb 07, 2024 – 11:35 PM
Daily Panama Canal traffic has been steadily restricted to start the year, with an expected peak reduction of over 40% by February 2024 due to severe drought. The problem is already affecting supply chains for U.S. and Asian importers.
In the graphic below, Visual Capitalist’s Omri Wallach illustrates the number of shipping crossings by market segment at the Canal and the net tonnage carried during the Annual Fiscal 2023 (October 2022 to September 2023). Data is from the Panama Canal Authority.
About the Panama Canal
The Panama Canal is an artificial 82-kilometer (51-mile) waterway that connects the Pacific Ocean with the Atlantic Ocean, built between 1904 and 1914.
The Canal locks at each end lift ships to Gatun Lake, an artificial freshwater lake 26 meters (85 ft) above sea level. The shortcut dramatically reduces the time for ships to travel between the two oceans, enabling them to avoid the route around the southernmost tip of South America via the Drake Passage or Strait of Magellan.
The Panama Canal moves roughly $270 billion worth of cargo annually–it’s the trade route taken by 40% of all U.S. container traffic alone and handles about 5% of all global maritime trade.
The Driest October in 70 Years
Last October, however, Panama received 41% less rainfall than usual, leading to the driest October in 70 years in what was supposed to be Panama’s rainy season, bringing the level of the Gatun Lake almost six feet below where it was a year ago. Additionally, infrastructure constraints led the Panama Canal Authority to restrict the number of ships that could pass each day.
The principal commodity groups carried through the Canal are motor vehicles, petroleum products, grains, coal, and coke.
According to the Panama Canal Authority, most of its traffic came from containers and dry bulk like soybeans. The world’s largest operator of chemical tankers (Stolt-Nielsen) typically also uses the Canal. However, due to the drought and the backup at the crossing, the operator has decided to reroute its fleet to the Suez Canal.
Although representing the smaller number of crossings, the Canal is also an important route for passengers, with many ocean cruise lines offering popular Panama Canal itineraries that sail through the Canal in the approximately 8-hour passage to their next destination in the opposite ocean.
https://www.zerohedge.com/geopolitical/panama-canal-traffic-shipment-category-and-tonnage
February 11, 2024
US Trade Overview
US Trade With Mexico Surges To No. 1 Position
by Tyler Durden
Thursday, Feb 08, 2024 – 10:05 PM
Mexico was the biggest trade partner of the U.S. in 2023 and the biggest source of the country’s imports ahead of China.
As Statista’s Katharina Buchhoz details below, trade with Mexico – both imports and exports – totaled close to $800 billion last year as efforts to source closer to home and reduce dependence on China are ongoing in the U.S. and other Western countries.
The U.S. has also intensified trade with its neighbor to the North.
Canada is currently the country’s top 2 trade partner and top 3 source of imports, only slightly behind China for the latter metric.
Trade with two more close allies, Japan and Germany, also grew over the last couple of years.
You will find more infographics at Statista
China has traditionally bought fewer goods from the U.S. than Mexico and Canada so when its imports to the U.S. dropped last year, so did its overall trade balance with its North American partner.
China was the biggest trade partner of the U.S. between 2015 and 2018.
Canada and Mexico then became top partners at the height of the U.S.-China trade war in 2019.
2020 and the outbreak of the coronavirus caused a trade slump in the U.S. and saw China reemerge as the country’s biggest partner since the pandemic affected it only from a later date.
When the pandemic subsided in 2022 and 2023 and critique of China soared, first Canada and then Mexico got ahead, according to the U.S. Census Bureau.
https://www.zerohedge.com/economics/us-trade-mexico-surges-no-1-position
February 8, 2024
U.S. Housing
2023 Review and 2024 Outlook For US Housing Market
PUdaily | Updated: February 7, 2024
2023 has come and gone in a rush. In the past year, the US housing market witnessed a notable storm, with one of the most talked-about topics being the skyrocketing mortgage rates. Since the end of 2022 when the 30-year fixed mortgage rate broke 6% for the first time, it climbed to over 7% in 2023, and even approached the high of 8%, undoubtedly shattering many people’s home-buying dreams. At this point, rumours about the burst of housing bubble spread everywhere. Looking back, to find a similar scenario of high mortgage rates, we have to go back over 20 years to the turn of the century. Over the years, people have gradually grown accustomed to a low interest rate environment. Since the real estate market recovery in 2012, the average 30-year mortgage rate has only been 4.14%, making the current figure of over 7% exceptionally glaring.
Despite the record-high mortgage rates in 2023, housing prices did not fall as expected, but instead continued to stand firm. An expert pointed out, “High rates reduce housing demand, but also more significantly reduce housing supply”. The US housing inventory is only equivalent to a 2.5-month supply at the current sales pace, far below the balanced level of 6-month.
In 2023, housing starts in the US totaled 16.98 million, a year-on-year decrease of 8.8%, according to FRED. Meanwhile, housing completions increased by 5.5% to 17.48 million. In addition, the Housing Market Index (HMI) published by the National Association of Home Builders (NAHB) dropped to 44% in 2023, a 15% decrease from the previous year, further confirming the view that “high rates reduce housing demand, but also more significantly reduce housing supply”.
Figure 1: US Housing Completions, Housing Starts & HMI 2023 (1,000 units, %)
Data source: FRED, NAHB
In 2023, the available housing inventory was relatively low due to sellers unwilling to give up previously locked-in low interest rates. Luckily, in 2024, buyers can expect to see an improvement in the number of homes for sale. Lawrence Yun, chief economist at National Association of Realtors (NAR), stated that overall housing inventory could increase by as much as 30%, with some markets experiencing even more rapid growth.
The number of mortgage applications for home purchases in the US rose to the highest level since April 2023, indicating an increase in housing loan demand due to borrowing costs remaining below 7%. Data from the Mortgage Bankers Association (MBA) showed that mortgage applications for home purchases in the US increased 7.5% to 174.3 in the week ended January 19. Real estate websites like Zillow predicted that rates will remain between 7% and 7.5% throughout the year, while NAR was more optimistic, expecting rates to average below 7% in early spring (home buying season) and to drop to around 6.3% by the end of the year. In contrast, Realtor.com predicted that rates would average 6.5% by the end of 2024.
In summary, with mortgage rates averaging 6.61% and trending downward by the end of December, the US real estate market may experience a recovery in 2024.
Everchem Updates Archive 
Sign Up for Email Updates
