Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
Booking Holdings Inc. says inflation continues to weigh on US travel demand, with cost-conscious consumers delaying vacation planning and opting for budget options, CFO Ewout Steenbergen revealed.
Key Points:
US Consumer Behavior
- Booking windows remain short in the US, indicating consumers are waiting longer to commit to trips due to economic pressure.
- Luxury travel demand remains resilient, but lower-income groups are trading down to budget hotels or shortening their trips.
Europe Shows Stronger Demand
- European travelers are booking trips earlier for events like February skiing and Easter vacations, contributing to steady demand.
- Steenbergen expects US trends to improve as inflation eases and consumers prioritize short getaways over other discretionary spending like new clothes.
Travel Industry Moderation
- Post-pandemic travel growth has cooled, with US demand slower compared to other regions.
Cost-Cutting Initiatives
- Booking Holdings is addressing rising fixed operating expenses by implementing a cost-reduction plan:
- Layoffs and real estate reductions.
- Modernizing internal systems and processes.
- Expected savings: $400 million to $450 million annually.
Example:
- The company recently cut 60 roles at Rocket Travel (part of Agoda) in Chicago, moving support operations to Asia while retaining customer-facing roles in the US.
Reinvestment for Growth
Booking plans to reinvest savings into:
- Traveler activities (e.g., tours and excursions).
- New markets.
- Generative AI integration for enhanced customer service.
Benefits Timeline:
- Positive impacts are anticipated in late 2025, with stronger results by 2026 and beyond.
Outlook
Steenbergen remains optimistic, predicting US travel demand normalization as inflationary pressures subside. In the meantime, Europe’s steady demand and cost-cutting measures position Booking for future growth despite the current slowdown.
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