Riding the Resurgence: Spotlight on Investment Ideas Amid the Travel Boom
The year 2023 is poised to witness a significant resurgence in global travel. According to recent surveys, 49% of respondents plan to travel more than they did in the previous year, with a noteworthy increase of 59% in travel interest among the younger demographic (18 to 26 years). Considering that travel spending in the US outpaced the 2019 levels by 4% as of March 2023, it’s evident that the travel industry is experiencing a resurgence.
Investment Opportunities amid the 2023 Travel Boom
Travel-related Stocks 📈
Travel-related stocks span a broad array of companies. Given the forecasted surge in travel for 2023, these stocks could present valuable investment opportunities.
Examples:
- Airlines: Delta Air Lines (DAL), Southwest Airlines (LUV)
- Hotel Chains: Marriott International (MAR), Hilton Worldwide Holdings (HLT)
- Online Travel Agencies: Booking Holdings (BKNG), Expedia Group (EXPE)
Travel-focused ETFs 🏦
Exchange Traded Funds (ETFs) focused on travel and leisure might be a suitable choice for diversified exposure to the travel industry.
Example:
- US Global Jets ETF (JETS) – This fund offers exposure to the global airline industry, including airline operators and manufacturers.
Cryptocurrencies in the Travel Sector 🪙
Travel-focused cryptocurrencies are emerging, promising secure and hassle-free travel transactions.
Example:
- Travala (AVA) – A blockchain-based travel booking platform that uses a native token for transactions.
Travel Tech Startups 🚀
Investors can consider crowdfunding platforms or venture capital investments in emerging travel tech startups.
Example:
- Airbnb (ABNB) – Once a startup, now a major player offering a platform for people to rent out their homes to travelers.
Travel Technology Companies 🌐💻
As technology continues to evolve, tech companies that focus on travel offer exciting opportunities for investors. They provide innovative solutions to improve the travel experience, such as streamlined booking processes, personalised travel recommendations, and digital concierge services.
Examples:
- Alphabet Inc. (GOOGL): Google’s travel search services are widely used for booking flights and hotels. Its travel-oriented services and tools can benefit from the rebound in the travel industry.
- Trip.com (TCOM): This online travel agency based in China offers services including accommodation reservation, transportation ticketing, packaged tours, and corporate travel management.
Sustainable and Eco-friendly Travel Investments 🍃🌏
As more travelers seek eco-friendly and sustainable travel options, there is growing potential in investing in companies and startups that focus on this area. They offer products and services that reduce the carbon footprint of travel, support local communities, and promote sustainable practices.
Examples:
- Intrepid Travel: A global adventure travel company that has been carbon-neutral since 2010 and plans to become climate positive by 2020.
- The Transformational Travel Council: A startup that collaborates with travel companies to create more mindful and sustainable travel experiences.
Luxury Travel 🏰⛱️
With the pent-up demand for travel, the luxury sector is likely to see a boom. Investing in high-end hotels, resorts, and travel service companies could be profitable.
Examples:
- The Hilton’s Waldorf Astoria Hotels & Resorts (HLT)
- The Ritz-Carlton Hotel Company (MAR)
Disclaimer 🔒
This article is for informational purposes only and does not constitute financial advice. The information does not involve any specific recommendations for particular stocks or companies. Please conduct your own research or consult with a financial advisor before making investment decisions.