The 2020 Covid-19 pandemic has caused a sweeping negative effect on global stocks. Companies all over the world has taken a hit in their businesses and revenues.
One of the major industries that suffered greatly is the tourism trade. Expectedly, all tourism-related stocks have gone down.
With every downward slope of share values caused by the temporary halt of the travel industry, there comes a silver lining that isn’t far from happening in the future: “Revenge Travel”.
After several months of cooping inside our homes, people are starting to get weary over a year certainly lost to riding out the pandemic.
Almost everyone who have traveled rigorously before had holiday plans get cancelled because of the lockdown that proceeded the spread of the Covid-19 virus.
To make up for lost time on the road, tourism watchers expect travelers to become more eager to go out exploring our world once a semblance of normality returns—and for traders, a return to normal for stock values.
What is “Revenge Travel”
A buzzword that has industry insiders feeling excited, the phenomenon of “revenge travel” is a form of a release of pent-up demand, and in this case, the desire to travel.
It is akin to the “revenge spending” that happened in China in the 1980’s.
Consumer demands immediately increased following the cultural revolution and paved the way to making China one of the biggest markets in the world for products almost everything under the sun—from technology, to retail, to services and more.
Following China’s victory over the Covid-19 pandemic where it successfully stopped new infections after months of hard lockdown, Chinese consumers surged with another wave of revenge spending as evidenced by a reported record sale of a Hermes store in Guangzhou of more than $2.5 million in a single day.
In relation to that:
“Revenge travel” is expected to also usher in cabin-fevered people who managed to only leave their houses on supply runs for the last several months, to plan on traveling more in the coming year.
This trend is expected to help rebound travel companies into becoming profitable once again—and raise their stock prices in the financial market.
While the threat of the Covid-19 virus remains and a vaccine is believed to be months or even a year away, China is becoming a model of how the travel industry can bounce back.
According to a report by the Washington Post, domestic travel in China has “bounced back to around 60 to 70 percent of pre-crisis levels”.
It won’t be long before other countries who have managed to flatten the curve of Covid-19 infection to follow re-opening their tourism destinations.
Investing on Off-the-Beaten Stocks
If there is a term called “off-the-beaten-path” in traveling to describe visiting places that are not crawling with tourists, you can also apply this mantra in investing on some travel-related company stocks that are being overlooked right now because of the downturn in the travel industry.
Let’s be honest…
Hotel bookings as you may expect is at a low right now and it comes with the territory that stocks of hotel brands and booking websites are also down.
Think about the positive effects the “revenge travel” phenomenon would bring once tourism activities pick up and start garnering momentum, mainly an increased stock value.
What better way to earn a windfall of profit than scoring several stocks bought on a lower value right NOW.
Booking websites such as Booking.com ( ), Expedia ( ), TripAdvisor ( ), Trip.com ( ) and Amadeus ( ) had their stocks drop during the pandemic but are still giving analysts many reasons to be bullish about to consider these stocks as a “BUY” right now due to the expected bounce back that will occur when people starts traveling again.
Those expected to spend a lot of money when traveling goes back to normal are the leisure travelers who are fond of staying in luxury hotels.
So, it would be good to take a closer look at the stock prices of leading hotel brands like Marriot ( ), Hilton ( ), Wynn ( ), Hyatt ( ), InterContinental ( ) and even cruise companies such as Royal Caribbean Cruises ( ) and Carnival ( ).
Slow to medium growth forecasts are also given to car servicing companies such as Uber ( ), AVIS ( ) and Hertz ( ).
And it gets better…
In the airline industry, financial analysts are also optimistic that these stocks will fly when air travel industry starts soaring again: Delta Airlines ( ), Southwest Airlines ( ), United Continental ( ), American Airlines ( ) and JetBlue Airways ( ).
Airbnb Files for an IPO
One of the most popular accommodation booking websites, Airbnb just filed for an IPO on August 19, 2020.
After going through a testy period dealing with the fallout of the global pandemic, Airbnb surprised financial watchers by quickly bouncing back with a strong rental booking starting in the month of June.
This is another stock you should look out for when it finally gets its IPO.
Investing on Travel Company Stocks with eToro, Plus500 and Avatrade
eToro features the TravelKit CopyPortfolio where you can check out the movements of the leading travel-related stocks on the market today.
Some of the PROS of using eToro includes:
Real-time quotes, advanced social trading network, all-in-one trading platform and wide-range of payment options plus its slew of helpful features.
Used by more than 13 million traders worldwide today, eToro continues to attract investors because of its reliability and rich set of features that meet the requirements of both seasoned and rookie investors.
eToro is a very flexible social trading platform that provides traders a powerful medium to grow their investments.
A lot of traders are preferring to use the trademarked trading platform of Plus500 for trading CFD stocks because of its user-friendliness and robust features that also includes a very useful set of risk management tools that gives you more control and security of your investments.
Some of the PROS of using Plus500 includes:
A stable platform, zero commissions, attractive spreads, unlimited use of demo account and fully regulated by CySEC, ASIC and FCA.
Available in mobile application of through the WebTrader internet browser version, Plus500 is a very dependable trading tool for every investor on the go—thanks to its seamless design and wide functionality.
The Road Ahead for Traveling and Investing
While the world is going through a health crisis, a light at the end of the tunnel isn’t far-away.
There are many reasons to be bullish about tomorrow other than a vaccine for the Covid-19 virus.
Travel company stocks that has gone through a downward spike in the past months are believed to be in the best position for staggering rebounds once travelers start hitting the road again soon.
As a wise man once said:
Work hard, invest wisely and enjoy traveling.