Top Travel Stocks for Summer 2022
2022 was meant to be THE boom year for travel, following 2.5 years of lockdowns. So how’s it going? And how are those travel stocks looking? Read on to find out. Keep reading after that and we’ll even let you know what fundamental events are worth checking out this week.
Not exactly “take-off”… just yet
Ongoing COVID-19 travel restrictions, reported resurgent sub-variants of Omicron, and Russia’s war in Ukraine have really put the brakes on what should have been a massive comeback summer for the travel industry.
Despite all of this, there can be no denying that there’s a hugely significant amount of demand built up for travelling again, and ultimately, a few companies (and individuals) are to win big on all of that tourism when the comeback is finally on.
4 Top Travel Stocks
All of the companies on the following list had a pretty bad starts to the year on paper. But that’s indicative of the entire industry. What we think these companies have done well is set themselves up for the bounce-back, making them worth serious consideration.
#1 Airbnb (ABNB)
Everyone’s favourite holiday home platform now boasts over 5 million listings across 220 countries and regions.
The paradigm shift toward remote working appears to be one of the biggest lasting influences of the pandemic, and Airbnb is benefiting — massively. Millions of people around the world are now working while they travel, and extended-stay bookings were a top area of growth for Airbnb in 2021.
Pre-lockdowns, Airbnb had seen a rapid rise to the top of the tourism industry. Having adapted through the crisis well, it appears well poised to restart the growth that made it a household name. Definitely one to watch!
Price on 01.01: $172.68
Price on 22.07: $103.97
% change YTD: -39.79%
#2 Walt Disney Holdings (DIS)
Disney is a mainstay in our articles on top travel stocks — and for good reason.
Unlike others on our list, this stock has two massive positives. First, it’s a very diverse stock, covering media networks, physical locations, studio entertainment (Star Wars, Marvel, etc. franchises), and consumer products — which means investors are effectively hedging when buying into it. Second, it’s not as drastically impacted by the war in Ukraine as most of its physical locations are in the US.
Disney’s international theme parks are always popular destinations, although ongoing restrictions may make a dent in any potential growth. Yet, because of that behemoth portfolio, Disney can still grow massively.
Cinemas are open and Disney continues to have a solid year as its burgeoning entertainment portfolio engages audiences the world over — Obi Wan Kenobi, anyone?
Price on 01.01: $156.75
Price on 22.07: $102.72
% change YTD: -34.47%
#3 Royal Caribbean Cruises (RCL)
Royal Caribbean is the second largest cruise line operator in the world and it includes three popular subsidiary cruise lines: Royal Caribbean International, Celebrity Cruises and Silversea Cruises.
RCL predict that the company will actually reach pre-covid passenger levels within the next year, with very high bookings recorded for the summer and throughout 2022 in general.
The company is also implementing aggressive hiring efforts to overcome the staffing shortages that are plaguing airlines right now.
Yes, the stock price is down 57% this year, but over the long-term, Royal Caribbean is proving it has the ability to adjust to rapidly changing economic conditions. This should warrant the serious consideration of any investor.
Price on 01.01: $80.83
Price on 22.07: $34.87
% change YTD: -56.86%
#4 Booking Holdings (BKNG)
Booking.com operates several aggregators and metasearch engines for airline tickets, hotels and car rentals. That always makes it a go-to company for holidaymakers. It owns and operates some of the biggest sites in the biz, including:
When the pandemic hit, the company raised large amounts of capital, while also cutting costs — slashing its global workforce to save more than $300 million annually.
A cash reserve in the billions, the range of products it has to offer, and all that pent-up demand put Booking in the perfect position to win the bounce back.
Its stock is priced pretty nicely at the moment, too…
Price on 01.01: $2,461.42
Price on 22.07: $1,809.88
% change YTD: -26.47%
What do you think?
Is now the right time to start reinvesting in travel stocks? Have you already? Let us know what you think and why by tweeting us at @_contentworks.
Top trading events this week
It’s going to be a packed week! Here’s everything you need to know.
● EUR — Germany, Ifo Business Climate (JUL)
● USD — CB Consumer Confidence (JUL)
● AUD — Inflation Rate YoY (Q2)
● USD — Durable Goods Orders MoM (JUN); Fed Interest Rate Decision; Fed Press Conference
● USD — GDP Growth Rate QoQ Adv (Q2)
● EUR — Germany, Unemployment Change (JUL); Unemployment Rate (JUL); GDP Growth Rate YoY Flash (Q2)
● USD — Core PCE Price Index YoY (JUN); PCE Price Index YoY (JUN); Michigan Consumer Sentiment Final (JUL)
No significant events are scheduled.
● CNY — NBS Manufacturing PMI (JUL)
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The Contentworks team