Travel stocks have had a difficult time all through the pandemic. Countries have imposed restrictions on foreign passengers, flights are operating at lower capacities, and the number of COVID cases around the world is rising. However, there are also reports about several vaccine candidates inching closer to being approved. Economic activity is also picking up around the world. People are beginning to take short trips as well. Some investors may, therefore, believe that now would be a good time to find the best travel stocks to invest in.
Gradual Improvements For The Best Travel Stocks To Invest In
The third quarter is generally Booking’s largest and most profitable quarter. Room nights for the company were down 43% year-on-year, as opposed to an 87% drop back in the second quarter of 2020. This represented a significant improvement. Even the EBITDA recorded was $1 billion, much higher than the $376 million loss recorded in Q2. However, the EBITDA was 60% lower than in the same quarter the previous year. Company CEO Glenn Fogel believes that people have an innate desire to travel and that desire will ultimately drive the recovery for the sector.
Other Highlights Of Q32020
Booking Holdings is working to lower its costs in order to adapt itself to the changing scenario with regard to the pandemic. It has reduced its workforce at Booking.com by 25% and has undertaken various other measures at Kayak, Agoda, Priceline, and OpenTable to target annual savings between $250 million and $300 million.
On a regional basis, performance in North America continues to improve. However, Europe is seeing a decline as lockdown measures are being announced on the continent. The near-term outlook remains weak because the winter and a rising number of COVID cases in the US and Europe are bound to take a toll on travel and bookings. However, the long-term outlook remains positive for Booking Holdings that operates some of the best-known brands in the online travel agency sector.