Many investors will think twice before investing in travel-related stocks during the COVID crisis. While it is true that vaccines are due to come out in the next few months, the world is still not completely out of the COVID pandemic. Travel and hospitality have taken a major hit as people prefer to stay at home rather than travel in the current scenario. However, if you are bullish on the economic recovery or believe that new trends are emerging within the travel industry, then you probably want to know what are the top travel stocks to buy 2020.
Car Rentals And Alternative Accommodations Seem To Be The Winners
Booking Holdings had a 60-40 split in total bookings lately between hotels and alternative accommodations. While hotels still account for a majority of the bookings, alternative accommodations are picking up fast. Booking Holdings CEO believes that people are looking to go to accommodations that don’t have a lot of people. The people may also be thinking that somebody’s home must be clean because people live there and take ownership of that place.
Another interesting phenomenon has been a greater demand for rental cars. It seems like people are taking shorter trips that are within driving distance from where they live. This kind of travel is known as hyper-local travel. Travelers may be sticking to closer locations because they may not be sure about any new rules or guidelines that may be announced at short notice. The situation with the pandemic is still evolving and guidelines tend to change regularly.
What Are The Best Travel Stocks To Buy Right Now
Booking Holdings has gained 60% since January 2016. The stock is down 17% for the year 2020. However, it has gained 48% since the March market fall. Expedia is another online travel agency stock worth looking at. It is down 8% since January 2016. However, the stock has more than doubled since hitting a low in March 2020.