The year 2020 was a difficult one for the travel and tourism industry. The UN World Tourism Organization estimated that there were 1 billion fewer international arrivals to tourist destinations in 2020 as compared to 2019. One billion is a big number to overcome, and many smaller businesses suffered as a result. The year 2021 is looking more like cautious optimism rather than unbridled optimism. There is still the threat of new variants infecting local populations. However, with vaccination drives in progress around the world, things are poised to get better. Plus, countries with high rates of vaccinations may see higher domestic travel. Companies like Booking Holdings see demand rise gradually from American travellers. If you are an investor looking for the best travel stocks to invest in, then focusing on companies with a strong digital presence would be a good idea.
Booking Holdings Reports Q12021 Earnings Results
On 5th May 2021, Booking Holdings reported its first-quarter 2021 earnings results. Total revenues were down from $2.2 billion to $1.1 billion. While this 50% drop may seem quite steep, one has to factor in the pandemic that hadn’t quite hit the world until Q12020. However, net loss narrowed from $699 million in Q12020 to $55 million. Company CEO Glenn Fogel said that Booking Holdings saw encouraging signs, and booking trends were improving. There was notable strength from within the US. The company, however, will continue to remain cautious on the global front where the travel demand has still not hit the recovery phase. If investors focus on businesses that have a focus on geographies with high vaccination rates, then they might find decent options to buy travel stocks online.
Best Travel Stocks To Invest
Booking Holdings’ stock closed at $2304.37 on 11th June 2021. The stock was trading at a lofty P/E of 134 and was up 41% over one year. On a 10-year basis, the stock price has risen from around $490 to $2300.