The travel industry is poised to bounce back after undergoing a black swan event in 2020. The pandemic had posed to be an existential threat for many smaller travel businesses. However, there is hope now as vaccination drives around the world are gathering momentum. Governments are also opening up their countries to travelers who have been fully vaccinated. Quarantine rules are being eased, indicating pent-up demand in the travel and tourism sector. Countries with high vaccination rates have witnessed sold-out accommodations and crowding at popular tourist destinations. So, there may be reasons to believe that the same trend may play out in countries that were initially lagging in their vaccination drives but are now picking up pace. So, now may be a good time to look at travel service stocks to buy.
Reports On The Rebound In Travel
The US Travel Association recently published a report stating that nine out of ten Americans had some sort of travel plan over the next six months. The report came out in July 2021. The Global Business Travel Association also conducted a poll. It found that 74% of the respondents believed their employees were more willing to travel given the existing scenario. Companies like TripAdvisor have also found that countries like the UK and the US, where vaccination rates are relatively high, have most people with some travel plans. A study conducted by Research and Markets found that the global mobile travel booking market is expected to grow at a CAGR of 12% from 2021 to 2029. These trends benefit online travel agencies like Booking Holdings. As an investor looking for the top travel stock to buy, focusing on online and mobile solution providers would be a good place to begin.
Booking Holdings’ stock closed at $2178.26 on 30th July 2021. The stock trades on the NASDAQ exchange under the ticker symbol BKNG. The stock has been down 2.7% on a one-month basis. On a year-to-date basis, the stock is flat.