After a year of lockdowns, the travel industry is expected to make a dramatic rebound. Despite adopting new health and safety protocols, many cruise lines have begun to advertise new summer itineraries now that the U.S. Center for Disease Control (CDC) has relaxed restrictions on passenger ships.
Meanwhile, familiar destinations like Disney World have been early adopters of safe guest management practices, and the post-COVID world is looking brighter than ever.
If you’re a consumer or travel enthusiast, this is great news. While you can’t expect all protocols to be lifted this summer, you might be seeing the first real signs of familiar “normalcy” returning to the travel industry.
But this is also great news for investors. Now is a great time to invest in travel-related stocks and other financial opportunities. In this post, we’ll highlight just a few areas in which you might consider investing.
Travel Planning Services
Before the lockdowns, an electronic vacation company was acquired by a financial firm.
Opportunities also exist for individual investors interested in investing in travel planning services that seek to match prospective vacationers with a cruise or resort package. One example is Expedia, which connects vacationers to cruise lines, as well as air travel, making these popular electronic platforms a wise way to invest in the travel industry.
Kiplinger’s has recently reported that Expedia has partnered with Trip.com in China, and China is expected to contribute to roughly 30% of online trip planning in the immediate future.
The Cruise Industry
As we’ve already hinted, the cruise industry is poised for a dramatic rebound following the CDC’s recent announcement. Companies like Carnival and Royal Caribbean have already been hard at work seeking innovative ways to balance passenger safety and guest experiences. Now, these popular cruise lines have been boasting of new itineraries beginning as early as mid-July.
What makes the Walt Disney Company such a promising investment is that they have multiple revenue streams. While the rest of the travel industry was wringing its hands and trying to adapt to quarantines and safety protocols, Disney was continuing to gain ground through its Disney+ streaming service and other direct-to-consumer products.
Earlier, their theme parks reopened with limited capacity and safety accommodations. Now that travelers are more comfortable with relaxed guidance, you can expect that Disney will remain a popular destination for tourists and families. The Walt Disney Company also has its own cruise line, which will also be introducing new itineraries this summer.
Rental Car Companies
Reliance on air travel has given a great boost to rental car agencies such as Avis and Enterprise. Avis offers services including the car-sharing service Zipcar, as well as commercial truck rentals through Budget Truck, making this a particularly smart investment due to a diverse portfolio of customer services.
Now that vacations are returning full swing, the rental car industry is at an inflection point. Investing now could provide dividends in the near future as the tourism industry makes its full recovery over the course of the next year.
Like rental cars, hotels are another industry that is expected to receive a boost with travel restrictions lifting this summer. Among the stocks to consider are Wyndham Hotels & Resorts. As the world’s largest hotel franchise, companies operate under the brands of Wyndham, Ramada, La Quinta, Days Inn, Microtel, Super 8, and others.
Overall, they have a 40% share of all American midscale hotels, and they boast of one of the industry’s largest customer loyalty programs.
Finally, restaurants can be a great investment right now. While many chains have continued to operate with modifications over the last year, customer wariness has impacted the food industry greatly. With more people traveling this summer, restaurants can expect to see a rebound now that doors are reopening.
According to Forbes, now is a great time to buy stock in companies like Starbucks, Shake Shack, and U.S. Foods.
Keep a Balance
With restrictions being lifted, it may be tempting to pivot away from current investments in the hopes of a complete return to normal. But many consumers are finding that their home gym equipment and telecommuting devices have become reliable tools.
Investing in travel-related industries is a great way to expand your investment portfolio, but don’t be too quick to jettison investments in work-from-home or home gym companies, which may just be part of the “new normal” for years to come.