Vaccine revives travel market, and stock market smiles
Such a dark period in the tourism industry had never been seen, probably not even in the subprime mortgage crisis that started [...]
Such a period dark in the tourism industry had never been seen, probably not even in the subprime mortgage crisis that started in 2008/2009. Planes put to land, cruises stopped at the ports, travel agencies with their shutters closed and hotel With laid-off employees.
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A glimmer of light, however, can be seen on the horizon. A year after the nightmare began, the vaccines are beginning to take effect especially from the point of view of the psychological, the trust of travelers back to grow up and more and more people are starting to book or are planning to take a trip in 2021.
A sign that portends a positive trend for companies operating in the tourism industry is definitely the growth of the shares of listed companies, the market is always regulated by supply and demand, if demand is high inevitably the stock market reacts positively.
Market confidence regained in travel
Several companies are getting a breath of fresh air after a bad patch that began in March 2020. These include Alaska Air Group, a U.S. holding company of which the following are members Alaska Airlines, Virgin America, Horizon Air and other companies in the industry. Recently, the stock has been more or less at the 63 dollars, but the title is in ascent.
In the cruise world, on the other hand, recently the U.S.-Norwegian Royal Caribbean, based in Miami and belonging to the eponymous Royal Caribbean Group, saw its shares rise as high as $85 to $90, with good prospects for the summer of 2021, when the industry will resume sailing. Royal Caribbean is the world's second largest operator in the industry (after Carnival Corporation) and owns the largest cruise ships in existence.
The hotel industry
Empty hotels have been the emblem of the crisis we have experienced, the recovery, however, seems close. In fact, online booking companies have also received an increase in visits, which bodes well for at least the spring-summer 2021 recovery of the industry.
Booking Holdings is the owner of the website of reservations world's most popular Booking.com, along with Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars, Momondo and Opentable.
Almost all of its turnover comes from Booking.com, even though the company is from the United States, the largest profits come from overseas. The share price is not for all pockets, in fact it stands at about $2,350, but there are brokers, such as eToro, which allow investors to buy smaller packages and not a whole stock, thanks to CFDs.
As far as hotellerie holding companies are concerned, we can mention Host Hotels & Resort, owner of 80 luxury hotels, including Marriott, Ritz-Carlton, Westin and W, which has a turnover of 5 billion of dollars. The core business is luxury hotels and is part of the S&P 500.
Stocks, even though they are cheap, are back up around the 16 dollars, growth in the last period is evident and promises excellent performance during 2021.
Actions in the world of travel
The world of finance is an industry varied and you can also buy stocks with your own bank, where we have our bank account.
It is also true that buying shares in the bank is not immediate, you have to open a deposit account for investment and be followed by a brokers. The solution is not always cheap because the commissions of banks are often high, and maintaining an equity portfolio is likely to cost too much, especially in the long run.
Buying stocks with eToro in the world of travel
Fortunately, there are solutions that allow you to leave with a low capital, One example is the broker eToro, which gives the opportunity to start investing with only 200€.
eToro, moreover, allows you to open an account Free demo and risk-free: thanks to a portfolio virtual you'll be able to test all the features without spending €1, and when you're ready to invest with real money, you can switch from a Demo account to a real account in no time, at no extra cost.
Finally, with eToro you can invest without the burden of commissions, which are usually very high. Thanks to the use of CFDs (Contract for Difference), which have the same value as stocks, but with the possibility of not buying the whole stock, which, as in the case of Booking, would be excessively wasteful.
Does investing in the travel industry pay off?
Like any investment, the travel industry has risks. It is also true, however, that with transactions cautious and a platform serious in which to invest we can take away some satisfactions.
The world of travel has been at a standstill for too long, and in the months leading up to summer there is sure to be a increase of demand and consequently stocks will benefit positively.
