2 Surprising Charts Show What’s Next for Travel
Back in March of 2020, I took a trip with my friends to St. Augustine, Florida.
It was the beginning of spring break. That’s when towns like St. Augustine get swamped with partiers from around the country.
But once we got there, the town was almost empty.
As COVID-19 cases climbed, people were spooked enough to put off their vacations.
Over the next few months, I heard about friends and family postponing the trips they had planned for the year.
2021 wasn’t any better, with concerns over the delta and omicron variants.
However, this year is different.
In particular, I’ve found two surprising charts that show that travel isn’t dead.
And it means exciting things are ahead for the industry…
Americans Are Comfortable With Travel Again
As I set out to write this article, I dove into research mode.
One of the key things I look at when judging a travel-sector recovery is sentiment.
Ultimately, people won’t travel if they don’t feel safe or confident enough.
This year, the sentiment around travel is very positive. That’s a big change from even just the start of 2022.
According to a weekly survey by Morning Consult, 71% of Americans feel comfortable going on vacation.
That’s up 15% from the start of this year.
Check out the chart below. While Gen Z is the most comfortable traveling, adults in general are ready to get away.
(Source: Morning Consult.)
Americans also feel much more comfortable with every type of transportation on their vacations.
(Source: Morning Consult.)
Most notably, for the first time since the beginning of the pandemic, over 50% of respondents felt comfortable flying.
As you can see from these two charts, the travel industry is set to come roaring back. And that means opportunities for investors.
Pent-Up Demand for Travel Is Boosting the Sector
It’s not just sentiment that’s improving.
This comfort with travel is helping companies in the sector.
Just take a look at recent news from some big airline operators:
- United Airlines raised its revenue forecasts for the second quarter.
- American Airlines is investing in its training centers to battle the current pilot shortage.
- Lufthansa is bringing back nonstop flights to Europe from smaller U.S. cities.
And it’s not just airlines. Others in the sector, such as booking sites, ride-sharing companies and hotels, are also hopping on this trend.
Travel sites like Expedia are spending more on marketing and advertising vacation deals. And hotel chains like Marriott and Best Western are ramping up hiring worldwide.
This gives us plenty of options when it comes to investing in the recovery of travel.
Check out Ian King’s Strategic Fortunes service for some great ways to profit from the rebound in this sector.
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