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Invest in Travel’s 228% Growth With This ETF

Invest in Travel’s 228% Growth With This ETF

I recently went parasailing and was surprised by what I saw.

Since it was a Monday, I expected a quick and easy check-in process.

Instead, I had to wait in line for a long time. And then I waited even longer for a boat.

As I waited, the check-in line grew longer, and I saw that the departing boats were fully packed.

The size of the crowd reminded me of the time I went paddleboarding. Except that was back in 2019.

It was like COVID didn’t exist.

After nearly two years of living with a pandemic, this shouldn’t be surprising.

This is the pent-up demand we’ve been hearing about all this time.

But I think this is just the start.

In 2022 we’ll start to see the real effects of pent-up demand on travel and leisure.

In fact, the World Travel & Tourism Council (WTTC) expects 228% growth in international spending by travelers in the U.S. in 2022.

And there’s an easy way you can invest in this trend right now.

Pandemic Fears Didn’t Stop Travel and Leisure in 2021

To get a glimpse of what we’ll see in 2022, all we have to do is take a look at this past year.

Even with the pandemic and its uncertainties, bookings were on the rise in 2021, according to Deloitte.

Domestic travel and leisure bookings led the charge in North America and Europe.

travel during pandemic

(Source: Deloitte.)

The same research also showed the effects of pent-up demand on consumers:

  • Travelers were less sensitive to price changes and more willing to splurge.
  • More bookings were spontaneous, with shorter gaps between bookings and the activities.
  • Experiences and bookings were highly customized compared to pre-pandemic times.

The Return of Travel Has Begun

According to the WTTC, the U.S. travel sector registered 36% growth in 2021.

You can see that growth in the Transportation Security Administration (TSA) throughput numbers.

These figures show the number of travelers that cross TSA checkpoints across the U.S. each day.

On Tuesday, that number was 1.99 million — nearly double the same day in 2020.

That’s almost back to 2019 levels of 2.01 million.

Domestic travel was already on a rebound at the start of this year.

But with the easing of travel restrictions in November, international travel started to pick up as well.

In other words, 2022 will mark the return of travel and leisure. And it’s an investment trend you don’t want to miss out on.

The ETFMG Travel Tech ETF (NYSE: AWAY) gives you a great way to invest in this trend without having to pick through individual airlines and hotel brands.

It consists of a collection of travel tech stocks in the following segments:

  • Bookings and reservations.
  • Travel price comparisons.
  • Ride-hailing and ride-sharing.
  • Travel advice.

Keep following us at Winning Investor Daily as we continue to track this trend in 2022.

Regards,

Andrew Prince

Research Analyst, Strategic Fortunes

 

Morning Movers


From open till noon Eastern time.

 

Freedom Holdings Inc. (OTC: FHLD) does not currently have significant operations. It is up an unbelievable 1,021% on the news that it has agreed to acquire Carbon Zero Asset Management, a blockchain-based asset management company. 

 

Calix Inc. (NYSE: CALX) provides cloud and software platforms, systems and services. The stock jumped 14% on the news that it is set to join the S&P MidCap 400 Index next week. 

 

Arhaus Inc. (Nasdaq: ARHS) provides merchandise assortments across various categories, including furniture, lighting, textiles and decor. It is up 13% today and is on its second day of significant gains, but there is no specific news driving the move. 

 

Victoria’s Secret & Co. (NYSE: VSCO) operates as a specialty retailer of women’s intimate wear, personal care and beauty products worldwide. It is up 11% after announcing that it would repurchase $250 million worth of its shares.  

 

Commerzbank AG (OTC: CRZBF) is a German bank that is up 8% as part of a rally in European stocks as concerns about omicron and its impact on global demand for fuel start to fade. 

 

Himax Technologies Inc. (Nasdaq: HIMX) is a fabless semiconductor company that provides display imaging processing technologies. It has no company specific news to report, but it is up 7% as part of the recent uptrend in semiconductor stocks.  

 

Western Digital Corp. (Nasdaq: WDC) develops, manufactures and sells data storage devices and solutions. It is up 6% on the news that its rival, Samsung, has reduced production at its memory chip plants in China because of new restrictions in the region over rising omicron cases. 

 

Five Below Inc. (Nasdaq: FIVE) is a discount retailer that is up 6% this morning. The move is being driven by positive media attention on the company’s strong performance and growth over the last year.   

 

Allkem Ltd. (OTC: OROCF) is an Australian lithium and boron mining company. It is up 5% today as part of its rally over the last week after it released a feasibility study on sustainable lithium mining using hydropower at one of its projects in Canada. 

 

SEMrush Holdings Inc. (NYSE: SEMR) provides a software platform that allows companies to identify and reach the right audience for their content through the right channels. It is up 5% on positive media attention highlighting the company as one of the more promising IPOs of this year. 

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