Here’s how to trade it. We’ll cover the airlines, hotels and cruise lines.
There’s a change in the travel industry that’s critical to understanding something Wall Street is missing…
Travel seasons have changed and demand for travel services is now increasing in typical off-season months.
Take Europe, for example. Right now, you can’t comfortably walk in Venice’s San Marco Plaza despite the season supposedly ending well over a month ago. Ditto for major sites in Rome, Dubrovnik and Barcelona.
A good deal of the increase in tourism is coming from China. The number of outbound Chinese tourists will reach 200 million per year by 2020, CLSA Asia-Pacific Markets said in a 2014 report.
This will put upward pressure on prices of everything—from airline tickets to hotel rooms to restaurants.
Ready to trade travel? Here are some names to know…
Fuel prices are low, traffic is increasing, and all three have seen a little fear on Wall Street as they compete against each other with new capacity, which has created buying and trading opportunities.
Business is great and only getting better. Enough said.
With more than 40 new Carnival ships slated for delivery in the next couple years, this will add more revenue streams in an already robust market.
Disclosure: Michael Shulman owns shares of AAL, LUV and RCL.
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