Despite an uncertain macroeconomic environment, the travel industry is anticipated to witness robust demand this year. Amid this, quality travel stocks Airbnb, Inc. (ABNB – Get Rating), Bluegreen Vacations Holding Corporation (BVH – Get Rating), and The Marcus Corporation (MCS – Get Rating) have gained solid momentum.
Total travel spending in the US increased by 0.9% over June 2022 and was up 4.7% year to date through June 2023. Air travel demand surged 12% in June compared to the same month last year as we entered the busy summer travel season.
According to the World Travel and Tourism Council (WTTC) 2023 Economic Impact Research (EIR), the sector is expected to contribute $2.24 trillion to the US economy this year, exceeding the pre-pandemic record of $2.17 trillion in 2019.
Julia Simpson, WTTC President & CEO, said: “The Travel & Tourism sector continues to recover at pace, demonstrating the resilience of the sector and the enduring desire to travel. By the end of the year, the sector’s contribution will be within touching distance of the 2019 peak. We expect 2024 to exceed 2019. Travel & Tourism will be a growth sector over the next ten years.”
Additionally, the worldwide travel & tourism market is predicted to grow at a 4.4% CAGR to $1.02 trillion by 2027. Hotels are the largest segment, with a forecasted market volume of $410 billion in 2023.
Take a detailed look at the stocks mentioned above:
ABNB, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide.
ABNB’s trailing-12-month levered FCF margin of 25.31% is 505.8% higher than the industry average of 4.18%. Its trailing-12-month net income margin of 0.64x is 31.6% higher than the industry average of 0.49x.
ABNB’s revenue for the fiscal second quarter that ended June 30, 2023, increased 18% year-over-year to $2.48 billion, while its income from operations stood at $523 million, up 41.7% year-over-year. The company’s net income and EPS came in at $650 million and $0.98, up 71.5% and 75% from the prior-year quarter, respectively.