Travel and tourism are taking off, and investors can jump on board
The travel and tourism sector is experiencing a resurgence in 2023, with a 23.2 per cent jump from the previous year, reaching 9.1 per cent of global GDP. According to McKinsey research, individuals are increasingly prioritizing spending on experiences over material possessions, driving the demand for travel and tourism services.
One key trend in the industry is the preference for online and app booking experiences, with a 142 per cent increase in mobile bookings between 2022 and 2023. This shift towards digital platforms has led to the global online travel agency market size expanding to $53.534 billion in 2022, with expectations to reach $79.258 billion by 2028.
Investors are taking notice of the growth potential in the travel sector, as it has outperformed traditionally “safe” stocks like utilities and banks. The Dow Jones U.S. Travel & Tourism Total Stock Market Index returned +29.69 per cent compared to the banks’ index at +6.20 per cent last year.
Two travel technologies to watch out for in 2024 are Helloworld Travel (ASX:HLO) and Traveloka. Helloworld Travel, an Australian and New Zealand travel distribution company, has seen significant profit growth and efficiency improvements. On the other hand, Traveloka, an online travel booking unicorn, has showcased impressive growth in the SE Asian region and is committed to making social, environmental, and economic contributions to the countries it operates in.
Overall, the travel and tourism sector presents diverse investment opportunities, especially with the increasing range of travel technologies making travel experiences more convenient and personalized. Investors looking to capitalize on this growing industry should consider jumping on board now.