Should we consider investing in the revival of travel and tourism?

The travel and tourism sector is experiencing a significant resurgence in 2023, with a 23.2 per cent jump from the previous year, accounting for 9.1 per cent of global GDP. This growth is driven by a shift in consumer preferences towards spending on experiences rather than material possessions.

Online and app booking experiences have become increasingly popular, with a 142 per cent increase in mobile bookings between 2022 and 2023. The global online travel agency market is expected to reach $79.258 billion by 2028, presenting diverse investment opportunities.

Two travel technologies to watch out for in 2024 are Helloworld Travel and Traveloka. Helloworld Travel, an Australian and New Zealand travel distribution company, has seen significant profit growth, doubling its underlying profit in the six months ending December 2023. On the other hand, Traveloka, a Southeast Asian online travel booking unicorn, has showcased impressive growth and leverages machine learning and automation for a competitive advantage.

Traveloka has also made significant social, environmental, and economic contributions to the Southeast Asian region, aiming to become the most sustainable technology company in the area. Additionally, Travello, an Australian-based youth online travel agency with a social networking brand, has seen exponential revenue growth post-COVID-19 and secured $10 million in Series B funding for expansion.

Investors are encouraged to capitalize on the recovery and growth opportunities in the travel and tourism sector, as there is still room for growth compared to pre-pandemic levels. The increasing range of travel technologies is expected to drive this growth, making it a potentially lucrative opportunity for early investors.