Travel and tourism are experiencing a resurgence

The global tourism industry is experiencing a significant resurgence, with opportunities for investors to capitalize on this growth, according to Jeremy Liddle. In 2023, the travel and tourism sector saw a 23.2% increase from the previous year, accounting for 9.1% of global GDP. Research from McKinsey shows that individuals are increasingly prioritizing spending on experiences over material possessions.

To capture the growing demand, online and app booking experiences have become the preferred method for modern travelers, with a 142% increase in mobile bookings between 2022 and 2023. The global online travel agency market is expected to reach $79.258 billion by 2028, expanding at a CAGR of 6.76%.

Investors are taking notice of the opportunities in the travel sector, which has outperformed traditionally “safe” stocks like utilities and banks. Companies like Helloworld Travel (ASX:HLO) and Traveloka are leading the way in leveraging new technologies and catering to the evolving preferences of consumers.

Helloworld Travel, an Australian and New Zealand travel distribution company, reported significant profit growth in the six months ending December 31, 2023. Meanwhile, Traveloka, an online travel booking unicorn, demonstrated impressive growth in its 2022 and 2023 financial years, particularly in the rapidly growing SE Asian region.

Travello, a youth-focused online travel agency with a social networking component, has also seen substantial growth and secured $10 million in Series B funding to expand its operations.

While the global travel and tourism sector has made a strong recovery since 2022, there is still room for growth. The increasing range of travel technologies and the shift towards personalized experiences present lucrative opportunities for investors looking to capitalize on the booming industry.