COVID-19 devastated the tourism industry with TylerPaper.com reporting that industry revenues decreased by over 90% from pre-pandemic levels.
Fortunately, it seems things are finally changing. The rollout of COVID-19 vaccines has resulted in the emergence of “vaccine tourism” in countries like Russia, Maldives, and the United Arab Emirates. Even American cities like New York are removing residency requirements for the much-coveted shots, spurring travellers to visit vaccination centers while stimulating the local economy.
Consequently, although tourism is making a slow recovery, definite progress is being made. This is turn is leading to increased confidence in travel assets, as investors look forward to a travel boom. Here’s why.
Airports are Reopening
With travel picking up again planes are finally lifting off. The industry was in jeopardy in 2020, and the Treasury Department provided bailout worth $25 billion last year. However, companies like Southwest Airlines weathered the pandemic better than others. The company began recovering in late 2020, which means its stocks are likely to perform better in the coming months. A trend that will be seen across all airlines as travel restrictions are relaxed.
That’s not all though. Online financial resource AskMoney.com reported in a recent article that two US-based airlines, Breeze and Avelo, had launched early this year. This is proof that commercial aviation is not just recovering, but growing. Now is the time to start investing in airline CFDs.
Leisure travel is Leading the Recovery
As pandemic restrictions ease, travellers are rushing to book “revenge vacations” (or curbing the urge to travel after not being able to for an extended period of time), making leisure travel grow in popularity. In fact, GlobeNewswire.com reports that the global leisure travel market is set to reach $1.7 trillion by 2027, growing at a year-over-year rate of 22.6% starting 2021.
Vacation prices have become more expensive to match the market’s demand too. As such, you should consider investing in hotel chain CFDs like IHG, for instance, which have multiple locations worldwide and consequently will benefit the most from increased leisure travel.
Experiential Tourism is Gaining Popularity
Gone are the days where tourists flock toward the most popular sightseeing attractions. Even in the midst of the pandemic, fully immersive experiences are still in vogue. Tourists want to interact with locals, learn about their culture, and try out new things.
For instance, instead of staying at a hotel, more tourists are booking an Airbnb. Packages from travel agencies like Black Tomato are likely to include visits to lesser-known hiking trails or local restaurants. With the modern tourist hungry for novel, authentic — and, according to Monitor.ICEF.com, even Instagrammable — experiences, now is a chance to start searching for CFDs in these areas that will provide a high ROI.
Technology is Innovating the Tourist Experience
The tourist experience is constantly improving thanks to rapid technological advancements. Chatbots, for instance, are making booking services more accessible, and can even tailor recommendations to clients without human assistance.
On the other hand, virtual reality is helping tourists sample various facilities before booking a reservation. For example, the Maldives Marketing and Public Relations Corporation is using the technology to showcase in-country experiences, such as beach yoga and snorkelling, encouraging more people to try these activities when they step onto their shores.
This is only the beginning, however. The post-pandemic world requires more sustainable and contactless services to run, and new technologies are being integrated into tourist infrastructure every day. Investing in known brands like online travel portal Booking Holdings can promise long-term CFDs with a high potential for profit.