Hello, Reader.

A lot has changed since COVID-19 first enveloped the world, especially travel.

The dark days when many of us were forced to stay home, order our groceries and stock up on eight packs of Clorox All Purpose Bleach Cleaner from Amazon, are the ones we hope to leave behind. more behind us.

Two years later, the world is on the road to recovery, and many things that were impossible to do in 2020 have resumed – going to movies and restaurants, listening to live music, getting married and reuniting, and even travel abroad.

The travel recovery is in full swing, as this photo of London’s Heathrow Airport clearly illustrates. I took this photo yesterday, after wading through swarms of tourists for nearly three hours to get through check-in and security.

Although I only spent a few days “across the pond,” I encountered large crowds at every airport, train station, and hotel lobby.

The resurgence of travel is something I’ve talked about at length since May 2021.

And even though the time wasn’t originally right, thanks to the new COVID variants that surfaced late last year, I believe the travel recovery period is approaching – and it brings with it a multitude of opportunities…

Summer, and life is easy

The resumption of travel is in full swing. Period.

Summer is historically the most popular time to travel, and we’re seeing that popularity rise again as restrictions ease, and we seem to be heading in the right direction with COVID-19.

Let’s take a look at some quick numbers from the US Travel Association Top June Highlights

  • Travel spending hit a new pandemic high of $101 billion in May, just slightly above April’s $100 billion…
  • Similar to April, in June 89% of companies are now allowing non-essential domestic business travel…
  • And in-person meetings are the top business travel spend companies plan for the rest of the year – conference spending as a share of overall business travel spend is expected to rise four percentage points compared to 2019.

This is all great news for travel.

To further compound this positivity, the International Air Transport Association (IATA) released a press release mid-June which states (for the airline industry)…

  • Industry-wide profitability in 2023 looks within reach, with North America already expected to generate $8.8 billion in profit in 2022…
  • Strong pent-up demand, the lifting of travel restrictions in most markets, low unemployment in most countries and rising personal savings are fueling a resurgence in demand that will see passenger numbers hit 83 % of pre-pandemic levels in 2022…
  • And despite the economic difficulties, freight volumes are expected to reach a record high of 68.4 million tonnes in 2022.

And as the graph below shows, the travel business continues to recover from its two-year COVID slump.

The TSA’s 30-day average daily traveler count has dropped to just 10% below pre-COVID levels — and the numbers continue to rise. During the 4th of July weekend, air travel in the United States overcome pre-pandemic levels!

As evidenced by the numbers above, many people are “retaliating” for the two-year-old COVID pandemic by booking long-delayed travel and vacation plans.

To be sure, the trend of travel recovery faces ongoing headwinds and setbacks are possible – the whole of 2022 has been a massive setback for markets.

But as I said before, megatrends will weather the hiccups, but they will continue to make stronger and better recoveries than other stocks.

And while stocks are trading low, picking up shares of your favorite travel stocks isn’t a bad idea.

We have already done this earlier this year in Investment reporttargeting a hotel business and a timeshare business, both of which have huge potential in their sub-sectors.

They’ve both suffered small losses this year, but I see them coming back to life…along with the rest of the travel industry.

Cheers,

Eric

PS Those two travel-related picks I mentioned are still in our open portfolio, so I can’t divulge their names. However, if you want to know how to access it – and the rest of my suite of recommendations, Click here.

Eric Fry is an award-winning stock picker with many 10-bagger calls – in good AND bad markets. How? By finding powerful global megatrends…before they take off. In fact, Eric has recommended 41 different scholarship winners over 1000% over his career. Additionally, he beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a competition. And today, he reveals his next potential 1000% winner for free, here.