Own these stocks as consumers spend on vacations
Inflation may be causing Americans to cut back on discretionary purchases, but it seems that travel is still a priority. Despite expected drops in spending across categories including furniture, toys, and hobby supplies, 61% of consumers surveyed by KPMG earlier this year said they plan to travel this summer. That’s up from 49% in 2021. This is translating into a boost for some names in the travel sector, with stocks for Royal Caribbean, Carnival, Booking Holdings, and United Airlines all up year to date. Consumers are also getting savvier about their travel planning, searching for less expensive options rather than cancelling plans altogether.
FAQs:
What percentage of Americans plan to travel this summer?
According to a survey conducted by KPMG, 61% of those surveyed said they plan to travel this summer.
Which companies in the travel sector are seeing a boost in stock prices?
Stocks for Royal Caribbean, Carnival, Booking Holdings, and United Airlines are all up year to date.
Are consumers being more thoughtful about their travel spending?
Yes, with spending pivoting from goods to services, consumers are being more savvy about their travel spending. They are hunting for less expensive alternatives rather than just cancelling plans altogether.
Are Americans interested in bleisure travel?
Yes, according to a survey conducted by Morning Consult for the American Hotel & Lodging Association, 86% of business travelers are interested in extending a work trip for leisure purposes, known as “bleisure” travel.
What is the expected hotel occupancy for 2023?
According to the AHLA, average hotel occupancy is expected to reach 63.8% in 2023, which is just shy of the 65.9% reached in 2019.
“Top Stocks to Own as Consumers Increase Spending on Vacations”
Despite inflation worries and tightening budgets, Americans are showing a keen willingness to spend on travel this summer, according to a recent survey by KMPG. While discretionary items, such as furniture and hobby supplies, are expected to suffer in spending, over 60% of consumers surveyed plan to travel this year, up from just under 50% in 2021. The travel sector is benefiting from this trend, with names in the space – including Royal Caribbean Cruises and Carnival – seeing gains. The post-pandemic era has also unlocked the potential for business travelers to extend trips for leisure purposes – a trend known as “bleisure” travel. Hotels are currently leading the recovery, while inbound travel is expected to ramp up as countries lift restrictions. Meanwhile, companies such as Airbnb are coping with price pressures as they adapt to changing consumer demand.