Technology Boosting Travel Space- 4 Related Stocks in Tech-Driven Age

Travel & tourism is one of the largest industries in Australia. In 2017, the sector contributed over $49 billion to the GDP. In the last three years, tourism GDP grew by more than 20%.

For short term trips (period less than 1 year), foreign visitor arrivals increased by 0.9% in August 2019 to 812,600 visits as compared to July 2019 (trend estimates) in Australia, according to data from the Australian Bureau of Statistics. The Australian resident returns from abroad went up by 0.7% to 955,800 trips in August as compared to July 2019.

Three leading countries for visitor arrivals to Australia in August 2019 were:

• China (127,900)
• New Zealand (118,600)
• US (69,800)

As compared to August 2018, the number of visitors to Tasmania increased by 57.2% and to ACT, went up by 23.2% (original estimates).

On the other hand, for the Australian citizens, the top three destination countries in August 2019 (trend estimates) were:

• New Zealand (121,600)
• Indonesia (119,400)
• US (89,500)

Number of residents who returned to Tasmania grew by 16.7%, while those to Queensland fell by 2.9% (original estimates).

Travel Technology in Australia:

Travel technology in Australia has transformed the way travellers used to arrange their travel plans. With increase in the number of internet bookings, travel agents in Australia are experiencing pressure. Due to the proliferation of smartphones, travellers nowadays have various options to book their trips on their own. They visit various apps, airline websites, or websites of travel & tourism service providers for booking their trips.

After observing these trends, several airline companies have started providing customers with holiday packages at their websites. Discounts and promotions are also motivating travellers. Even travel agencies are working on customising as well as picking their technologies targeted towards offering exciting solutions to their customers.

In this article, we would discuss some ASX listed companies operating in the travel related space.

Webjet Limited (ASX: WEB)

Webjet Limited (ASX: WEB) is a digital travel business covering global consumer markets (through B2C) along with wholesale markets (through B2B).

B2C Travel:

The B2C Travel business comprises of

• com.au: Webjet is the largest online travel agency in Australia and New Zealand. It aims to provide its customers with greatest convenience and choice by allowing them to make a comparison, combine and book the best local and international travel flight deals, hotel lodging, holiday packages, travel insurance along with car rental around the world.
• Online Republic: Online Republic takes care of bookings of cars, cruises and motor homes.

B2B Travel – WebBeds

Webjet established its B2B business in 2013, known as WebBeds. The B2B business of the company supports wholesale entities to meet lodging needs for their clients. WebBeds sells hotel accommodations to its partners through the online network and acts as a mediator between travel providers who are looking for complete accommodation requirements for their clients and more than 250,000 hotels internationally looking for managing their occupancy rates.

Qantas Airways Limited (ASX: QAN)

Qantas Airways Limited (ASX: QAN) has been serving communities for around 100 years and is continuously transforming to ensure that the company is well-positioned for the future.

Qantas Airways Limited’s main business is transportation services through its complementary airline brands, namely Qantas and Jetstar, which operate domestically, regionally and internationally. Qantas Airways Limited is into the business of global and domestic air transportation services along with the operation of a regular flyer loyalty plan.

Both its airline brands help customers to manage their bookings and keep track of their flight status and check-ins.

Below are the segments of QAN:

• Qantas Domestic (Passenger flying business)
• Qantas International (Passenger flying business)
• Jetstar Group (Passenger flying business)
• Qantas Freight (air cargo and express freight business)
• Qantas Loyalty and Corporate (customer loyalty recognition programs)

Virgin Australia Holdings Limited (ASX: VAH)

Part of the Virgin Group, Virgin Australia Holdings Limited (ASX: VAH) is into passenger and cargo airline business for domestic and international markets, in addition to managing a loyalty program. Virgin Australia provides world-class facilities to its users. The company caters to corporate, government, leisure, low cost, regional and charter travellers and air freight customers with a variety of aviation products and services.

Helloworld Travel Limited (ASX: HLO) is a travel-distribution company, which provides its clients with international and domestic travel products and services around the world. Across Australia, New Zealand, Fiji, South-East Asia, India, Europe and the US, HLO has an employee base of over 2k people.