- The last week of December is usually a time when people love to go on vacations, resulting in in higher demand for related services.
- Companies try to capitalise on this holiday spirit by offering various year-ending sales and discounts.
- The omicron variant of COVID-19 still poses a threat to equity markets; therefore, investors should do their own due diligence before investing.
The last week of December is considered as a relaxation period. People generally take a pause from the normal hustle and bustle of their lives and go on vacations to spend quality time with their families.
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Many also like to travel to distant locations to celebrate the New Year and make it more memorable. Despite travel getting expensive around this time, bookings for airlines tickets and resorts/hotels generally see an uptick and the respective companies try to capitalise on this vacation sentiment by offering various year-ending sales and discounts. Let us have a look at three ASX shares that could potentially rake in higher revenue this holiday season.
- Flight Centre Travel Group Limited (ASX:FLT)
Flight Centre Travel is a renowned Australian travel agency headquartered in Brisbane, Australia. Apart from travel services it also provides forex services. After the initial shock of the Omicron variant, the FLT share price has recovered well this month and has offered a negative return of 4.32% in the last one month, ending 24 December 2021.
Despite the COVID-19 induced restrictions and lockdowns in FY21, the company was able to reduce its net loss to AU$433 million, from a net loss of AU$660 million in FY20.
- Star Entertainment Group Limited (ASX:SGR)
What’s a better way to enjoy a relaxing vacation than booking a few days at a luxurious resort! With more than 18 million guest bookings every year, Star Entertainment Group has a specialisation in delivering unique and memorable experiences.
The company has a market capitalisation of AU$3.48 billion and 7 hotels. The company’s resort’s demand in FY21 was enough to turn it profitable with AU$57.9 million net profit, compared to a net loss of almost AU$90 million in FY20. The SGR share price has remained almost flat in the last one month, ending at AU$3.7 on 24 December 2021.
- Helloworld Travel Limited (ASX:HLO)
The last stock on our list is another travel company, Helloworld, having a market capitalisation of AU$379 million. The company provides both domestic and international travel services including air, cruise, and land products.
HLO shares are up a decent 11.42% to AU$2.44 in the last one month, ending 24 December 2021. The company trimmed its net loss by almost half to AU$35.5 million in FY21, after suffering a total loss of AU$69.8 million in FY20.
Shares which are poised to benefit from a long vacation, be it travel agencies, airlines, hotels etc. generally see an increase in demand around the last week of December as holiday spirit takes over. However, the recent concerns regarding the resurgence of Omicron should not be ignored as it poses an imminent threat to equity markets.