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Highlights
- Most of travel businesses, hit by the pandemic, are now trying to resurrect in Australia.
- Some of the major companies have started with both domestic and international bookings and are now aiming to be back to 2019 or prior levels, in terms of business.
- However, travel and tourism industry overall in Australia, is still suffering staff shortages and rising costs.
- Travel stocks like WEB, FLT, HTO and CTD are on investors’ radar. Let's know why!
ASX200 is up on Monday, with all eleven of its composite sectors in green. The consumer discretionary sector is up around 2.3% near market close (3:30 PM AEST). Travel stocks under this sector have reportedly surged after cruise company Carnival reported best quarterly booking numbers since the start of pandemic.
Travel and tourism industry in Australia suffered for more than a year during and after Covid-19. However, travel business owners are now gearing up for both domestic and international bookings. Most of them are aiming to be back at 2019 or prior levels. While this is an opportune time for Australian businesses to capitalise resurgence of global travel, the industry is also facing severe labour shortages. Alongside this, inflation and global slowdown are casting its shadows on the travel industry.
In this backdrop covered here are Webjet Limited (ASX:WEB), Flight Centre Travel Group Ltd (ASX:FLT), HelloWorld Travel Limited (ASX:HLO) and Corporate Travel Management Ltd. (ASX:CTD) from the travel stocks segment of the consumer discretionary sector.
Note- share prices stated here are as of 27 June, 3:30 PM AEST.
Webjet Limited (ASX:WEB)
ASX-listed travel company, Webjet Limited, closed 5.303% up at AU$5.560 apiece today. The online booking providers shares were trading at around AU$5.54 a share. Tracing a volatile path since last two years, Webjet’s share price is slowly nearing its March 2020 prices, that when Covid pandemic was at peak. Meanwhile, Webjet has reportedly returned to profitability in H2-22 with FY22 being termed as the year of recovery. At present, Webjet is pegging high on travel rebound. However increasing inflation and recessionary fears can also impact on WEB share price.
Flight Centre Travel Group Ltd (ASX:FLT)
Another provider of travel services, Flight Centre Travel Group Limited, closed 6.608% higher at AU$18.390 a share on the ASX. In absence of any new ASX announcements, FLT share price appeared to be following the broader markets. It was another company that outperformed the consumer discretionary sector’s upside.
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Image Description- ASX travel stocks market concept
HelloWorld Travel Limited (ASX:HLO)
HelloWorld Travel Limited gained 9.090% and closed at AU$1.800 per share today on the ASX. Despite any new ASX updates since early May, HLT share price is in green. Even HelloWorld had its latest March quarter update showing continuous recovery in business. Revenue for the period was up 52% on prior corresponding period (pcp). It claimed to be on its road to recovery back then.
Corporate Travel Management Ltd. (ASX:CTD)
Another travel sector stock Corporate Travel Management Limited, (ASX:CTD) closed 4.9% up at AU$19.470 per share moving alongside the Australian benchmark index ASX200.
The stock has lost more than 6% in last one year.
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