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Highlights
- The tourism industry was badly impacted by COVID-19 and travel agencies are still battling inflation.
- Even today, shares of many big travel companies like Qantas and HelloWorld were trading in red.
The global outbreak of COVID-19 pandemic in 2020 impacted everyone across the globe and it would not be wrong to say that the tourism industry was the worst sufferer of the deadly pandemic. But the travel and tourism industry is gradually rebounding as COVID-19 cases are now falling globally and the borders have reopened.
According to Tourism Research Australia Statistics, the domestic overnight visitor spending in the March quarter of 2022 was AU$2.6 billion higher than pre-COVID levels, an increase of 14% from the March quarter of 2020.
Domestic travel spending, including daytime and overnight stays, totalled AU$25.9 billion. This is AU$1.5 billion more than the subsequent highest quarter throughout the epidemic, demonstrating that Australians were travelling and taking advantage of everything our country offers regarding locations and experiences.
However, several travel companies are still fighting inflation and many travel companies ended the trading in red territory in June. This is mainly because of the inflation and rising interest rates.
To combat inflation, the Reserve Bank of Australia raised interest rates by 0.5% in June, bringing the cash rate to 0.85%.
From 21 February 2022, Australia started welcoming back fully vaccinated foreign travellers, and though the overall foreign spending in Australia's tourist economy is still below pre-pandemic levels, the quarterly result suggests that foreign visitors are determined to visit Australian soil again.
In this article, we will discuss four ASX-listed travel stocks' performance of last month (June 2022) and their YTD performance. These companies include Qantas Airways Limited, Webjet Limited, Flight Centre Travel Group Limited and HelloWorld Travel Limited.
Image Source: © 2022 Kalkine Media ®
Data Source- ASX website dated 15 July 2022 at 3.27 PM AEST
Qantas Airways Limited
Qantas Airways Limited (ASX:QAN) offers domestic and international air transportation services. The business is divided into four segments: Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty. It provides air travel for passengers, expedited freight services, and customer loyalty programmes.
Qantas' shares were 0.27% down, trading at AU$4.40 each on ASX at 3.09 PM AEST.
The company has recorded negative growth of around 13% YTD.
Webjet Limited
Shares of the online travel agency Webjet Limited (ASX:WEB) were trading at about AU$5.15 per share at 2.48 PM AEST today (July 15). The share price of WEB is underperforming its benchmark S&P 500 Consumer Discretionary Index. The company's shares have fallen about 5% on a YTD basis.
Webjet sells travel-related goods online, such as flights and hotel rooms. The company's operations are divided into two divisions- two retail businesses named Webjet OTA and GoSee, and a business-to-business (B2B) wholesale division that includes WebBeds.
Image Source: © Demonike | Megapixl.com
Flight Centre Travel Group Limited
Shares of Flight Centre Travel Group Ltd (ASX:FLT), another travel service provider, price fell by 1.07% today. FLT shares were trading at AU$16.62 per share at 3 PM AEST today (July 15, 2022).
Flight Centre has its leisure and corporate travel business in roughly 23 nations, including New Zealand, the Americas, the United Kingdom, Europe, South Africa, the United Arab Emirates, and Asia.
On a YTD basis, Flight Centre shares have recorded negative growth of over 10%.
HelloWorld Travel Limited
HelloWorld Travel Limited's (ASX:HLO) shares were trading flat at AU$1.61 apiece on ASX at 3.05 PM AEST.
Australia-based HelloWorld Travel is a distributor of travel services. The company provides domestic and international travel goods and services globally. The company's three divisions make up the business which include Australia, New Zealand, and the Rest of the World.
HelloWorld shares have fallen more than 36% on a YTD basis.
