Spotlight on 5 Travel stocks as the UK and Brussels nears Covid passports deal

Summary

  • UK citizens can travel to Brussels for the summer holiday after the two countries agreed on the Covid passports deal. 
  • Travellers with negative PCR test or proof that they have been fully vaccinated will not face any restrictions.

UK and Brussels have moved one step closer to complete the Covid passports deal, allowing Britons to spend normal summer holidays in Europe. The UK tourists faced restrictions from European countries following the spread of highly transmissible Delta variants in the country. Germany has put a compulsory 14-day quarantine of all UK-based tourists and urged other countries to follow but failed to convince the countries that are more dependent on tourism and allowed the UK travellers with two complete doses of vaccines.

According to the latest vaccination data, at least 84.4% of UK adults have taken the first vaccine dose, and 61.9% are fully vaccinated.

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Let’s look at five travel and tourism stocks that are likely to remain in focus once the travel ban is lifted:

On The Beach Group Plc (LON: OTB)

 

UK’s largest online beach holiday retailer that operates as an online aggregator for a beach holiday. It has over 20% market share in online sales in the beach holiday segment. The company provides its service through various websites in the UK, Sweden, Denmark. It also offers transport brokerage and property management. The company works on a customer-centric business model which is profitable and cash generative.

The shares of the company hovered at around GBX 338, down by 0.29% at 09:06 GMT+1 on 29 June, having a market cap of £538.71 million. In the last 1-year, the stock has delivered a 17.56% return to its shareholders.

TUI AG (LON: TUI)

FTSE 250 listed company provides tourism services worldwide. Its businesses also include hotels and resorts, tour operations and airlines business, cruise liners. The company has over 400 hotels with 17 cruise liners, online portals and 1600 travel agencies, covering all major holiday destinations around the globe.

The TUI shares were trading at GBX 371.70, down by 3.23% on 29 June at 9.24 am GMT+1 with a market cap of £4222 million. In the last 1-year, the stock has delivered a 63% return to its shareholders.

Carnival Plc (LON: CCL)

The company operates over 87 ships which cover 700 ports under its Carnival Cruise Line. The company also owns a few hotels and resorts and sells its travel services through travel agents and tour operators.

Shares of Carnival Plc were trading at GBX 1639.40, down by 0.72% on 29 June at 9.38 am GMT+1   with a market cap of £3040 million. The stock has given 68% returns over the last one year to its shareholders.

Trainline Plc (LON: TRN)

The company operate an independent rail and coach tickets booking platform that generates revenue through three segments: UK Consumer platform provides travel mobile apps and websites for journey within the United Kingdom. The International segment provides services for travelling outside the UK, and the company’s partner platform provides solutions for corporates and travel management companies.

The company’s stock trades at GBX 288.20, up by 1.05% on 29 June at 9.54 am GMT+1 with a market cap of £1370 million. The stock has given negative returns of 32% to its shareholders.

Hostelworld Group Plc (LON: HSW)

The company provides online booking of hotels, hotels through online platforms. The company also provides business information consulting, marketing and research services.

The Shares of Hostelworld Group Plc were trading at GBX 108.40, down by 1.7% on 29 June at 10.04 am GMT+1 with a market cap of £127 million. The stock has given a 69% return over the last one year.

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