Widespread vaccinations, easing of travel restrictions and manageable COVID cases indicate that better days are ahead for the travel industry and the businesses associated with it.
However, macro headwinds (high inflation and rising interest rates) and their impact on consumer spending and the war in Europe continue to pose challenges.
Amidst the uncertainty, let’s turn to TipRanks’ new website traffic tool to see what lies ahead for top travel-related stocks. This is important because the tool allows investors to analyze changes in consumer behavior and predict the impact on their finances and stock price. Let’s start.
Expedia leverages its technology platform to deliver travel-related solutions. The pandemic and measures to control the spread of the virus negatively impacted consumer demand and ability to travel, which negatively impacted the company’s finances.
However, as travel restrictions have been lifted in nearly every country and consumers have become more comfortable traveling, Expedia is seeing a moderation in high cancellation rates and a decline in travel bookings.
Things are looking up for Expedia, as revealed by TipRanks’ website traffic tool. According to the tool, visits to expedia.com and its other website (trivago.com) increased 21.5% month-on-month in May. Year-to-date, website traffic has increased by 27.5% compared to the year-ago period. Also, compared to the first quarter, website traffic has increased by 33.6% in the second quarter so far, which is positive.
During the first-quarter conference call, Expedia CEO Peter Kern said the company was monitoring various macroeconomic factors, including inflation and the Russian-Ukrainian war. Additionally, he is experiencing “positive indicators for a strong recovery in leisure travel this summer.”
He added that demand for international, business and city travel is picking up, which bodes well for future growth. These indicate that Expedia could deliver strong financial results in the second quarter.
EXPE stock has a moderate buy consensus rating on TipRanks, based on 12 buy and 12 hold recommendations. Additionally, Expedia’s average price target of $190.82 implies an upside potential of 88.6%.
Booking Holdings offers Internet travel and related services in more than 220 countries through its six consumer brands. Its financial results and prospects depend on the sale of travel-related services. Thus, an increase in travel demand could boost its finances and stock price.
TipRanks’ website traffic tool indicates improving demand trends for BKNG’s offerings. According to the tool, visits to booking.com and its two other websites rose 13.7% month-on-month in May. Additionally, year-to-date, website traffic has increased by 10.9% over last year. Additionally, website traffic is up 22.6% so far in Q2 compared to Q1.
Trends in improving website traffic are positive. Meanwhile, Booking Holdings CEO Glenn Fogel is bullish on the second quarter. During the first quarter conference call, Fogel said global travel trends have strengthened so far in the second quarter despite an uncertain macroeconomic environment. Additionally, he added, the company is preparing “for a busy summer travel season ahead.”
Improved website traffic and supportive management feedback indicate that BKNG could deliver a strong set of financial numbers in the second quarter.
BKNG stock received 17 buy recommendations and seven hold recommendations for a moderate buy consensus rating. Additionally, Booking Holdings’ average price target of $2,682.86 implies 41.5% upside potential.
Hyatt Hotels (NYSE:H)
Hyatt, the world leader in hotels, is benefiting from a continued recovery in leisure demand and the dynamics of group and business travel in transit.
Additionally, TipRanks’ website traffic tool indicates that its business momentum could be maintained in the second quarter. Notably, traffic to the hyatt.com website increased 10.2% month over month in May. Since the beginning of the year, the number of visits to the website has increased by 32.6% compared to last year. Additionally, website traffic is 16.8% higher so far in the second quarter than it was in the first quarter.
Recently, Hyatt announced that its system-wide comparable RevPAR (revenue per available room and a key performance metric) was $127 in May, the strongest RevPAR performance for an individual month since November 2019. The company reported added that the company’s transient and group revenues also strengthened in May.
The company added that continued demand momentum and favorable forward booking trends point to a robust summer travel season ahead.
Hyatt stock received two buy recommendations and seven hold recommendations for a consensus hold rating. Additionally, the average Hyatt price target of $94.25 implies an upside potential of 22.1%.
Easing travel restrictions, improving website traffic patterns and strong demand point to better days for these companies. However, the uncertain macro environment could play spoilsport.