Even in 2022 we still carry the terrible consequences of the pandemic that began in 2019. Despite the fact that there is already a large percentage of the population vaccinated, life still does not seem to have fully recovered as it was before.
A lot of companies are still suffering in the financial markets, where tourism companies are still trading at a very considerable discount:
The slowdown of the Omicron variant
Many of us thought that the summer of 2021 would be the one that would see a strong recovery in the sector. First the Delta variant, and then the Omicron, made sure that this was not the case: we still saw half-empty planes and half as many cruisers set sail than normal.
Then, we must add the war between Ukraine and Russia that, despite not being major tourist destinations, it undermined consumer confidence, at least during the first quarter of 2022. In addition, the rise in the price of fuel has inflated the costs of companies.
A market opportunity?
According to the Expedia CEO, the summer season of 2022 will be the "busiest travel season ever". In addition, the large cruise companies have already announced that they plan to have close to 100% of the active fleet this summer, and despite the fact that bookings are lower than pre-pandemic, they foresee a boom in last-minute reservations, especially at the end of the spring and early summer.
At the same time, other companies in the sector, such as Booking, are already exceeding their pre-pandemic booking levels, an extraordinary figure considering the current circumstances.
With all this on the table, it seems that the tourism sector is ready to take off during the third quarter of 2022. Most likely, companies will publish better than expected results, and consumer confidence will be higher.
If we add to the good prospects that companies are trading at discounts of between 30% and 60%, we could have the perfect cocktail for a very good investment opportunity. Will this be the trade of the year?