HOME

Weekly Travel News

TOURISM STOCKS: HOTELS AND OTAS UP BUT AIRLINES AND TOUR OPERATORS SINK Justin N. Froyd - Dec 13, 2021 0 Listen to this article 00:02:39

The market value of the tourism giants after almost two years of pandemics shows different results depending on subsectors. The large hotel companies and the large online agencies are already well above their pre-covid stock market valuation. In contrast, both airlines and especially tour operators are far behind in their market capitalization compared to March 2020.

Marriott, Hilton and IHG are already outperforming their pre-covid share prices, while Accor and Meliá are catching up. Booking.com also shows a higher capitalization than two years ago, as does Expedia. In contrast, shipping companies such as Royal Caribbean and especially Carnival only recover half of their plunge this biennium, similarly to Amadeus.

But the worst-hit regarding tourism stocks goes for the airlines, such as IAG - maintaining its market value in similar levels to those of the sharp collapse in the spring of 2020, as well as Lufthansa and Air France-KLM, due to capital increases and the huge increase in their debts, which have strongly affected their stock prices.

Regarding the low-cost airlines, Ryanair is an exception, as it is already valued above its pre-covid price, thanks to the fact that short-haul traffic is recovering faster, and is less dependent on business travel and executive class for profitability. Easyjet, which is more focused on the corporate segment, is still far from its February 2020 market capitalization.

At the bottom are the big tour operators, especially Tui, which continues to hit lows that are a quarter of what it was worth almost two years ago, after shooting up its debt and after raising capital in parallel. Jet2 has fallen less sharply than its Hanover-based rival, despite its large fleet of 100 aircraft, and despite lacking hotel properties and ships.

Investors are putting their confidence in companies with more prosperous future such as hotel companies supported by real estate and with fewer debts thanks to their wide margins that have allowed them to have some liquidity of their own. This applies also for OTAs, with less structure to haul, as they are essentially technology companies, in a few months in which society has made several leaps in its digitization.

In contrast, the market is wary of giants which will have to face recovery in the coming years with a heavy debt burden and using classical models that fall behind the innovative ones.

Related articles hospitality STAFF SHORTAGE PUTS GERMAN HOTELS IN NEW STRAITS hospitality ROBOTS IN HOTELS: WHERE WILL WE SEE THEM? hospitality MOBILE PAYMENT TRENDS IN VOGUE: HOTELS NEED TO STAY UP TO DATE Comments Add Comment xxxCancel reply Afghanistan Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia & Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Chile China Colombia Costa Rica Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominican Republic East Timor Ecuador Egypt El Salvador Eritrea Estonia Ethiopia EU Faroe Islands Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Global Greece Greenland Grenada Guaedloupe Guam Guatemala Guernsey Guyana Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kosovo Kurdistan Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia Madagascar Malawi Malaysia Maldives Maledives Malta Marshall Islands Martinique Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Nigeria Niue Norfolk Island North Korea Northern Mariana Islands Norway Oman Other Other Other Other Other Other Other Pakistan Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Kitts and Nevis Saint Vincent & the Grenadines Samoa (American Samoa) Samoa (Western Samoa) San Marino Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Somalia South Africa South Korea Spain Sri Lanka St Martin Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syria Taiwan Tanzania Thailand Tibet Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine UNESCO United Arab Emirates United Kingdom UNWTO Uruguay USA Uzbekistan Vanuatu Vatican Venezuela Vietnam Virgin Islands (British) Virgin Islands (U.S.) Yemen Zambia Zimbabwe

DON'T MISS air AIRLINE PASSENGER CAPACITY TO INCREASE BY 47% IN 2022 statistic TOURISM IN GERMANY REPORTS MORE DOMESTIC GUESTS THAN BEFORE CORONA tourism TOURISM RECOVERY IN LATIN AMERICA – A POSITIVE OUTLOOK space JAPANESE SPACE TOURISTS VISIT ISS LATEST REVIEWS Tourism Review Online Magazine 1 / 2021 Tourism Review Online Magazine 1 / 2020 Tourism Review Online Magazine 1 / 2019