Get Ready for the Travel Boom
By Michael McKeown, CFA, CPA - Chief Investment Officer
Can you feel it?
The weather is turning warmer.
Patios are opening up.
People are ready.
After being on lockdown for most of the past year, consumers are ready to get out and start spending. There is so much pent up demand for experiences that have been impossible the past 12 months.
Air travel is beginning to pick up again. It is well off the lows from this time in 2020, though currently it is at half the peak reached in 2019.
According to Bloomberg News: “Searches for ‘Google flights’ reached a peak popularity score of 100 last week, according to a Google Trends tracker. Travel-related searches were already popular before news hit Friday that Americans would begin receiving stimulus payments.”
Households have more money in checking accounts than ever.
The travel boom will depend on people’s comfort level and how much local and state governments enact opening measures.
Vaccination rates in the U.S are above where many forecasts projected just four months ago.
Hospitality and airline businesses are getting ready as layoffs in these industries have slowed dramatically. The Challenger Job Cuts data in the leisure sector have fallen back to pre-pandemic levels. There remain about 1 million people in this sector out of work. Hopefully we will see the spending boom to get this sector of the economy back on track.
The prices of flights and hotels are rising going into the summer. If you are looking to book a trip, it likely makes sense to do it sooner rather than later.
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