With tourists taking advantage of the Easter holidays to live on tropical beaches and travel companies reporting record monetary figures, now is an opportune time for investors to get involved in an industry that has now rebounded after being decimated by the pandemic.
Revenue and operating profit now sometimes exceed pre-pandemic levels for travel-related businesses as customers pay higher costs despite cost-of-living pressures. Low unemployment and real wage increases have mitigated the effect of emerging interest rates. Although customer confidence figures are clearly still in negative territory, GfK’s much-cited tracker is moving in the right direction and shows a marked improvement in how other people understand the outlook for their private monetary scenario for the year ahead.
This context favors spending. That means the holidays remain “a priority for discretionary spending,” according to a Barclaycard survey that found 73% of consumers plan to spend the holidays this year. Credit card spending saw a 9. 3% increase in February.