Online travel stocks with room to run

App-based channels are increasingly the preferred route for bookings - which companies are tapped into the trillion dollar opportunity?

Vikram Barhat 15 May, 2019 | 2:00PM
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Travel and tourism is one of the fastest growing sectors in the global economy, creating one out of every five new jobs worldwide, according to the World Travel & Tourism Council (WTTC). Defying negative headwinds such as slowing economic growth in China and Europe and the never-ending Brexit saga, the sector grew nearly 4% to US$8.8 trillion in 2018, accounting for 10.4% of world GDP, handily outpacing global GDP growth of 3.2%, according to a report from the WTTC.

Consistent with the global trend, the U.S. travel industry has also seen unprecedented growth, swelling from US$556 billion in 2009 to nearly US$800 billion in 2017, according to a Deloitte report. One of the direct beneficiaries of this growth is the online travel market, projected to account for 50% of total travel sales, according to research firm Research and Markets. North America, the report says, remains the world’s largest market for digital travel, while the burgeoning Asia Pacific region is rapidly gaining share.

Travelers have an appetite for apps

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Booking Holdings Inc2,480.67 USD0.21Rating
Expedia Group Inc169.92 USD1.84Rating Group Ltd ADR28.34 USD-3.34Rating
TripAdvisor Inc36.23 USD2.46Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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