Online travel stocks to book long-term gains

As the world's online population swells, Internet travel booking is set for healthy growth.

Vikram Barhat 3 June, 2016 | 5:00PM

As summer approaches, business outlook for some industries turns particularly sunny. One of them is the global online travel market, a key component of the US$1.2 trillion worldwide travel industry.

The market for online travel is undergoing rapid expansion spurred by the rise in the millennial population, favourable socio-economic factors, growing internet access and explosion in the use of smartphones, especially in emerging markets. These global trends are creating a strong tailwind for online travel companies.

Worldwide online travel sales are projected to jump from US$590 billion in 2013 to US$950 billion by 2018, by which time it will constitute 31% of total travel sales, according to Euromonitor. Highlighting the dominance of mobile digital devices in everyday life, the research firm forecasted that by 2019 global mobile travel sales will account for 25% of the total online travel bookings. As the proportion of the world's online population swells from 40% in 2015 to the high 40s in 2020, annual online travel booking is set to grow 9% to 10% over the next few years, according to a Morningstar report.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Booking Holdings Inc1,678.20 USD-2.80
Expedia Group Inc101.19 USD-7.09
TripAdvisor Inc23.61 USD-7.85

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.