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Play "Revenge Travel" with These ETFs

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Revenge travel, a term emanating from the prolonged periods of lockdown and the global response to the pandemic, signifies a strong desire to travel as a means of combating the monotony and exhaustion of life in lockdown. This trend has emerged due to the change in people's outlook towards travel – what used to be a luxury is now seen as a necessity.

Bullish Outlook of Revenge Travel

In 2022, travel chaos marked the summer, yet people remained eager to journey. Delta Air Lines’ CEO Ed Bastian highlighted the resurgent demand for travel as stronger than ever, stating that unmet travel demand over the past three years amounts to a staggering $300 billion, as quoted on Fortune, published on Yahoo Finance. This year alone, Delta recorded its 20 highest cash sales days.

Riding the Wave of Revenge Travel

Airlines like Delta have adapted their business models to accommodate this new demand pattern, with strategies such as eliminating change fees from their services to encourage customers to make bookings with greater confidence.

Airlines are now enhancing customer experience through innovative services like in-flight shopping, enabling passengers to pre-order and pay for items that are delivered to their seats. Customers' ease of use has remained central to the evolution of booking methods.

The pandemic-induced introspection has brought travel to the forefront of people's priorities. A report by Expedia Group indicates that almost half the global consumers consider travel more important now than before the pandemic., per the above-said source.

Shaping the Future of the Travel Industry

To cope with the revenge travel surge, airlines have had to upskill their workforce and recruit extensively. Delta, for instance, hired over 25,000 workers to meet increased demand, expecting to stay extremely busy as its operating revenue shot up by 69% to $50.6 billion compared to 2021. However, it's worth noting that industry-wide challenges persist. Production delays from aircraft manufacturers and supply-chain issues continue to hinder industry growth.

Embracing the New Business Models

The pandemic has given birth to new business norms. Contactless payments, for example, initially considered a temporary pandemic solution, have become a mainstay in the travel industry. As per Lloyd's Bank, 90% of transactions are now contactless, a testament to consumers' growing comfort with online payments, quoted on Euronews. This is a plus for Global X FinTech ETF (FINX), which is up about 9.1% past month (as of Jun 9, 2023).

The Rise of Wellness Tourism

In the face of adversity, people's travel priorities have shifted, with a renewed emphasis on health and wellness. According to the Global Wellness Institute, wellness tourism is expected to grow by 20.9% by 2025, per the Euronews article. The pandemic has undoubtedly catalyzed a shift in travelers' perceptions of wellness.

ETFs to Play

The phenomenon of revenge travel offers a wealth of opportunities for investors. As new trends and business models emerge, leveraging these changes through ETFs could be great way to earn some profits.

U.S. Global Jets ETF (JETS - Free Report) – Up 7.5% Past Month (as of Jun 9, 2023)

Defiance Hotel Airline and Cruise ETF (CRUZ - Free Report) – Up 7.0% Past Month

AdvisorShares Hotel ETF (BEDZ - Free Report) – Up 4.3%

ETFMG Travel Tech ETF (AWAY - Free Report) – Up 3.6%


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