Which travel stocks to consider post pandemic based on web search trends

In This Article:

Pandemic weary Americans are searching for places to escape to on vacation as more people get vaccinated against COVID-19.

"Yellowstone has exploded in a way that it really hadn't before and you can kind of see that in the top trending destinations," SimilarWeb's Alisha Kapur told Yahoo Finance Live. Kapur is the lead travel industry consultant at SimilarWeb, an analytics firm that tracks millions of clicks across the web, on a daily basis, to determine potential investment trends for paying clients. "People really are looking for safe, outdoor open spaces and Yellowstone and other national parks offer that so you can see from consumer search trends that national parks are kind of top of mind for most consumers, especially as they look for safe, comfortable, remote ways to get around."

SimilarWeb is telling their clients that the top five trending getaway searches include Yellowstone National Park, Disney World, Disneyland, Universal Studios Florida and the Grand Canyon.

Among search winners in the post pandemic travel reopening trade, Airbnb (ABNB), which logged 49 million searches in January. That was 15 million more than runner up VRBO which clicked in at 34 million. The only traditional accommodation "supplier" in SimilarWeb's data to make the top five searches was Marriott (MAR) at 17 million.

"I do believe that alternative accommodations will kind of maintain that strong pickup that they've had over the next few months," Kapur said. But she adds traditional hotel chains like Hilton (HLT) and Hyatt (H) are "doing a lot to regain consumers trust, they are offering a lot of deals, they are really, really kind of trying to put out calls to action to their loyal consumer base."

Getting there is half the fun

Passenger traffic through the Transportation Security Administration (TSA) checkpoints at the nation's airports continues to improve, according to Raymond James airline analyst Savanthi Syth. She recently told her clients, "Thursday, Feb. 25, passenger throughput crossed 1 million, which has only previously been seen on weekends or holiday periods since the pandemic began."

Syth said domestic demand started picking up two weeks ago writing, "Delta has seen a significant step up in travel demand, related to both near term and summer bookings (i.e., booking curve has started to elongate). This is similar to commentary by Southwest, as well as our recent weekly checks indicating domestic demand improving even outside of peak holiday/weekend travel."