I recently went parasailing and was surprised by what I saw.
Since it was a Monday, I expected a quick and easy check-in process.
Instead, I had to wait in line for a long time. And then I waited even longer for a boat.
As I waited, the check-in line grew longer, and I saw that the departing boats were fully packed.
The size of the crowd reminded me of the time I went paddleboarding. Except that was back in 2019.
It was like COVID didn’t exist.
After nearly two years of living with a pandemic, this shouldn’t be surprising.
This is the pent-up demand we’ve been hearing about all this time.
But I think this is just the start.
In 2022 we’ll start to see the real effects of pent-up demand on travel and leisure.
In fact, the World Travel & Tourism Council (WTTC) expects 228% growth in international spending by travelers in the U.S. in 2022.
And there’s an easy way you can invest in this trend right now.
Pandemic Fears Didn’t Stop Travel and Leisure in 2021
To get a glimpse of what we’ll see in 2022, all we have to do is take a look at this past year.
Even with the pandemic and its uncertainties, bookings were on the rise in 2021, according to Deloitte.
Domestic travel and leisure bookings led the charge in North America and Europe.
The same research also showed the effects of pent-up demand on consumers:
Travelers were less sensitive to price changes and more willing to splurge.
More bookings were spontaneous, with shorter gaps between bookings and the activities.
Experiences and bookings were highly customized compared to pre-pandemic times.
The Return of Travel Has Begun
According to the WTTC, the U.S. travel sector registered 36% growth in 2021.
You can see that growth in the Transportation Security Administration (TSA) throughput numbers.
These figures show the number of travelers that cross TSA checkpoints across the U.S. each day.
On Tuesday, that number was 1.99 million — nearly double the same day in 2020.
That’s almost back to 2019 levels of 2.01 million.
Domestic travel was already on a rebound at the start of this year.
But with the easing of travel restrictions in November, international travel started to pick up as well.
In other words, 2022 will mark the return of travel and leisure. And it’s an investment trend you don’t want to miss out on.
The ETFMG Travel Tech ETF (NYSE: AWAY) gives you a great way to invest in this trend without having to pick through individual airlines and hotel brands.
It consists of a collection of travel tech stocks in the following segments:
Bookings and reservations.
Travel price comparisons.
Ride-hailing and ride-sharing.
Keep following us at Winning Investor Daily as we continue to track this trend in 2022.
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