![]() In fact, the amount of deposits that we see out there now across the sector is actually even higher than what we had seen prepandemic. And we’ve also been seeing a lot of people put more deposits down on those future travel bookings. And some of the specifics that we’ve been looking at is, one, they’ve been getting very good pricing on their future bookings. We’ve seen the return of the traveler there. And I think we’re seeing a lot of that coming back. The people that like to cruise really like cruising. With the cruise lines, of course, no sector was hit as hard as the cruise lines during the pandemic. And then, lastly, Dave, what about cruise lines? Are they back to smooth sailing? And just thinking through with that sector, there is still this ongoing long-term secular trend of people moving and shifting their behavior toward online and booking online for their future travel needs.ĭziubinski: Got it. But even longer term, we still think that there is a good tailwind behind the sector. In the short term, travel technology has done extremely well just because there’s been such a high number of bookings from the leisure travel, the recuperating that we’ve been seeing of the business travel, as well as the international travel. Sekera: There’s two things in travel technology going on. Let’s talk a little bit about travel technology. They’re going to benefit either from specific idiosyncratic characteristics that they have or some of the other ones, like Park Hotels that we’ve talked about in the past, which should benefit from the return of the international traveler and that group travel.ĭziubinski: Got it. ![]() Going forward, some of the picks that we have are really going to be focused on those hotel chains. And again, I think it was the leisure travel that really supported the hotel area. Sekera: The hotels sector was probably one of the first ones to recuperate. Let’s talk a little bit about some of Morningstar’s insights into three industries within that travel services subsector. So, we are looking for a lot more international travel and even specifically group travel going forward.ĭziubinski: Got it. Again, we still see a lot of restrictions in China from the pandemic are still being reduced at this point. So, the area that we’re really focused on there is going to be the travel between Asia and the rest of the world. And in fact, leisure travel might even be a little bit higher now than it was prepandemic. and Europe, that’s really much fully recovered according to our numbers. ![]() Sekera: International travel, it really depends on which area specifically we’re looking at. And then, how are things looking on the international travel front? But also, we are definitely seeing a lot of economic softness overall pressuring that sector.ĭziubinski: Got it. So, I think they’re trying to keep some of that from coming back as soon as I think a lot of salespeople would like to get back on the road. The two things that we see going on there here in the short term with a little bit of economic softness, companies are definitely trying to keep costs down here in the short term. ![]() However, that still may take a little bit more time. Now, we do expect that that over time will continue to keep recuperating and rebuilding and get back to prepandemic levels. Sekera: With business travel, right now, we think it’s probably around 80% to 85% of where it was prepandemic. Dziubinski: Let’s talk a little bit specifically about business travel.
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