3 great travel stocks to watch in 2022: JPMorgan Chase

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3 great travel stocks to watch in 2022: JPMorgan Chase

With the omicron variant continuing to surge in many countries, it is fair to wonder if the COVID-19 pandemic will affect the economy for another year. We apologize, but this video didn't load.

You can see other videos from our team by tapping here. According to a message shared recently with clients, JPMorgan Chase global research leader Marko Kolanovic said that the year 2022 will be a year of full global recovery, an end to the epidemic, and a return to normal economic and market conditions prior to the COVID- 19 outbreak. Kolanovic believes that JPMorgan is forecasting strong consumer spending and the return of mobility. Put those things together and you have got a recipe for a bounceback in the travel industry.

There are three great travel companies to watch. They are already feeling the positive effects of people venturing away from home more, so 2022 should be brighter for share prices if the rebound continues. You might think the pandemic would have annihilated a vacation rental company because of the fact that Airbnb's stock managed to gain 13 per cent in 2021, but you can build a portfolio that includes some travel stocks like these using a few spare pennies. There are several reasons why Airbnb is attractive, even with omicron uncertainty hanging in the air. Many people who have abandoned traditional hotels are able to use the Airbnb app as a first option. If a person wants to avoid crowds, staying in an Airbnb provides more social distancing than a hotel. Once the pandemic has passed and rental demand in city centers returns, there will be no shortage of real estate investors fashioning apartments and condos into Airbnb rentals.

The best quarter of its history was wrapped up by the company. In the third quarter, Airbnb saw more than US $2.2 billion in revenue, a 67 per cent increase year-over-year. Net profits for the quarter were $834 million. Carnival, America's largest cruise operator, has not fared as well as Airbnb. The cruise ship operator has seen its share price drop by about 50 per cent since the start of January 2020. When there are numerous COVID outbreaks on boats, the world thinks your product is a floating germ lab. The global cruise industry is alive and kicking. According to Cruise Industry News, 68 brands are set to operate 239 cruise ships in December, and major companies are expected to return to operating a large part of their fleets by early 2022, according to Cruise Industry News. The rebound in demand is predicted by analysts for a return to profitability for Carnival next year.

That will be welcome news because 2021 has been awful. In the third quarter, Carnival posted a net loss of $2 billion. At the end of Q 3, the company had US $7.8 billion in liquidity, which the company says will be enough to return it to full operations. Booking Holdings is a lot more than just Booking.com. The company owns several popular travel fare aggregation services, including Priceline, Agoda, Kayak, Cheapflights and even the restaurant reservation platform OpenTable. In the last full year before the flu, consumers booked 845 million room nights, 77 million rental car days and 7 million airplane tickets through websites owned by Booking Holdings.

The company stands to continue as a dominant player in the travel booking space, with little opportunity for competitors to swoop in and absorb its market share in the last two years. The rise in demand from travellers is already reaping the benefits of booking. In the third quarter, it brought in almost US $4.7 billion in revenue, a 77 per cent increase over the same period last year. Booking shares have gone up about 8 per cent over the past year. There is more to investing than stocks. Nothing against JPMorgan, but no one can predict what 2022 will mean for the stock market. A number of prominent investors have said it is due for a historical correction. If you want to invest in something that doesn't involve the stock market, consider investing in fine art contemporary art, which has outperformed the S&P 500 by a commanding 174 per cent over the past 25 years, according to the Citi Global Art Market chart. It is becoming a popular way to diversify because it is a real asset with little correlation to the stock market. Citi found that the correlation between the contemporary art and the S&P 500 was just 0.12 on a scale of 1 to 1, with 0 representing no link at all. Investing in art was once an option only for the ultra rich, according to the likes of Andy Warhol and Banksy. With a new investing platform, you can invest in iconic artworks, just like Jeff Bezos and Bill Gates do. This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise partners with brands that it believes may be helpful to the reader. This article is not intended to be construed as advice. It is provided without any warranty of any kind.