3 “Large Cap Travel” Stocks With Increased Website Traffic

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JThe US economy is recovering rapidly from the turmoil caused by the coronavirus pandemic since its onset in 2020. The country’s GDP has improved thanks to the acceleration of domestic and international trade, increased consumption and activities widespread observed in all sectors.

Amidst all these positives, the travel and tourism industry in the United States has experienced remarkable growth. Despite high fuel costs and stricter standards and regulations, the industry has seen a significant increase in demand for business and leisure travel, as well as domestic and international travel.

According to a Statista report on the US travel and tourism industry, revenues from this industry are expected to increase to $128.4 billion this year. From 2022 to 2026, industry revenue is expected to grow at a CAGR of 9.81%. Additionally, online sales are expected to account for nearly 70% of industry revenue by 2026.

Thus, with the growing acceptance and importance of online activities in the travel and tourism industry, it becomes imperative to take a closer look at the website traffic activities of major players in the industry.

At this point, the TipRank website traffic tool is very convenient. This tool uses website traffic data provided by SEMrush Holdings (NYSE: SEMR), a specialist in website usage monitoring services.

Using this tool, we selected three tour operators that have a market capitalization of over $20 billion and monthly visitors of over 50 million.

The $82.2 billion company provides users with an online platform for restaurant reservations and travel-related reservations. Its online platforms include Booking.com, Rentalcars.com and others.

In the first quarter of 2022, the Norwalk, Conn.-based company’s revenue jumped 136% year-over-year, driven by a 129% increase in gross travel bookings.

Booking Holdings CEO Glenn Fogel said: “Despite an uncertain macro environment, we have seen continued strengthening in global travel trends so far in the second quarter of 2022, and we are preparing for a busy summer season ahead. “.

May 5, James Lee of Mizuho Securities reiterated a buy rating on BKNG while lowering the price target to $2,750 (35.9% upside potential) from $2,950 on compressed multiples for the industry.

“The company continues to execute marketing plans to bundle and sell air and experiences to leverage its payment platform and achieve greater post-pandemic accommodation share,” said said the analyst.

Overall, the company has a moderate buy consensus rating based on 18 buys and seven takes. Booking Holdings’ price forecast of $2,806.61 suggests upside potential of 38.7% from current levels. Over the past year, shares of Booking Holdings are down 10.6%.

BKNG’s good growth prospects are supported by increased traffic to its website. The TipRanks Website Traffic tool shows that traffic to Booking Holdings websites (including booking.com and two others) was up 40.38% year-over-year in April and 23.4% year-to-date compared to to the comparable period last year.

Traffic to the company’s website jumped 17.83% year over year in the first quarter of 2022.

The San Francisco, California-based company provides an online platform for booking accommodation facilities and travel services. Its online platform is airbnb.com.

The $77.1 billion company reported a 70% year-over-year increase in revenue and 59% growth in bookings in the first quarter of 2022.

In the second quarter, Airbnb expects bookings to be driven by huge demand in North America, Latin America and EMEA. Revenue is expected to be between $2.03 billion and $2.13 billion in the second quarter.

May 5, Shyam Patil of Susquehanna maintained a Buy rating on Airbnb while lowering the price target to $190 (59.17% upside potential) from $235. The analyst believes that Airbnb is “a must-have stock for the recovery given its strong positioning, promising long-term opportunities and improving profitability.”

Overall, the company’s moderate buy consensus rating is based on 13 buys, 16 holds and one sell. Airbnb’s average price target of $191.57 reflects upside potential of 60.48% from current levels. Shares of this company have fallen 18.7% over the past year.

Interesting way, traffic to Airbnb’s website (airbnb.com) increased 38.04% year-over-year in April and 51.63% year-to-date.

In the first quarter of 2022, traffic to the company’s website increased 57.33% year-over-year.

The $20.1 billion online provider of travel and leisure products and services operates through expedia.com and other sites.

In the first quarter of 2022, the company’s revenue and bookings grew 81% and 58% year-over-year, respectively.

Expedia Vice President and CEO Peter Kern is optimistic about a “strong recovery in leisure travel this summer.” He is happy “to see urban, business and international travel returning, three key elements of the full return of travel”.

May 3, Brad Erickson RBC Capital maintained a Hold rating on EXPE while lowering the price target to $185 (44.77% upside potential) from $200.

The analyst believes that the company is “well positioned to benefit from the recovery in travel in developed markets”. However, he is of the opinion that the recovery in turnover and the expansion of margins are “quite integrated into the actions”.

Overall, the Seattle, WA-based company has a moderate buy consensus rating based on 13 buys and 14 takes. Expedia’s price forecast of $215.17 suggests upside potential of 68.38% from current levels. Over the past year, Expedia shares have fallen 26.2%.

A look at the company’s website traffic reveals that Visits to expedia.com and two other websites increased 55.06% year-over-year in April. Year-to-date, website traffic increased by 49.79% compared to the same period last year.

Traffic to the company’s websites increased 47.91% year over year in the first quarter of 2022.

Conclusion

While not immune to geopolitical tensions, cost inflation and high fuel prices, Booking Holdings, Airbnb and Expedia have good reason to rejoice and capitalize on pent-up demand in the travel and tourism industry in the United States. Also, increasing flow to websites indicates rising popularity and healthy growth prospects for these online platform/service providers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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