According to AllianceBernstein, which lists the top stocks, 2024 will be a “good year” for the travel industry. Although recession fears will dominate the spotlight, “there are many reasons to be upbeat – demand data remains strong, with both leisure and corporate travel expected to increase.” [year on year]“Even if conditions change, continued room for recovery and a constrained supply outlook will moderate the impact on occupancy and interest rates,” said analysts at Richard Clark’s investment management firm. wrote in a memo dated January 3, titled “Room.” Last August, the World Business Travel Association predicted that global business travel spending would recover to pre-pandemic levels, reaching $1.4 trillion this year and nearly $1.8 trillion by 2027. According to data from market research firm Imark Group, hotels, which received a major boost from “revenge” travel in 2023, will grow at a compound annual growth rate of 7.08% from 2024 to 2032, reaching 1.6394 trillion yen. It is expected to reach USD. Factors for the hotel sector include improving fundamentals, lower risk-free rates, and “recovery momentum” in room night growth, particularly in China, with “remaining room for recovery in 2024.” said Bernstein analysts. , adding that room rate growth is also expected in Latin America and the Middle East, but growth is likely to be more volatile in the former two regions as they are “more sensitive to international inbound travel”, adding that French hotel chains , named Accor. Top picks in the sector. Although the stock starts the year at a “relatively lower multiple” than 2023, Bernstein said it has “the highest earnings growth (over 20%) and highest cash return (over 10%) of any hotel stock. ) is expected to be realized.” The investment management company rates Accor as overweight with a price target of 42 euros ($46), giving it a potential upside of 21.4%. The company also has an overweight price target of $152 on US resort hotel chain Hyatt Hotels, which has 17% upside potential. AllianceBernstein called the company “the best growth vehicle” in the hotel industry, and said the stock had “the highest growth rate” despite having the “best” revenue per available room and net unit growth. “The company continues to trade at a discount compared to its peers, which have slower market rates.” Top Pick for Online Travel Agencies When it comes to online travel agencies, the company named TripAdvisor as its “Top Pick.” AllianceBernstein said the company’s fiscal 2023 share price is lagging at 17%, lower than 70% of its peers. This leaves “more to come in FY2024,” the company’s analysts said, adding that the company’s core performance is stabilizing. Other opportunities they are looking at include the growth of his Viator, TripAdvisor’s online marketplace for tours, activities and attractions. AllianceBernstein has an Outperform rating of $28 on TripAdvisor, with upside potential of 31.1%. The company has a similar rating on Airbnb, with a price target of $166, or 18.5% upside. “We appear to be the last rodeo bulls when it comes to Airbnb after a slew of downgrades in late 2023. We remain very much a buyer of Airbnb’s long-term story and with limited hotel supply A key winner alongside the outlook is the upside from ancillary opportunities,” the analysts wrote. —CNBC’s Michael Bloom contributed to this report.
