The continuing spread of the highly transmissible COVID-19 omicron variant motivated the Biden administration to implement travel limits on visitors to the U.S. There have been significant flight cancellations as well. However, the pent-up demand for travel and the less harmful nature of omicron will likely lead to an easing of travel restrictions in the near term.
Companies that offer services such as travel bookings, price comparison, and online tourism advice have witnessed significant web traffic growth. Also, investors are betting on the travel industry’s rebound later this year. This is evidenced by the SonicShares Airlines, Hotels, Cruise Lines ETF’s (TRYP) 11.9% gains versus the SPDR S&P 500 Trust ETF’s (SPY) 0.3% returns over the past month.
