The outlook for travel-related shares is looking increasingly positive as consumer finances improve and company cost headwinds soften. US air passenger numbers have outstripped pre-pandemic levels, with a global recovery now expected this year. Over-50s specialist Saga (SAGA) reported this week that its travel businesses had had “an outstanding year”, while cruise line Carnival (CCL) flagged record booking positions in its latest quarter. Airlines, holiday retailers, and ticket apps have all pointed to strong demand outlooks in market updates.
- Gaining from travel rebound
- Post-pandemic recovery is getting there
- Big international growth potential
- Relatively cheap valuation
- Managed decline in high-street
- Stubbornly high net debt
For investors looking for to take a less capital-intensive punt on this theme, one FTSE 250 name might have passed under the flight radar. WH Smith (SMWH) is still associated in a lot of minds with a fading British high street, but a travel transformation over recent years means the retailer now collects around three-quarters of its revenue from sites at airports, railway stations, and hospitals. It is also making serious inroads into North America, the biggest travel retail market on the globe.