The Call @ Hedgeye | August 11, 2022

Below is an excerpt from a complimentary research note by our Gaming, Lodging & Leisure analyst Todd Jordan. We are pleased to announce our new Sector Pro Product Gaming, Lodging & Leisure Pro. Click HERE to learn more.

Positive Delta Emerging Amidst Travel Reopening  - AdobeStock 70330670

With Covid receding in many parts of the world as vaccination rates push higher and Covid bumps up against existing immunity, lawmakers seem to be providing a more conducive environment for travel. 

The announcement of looser travel restrictions between the EU, UK, and the US have been positive developments for leisure travel sentiment and we’re starting to see the data reflect the easing. 

The below data which tracks flight search demand via Kayak highlights the 2YR average growth in total flight searches by market. 

Notice the delta dip in July into August, but since the bottoming of the data in mid to late-August, flight searches have accelerated, which portends higher bookings growth.

We’re in the process of accumulating more data which we’ll share in our next OTA data compendium update, but so far, the trends are setting up for positive forward commentary from the OTAs and other leisure centric operators. 

We remain positively biased on ABNB but prefer EXPE and BKNG - aka Best Idea Longs.

Positive Delta Emerging Amidst Travel Reopening  - kp1