Beyond COVID-19 Spikes, Travel Spending Trends Look Dire Even After 2020

Sabre Corp. (NASDAQ: SABR) is perhaps the top technology solutions provider to the travel and tourism industries, and its shares were down 4.5% at $8.75 on no news. Sabre’s 52-week range is $3.30 to $25.44.

Online travel site operators were lower as well. Expedia Group Inc. (NASDAQ: EXPE) was down about 1% at $84.45 on Wednesday, and it has a 52-week range of $40.76 to $144.00. The much larger Booking Holdings Inc. (NASDAQ: BKNG) was down 2.25 at $1,637.00, and it has a 52-week range of $1,107.29 to $2,094.00.

Boeing Co. (NYSE: BA) probably would be preferred to be considered aerospace and defense, but all anyone cares about now is how it can or will sell any new jets. That may even matter more than the recertification of the 737 Max at this point. Boeing was down 2.5% at $192.75 a share, and its 52-week range is $89.00 to $391.00. It was above $400 in early 2019.

Hyatt Hotels Corp. (NYSE: H) had managed to get back to flat on the day at $56.63, but it was down close to $55 at the lows, and its 52-week range of $24.02 to $94.98 should spell out the issues. Marriott International Inc. (NYSE: MAR) traded down 1.9% at $92.10, in a 52-week range of $46.56 to $153.39.

Another obvious issue in travel has been the battered cruise lines. These figures were not prominent in the USTA study, but if travel spending is down (and with embarkation delays and suspensions), cruise operators are suffering deeply as well. Obviously, any continued COVID-19 spike jeopardizes cruise lines’ ability to reopen for business. Carnival Corp. (NYSE: CCL) already had extended some sailing dates, but its shares were down almost 5% at $19.40, and its 52-week range is $7.80 to $53.29.

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) announced on Wednesday evening that it was extending the embarkation dates from August 1 through September 30 for its three cruise brands, with some exceptions, and that it would continue its work alongside the U.S. Centers for Disease Control and Prevention, the federal government and other health authorities. Norwegian Cruise Line shares were down 4.7% at $19.99. Royal Caribbean Cruises Ltd. (NYSE: RCL) was down 5.9% at $58.82, and its 52-week range is $19.25 to $135.32.

Avis Budget Group Inc. (NASDAQ: CAR) is not in bankruptcy protection like its top rival, but its shares were trading down 5% at $26.70. Its 52-week range is $6.35 to $52.98. Hertz Global Holdings Inc. (NYSE: HTZ) actually was halted on “news pending” on Wednesday, but it was previously trading at $1.94. That company is expected to be raising $500 million in new equity, although it has warned that the equity likely would be wiped out if it does not make debt payments in full and if pre-COVID conditions did not return fairly soon.

Las Vegas has been gradually reopening its casinos with new protective measures in place. Wynn Resorts Ltd. (NASDAQ: WYNN) traded down 1.3% at $89.30, and it has a 52-week range of $35.84 to $153.41. Las Vegas Sands Corp. (NYSE: LVS) was down just 0.4% at $49.20 on Wednesday, but it had been down more than 2% earlier in the trading session. It has a 52-week range of $33.30 to $74.29.

The rise of COVID-19 cases is the more damaging issue, but this USTA study used data prior to the rapid rise in COVID-19 cases, and it may act as a bellwether or barometer for just how dire the situation looks for the travel and tourism industry in 2020, even if the COVID-19 cases manage to flatten out.

Unfortunately, the trends for the great recovery in travel and tourism may not resemble what they used to for quite some time.