COVID Dwindles, Travelling Returns but Companies Can’t Cope
Tourists Unhappy Throughout Last 12 Months
Travel Bookings and Inquiries are Surging
Why are the travel industries returning in 2022?
Travel in 2022 could be busier than it was before the pandemic, said Brandon Berkson, founding father of New York-based total tour company Hotels Above Par. “People need to make up for their vacation time,” he said, including that clients expressed their interest in the next 12-month tour more than ever.
Ben Drew, president of the TripAdvisor-owned tour company Viator, said in December that the calls for an upcoming tour were “tremendous.” “Traveling comes back to life,” he said. “Even in the face of the Omicron, travelers are booking additional tickets compared to pre-pandemic 2019.”
The fact that 2022 Viator shows bookings also increases from summer to fall, when touring typically slows down.
Are companies prepared?
The airlines are not the simplest part of the tourist area that can battle for workers over the past 12 months.
Around sixty-two million tour-related jobs were lost in 2020, according to the World Travel & Tourism Council. While many of those jobs do return – in October, WTTC predicted the company’s employment rate might push up 18% by 2022 – former personnel are not returning to their old roles immediately.
Lost through industry-wide layoffs, several people settled in different industries. Others don’t want to take the same position in the growing generation of customer anger and competitive behavior.
One in thirteen touring-related jobs in the United States is expected to be unfilled, according to a WTTC staff record posted in December. In Portugal, the figure rose to one to 9, in line with a record.
“It’s hard to find adequate chefs and servers to cope with the surge and call recovery for within the company,” Jon Bortz, CEO of the US-based Pebblebrook Hotel Trust, told CNBC’s “The Exchange” the past 12 months.
To fill the gaps, personnel walk off regular hours and executives “take shifts,” he said.
For tourists, staff shortages can lead to tour delays and discounts on services, from fewer dining reservations to the elimination of everyday homework services.
“We have been one of the first industries to be hit; we will be one of the finalists who will be completely better off,” said Bortz. “We might actually ask clients to be patient.”
AAL – American Airlines Group Technical Analysis
AAL price action is currently in the Key Level resistance area. Overall the trend is still bearish and trading below the 100-day Moving Average, which means AAL is still trading below the 100-day average price.
AAL from a technical point of view still has room to continue further to the $15.15 level.
WHAT ZFX THINKS…
Fundamentally in a longer-term bias, AAL may recover and bounce back. But the optimal level to buy this asset is probably around $15.00 or below. Always think about the margin of safety whenever you buy a stock.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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