Many of the travel restrictions enforced during the worst days of the coronavirus pandemic are currently receding, and while pent-up demand following COVID-19 shutdowns is helping leisure travel rebound, the recovery in business travel is more sluggish.
Should corporate travel bounce back in earnest, exchange traded funds such as the ALPS Global Travel Beneficiaries ETF (NYSEARCA: JRNY) stand to benefit. JRNY’s roster features airlines and airport equities, hoteliers, and other names that provide leverage to a rebound in business travel. That’s relevant because it’s clear that corporate travelers want to hit the road again.
“The last two years of virtual work arrangements and travel restrictions have underscored the importance of travel and face-to-face meetings for businesses, employees and customers alike. These results are proof of that,” said American Hotel and Lodging Association (AHLA) president and CEO Chip Rogers. “Most Americans recognize the unmatched value business travel and face-to-face meetings provide. And after the last two years, the return of business travel is more important than ever.”
In the trade association’s recent state of the industry report, the group notes that while future variants of the coronavirus could present headwinds for business travels, the fact is that employees and clients see value in face-to-face meetings.
“86% of employed Americans and 89% of business travelers say face-to-face interactions are important for establishing and maintaining relationships with coworkers,” notes the AHLA. “85% of employed Americans and 88% of business travelers say face-to-face interactions are important for establishing and maintaining relationships with clients.”
Some JRNY components are capitalizing on companies’ desires to get back to in-person meetings and conventions. For example, MGM Resorts International (NYSE:MGM) offers “Convene With Confidence,” a business meeting program that offers rapid COVID-19 testing and other safety protocols.
Other hotel chains might want to consider following MGM’s lead because Convene With Confidence is proving successful, and while employees want to get back to business travel and meetings, they are prioritizing safety.
Bottom line: Data are on JRNY’s side when it comes to enthusiasm for business travel.
“80% of employed Americans and 86% of business travelers say face-to-face interactions are important for maximizing company success,” adds the AHLA. “61% of adults and 74% of business travelers agree that in-person meetings and business travel build organizational strength in a way virtual interactions cannot.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.