The travel industry was one of the hardest hit industries last year thanks to travel restrictions implemented globally to combat the COVID-19 pandemic. But now, ongoing mass immunization against COVID-19 and peoples' pent-up desire to take summer vacations—which many had to cancel last year—has imbued the industry with new life. Given that travel activity is expected to surge this summer, we think leading players in this space, Bluegreen Vacation Holdings (BVH) and Choice Hotels International (NYSE:CHH), are solid bets now. Let’s take a closer look.The COVID-19 pandemic took a toll on the travel industry last year—and it may well be one of the last industries to recover. But thanks to a speedy economic recovery and significant progress on the vaccination front worldwide, a resumption of vacation is well on its way.
According to a recent U.S. Travel Association monthly travel data report, nine of ten Americans plan to travel in the next six months. Although business travel remains a long way short of normal, there has been a substantial uptick in leisure travel. In fact, this summer should see increased domestic and international travel, with more countries opening their borders and more families eager to make their first trip since the onset of the pandemic.
Pent-up demand for travel this summer should benefit leading travel companies Bluegreen Vacation Holdings Corporations (BVH) and Choice Hotels International, Inc. (CHH). So, we think their shares are solid picks now.