Rising COVID-19 cases due to the ultrafast spread of its Delta variant will likely negatively affect the recovery of the travel industry. However, consistent developments made by Airbnb (ABNB) and InterContinental Hotels (IHG) should help these companies to grow over the long term. But which of these stocks is a better buy now? Read more to find out.Airbnb, Inc. (ABNB), which is headquartered in San Francisco, and InterContinental Hotels Group PLC (IHG), based in Denham in the U.K., are two popular players in the travel and tourism industry. ABNB, which went public on December 10, 2020, operates a platform for stays and experiences to guests worldwide. The company offers lodging, homestay, and tourism services via websites and mobile applications worldwide. In comparison, IHG owns, manages, franchises, and leases hotels, resorts, restaurants, and spas worldwide.
Thanks to solid progress on the vaccination front and pent-up demand for travel and tourism, the travel industry witnessed a slight uptick earlier this year. But the rapid spread of the COVID-19 Delta variant is expected to impact travel demand significantly in the near term. However, several developments by ABNB and IHG should help them benefit in the long run. In fact, the global travel and tourism market is expected to grow at 3.1% CAGR to reach $8.9 trillion by 2026.
In terms of their past month’s performance, ABNB is a winner with 9.3% price gains versus IHG’s negative returns. But, which of these stocks is a better pick now? Let’s find out.