Even though the resurgence of COVID-19 cases hinders the travel industry’s growth, travel demand has been rising rapidly as more people are getting vaccinated. Expedia (NASDAQ:EXPE) and Trip.com (TCOM) are two such companies that should benefit from the industry’s recovery. But which of these two stocks is a better buy now? Read more to find out.Expedia Group, Inc. (EXPE) operates internationally as an online travel company. The company operates through Retail, B2B, and trivago (NASDAQ:TRVG) segments. Its brand portfolio includes Brand Expedia, Hotels.com, Vrbo, and CarRentals.com. On the other hand, Shanghai-based Trip.com Group Limited (TCOM) operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services worldwide.
Governments worldwide are reinstating lockdowns and travel restrictions to limit the spread of the highly transmissible omicron variant of coronavirus. However, most travel companies have been witnessing solid leisure and business travel demand. Moreover, as more people get vaccinated, travel companies should see increasing demand for their services. According to a Technavio report, the travel market is expected to grow at a CAGR of 13.9% from 2021 to 2026. Therefore, both EXPE and TCOM should benefit.
EXPE has gained 12.2% over the past three months, while TCOM has delivered negative returns over this period. Moreover, EXPE is the clear winner with 26.1% gains versus TCOM’s negative returns in terms of the past year’s performance.