As COVID-19-related restrictions are gradually easing, the travel and tourism industry should witness increasing demand in the upcoming months. Online travel platform operators trivago (NASDAQ:TRVG) and Travelzoo (TZOO) are seeing advanced bookings, indicating their revenue growth in the near term. But which of these stocks is a better buy now? Let’s discuss.Travelzoo (TZOO) and trivago N.V. (TRVG) are two prominent internet-based travel-and-tourism platform operators. Germany-based TRVG offers hotels and accommodation search platforms through online travel agencies, hotel chains, and independent hotels internationally. The company provides access to its platform through 54 localized websites and apps in 32 languages. TZOO is a media commerce company that provides travel, entertainment, and local deals from various companies and businesses worldwide. It serves airlines, hotels, cruise lines, tour operators, car rental companies, theater and performing arts groups, restaurants, and spas.
As vaccines and booster shots are helping reduce the spread of the Delta coronavirus variant, travel restrictions are being eased. So, the travel and tourism industry is expected to rebound in the upcoming months. The travel and tourism market is expected to grow at 24% CAGR to reach $913.28 billion by 2025. So, both TRVG and TZOO should benefit.
While TRVG gained 1.7% year-to-date, TZOO surged 23.9%. In terms of the past nine months’ performance, TZOO is a clear winner with 25.5% gains versus TRVG’s 13.4%. But which of these stocks is a better pick now? Let’s find out.