Travel and tourism was the second-fastest growing sector in the world last year. In total, the sector added $8.8 trillion to the world’s GDP and helped create 319 million new jobs.
Most people are familiar with travel and tourism on a personal level, but significant growth in the sector presents a potentially lucrative investment opportunity. There are many ways to invest in the travel and tourism sector.
There are several publicly-traded firms in the hotel industry, which is largely dominated by a few major international brands, including Starwood Hotels and Marriott. Many of these brands are now working on expanding internationally.
With Starwood, for example, more than 80% of their new hotel pipeline is international.
According to Zion Market Research, the global hotels market is expected to reach $211.54 billion by 2025. The hotel industry was valued at $146.57 billion in 2018. The industry is expected grow at a CAGR of 4.6% between 2019 and 2026.
The Asia Pacific market is projected to see the most significant growth over the forecasted period due to increased disposable income among the regional population. China, Thailand, Korea and India are projected to be among the leading drivers of growth in the region.
2. Online Travel Services
Travelers are ditching their travel agents in favor of online booking services. Online travel services help consumers save money while offering a convenient way to book their vacations. In fact, 83% of U.S. adults prefer to book their trip online.
There are several publicly-traded companies in the industry, including Expedia, Booking Holdings Inc. (owner of KAYAk, Booking.com and priceline.com) and Trivago.
The online travel booking market is projected to reach 1.95 billion by 2026, up from $765 billion in 2017. The industry is expected to grow at a CAGR of 12.1% between 2018 and 2026.
The RV industry has seen consistent growth in recent years. Travelers enjoy the freedom and flexibility that RVs offer.
The purchase of an RV also offers additional benefits that consumers are taking advantage of, such as tax benefits.
“Most RVs purchased from Pedata RV qualify as a second home write off and receive huge tax incentives just like a home (check with your certified Tax Advisor first please),” says Pedata RV center, which specializes in RV sales in Tucson, AZ.
Since 2001, the U.S. has seen a 16% increase in RV ownership, Today, 60% more households own an RV compared to 1980.
Pedata RV Center
4933 S Outlet Center Dr, Tucson, AZ 85706