Travel & Tourism industry at risk: Value distraction in the times of Covid-19

52-week performance analysis at market close May 22, 2020

Having suffered a seismic demand shock, Travel & Tourism and related industries find themselves in unchartered waters.

Stock Market participants abandoned ship quite fast, accepting to take significant losses in the process. Investors in for the long haul are enduring a massive value distraction, not a first for the industry! The struggle for liquidity takes center stage as a decade of easy access to capital comes to a halt.

Freedom of travel, that became the standard thanks partially to globalization, is now restricted. Dining, entertainment, leisure are under the shadow of a healthcare emergency, threatening the very existence of millions of SMEs and family businesses, as well as conglomerates.  

Is the damage of Covid-19 felt evenly across the board? Are all sub-sectors and asset classes sharing the same amount of pain? Is the investor community showing clear preferences among the sub-sectors, making it seem like there will be a tide but it will only lift some of the boats and sink others? Could it be that some companies are the bellwether for the entire industry?

We monitor events and lay the facts so you can draw your own conclusions.  

To see the results download the file here:

T&T valuations post Covid19 - 22 May 202

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