This was meant to be a year of recovery for the tourism sector, which had been severely harmed by the worldwide coronavirus pandemic. However, Russia’s invasion of Ukraine may have changed that ,at least to a certain extent. The stock market prices in all the sectors have decreased due to ongoing conflict. The U.S Travel Industry investors worry about surging oil prices.
- The US Global Jets fund lost 11.1% of its value.
- United’s shares dropped the most of the four leading airlines, falling 15%.
- Delta stock was not far behind, having lost 12.8% of its value.
- American was down 11%, while Southwest was down 8.6%.
- The stock of Norwegian Cruise Line Holdings fell 11.6%.
- Carnival Corp.’s shares fell 9.9% on the day.
- Royal Caribbean Group was down 9%.
- Hyatt fell 9.3%. Marriott International concluded the day down 7%. Hilton had a 6.2% loss. The shares of InterContinental Hotels Group fell by 4.8%.
Rental Car Sector:
- Avis’ shares dropped by 7.1%.
- Hertz shares fell by 5.1%
- Booking Holdings plummeted by 8.5%, while Expedia Group fell by 11%, Tripadvisor declined by 4%, and Airbnb sank by 8%.
Even on a bad day for the markets, falls in the travel industry stood out.
- The Dow Jones fell 2.4%, on Monday, while the S&P 500 fell 3% and the Nasdaq Composite fell 3.6%.
Investors’ dissatisfaction with the travel industry arose when crude oil prices rose to as high as $130 a barrel in overnight trading for the first time since 2008. Prices fell throughout the day on Monday. Crude oil in the United States was selling at $120 a barrel soon before 5 p.m. Eastern.