Who Profits From the Travel Rebound?

Who Profits From the Travel Rebound | Gas Prices Hit New Record | 7 Energy ETFs for High Oil & Gas Prices Created for {EMAIL} | [Web Version]( June 1, 2022 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [Twitter]( [Instagram ]( [Youtube]( [SIGN UP]( ⋅ [WEBSITE]( [] What's in the Works [] A travel boom, but for whom? After more than two years of being holed up indoors amid the COVID-19 pandemic, Americans appear to be champing at the bit to hit the roads, rails and skies. And yet … market volatility and [fears of a recession]( could, in fact, thwart some of these plans. Gene Goldman, chief investment officer at Cetera Investment Management, says that while the travel industry is set for a summertime bump, that bump might be more uneven than most expect. Airlines, for instance, “should be in a great spot this summer,” he says. “TSA checkpoint travel numbers [are] well above 2020 lows.” Higher fuel costs likely will weigh on profit margins, but higher fares will help counteract that. Meanwhile, record levels of bookings and a pick-up in business travel suggest good things for airlines. The same goes for lodging, where occupancy rates are still below prepandemic levels but are rising fast. “This has and will allow hotels to raise prices quickly, and they are doing so as average daily room rates and revenue per available room are 10.5% and 4.1% higher than 2019 levels, respectively.” [LinkedIn]( [Twitter]( [Facebook]( [Email]( [Industrial Real Estate Investments Are Seeing Impressive Results]( Price growth for commercial real estate grew at a historic pace in 2021, learn how The CRE Income Fund pays an annual 10% dividend yield and is a long-term strategy that returns over $25,000 for every $10,000 invested over the next ten years. [READ MORE]( ADVERTISEMENT [] Latest [] While car rental agencies should also see a surge in demand, current availability is limited. “Recent data suggests supply chains are improving and car manufacturers are rebuilding depleted levels,” Goldman says, but it’ll take time to boost rental car supplies, and in the meantime, that could impact margins. Restaurants also could have a difficult time making the most of increased travel volumes. “Staff shortages and rising food prices will likely impact profit margins. With the uncertainty around surging food prices and poor service levels, expect a choppier profit trajectory for restaurants.” For consumers hitting the road this summer, painfully high gas prices are going to be a fact of life, unfortunately. According to AAA, the national average price of regular unleaded gas surged to a new record today: $4.67 per gallon. One year ago, the average was just $3.05. That price surge isn’t cancelling summer vacation plans, but it does appear to be keeping some people off the roads. According to Department of Energy data, gasoline consumption during the first few weeks of May ran modestly lower than the same period a year ago. Chances are, prices at the pump will keep [ticking higher](, since oil prices show no sign of declining from their current lofty levels. Efforts to boycott exports of Russian oil and refined fuels because of Moscow’s invasion of Ukraine will only further tighten the global petroleum market. So, don’t be surprised if the national average price of gas hits $5 per gallon later this year, with some states seeing prices start with a 6, or even a 7. If you’re looking to save a little at the pump, check out these real-world, no-gimmick [tips]( that can help you burn a little less gas. Free download, [The Kiplinger Letter's Forecast](. No information required from you. 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