Omicron Adaptation
If thereās one industry that the Omicron variant has slapped in the face the most, it must be the travel industry. Theyāve been having troubles during the whole pandemic, but the Omicron variant has been special due to its timing. The industry is dealing with a labor shortage and adding Omicron to the equation gives you a sum of flight cancellations; thousands of them if you were wondering. However, the saying goes āOne manās benefit is anotherās cost, and vice versaā, and this applies to the travel industry very well.
The demand for vacation still exists even with Omicron because of the vaccines, but a lot of adjustments are needed regarding cancellations, bookings, and touchless hotel check-ins. Fortunately, there are new start-ups that have adapted to the new normal, and they are taking advantage now. Fora, a start-up travel agency business, was able to reap higher revenue than expected with their clients using the platform to book new vacation packages domestically. Demand is also strong in these cases, allowing them to have their hands full with business to do, serving their clients while receiving a lot of money. Cancelled flights didnāt affect clients either as they were able to book multiple flights and receive refunds, solving most of the problems. It isnāt perfect, but there are multiple others like Fora that are busy in their line of business-like Expedia Group, and theyāve made this process a lot better than what it would be without them. Expedia, for example, has seen a 20 percent increase in their share price in the last week, showing that the start-ups arenāt the only ones profiting off the Omicron cancellations. What do you think about these businesses?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
