- The index now incorporates online booking companies and travel agencies.
January 2023, London
HANetf, Europe’s first independent white-label ETF and ETC platform, and leading provider of thematic ETFs, and crypto and commodity ETCs, is pleased to announce that its travel thematic ETF has been renamed to The Travel UCITS ETF (TRYP) and now incorporates online booking companies into its index.
The index seeks to track the performance of stocks from companies engaged in the travel business over four different categories: Airline Companies, Hotel Companies, Cruise Line Companies, or Travel Agency/Publisher Companies.
The addition of travel agencies is significant as they form an important segment of the travel and tourism (T&T) industry, with revenues of $517 billion or over 8% of total T&T revenues in 2019, a smaller share than either airlines or hotels, but more than the cruise industry. [1]
Travel agencies, like the rest of the travel industry, were hard-hit by the pandemic and had not yet fully recovered. Global travel agency revenues, including both brick-and-mortar and online travel agencies, were an estimated $329 billion in 2021.[2] Despite the rapid growth of the online travel agency (OTA) segment, brick-and-mortar agencies still generated over 88% of total travel agency revenues in 2021, underlining the potential growth ahead.
Major factors driving the recovery and eventual renewed growth of the travel agency industry include: trends in overall travel spending, changing consumer preferences, and changes in travel agencies’ business models. As of late 2022, global travel expenditures looked on track to recover to pre-pandemic levels by 2024.
By incorporating travel agencies into its index constituents, The Travel UCITS ETF hopes to position itself to benefit from the upward trend in travel spending.
Hector McNeil, Co-CEO and Co-Founder of HANetf, comments:
“We are excited to see The Travel UCITS ETF incorporate online booking companies into its holdings. Travellers have been growing more informed, more empowered, and better able to organize their trips independently than previous generations of travellers, a trend that has fuelled the growth of online travel agencies. We therefore believe online travel agencies are a great addition to our thematic travel ETF. At HANetf we are always assessing our thematic ETF range to ensure they are capturing their intended theme is the best possible way.”
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