Getting ready for the summer travel, part 2

Embracing Escapes: Navigating Winter's Chill and Investment Thrills Within the Travel Sector

TL;DR:

• Winter's End and Wanderlust's Beginning: January closes with varied weather, prompting thoughts of getaways.

• Investor Insights: Discusses stock movements of Boeing (BA) and Delta Airlines (DAL).

• Marketing Observations: Shift in AirBNB's advertising strategies and its correlation with stock trends.

• Financial Outlook: AirBNB's rising trend, potential buy areas, and future projections.

As the first month of the year comes to an end, which normally feels like more than a month. If you live in the northeast like us, you have witnessed snow, rain, frigid temperatures and the unpredictable character of Mother Nature. No wonder during this time of year, coming off of the holiday break, many think about their next getaway. 

It's understandable that after enduring the challenges of winter weather and settling back into routines after the holiday season, many people start yearning for a getaway. The first month of the year can indeed feel longer, especially with the varying weather conditions, including snow, rain, and cold temperatures, particularly in the northeastern regions.

The desire to escape to warmer climates or simply to break the monotony of the winter season often becomes more pronounced during this time. Planning a trip can offer a refreshing change of scenery and something to look forward to in the midst of winter's unpredictability.

In our last article we dove into two names related to the travel industry. Boeing (BA) which had been consistently slammed with negative news due to their Max airlines malfunctions and consistent FAA scrutiny. Secondly, covered Delta Airlines (DAL) who had earnings released earlier in the year.

For Boeing we wrote: 

As of this writing, Boeing did dip below $200 to $198 and has bounced off that level a couple of times. We do still believe there is some juice left in this name and as stated under $200 was a treat for those who were able to take advantage of this short term move. 

For Delta, we did expect a little more downward pressure before a rise out of this airline. Delta held our potential area of support and has been taking off since. We still expect this name to get to $50 if not more this year and is well on its way.

Outside of the finance space, for more than 20 years I worked in marketing. Often I can’t help but notice what marketers are advertising and how that correlates to the time of year/season. If you’re like me, one thing you may have noticed is the influx of travel advertising recently. Whether it is airlines, cruises, hotels, or vacation rental platforms. What is more interesting is how advertising schedules and flighting tend to correlate to the underlying stock. 

Recently, AirBNB (ABNB), another name associated with the travel industry, changed their advertising message. In the past, ABNB invested in what seemed to be upper funnel or brand advertising as their core messaging which highlighted brand features such as exploring type of homes. As of the last few weeks, ABNB began changing their advertising messaging to highlight some of the benefits of staying at an AirBNB over hotels. With this new message trying to get customers to realize the key differentiation of the service and not just make their audience aware of the brand but actually try it. In marketing lamens, ABNB is pushing the consumer further down the funnel with messaging highlighting them trying the service. A typical marketing funnel shown below.

So what does this mean in terms of the chart? ABNB has been on a steady upward trend. It has broken previous highs from December. We are on the lookout whether it can break through $154 which is ~$10 away before it climbs its way towards $170 this year. Any dip towards $138 would pose a potential buy area for this name ahead of earnings in the middle of February.

As the second month of the year kicks off and many people look forward to getaways, as investors, these names should be on your radar to maximize your portfolio gains.

Please consult your financial advisor and do your due diligence before making any investments. 

If you find this content helpful or have suggestions on investments you’re considering, we’d love to hear from you!

We appreciate any support and interaction with our audience. Please share with your family and friends to help increase our reach.