The reason Victoria has entered a state of disaster is so that we can get out of this mess faster, as opposed to taking months. The lockdown has been extended by 3 weeks. The outcome of this is to have zero cases by mid September so we won't need to reopen and close like a yo-yo. With this achieved my prediction of opening the Trans oceanic travel bubble will come sooner. I'm still forecasting Jan for it, however with the harsher lockdown I see this travel bubble opening sooner. If not, the travel sector is already prepared (and bottomed out) for the next 12 - 18 months. So we shall see a bunch of acquisitions take place in that duration. Heck even Flight Centre has bunkered down with Virgin - which to me feels like a strategic swipe at taking over Qantas number one spot. I also know that Webjet have been looking into the machine learning space which is a hot topic for some of the global travel giants.
It's going to be a whole new travel world post covid. I can't see the mum and dad travel agencies making it through, meaning the ones who survive will have the lions share of business. That aid NZ has just injected a mountain of cash into the tourism / travel sector.
I wouldn't consider something a gamble if it's a 'when' not an 'if'. Just load up while you can and reap the benefits on the other side.
WEB Price at posting:
$2.63 Sentiment: Hold Disclosure: Held
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