Travel ETF Report | October 2024

Travel ETF Key Takeaways

According to the latest World Tourism Barometer from the United Nations World Tourism Organization (UNWTO), approximately 790 million tourists travelled internationally between January and July 2024, an 11% increase compared to 2023 and only 4% less than in 2019. UNWTO Secretary General Zurab Pololikashvili commented on the travel recovery saying, “International tourism is on track to consolidate its full recovery from the biggest crisis in the sector’s history. The ongoing rebound comes despite a range of economic and geopolitical challenges, highlighting the strong demand for international travel as well as the effectiveness of boosting air connections and easing visa restrictions.”

Shares of travel-industry companies moved higher to close out August and start September, lifted by the news that Trip.com Group – the largest online travel service in China – topped sales and profit estimates for second quarter of 2024, writes Investopedia.com. Signs of resilience in the Chinese travel market in Trip.com’s report, driven by demand for cross-border travel, helped boost several U.S.-based travel stocks.

In their latest quarterly results (Carnival reports later in the month), Royal Caribbean Cruises and Norwegian Cruise Lines both beat Q2 earnings expectations as strong demand for vacation experiences, including onboarding spending, drove revenues higher and boosted guidance, writes Seeking Alpha. Sellers continue to see strong demand for cruises with sales volumes up, cancellations down, and pricing higher than it was last year at this time.

Macro Outlook

Business travel expenses are expected to steady next year, writes Skift.com, though at price levels surpassing historical averages, according to industry forecasts from CWT and Global Business Travel Association. For context, the forecasts highlight that air ticket prices are expected to increase 0.6% in 2025, while hotel rooms could increase by 2.6% globally next year.

Despegar.com, a leading Latin American travel tech company, has signed a new 10-year Lodging Outsourcing Agreement with Expedia Group, enhancing business relations and growth prospects, reports TipRanks.com. The agreement, which will be effective from January 1, 2025, allows Despegar to optimize its lodging, pursue growth initiatives, and establish new strategic partnerships. It also provides Expedia with a guaranteed share of Despegar’s hotel bookings and exclusive distribution rights in Latin America.

Sources available upon request. Please remember that when you invest in ETFs, your capital is at risk.

Travel ETF Performance
As of 30/09/2024

TRYP (Fund)
1M-3.63%
3M1.94%
6M-1.14%
YTD-0.83%
12M3.61%
3Y-
Since Inception (04/06/2021)26.18%


Please note that all performance figures are showing net data.
Source: Bloomberg / HANetf. Data as of 30/09/2024

Performance before inception is based on back-tested data. Backtesting is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs, your capital is at risk.

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