Increased Spring Break Travel Could Elevate This ETF Higher

The Transportation Security Administration (TSA) is anticipating more travel this spring break. That could be just what the ALPS Global Travel Beneficiaries ETF (JRNY) needs.

According to a TSA announcement, the agency “anticipates that its Transportation Security Officers (TSOs) will screen increasing numbers of passengers at airport checkpoints as travel volumes may exceed pre-pandemic levels.” This could be exacerbated with China’s re-opening of its economy after a surge in COVID-19 cases over the past year.

The TSA is already seeing its numbers spike since the pandemic hit. That could continue to gain momentum heading into the summer travel season as well.

“In January, we experienced our first full month where travel volumes exceeded the same month in 2019. We fully expect to see an upward trend in travel volumes throughout 2023, including during the spring break period,” said TSA Administrator David Pekoske. “We coordinate closely with airports and air carriers to prepare for the projected increase in travel volumes and we expect to meet our wait time standards of 30 minutes or less in standard lanes and 10 minutes or less in TSA PreCheck® lanes. However, there may be some situations where the capacity of a checkpoint is exceeded.”

Inflation Not Stopping Spring Break Travelers

The increased cost of fuel and higher interest rates are also swirling around rising inflation. Despite the economic challenges consumers are facing,

“Spring break is American’s next chance at a real vacation, and with their continued appetite for travel, even amid inflation fears, it should prove a busy season stretching across several weeks in March and April,” Travelzoo senior editor Gabe Saglie told TravelPulse.

Given this, JRNY could be a nice addition to a portfolio as a short-term play or even in the intermediate term if bullishness continues for the travel industry. Per its fund description, the ETF seeks investment results that replicate as closely as possible, before fees and expenses, the performance of the S-Network Global Travel Index (TRAVEL).

Overall, the fund invests in companies principally engaged in, or deriving significant revenue from, the global travel industry, including four segments: booking & rental agencies; airlines & airport services; hotels, casinos & cruise lines; and global travel beneficiaries. JRNY comes with a 0.65% expense ratio.

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