Thanksgiving Air Travel Should Help This ETF Fly | ETF Trends

Traders can be thankful for profitable opportunities this year, as Thanksgiving air travel should pick up and provide ways for savvy investors to capitalize on the trend.

“Thanksgiving air travel is on track to exceed pre-pandemic levels, signaling a busy holiday season for airlines, according to a new analysis,” The Hill reports. “Bookings for Thanksgiving flights are up 78 percent from last year and 3.2 percent from 2019, according to data from Adobe Digital Insights, which tracked online reservations at major airlines through Nov. 7.”

With the global vaccination efforts having begun at the start of the year, more individuals now have the confidence to travel this holiday season. That’s a stark contrast from last year, when social distancing measures reduced the number of travelers during a pandemic-ridden 2020.

“After a year where many were unable to see their friends and families for Thanksgiving, we are expecting busy airports this month,” said Vivek Pandya, lead analyst at Adobe Digital Insights. “The holiday uptick is also driving up prices online, and consumers should start thinking about Christmas travel pretty soon.”

One option for traders looking to capitalize on increased air travel during Thanksgiving and the forthcoming Christmas-New Year holidays is the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO). The fund focuses on returning 200% of the BlueStar® Travel and Vacation Index.

The index exposes traders to global commercial airlines, hotels and resorts, resort casinos, travel agencies, online travel booking sites, hotel REITs, cruise lines, theme parks, and ski resorts. The fund has been trending higher the past few months, rising 14%.

OOTO Chart

Airbnb Smashes Q3 Earnings

The increase in travel is already making itself known in one of OOTO’s top holdings — Airbnb. The company reported strong third-quarter profit growth and revenue as the effects of the ongoing pandemic started to wane and more travelers started to venture out into the world again.

“The company reported 79.7 million nights and experiences booked in the third quarter, a slight decrease from the second quarter,” CNBC reports. “That was still up 29% year over year, when Covid-19 battered the travel industry. Analysts had estimated 80.8 million nights and experiences for the quarter, according to StreetAccount.”

Furthermore, Airbnb garnered its highest-ever revenue and net income during Q3. That came despite urban and cross-border travel not yet returning to pre-pandemic levels.

“Looking to 2022, vaccination progress and the recovery of international travel in Q4 2021 will be key themes for growth heading into the new year,” the company wrote.

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