You know an airline is desperate when the Uber to the airport costs more than the flight…
Most Americans hunkered down during the COVID-19 pandemic in early 2020.
But when my apartment lease ended, I had nowhere to go. And the media was painting a grim picture about what was happening across the country.
I wanted to find out if things really were as bad as they seemed. So I hit the road…
I drove across the country twice. And I took more than 70 flights. In the end, I spent more than 180 days in hotels in 2020.
As I said, airlines (and hotels) were desperate to get anyone in the door. I’ve never experienced cheaper travel than during the pandemic…
I spent $50 on a round-trip, first-class ticket to Miami in July 2020. And when I headed back to the airport from the hotel, Uber charged me $65 for the short trip.
Nearly three years later, the same flight costs about $1,200. And it’s still likely to be oversold. So good luck if you’re trying to find a spot for your carry-on bag.
A room at the five-star hotel where I stayed in Miami only cost $200 per night in 2020. It was a lovely, secluded retreat. The service was amazing, too. But it still had a lot of available rooms.
Nowadays, if you’re lucky enough to even find a room at that hotel, it will cost as much as $1,500 per night. That’s a 650% increase in less than three years.
Traveling through the pandemic gave me a “boots on the ground” look at the U.S. economy.
For the most part, things weren’t as bad as they seemed on TV. But because everyone was scared at the time, I was able to do all my traveling for pennies on the dollar.
That’s no longer the case…
It’s clear that hotels and airlines are now playing catch-up for all the lost revenue from the pandemic. Hotels are crammed full. And most planes have a person in every seat.
On the consumer side, folks are taking all the trips they missed during the pandemic…
Americans alone spend more than $1 trillion each year on travel. Most of that money gets spent right here in the U.S. And it’s expected to hit $2.4 trillion in less than five years.
The days of traveling for pennies on the dollar are over – for the most part.
You see, one hideout remains for people looking to travel at pandemic-like prices…
Cruise lines.
The pandemic crushed the global cruise industry. Many cruise lines couldn’t get enough customers. So they suspended operations for long periods. And some even went bankrupt.
But nowadays, the world has emerged from the pandemic. And the global cruise industry is taking baby steps in its own recovery…
The industry generated roughly $18.6 billion in revenue last year. That’s more than five times the nearly $3.4 billion in revenue that it produced in 2020.
And importantly, the Power Gauge sees the potential in this corner of the travel industry…
Major cruise operator Royal Caribbean (RCL) earns a “bullish” rating in our system. And Norwegian Cruise Line (NCLH) recently flipped to a “bullish” rating as well.
So if you’re not paying attention to this industry yet, I recommend taking a look at it today.
Good investing,
Briton Hill
