Tourism Boom: Uber Technologies, Inc. Stays in the Race

In a recently published report on the best travel and leisure stocks, the position of Uber Technologies, Inc. (NYSE: UBER) among the leading players in the industry was examined. Prior to the COVID-19 pandemic, tourism was a major economic driver worldwide, accounting for about 10% of the global GDP and supporting around 320 million jobs. However, the pandemic caused significant downturns due to lockdowns and travel restrictions. According to the latest UNWTO World Tourism Barometer, international tourism reached approximately 88% of pre-pandemic levels by the end of 2023, with an estimated 1.3 billion international arrivals. Particularly, the Middle East surpassed pre-pandemic levels with 22% more arrivals than in 2019. Europe reached 94% of the 2019 level, supported by demand from the region and the USA. Experts forecast a full recovery of the industry by the end of 2024. Despite economic uncertainties and geopolitical tensions, the tourism sector remains resilient. With 77.3% of international arrivals in 2022, OECD countries have experienced a stronger recovery than other regions. The World Travel & Tourism Council anticipates a record year in 2024 with a global economic contribution of $11.1 trillion. Notably, in China, there is a continuing trend toward domestic destinations, leading to an economic upturn in the region. Analysts predict annual growth rates of 12% for the Chinese travel market, which is expected to become the largest globally by 2030. A sign of the travel industry's recovery is the growth in aircraft orders. Our analysis shows that investments in stocks held by leading hedge funds can lead to above-average returns, such as Uber Technologies, Inc. (NYSE: UBER). The company's shares were recently rated "Buy" and "Overweight" by DA Davidson and Piper Sandler, respectively. Uber Technologies, Inc. reported a 20% increase in gross bookings to $37.7 billion for the quarter ending March 31, 2024. The mobility segment was a key growth driver with a 25% increase in gross bookings. Tesla, Inc.'s (NASDAQ: TSLA) postponement of an event for autonomous robotaxis since April 2024 has affected the stock prices of Uber Technologies, Inc. and Lyft, Inc. (NASDAQ: LYFT). The report by RiverPark Advisors indicates that Uber Technologies, Inc. stands at the forefront of the best travel and leisure stocks with 130 hedge funds holding shares in the company. Despite the potential of UBER, we see greater opportunities in AI stocks due to their high promises and faster returns.