The crisis in the travel and aviation sector worsened yesterday with the Federal government banning all foreigners from entering Australia from midnight tonight and again told Australians returning from overseas that they will have to undergo 14 days of quarantine.
The collapse of UK travel company, Thomas Cook after 178 years in business will leave an impact across every part of the global holiday and business travel businesses, with costs estimated to easily top $A2 billion.
In a recent post here, we explored the Online Travel Agent (OTA) space and came away with a view that barriers to entry in the industry were arguably low, which went a fair way to explaining why there are so many agencies already in existence. It appears that this piece was unknowingly well-timed.
Trade wars, Brexit and the Hong Kong protests made for a particularly tough first half for Corporate Travel Management, but there are signs of life returning in the second half. The company has reiterated FY guidance and Morgans assumes modest first-half earnings growth followed by double-digit growth in the second half as macro headwinds gradually ease.