One of the best performing areas of the market over the last 12 months has been the travel industry.
There have been a number of shares in the industry generating market beating returns during this time. Three highlights are listed below, is it too late to invest in their shares?
Corporate Travel Management Ltd (ASX: CTD)
I've been very impressed at the performance and the acquisitions of this corporate travel manager over the last couple of years. The most recent acquisition is Hong Kong-based Lotus Travel Group. It has been operating for over 60 years and is one of the largest travel companies in Greater China, generating total transaction value of A$1 billion in 2017. I think this deal and the massive opportunity the company has in the U.S. market makes it a great buy and hold option despite its 12-month gain of 26.5%.
Flight Centre Travel Group Ltd (ASX: FLT)
This travel agent giant has seen its share price rise over 52% since this time last year. If I were a shareholder I would consider locking in some of these gains before earnings season. This is because I'm not overly convinced that it will deliver strong enough growth over the medium term to justify its current valuation of 20x estimated FY 2019 earnings. And with some of its peers trading on more attractive levels for their respective growth profiles, I would sooner invest in those shares.
Webjet Limited (ASX: WEB)
This online travel agent is a company that I would choose ahead of Flight Centre despite its shares rising 27% year-to-date. Thanks to its impressive bookings growth which is outperforming the industry average by some distance, Webjet looks set to deliver another strong full-year result next month. Pleasingly, management appears confident that this trend will continue for the medium term, which could make it a great share to hold tight to. Especially if the acquisition of JacTravel proves to be a success and boosts its earnings.
