Will the Corporate Travel (ASX:CTD) share price surge in 2021?

The Corporate Travel Management Ltd (ASX: CTD) share price has surged 85.1% higher since July but I think 2021 is also looking strong.

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The Corporate Travel Management Ltd (ASX: CTD) share price has been smashed this year but could it be set to surge in 2021?

Why the Corporate Travel share price has been smashed

The coronavirus pandemic has been the big factor here. ASX travel shares have been hit hard by border restrictions and the reduced ability to travel both domestically and internationally.

In fact, the Corporate Travel share price has now fallen 21.7% lower in 2020. That's compared to a 10.8% drop in the S&P/ASX 200 Index (ASX: XJO) over that same time.

However, the ASX travel share has had something of a recovery in recent months and rocketed 85.1% higher since the start of August.

Will the ASX travel share surge in 2021?

I think there's a bit to like about the Corporate Travel share price in 2021.

Restrictions are easing in Victoria which is good news for domestic travel at least. I think there's a lot of political will to avoid another lockdown which should hopefully mean more certainty for businesses going forward.

With those falling case numbers across the country comes a potential re-opening of domestic borders. On top of that, Trade Minister Simon Birmingham is hoping for an Australia-New Zealand travel bubble to be in place by Christmas.

All of this points to the fact that the Corporate Travel share price could be worth a look right now. I think much hinges on how much government and business travel continues to pick up in 2021.

Foolish takeaway

With a strengthened balance sheet and prudent capital management in the short-term, things are looking up. I do think Corporate Travel is a better bet than rivals like Webjet Limited (ASX: WEB) given its focus on business-related travel rather than leisure.

If Corporate Travel can surprise with higher traffic and therefore higher earnings, I think it could shoot higher next year.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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