Transport ETFs, Stocks To Ride On Record Thanksgiving Travel

Thanks to strong economic fundamentals, strong consumer spending, higher wages and increasing levels of household wealth, a higher number of Americans are gearing up for Thanksgiving travel by road or air. The frenzy for trips during the Thanksgiving weekend is far more than many other years.

According to travel service provider American Automobile Association (AAA), Thanksgiving holiday travel will be the second-highest, trailing the record set in 2005. More than 55 million Americans will travel 50 miles or more this Thanksgiving weekend (Nov 27-Dec 1), up 2.9% from last year. Of them, 49.3 million (up 2.8% from the last year) will go on road trips, 4.45 million (up 4.6%) will fly, and the remaining 1.49 million (up 1.4%) will travel by train, bus or cruise.

Even though travelers are expected to hit the road the most since 2005, motorists are expected to pay the highest gas price since 2014. According to GasBuddy, the average price for regular unleaded gasoline is expected to be $2.56 per gallon, a penny higher than last year.

Additionally, travelers are expected to pay a little extra when paying for car rentals, and mid-range hotels. This is because the average daily car rental reached a record since 1999 for the Thanksgiving holiday at $75 per day. Meanwhile, AAA Two Diamond hotels are 1% expensive than last year at an average rate of $125 per night, while AAA Three Diamond hotels has fallen 5% to an average nightly cost of $158.

Another report from the U.S. airlines group Airlines for America (A4A) shows that a record 31.6 million (2.63 million per day) passengers will fly over the 12-day Thanksgiving holiday travel period (Nov 22-Dec 3), up 3.7% from last year. The busiest day will be Dec 1 with 3.1 million people traveling that day. The other busiest days for air travel will be Nov 27 and Nov 22 when 2.98 million and 2.96 million, respectively, passengers are expected to fly.

Huge travel demand should boost revenues and profitability for airlines and railroads, thereby leading to higher share prices. Investors shouldn’t miss this opportunity and could tap this trend through ETFs and stocks that stand to profit big time from the upbeat Thanksgiving travel trend.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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