ASX business travel stocks are ascending again as traffic returns
ASX stocks focused on business travel say that their clientele are returning as state border restrictions ease.
But easing of restrictions has seen the unleashing pent up demand for travel – even for business.
One such business travel stock is small cap 8common (ASX:8CO). This company owns a travel expense management software Expense8, which helps government departments and large corporates plan, book and monitor travel and travel expenses.
Today 8common announced travel activity within the Expense8 platform has increased significantly. It noted December pre-trip approval fees were 100 per cent above October levels.
The company also reported a new customer had gone live with its software – in the NT’s Department of Corporate Information Systems (DCIS) – and this was its eighth this quarter. It said there are now 140,000 active users among over 150 state and federal entities.
CEO Andrew Bond said activity would normalise in CY21 and the company would benefit.
“We continue to see a strong pipeline of growth for FY21 and beyond and we look forward to expanding our presence across the State and Federal governments we well as large enterprise corporations,” he said.
While shares only rose 4 per cent today, shares are in the green for 2020 – something that can’t be said for all travel stocks.
There are only two other pure play business travel stocks – although several other stocks serve the travel market more broadly.
One pure-play business travel stock is $550m software stock Serko (ASX:SKO).
The New Zealand based company also reported an uptick in travel earlier this month.
It noted that in the month of November, transactions volumes were up to 44 per cent of prior year volumes, from 35 per cent the month before. This rose to around 50 per cent in the early days of December.
The other pure play business travel stock on the ASX is $2.6 billion stock Corporate Travel Management (ASX:CTD).
This company has not commented since its AGM in October but was optimistic that things could return to normal.
It welcomed travel bubbles but also suggested hotspot testing and the adoption of rapid antigen and on the spot COVID-19 testing could mitigate the risk of outbreaks.
Shares in Serko are up 5 per cent this year while Corporate Travel Management is down 3 per cent. But both stocks are up over 65 per cent in the past six months.