News that U.S. officials recommended a pause on the use of the Johnson & Johnson Covid vaccine could have a ripple effect on the travel industry and how willing consumers are to take a trip this summer, some investors fear.
Travel stocks have seen a mixed performance – the JETS airline ETF, for example, is down 7% from March highs while online travel agent Booking is just 3% from its own.
BTIG digital services analyst Jake Fuller, who covers stocks such as Booking and Airbnb, does not see a long-term impact from the latest obstacles in the vaccine rollout.
“Any delay in vaccinations will certainly push out a travel recovery a bit, but importantly, it’s not going to derail the inevitable,” Fuller told CNBC’s “Trading Nation” on Tuesday.
Fuller gives three reasons why he remains bullish on the travel industry. The first, he says, is how consumers behaved last year during the height of shutdowns.
“We saw it last summer, you’re going to see it again this year, too. People want to get out, people are going to take a vacation,” he said.
His second point is that the industry will just adapt. Instead of resorts and airports, people will prioritize home rentals and road trips…