If you look at current economic and business conditions it looks unsteady, but if you consider what people can spend money on in the short, medium and long term, travel is one of them. Restrictions will eventually reduce and borders will reopen, which means the investment value in this sector will increase.
If you want to invest in this sector, you must consider liquidity levels of the company and rationality behind the cost base. You need to consider a company with financial and liquidity capacity to sustain itself beyond the current turbulent times.
For start-ups, your investment must correspond with the arising demand. This will cushion you against lose of capital investment.
Events, entertainment and hospitality are good investment avenues because when the Covid-19 fears and restrictions reduce, what people are most likely to do is to travel locally and internationally and indulge in lots of entertainment and fun.
As a matter of fact, home entertainment is currently at its peak and out of home entertainment will soon or later hit its peak.
When you think of well calculated investment, let travel, entertainment and hospitality be top of mind.
