Pathfinder Ventures, TUI, Lufthansa - Which tourism shares are worthwhile?

Pathfinder Ventures: A piece of nature for the portfolio

During the summer months, the travel bug grabs us. We head for sunny beaches, impressive mountain landscapes for hiking, or straight into the RV to go exploring. The travel restrictions and lockdowns of the past pandemic years seem almost forgotten. But not everything is over yet. Families do not have it easy when planning their vacation: should it be an all-inclusive hotel with a water slide in Turkey? Or a vacation home to which one is bound during the entire holiday? Often the wishes of parents are not taken into account.

A successful alternative is offered Pathfinder Ventures. The Canadian Company has discovered an expandable niche: the sustainable modernization of nature resorts for mobile homes and caravans with parking facilities for winter storage of unused trailers.

Unlike German campgrounds, a resort at Pathfinder offers enough privacy to relax for a few days in one's mobile home on four wheels and explore the surroundings with the whole family. Whether fishing and swimming in the lake or exploring the woods surrounding the site, families can truly relax and move on to another resort to enjoy the outdoors again when needed.

CEO Joe Bleackley has big plans for Pathfinder Ventures Inc. to build a network of branded, family-friendly RV parks and world-class campgrounds under the name "Pathfinder Camp Resorts." In other words, more glamping than camping. In doing so, it more than strikes a chord. With inflation at an all-time high, it takes a few strategies to get a relaxing vacation on track while staying within your house budget.

For investors who have an appetite for growth and maybe RV adventurers themselves, the Company offers an exciting investment. Compared to long-established stocks in the travel and tourism industry, Pathfinder Ventures more than holds its own. Shareholders here are investing in a pioneering spirit, structured business development, and a team that is dedicated heart and soul to its mission: Market capitalization is currently CAD 5.8 million with 55.9 million shares outstanding. Three caravanning centers are already operational, one is being modernized, and three targeted acquisitions are planned for the next year. To understand the opportunity: There are 4,500 RV and camping parks in Canada and 15,000 in the US. More than 80% of private parks are family-owned. Today's generation of RV vacationers demand modern services and amenities such as Wi-Fi, on-site restaurants, etc.

TUI - Airport chaos causes the share to fall

For many vacationers, the vacation begins at the departure airport. But due to the Corona pandemic, many staff positions are unfilled. This leads to chaotic scenes as planes are missed due to hours of delays at the check-in counter. The vacation mood is low, and things can only get better. TUI shares have also lost ground due to this massive drop in quality. The expensive additional expenses due to the flight cancellations, especially in the UK, cost the tourism group its first quarterly profit after the Corona Crisis. "The disruptions in airport operations are now hopefully over," said the future CEO, TUI CFO Sebastian Ebel. According to company data released on Wednesday, current bookings have already reached 90% of 2019 levels, with 11.5 billion.

The Company has suffered severe losses over the past two years. Passenger traffic was severely curtailed due to measures with no political evidence. Even the German government had to intervene to save the ailing company from going under. The flight chaos in Great Britain resulted in special costs of EUR 75 million, which affected the overall operating result, which was in the red by EUR 27 million.

From an investor's point of view, the consequences of the Corona measures continue to affect tourism companies, most of whose business is air and sea travel. Be it renewed outbreaks of mutated viruses, gaps in logistics chains or, for a few months now, the enormous rise in energy prices. The coming months look less rosy for the Hanover-based company, even if the future CEO spreads optimism. What else can he do?

Lufthansa - Ground staff cause rising wage costs

Anyone investing in airlines like Lufthansa is betting on a commodity business. There is nothing unique or distinctive about airlines - even if commissioned brand builders make us believe otherwise. Airlines also require a lot of labor for their complex operations, so labor costs are a strong component of the relatively fixed costs they incur each month.

So Lufthansa has had to negotiate with the works council Verdi again this week. "We are pleased that we managed to find a good solution for our employees with the works council," said Michael Niggemann, member of the Executive Board and Labor Director at Deutsche Lufthansa AG.

The ground staff, from baggage employees to air traffic controllers and check-in ladies, had mutinied. Due to the severe staff shortages, there were high overloads and total breakdowns in ongoing operations. Through the now negotiated salary increases, especially for the lower and middle income groups, calculated over the next 18 months, Lufthansa secures, according to the labor director, the attractiveness as an employer. For investors with foresight, however, the news is somewhat unsatisfactory.

Employees who can calculate how high the current inflation rate is in Germany (around 8%) cannot make too many leaps in the air. An exemplary increase for a monthly gross basic salary within the 18-month term is 19.2%. Niggemann also referred to a 2.5% increase in monthly basic remuneration, with a minimum of EUR 125, from January 1, 2023.

Oil price volatility is another challenge facing airlines. These fluctuations pose a major problem, as the cost of fuel can vary widely. According to Reuters, airlines at the International Air Transport Association in Doha expressed concern about the simultaneous rise in oil prices and the US dollar. That is because: the price of oil and the US dollar are in an inverse relationship, meaning that when one rises, the other falls. This helps offset financial impacts on airlines operating in other currencies.

However, this correlation has broken down in recent months as the war in Ukraine has caused oil prices to rise. The US is a net exporter of oil, and the interest rate hikes only served to contain inflation. Investment in airlines remains a highly volatile investment.

Cross-country Corona restrictions have caused the tourism industry to lose massive revenue in recent years. A lack of staff creates chaos in the process flows. That, in turn, scares off guests. Both inflation and high energy prices are making themselves felt among consumers who want to book their next vacation as a family. The growth of Pathfinder Ventures, on the other hand, has been pleasantly relaxed. The Canadian company is modernizing RV campsites and also offering winter storage. With 4,500 locations in Canada alone, the young company still has plenty of growth ahead of it.