Due to the pandemic, the travel industry had suffered the from lockdowns, travel restrictions, and regulatory restrictions for travelling between countries. There is now a resurging demand for travel.
More than eight in 10 (82%) American travelers are excited to travel in the next 12 months–the highest level since the start of the pandemic. Four in five (82%) business travel organizations feel their employees are willing to travel in the current environment, up from 54% in January. Reported by USTravel.org
In 2022, companies like Groupon will benefit as they focus more on consumer travel due to the resurging demand for travel. It’s not just the opening up of travel that benefits Groupon, the leading local marketplace company, they are also the leader in providing discounts for restaurants, beauty services, retail goods such as jewelry, clothing, and electronics, all with highly competitive discounts that are rarely seen anywhere else. Many brands rely on them to gain new customers.
Revenue in the Travel & Tourism market is projected to reach US$637,658m in 2022. Revenue is expected to show an annual growth rate (CAGR 2022-2026) of 10.47%. User penetration is 18.2% in 2022 and is expected to hit 24.1% by 2026.In the Travel & Tourism market, 74% of total revenue will be generated through online sales by 2026. Source Statistica.com
Groupon’s stake in mobile payments company SumUp, could be a massive windfall for the company perhaps exceeding Groupon’s current market value.
This is the reason why Prescience Point Capital Management predicts that Groupon share value should be in the $70-$100 range, after Groupon confirmed its stake in SumUpon, on a bullish trend. This is an estimation and not financial advice.
Groupon’s public disclosure of its stake is positive news. It could be a catalyst to drive up the share price of Groupon. Many analysts had not estimated a bullish trend for the company. Prescience Point has been emphasizing the company’s value due to its hidden asset from several weeks.
Groupon features deals: everyday deals, trending deals, featured deals, popular deals, new deals, region based deals and more in various categories including food and drink, beauty, experiences, gifts and more. Earnings and growth had seen a downward trend due to the lockdowns as a result of the pandemic. However, as everything has been opening up, the company is seeing green shoots and hopes to reach pre pandemic levels of growth; later if not sooner.
(Photo: Credit:seewhatmitchsee)
