Tuesday, 12 March 2024 Reading time : 2 minutes

Last year, the global travel industry recovered significantly from the setback it suffered due to the corona crisis. This can be seen, for example, in the number of international overnight stays, which rose to more than 1.2 billion worldwide in 2023 – an increase of 34% compared to 2022, according to data from UN Tourism. The figures are still slightly below pre-crisis levels, but the gap is likely to close over the course of 2024 and could even result in growth by the end of the year compared to 2019, the report says.

The rediscovered appetite for travel is also being felt in Switzerland, where tourism experienced a record year in 2023. According to Switzerland Tourism, the number of overnight stays in hotels rose to almost 42 million, the highest figure since 1934, when the data was first collected. These statistics include both international and domestic guests.

The upturn in tourism is providing a boost to several companies. Thus, Zürich Flughafen reported a strong financial year, thanks in part to the recovery in passenger numbers. Nearly 29 million people travelled through the airport, almost as many as before the Covid-19 pandemic. This development is also reflected in the earnings of Swiss International Air Lines, which is part of the Lufthansa Group. The airline reported the best result in its history, carrying 30% more passengers than in 2022. In terms of pre-crisis levels, Swiss offered around 87% of capacity. For the current year, the airline plans to increase its capacity to 95%. 

Air travel is often accompanied by a trip to the duty-free shop. The upward trend is therefore also being felt by travel retailer Avolta. In 2023, the Basel-based group completed the takeover of the Italian service station operator Autogrill which almost doubled the group's turnover. But even without the Autogrill acquisition, Avolta has grown strongly, as evidenced by organic sales growth of 21.6% compared to the previous year.

The current year will show whether the recovery in tourism is as strong as hoped. Early signals are positive, as the example of Jungfraubahnen shows. At the beginning of January, the electric cogwheel railway transported more than 1 million guests to the Jungfraujoch for the first time since the pandemic. In particular, the railway has seen an increase in the number of guests from South-East Asia, India and the US, while there is still catch-up potential with tour groups from China and Japan.

Investment Solutions
The following reverse convertibles offer a strike of 90%. If the underlyings are quoted higher than or equal to the strike level at the final fixing, investors receive the invested capital and the coupon. If one or more underlyings are below the strike level at maturity, the underlying with the worst performance is delivered. However, the price of the delivered underlying is 90% of the initial fixing. The loss is therefore lower than with a direct investment. The coupon is guaranteed and paid in every scenario.

Reverse Convertible on Flughafen Zürich and Avolta
Coupon: 8.50% p.a.
Strike: 90%
Maturity: 6 months
Valor: 132 911 450
Termsheet

Reverse Convertible on Lufthansa
Coupon: 10.00% p.a.
Strike: 90%
Maturity: 12 months
Valor: 132 911 500
Termsheet

Indicative terms

 

Disclaimer
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