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United Kingdom

GB : Travel & Leisure - Overall - Picking the winners in inflationary times

    Anna Barnfather
    Anna Barnfather

    Analyst - Leisure

    Andrew Wilkinson
    Andrew Wilkinson

    Analyst - Leisure

    CGS-CIMB
    25 March 2022
    Published by

    After a slow start to 2022, the sector is gathering momentum as final Covid restrictions are lifted and supply chain issues ease. While inflationary pressures continue to present significant challenges, especially in light of the Ukraine conflict, we believe consumer demand will remain resilient, with a reduction in supply helping to rebalance the equation. In particular, we expect the more experiential focused operators to outperform as consumer priorities are re-set. Our Liberum Leisure Index is down 15% YTD/30% LTM with significant upside especially amongst the well capitalized, higher growth roll-out models.