Passports to profit? Trip.com and Asia’s travel boom
The world’s two most populous countries have caught the travel bug.
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Clay Smolinski
Platinum Asset Management
According to IATA, Chinese domestic flights now represents 11% of total commercial aviation. In 1990 it was 1%. Meanwhile domestic air travel in India is nine times bigger than it was in 1990.
The amazing growth in the Chinese and Indian travel markets is a long-term trend. But it’s also a bounceback from the stuck-at-home horrors of Covid.
Both those factors are underpinning the success of trip.com, which owns China’s biggest online travel agency – and half its Indian equivalent.
In this video our Co-Chief Investment Officer Clay Smolinski explores Platinum’s decision to buy into trip.com at exactly the right, wrong time - the peak of Covid.
Trip is a holding in the Platinum International Fund, the Platinum Asia Fund and the Platinum Global (Long Only) Fund. Trip shares have averaged a 15% annual return for the past three years (Source: Factset, in AUD, 24/5/24).
ETF
Platinum International Fund (Quoted Managed Hedge Fund) (PIXX)
Global Shares
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ETF
Platinum Asia Fund (Quoted Managed Hedge Fund) (PAXX)
Global Shares
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Managed Fund
Platinum Global (Long Only) Fund
Global Shares
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The above information is commentary only (i.e. our general thoughts). It is not intended to be, nor should it be construed as, investment advice. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and circumstances.
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Graduating as dux of Finance from university and a brief stint as an accountant at Grant Thornton gave Clay the grounding to deconstruct financial statements. Having started as an analyst at Platinum in 2006, Clay went on to manage the Platinum European Fund in 2009 and become sector lead of the financials and services team. Clay currently manages the Platinum Unhedged Fund, as well as co-manages Platinum’s Global strategies alongside Andrew Clifford. He is the leader of the technology and communications sector team.
Clay was promoted to co-Chief Investment Officer in April 2021.
2 stocks mentioned
5 funds mentioned
Clay Smolinski
Platinum Asset Management
Graduating as dux of Finance from university and a brief stint as an accountant at Grant Thornton gave Clay the grounding to deconstruct financial statements. Having started as an analyst at Platinum in 2006, Clay went on to manage the Platinum...
Expertise
Clay Smolinski
Platinum Asset Management
Graduating as dux of Finance from university and a brief stint as an accountant at Grant Thornton gave Clay the grounding to deconstruct financial statements. Having started as an analyst at Platinum in 2006, Clay went on to manage the Platinum...
Expertise
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