December 11, 2018
  • 8:45 am How To Find A Suitable Financial Advisor
  • 11:53 am Safe investment with insurances: separate management
  • 11:49 am How to invest (and earn) in online tourism

Tourists who book their online holidays increase year by year around the world , to the detriment of travel agencies that are gradually disappearing. Here is a simple way to invest in this fast-growing industry.

Why invest in tourism

1) The number of tourists in the world has steadily increased for over 20 years.

2) Thanks to low-cost airlines, moving has become increasingly easier and cheaper.

3) People in vacation period are inclined to spend much more than they would normally spend.

Who are the market leaders

1) Booking.com:  the world’s first hotel reservation site, present in 226 countries around the world, 1 million two hundred thousand rooms are booked daily on this site. Booking is owned by Priceline Group, a company that also owns the well-known brands Kayak, Momondo and Rentalcars.

Listed on the US Nasdaq market, Priceline group capitalizes $ 89 billion.

2) Expedia: direct competitor of Booking, differs from the latter for the ability to book, as well as hotels, even flights and holiday packages. Founded by Microsoft in 1996, it is now an independent company that owns the well-known brands Venere.com and Trivago.

Listed at Nasdaq, it capitalizes 22 billion dollars.

3) Tripadvisor: 315 million users and over 500 million reviews and opinions, these are the numbers of Tripadvisor, the website that each consult before choosing any restaurant or hotel. Initially owned by Expedia, since December 2011 it is an independent company.

Listed at Nasdaq, it capitalizes 5.9 billion dollars

4) Amadeus: The least known among the big online holidays, is the company that deals with providing the reservation systems (from the price calculation to the issuing of tickets) to airlines, railways, maritime companies, rental companies and chains hotel.

Listed on the Madrid stock exchange, it capitalizes € 22 billion.

How to earn 1% per month (12% per year) by investing in these companies

Thanks to the certificate CH0377502726 issued by Leonteq, with a nominal value of 1000 euros per piece, it is possible to invest in these 4 companies, collecting 1% per month in the form of a coupon. ( See coupon coupon benefits )

Therefore, investing 10,000 euros, or buying 10 pieces, you will collect 100 euros a month if none of these companies were to experience a 33% drop in qutations. ( See product sheet for more information )

How do you invest in this product?

This certificate is quoted on the CERT-X segment of EuroTLX, so just look for this ISIN ( CH0377502726 ) in your home banking, to proceed with the purchase.

What are the risks?

If even one of the 4 stocks were to lose more than 33%, the coupon of 1% would no longer be paid, until the security returns above this threshold. If this happens, thanks to the memory effect, we will collect the unpaid coupons, in the period when the price has remained below the barrier level.
In the event that, at the expiration date of the certificate, even only one of the securities had lost more than 33%, then even our investment would suffer this loss.

Tax advantages

The coupons of this certificate, are considered “different income”, which makes it possible to recover the losses, made with other instruments such as shares or bonds.
Therefore, by buying this certificate, we will not pay the withholding tax on the coupons, as long as we have not recovered the losses on other instruments.

How does the refund work?

At maturity, within one year, if none of the underlyings is below the barrier level (-33%), we will receive 100% of the nominal value, even with negative performances of the underlying assets. It is ideal for those with bullish or moderately bearish expectations. The certificate could be reimbursed in advance.

We invite you to consult the prospectus and your financial advisor before making any investment decisions. The information and opinions expressed in this article do not represent financial or tax advice. ELP FINANCE LTD has not verified and can not guarantee the accuracy and truthfulness of the opinions expressed. For more information visit the issuer’s website 

Louise Simons

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