Hi Gregory,
The best adjective to describe our view towards tourism is “cautious”. Recently we have witnessed a wave of downgrades across the Australian Retail Sector as the consumer feels the pinch of high inflation and now as you say airlines are discounting flights, i.e. not a great backdrop towards the sector. Below is a snapshot view of the 3 stocks you mentioned:
Helloworld Travel (HLO) – this corporate travel business has struggled over recent weeks and the next 10% feels more likely down towards $2 – we have no interest at this point.
Webjet (WEB) – has become our preferred stock in the sector, the risk/reward will look interesting ~$8. The potential move to demerge their B2B segment WebBeds with their B2C operation we think will create value for shareholders.
QANTAS (QAN) – with airfares turning lower QAN isn’t exciting above $6, while we think their focus over the coming years will place fleet renewal and customer satisfaction higher up the agenda, which in the shorter term at least, will be a the detriment of shareholder returns – we are neutral for now.