One reason travel stocks go up and down is due to the cyclical nature of the travel industry. The industry is very dependent on the overall health of the economy and consumer confidence. When the economy is strong and consumers are confident, they are more likely to travel and spend money on travel-related expenses. However, when the economy is weak or there is a lot of uncertainty, consumers are more likely to cut back on travel. This cyclicality can cause travel stocks to be very volatile.
Another reason travel stocks may go up or down is due to changes in the competitive landscape. New entrants into the market can put pressure on existing players, leading to lower profits and stock prices. Conversely, if a major competitor exits the market, it can create an opportunity for other players to increase market share and profits. Lastly, travel stocks can be affected by external events that are not necessarily related to the travel industry. For example, a terrorist attack in a popular tourist destination can lead to a decrease in travel to that area. This can have a ripple effect on the stock prices of travel-related companies.