The Flight Centre Travel Group Ltd (ASX: FLT) share price is on course to end the month in the red.
In afternoon trade, the travel agentâs shares are down almost 3% to $17.44.
Why is the Flight Centre share price dropping?
As well as broad market weakness, the Flight Centre share price appears to have been weighed down by concerns over the state of the travel market.
This follows the release of data from Tourism Research Australia which shows that Australian tourism is still some way off returning to pre-COVID levels.
According to the release, there were 8.3 million overnight trips during the month of March. This is down 17% from March 2019.
One positive, though, is that overnight spending is higher than it was three years ago. Australians spent $6.8 billion in March, up 6% from 2019âs levels.
This essentially means that fewer people are making overnight trips, but those that do are paying more than they were three years.
But this could prove to be a problem. With the cost of living increasing materially over the last few months, thereâs a chance that even fewer people will travel in the near term given that it costs more to do so than previously.
If this happens, this could stifle the travel market recovery at a time when Flight Centre’s leisure business was approaching breakeven at long last.
The release also reveals that early data shows domestic overnight trip rates for April and the first three weeks of May were down in comparison to the same period last year.
These are interesting times (yet again) for the travel sector and the Flight Centre share price.
The post What is holding back the Flight Centre share price today? appeared first on The Motley Fool Australia.
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More reading
- Flight Centre share price struggles amid dwindling household cashflows forecast
- Here are the top 10 ASX shares today
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- These 2 ASX travel shares are tying the knot for the next 10 years
- Flight Centre share price stumbles amid ‘big blow’ from new tax
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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