It's easy to be bullish on travel and tourism stocks. Over the last few years, travel and tourism have boomed back as a top growth industry. Who couldn't use a vacation right now?
U.S. travel spending has historically grown between 2% and 4% annually, according to the U.S. Travel Association. Total U.S. travel spending is projected to reach up to $1.46 trillion (inflation-adjusted) by 2028. Travel and tourism is a broad category with a diverse list of well-known brands.
For people planning to invest money in travel companies, you have plenty of options.
Best travel stocks to buy in 2026
There's a wide range of transportation, lodging, and entertainment companies to get you to your destination and ensure you enjoy your stay. Since the companies vary so much, it's hard to nail down a single key metric to watch.
For example, some travel companies are asset-heavy transportation businesses like the airline industry and airline stocks. Many of these companies are broadly performing favorably for investors thanks to travel demand, despite the widely publicized headwinds facing a well-known U.S. company like Boeing (BA +1.95%). Other top picks are essentially tech companies.
The best travel and tourism stocks do share some traits, though -- namely, strong brand recognition, an easy-to-use website or app, and a loyal customer following. Here are some of the top travel and tourism companies.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Booking Holdings (NASDAQ:BKNG) | $152.0 billion | 0.82% | Hotels, Restaurants and Leisure |
| Marriott International (NASDAQ:MAR) | $100.1 billion | 0.71% | Hotels, Restaurants and Leisure |
| Airbnb (NASDAQ:ABNB) | $84.9 billion | 0.00% | Hotels, Restaurants and Leisure |
| Walt Disney (NYSE:DIS) | $188.3 billion | 1.18% | Entertainment |
| Uber Technologies (NYSE:UBER) | $157.1 billion | 0.00% | Road and Rail |
| Expedia Group (NASDAQ:EXPE) | $32.6 billion | 0.63% | Hotels, Restaurants and Leisure |
| Royal Caribbean Cruises (NYSE:RCL) | $77.2 billion | 1.49% | Hotels, Restaurants and Leisure |
1. Booking Holdings
NASDAQ: BKNG
Key Data Points
Booking Holdings (BKNG +4.04%) is one of the largest online travel portals. It's the parent company of several popular travel booking sites, including:
- Booking.com.
- Priceline.com.
- Kayak.com.
- Rentalcars.com.
- Agoda.
Few companies have the ability Booking does to provide vacationers with a diverse set of travel planning and comparison tools. The travel company's global online reach should serve it well in the years to come.
Booking Holdings has consistently exceeded earnings and revenue expectations in recent quarters. The company is experiencing strong growth in its merchant, agency, and advertising revenue streams, driven by robust travel demand and investments in AI-driven tools.
2. Marriott International
NASDAQ: MAR
Key Data Points
Marriott International (MAR +4.28%) is one of the world's largest hotel companies, with more than 8,000 properties spread across over 140 countries. It's a holding company for dozens of brands, including:
- Marriott.
- Sheraton.
- Westin.
- The Ritz-Carlton.
- Courtyard Hotels.
- Residence Inn.
The company has an asset-light business model, which is unique compared to other real estate investment options. It earns fees for licensing its brands and managing properties for franchisees, so Marriott doesn't incur the expenses of owning the properties. Marriott's extensive geographic reach, world-class brands, and global loyalty programs make it a steady, long-term, winning stock.
Like many other companies in the travel space, Marriott's revenue and profitability have rebounded in the last few years. New digital travel apps and guest reward initiatives hold ample promise of pushing the company's financials to new all-time highs in the years to come.
3. Airbnb
NASDAQ: ABNB
Key Data Points
Airbnb (ABNB +2.71%) has completely shaken up the world of travel and vacations. The online marketplace allows homeowners and property managers to list homes, condos, and other unique places to stay. It has amassed a vast number of listings worldwide. Many of them are in less-traveled neighborhoods and unique locations that hotel chains can't match.
Remote work has become more commonplace in recent years, and Airbnb has emerged as a beneficiary of this change in the global workforce, too. The company continuously upgrades its platform to meet the needs of both hosts and guests. A few recent upgrades included flexible-date search tools and offerings that make the process of becoming a host faster and easier.
There are also numerous countries where Airbnb has few listings. The stock hasn't gained in recent years, despite the profitable expansion of the underlying business. However, Airbnb is a top growth stock worth considering, especially now that it touts lucrative profit margins alongside its rapid expansion.
4. The Walt Disney Company
NYSE: DIS
Key Data Points
The Walt Disney Company's (DIS +2.30%) theme parks and hotels are some of the world's premier vacation destinations. Disney cruise ships are also popular and offer family-themed voyages, making the House of Mouse an ancillary bet on the cruise industry, too. Although many travel companies are totally reliant on travel demand to generate income, Disney has many other irons in the fire.
In addition to travel, the company makes money from television, movies, streaming content (Disney+, Hulu, and ESPN+), and merchandise sales.
Moreover, value-seeking investors may appreciate the extent to which Disney's top- and bottom-line results have made a meaningful recovery in recent financial reports, thanks to strength in its theme parks, cruise lines, and resorts.
5. Uber Technologies
NYSE: UBER
Key Data Points
Top ride-hailing business Uber Technologies (UBER +0.84%) has turned over a new leaf. After years of bleeding cash as a high-growth technology darling, the company has grown up and is now highly profitable.
But why consider this a top travel stock? Uber facilitates tens of millions of short trips every single day. Many of these are for travelers and vacationers, as well as for groups headed to and from entertainment destinations.
As the world travels, Uber is ready to provide rides and could be a top beneficiary of the travel trend. Revenue is growing steadily, as are profits. Uber's ever-expanding user base and increased platform usage on top of its favorable financial growth are all green flags for the future of the business.
6. Expedia Group
NASDAQ: EXPE
Key Data Points
Expedia Group (EXPE +4.55%) is a travel technology giant that operates a massive network of over 200 websites, including well-known names like Hotels.com and Vrbo. The company acts as a digital marketplace, earning a commission every time someone uses its platforms to book a flight, hotel, or vacation rental.
This business model allows Expedia to benefit from the overall growth of the travel industry without the high costs of owning physical assets like airplanes or hotels. Expedia generates significant cash and consistently grows its business-to-business segment.
The company has also been investing heavily in artificial intelligence to make its platforms more efficient and user-friendly. Because it covers everything from budget stays to luxury rentals worldwide, it's well-positioned to capture travel spending, regardless of where or how people choose to vacation.
7. Royal Caribbean Cruises
NYSE: RCL
Key Data Points
Royal Caribbean Group (RCL +7.34%) is one of the world's leading cruise operators, famous for its massive, high-tech ships under brands like Celebrity Cruises and its namesake, Royal Caribbean International. Unlike a booking site, this company owns and operates its own fleet to provide premium vacation experiences.
It makes money not just from ticket sales but also from onboard spending on specialty dining, drinks, and excursions, which helps drive its high profit margins. The company has seen a huge surge in demand recently, with many of its ships booked well in advance at record-high prices.
With a focus on newer, more efficient ships and private island destinations, Royal Caribbean is built to attract higher-spending travelers and deliver consistent earnings growth.
Features to look for in travel stocks
When evaluating travel stocks, one of the most important factors to consider is the company’s pricing power, which is its ability to raise prices without losing customers. Companies with strong brand recognition or unique offerings, like a specific hotel chain with a massive loyalty program or a cruise line with one-of-a-kind ships, can often pass rising fuel or labor costs directly to travelers. This helps protect profit margins even during times of inflation or economic uncertainty.
Another key feature is a healthy balance sheet with manageable debt. Because the travel industry is highly cyclical and can be hit hard by unexpected global events, companies with ample cash on hand are much more resilient.
You should also look for diversified revenue streams, such as travel tech companies that earn fees from many different types of bookings (flights, cars, and stays) rather than relying on just one niche. This helps stabilize earnings throughout the years and various economic cycles.
How to invest in travel and tourism stocks
If you're interested in buying travel and tourism stocks, the process is simple. Just follow these steps.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Tips for investing in travel stocks
The travel industry is broad, and encompasses everything from airlines and hotels to cruise lines and online travel agencies. Instead of putting all your money into one company, consider diversifying across different types of travel businesses or using a travel-focused ETF to manage your portfolio's risk exposure.
Focus on financially resilient companies. The travel sector is sensitive to economic shifts, fuel costs, and labor issues. Companies with strong balance sheets, consistent earnings, and effective cost management tend to make the most resilient long-term investments.
Travel is a discretionary expense, so a recession or decline in consumer confidence can lead to a sharp drop in demand. That said, the high-end consumer has also proven more resilient to economic concerns. Companies catering to this demographic may offer more stable returns.
Don't forget ecotourism stocks
Ecotourism is a fast-growing niche, especially among younger travelers. The objective of ecotourism is to learn about and support conservation efforts in exotic, often threatened natural environments, and to visit those places without causing further ecological damage.
Specialized tours, lodging in remote locales, and minimizing carbon emissions while traveling are all forms of ecotourism. Although most ecotourism companies are not publicly traded, travel booking companies such as Airbnb and Booking.com offer services that help vacationers find and schedule ecotourism experiences.
JetBlue Airways (JBLU +6.44%) stands out for its commitment to achieving net-zero carbon emissions by 2040. The discount airline has also established partnerships with multiple environmental organizations, including The Nature Conservancy and The Ocean Foundation. Investors interested in ecotourism should look for eco credentials when evaluating travel and tourism stocks.
Key travel industry trends
Travelers seem to be increasingly prioritizing unique, authentic, and immersive experiences over simple sightseeing. This is driving trends like culinary tourism, outdoor adventures, and travel to off-the-beaten-path destinations. A significant number of travelers are planning trips around major events, such as the Olympics, Formula 1 races, or large concerts and festivals.
Film and TV filming locations are also driving destination choices. There's a growing demand for wellness retreats focused on physical and mental well-being, including digital detoxes and spa weekends. Families are making up for lost time by planning large trips that cater to all ages, with quality time being the primary motivator.
The lines between work and leisure continue to blur, with remote work making it easier for people to work while traveling. Travelers are increasingly using AI tools for itinerary suggestions, budget management, and translation assistance.
Consumers are seeking a seamless booking experience and are often willing to book directly with providers to access better deals, loyalty perks, and highly customized options.
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FAQ
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About the Author
Rachel Warren has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Airbnb, Boeing, Booking Holdings, Uber Technologies, and Walt Disney. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.
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