Investing in Travel and Tourism Stocks

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 grow 3.9% to $1.35 trillion in 2025, reaching up to $1.46 trillion (inflation-adjusted) by 2028. In 2025, global travel spending is expected to increase by as much as 9% by some estimates.

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.

Booking Holdings (BKNG +2.85%) 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 done a great job of exceeding earnings and revenue expectations in recent quarters. The company's second quarter 2025 results were bolstered by a 13% year-over-year increase in gross bookings and a 16% increase in revenue.

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 as well.

2. Marriott International

Marriott International (MAR +3.24%) is one of the world's largest hotel companies, with more than 8,000 properties spread across almost 141 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 to franchisees, so Marriott doesn't incur the expenses of actual property ownership.

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 to push the company's financials to fresh all-time highs in the years to come.

3. Airbnb

Airbnb (ABNB +1.06%) 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's amassed a vast number of listings across the globe. 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 minimal listings, too.

The stock hasn't gained in recent years, on par with the profitable expansion of the underlying business. However, Airbnb is a top growth stock worth considering, especially now that it touts lucrative profit margins to pair with its rate of expansion.

The Walt Disney Company's (DIS +2.09%) 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.

Disney has become a controversial business, though, embroiled in political and social debates that have been a distraction from its best-in-class properties and fan-favorite entertainment franchises. Bob Iger made a return to the CEO position in late 2022 after a brief retirement.

However, value-seeking investors may appreciate the extent to which Disney's top and bottom lines have made a meaningful recovery in recent financial reports. In Q3 2025, Disney's theme parks, cruise lines, and resorts saw a 13% increase in operating income and an 8% rise in revenue, driven by strong domestic results and a new cruise ship launch.

Disney's linear TV business, including ESPN, saw a 15% revenue decrease and a 28% drop in operating income, indicating a continued trend of cord-cutting. Despite the linear TV challenges, Disney's streaming business continues to grow, with a 6% increase in direct-to-consumer revenue and a shift to profitability.

ESPN is making major moves, including a strategic partnership with the NFL and a new direct-to-consumer streaming service launch. Disney is acquiring the NFL Network and other NFL media assets in exchange for a 10% stake in ESPN. ESPN will become the exclusive US streaming home for WWE Premium Live Events, including WrestleMania and SummerSlam, starting in 2026.

5. Uber Technologies

Top ride-hailing business Uber Technologies (UBER -0.71%) 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 as 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. In Q2, Uber reported exceptional revenue growth at $12.7 billion, an 18% increase year over year from 2024, when its annual revenue was about $44 billion (also an 18% increase compared to 2023).

Uber achieved net income of $1.4 billion in Q2 2025, up 33% year over year. Bear in mind, Uber's net income for the fiscal year 2024 was $9.86 billion. This was a significant increase of more than 400% from 2023, and included a considerable benefit from a tax valuation release plus gains from the revaluation of equity investments.

Second-quarter gross bookings increased by 17% year over year to $46.8 billion, and trips on the platform grew by 18% to 3.3 billion during the same period. Uber's growing user base and increased platform usage on top of its favorable financial growth are all green flags for the future of the business.

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