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 dropped by 42% in 2020. But by early 2024, U.S. domestic travel spending was above pre-COVID-19 levels, and business travel has been growing, even with video conferencing tools having made remote meetings more advantageous in many circumstances. 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 around 9%.
International travel spending fell by 76% in 2020 and only just returned to 2019 levels in 2024, according to the World Tourism Organization. In fact, global tourism was back to 98% of pre-pandemic levels as of the first nine months of 2024 alone.
Still, it’s safe to say there’s significant pent-up demand to travel again, and eventually, overseas tourism will make a bigger comeback.
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
Best travel stocks to buy in 2025
There's a wide range of transportation, lodging, and amusement companies to get you to your destination and make sure 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 pent-up travel demand, despite the widely publicized headwinds facing a well-known U.S. company like Boeing (BA 0.81%). 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:
1 - 3
1. Booking Holdings
Booking Holdings (BKNG -0.27%) 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
In the third quarter of 2024, Booking Holdings reported that room nights booked increased 8% from the prior-year quarter, and total revenues were $8.0 billion, an increase of 9% year-over-year.
Net income was $2.5 billion, which was in line with the year-ago period. Looking at the first nine months of 2024, net income totaled $4.8 billion, and free cash flow for that same time frame came in at $7.3 billion.
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.
2. Marriott International
Marriott International (MAR 2.24%) 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 -0.25%) 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 (roughly 8 million) 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 top beneficiary of this change in the global workforce, too. Millions of people around the world are now working while they travel, and extended-stay bookings have been a top area of growth for Airbnb, along with short-term stays.
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.
This isn't just a travel and tourism rebound play; Airbnb is a top growth stock worth considering, especially now that it touts lucrative profit margins to pair with its rate of expansion.
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4. The Walt Disney Company
The Walt Disney Company's (DIS -0.36%) 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. These numerous revenue streams are part of the reason why many investors consider Disney an undervalued stock for 2025.
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 and has been actively working to restore the company to greatness.
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 the company's fiscal 2024, revenue increased 3% for the year to $91.4 billion, and income before taxes increased 59% for the year to $7.6 billion.
5. Uber Technologies
Top ride-hailing business Uber Technologies (UBER 0.47%) 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. Uber stock jumped to new all-time highs in 2024 as a result.
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 from the travel trend. In the third quarter of 2024, Uber's revenue grew 20% from the year-ago period to $11.2 billion, and income from operations was $1.1 billion, up $667 million year-over-year.
Travel ETFs
Travel and leisure ETFs
If you're bullish on travel and tourism but would rather not invest in individual companies, then buying shares in an exchange-traded fund (ETF) may be a better option. Travel-focused ETFs invest in large numbers of travel and tourism companies and provide instant portfolio diversification within the sector.
Three travel ETFs to consider:
- The ETFMG Travel Tech ETF (NYSEMKT:AWAY) is a travel technology-focused ETF. About half of its holdings by value are bookings and reservations companies, with the remainder split among ride-sharing, price comparison, and travel advice businesses. The fund has 31 stocks and an annual expense ratio of 0.75% (or $7.50 a year for every $1,000 invested.
- The U.S. Global Jets ETF (JETS 0.66%) is a niche travel ETF focused on airlines. U.S. airline stocks make up more than half of the fund's holdings, which also include the stocks of several international carriers. The fund has an annual expense ratio of 0.60%.
- For a more diversified travel and leisure portfolio, consider an ETF such as the Invesco Dynamic Leisure and Entertainment ETF (PEJ 0.58%). The portfolio contains 30 U.S. stocks spread across travel, accommodations, and entertainment businesses. The fund has an annual expense ratio of 0.57%.
Related investing topics
Alternative options
Alternative travel investments
Your travel-related investments are no longer confined to this planet. Several companies are exploring space, including publicly traded Virgin Galactic Holdings (SPCE -4.4%). Richard Branson's company is now offering flights into space -- for $450,000 per astro-tourist!
Another option is the Procure Space ETF (NYSEMKT:UFO). The ETF invests in a variety of companies that are catering to Virgin Galactic and its competitors as they work to take flight to the next level.
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 and often threatened natural environments and to visit those places without causing any 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 provide services that allow vacationers to find and schedule ecotourism experiences.
JetBlue Airways (JBLU 0.46%) 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.
Travel companies are often niche, enabling you to invest in a variety of travel and tourism stocks that cater to your particular interests and investment priorities. Investors interested in ecotourism should look for eco credentials when evaluating travel and tourism stocks.
FAQ
Travel stocks FAQ
What travel stock is best?
The best travel stock depends on whether an investor wants to bet on transportation (airlines, cruise lines, etc.), accommodations (Booking Holdings, Airbnb, Marriott, and others), or entertainment (Disney). But the best companies grow both their sales and profitability over time.
How to invest in the travel industry?
There are a number of ways to invest in travel. Top travel stocks (Booking Holdings, Airbnb, Marriott, Disney, listed above) are top picks. A number of ETFs can also be used to get broader exposure to the growing travel industry.
Why are travel stocks going up?
Travel stocks have been increasing in value because the industry has emerged as a top trend in the wake of the COVID-19 pandemic. Top companies in the industry are growing at a healthy pace and are highly profitable.
Are cruise stocks good to invest in?
Cruise stocks are notoriously cyclical. Boom times are often completely undone during recessions and economic shocks. This is the case because cruise ships are expensive to build and operate, making cruise line business profit margins precarious. Other areas of the travel industry have been able to sustain healthier profitable growth.
