Traveling to generate millions of dollars: Why are travel stocks worth investing in?

After COVID-19 disappeared, the tourism industry has rebounded stronger than before, with international travelers’ spending reaching $2.1 trillion in 2025, surpassing the previous record from 2019, according to WTTC (World Travel & Tourism Council). This situation has brought travel stocks back into investor focus, including airlines, hotels, and online travel booking platforms.

In early 2026, travel stocks are showing signs of steady recovery. Despite global economic uncertainties, consumer demand for travel remains strong, keeping many travel stocks in the process of rebounding from post-COVID lows.

Factors Driving the Travel Industry and Selecting Travel Stocks

Global economic recovery, the return of leisure travel, and growth in Asian tourism markets are key drivers of travel stock growth at this time.

When choosing travel stocks, investors should use a “Top-Down Approach” analysis to understand the industry overview first, then drill down into individual companies.

Travel Stock Analysis Methods include:

1. Economic Conditions and Growth – Monitor whether the global economy is booming or in recession, as the travel industry heavily depends on economic growth.

2. Travel Industry Trends – Track traveler behaviors such as travel patterns, accommodation bookings, and consumption habits to forecast growth potential.

3. Competition and Financial Strength – Study company strengths, brand positioning, and product differentiation, along with financial stability.

4. Adaptability – Good travel companies should be able to adapt to new trends, such as changing customer expectations and new technologies.

5. Risk Management – Travel stocks are sensitive to external factors like political risks, pandemics, and natural disasters; thorough analysis of these risks is essential.

9 High-Growth Travel Companies

1. Trip.com Group Limited (TCOM) – Asia’s Leading Travel Tech Platform

Founded in 1999 as Ctrip.com by senior executives from China, this platform offers comprehensive travel booking services, including hotels, flights, car rentals, and complete tour packages.

In 2025, TCOM showed strong growth driven by the recovery of travel in China and Asia, expanding into diverse travel experiences and utilizing AI to enhance user experience.

Key Data:

• Current Price: $66.38
• Market Cap: $43.45 billion
• Forward P/E: 15.98
• EPS (TTM): 3.63
• Price Target: $95.06 (upside potential 66%)

2. Royal Caribbean Cruises Ltd (RCL) – Innovation Leader in Cruises

Founded in 1968 by Norwegian shipowners, RCL operates 67 ships under various brands, leading in cruise innovation.

In March 2025, the company reported earnings exceeding expectations, with EPS of $2.71 and quarterly dividends of $0.75 per share. Global cruise demand remains strong, especially among premium travelers.

Key Data:

• Current Price: $251.36
• Market Cap: $68.26 billion
• Forward P/E: 20.81
• EPS (TTM): 12.32
• Forward Dividend Yield: 0.97%

3. The Walt Disney Company (DIS) – Diversified Entertainment Empire

Disney isn’t just a leisure travel company but also a media, film, and streaming giant, providing diversification.

In October 2025, Disney reported impressive results: EPS of $1.45, revenue up 7%, and Disney+ subscribers increased by 1.4 million. The recovery of theme parks combined with new content launches is expected to sustain growth.

Key Data:

• Current Price: $112.94
• Market Cap: $203.24 billion
• Forward P/E: 22.75
• EPS (TTM): 4.91
• Forward Dividend Yield: 0.89%

4. Booking Holdings Inc (BKNG) – Leader in Online Bookings

Formerly The Priceline Group, founded in 1997, with strong brands like Booking.com, Priceline, Agoda, KAYAK, and OpenTable, covering over 2.7 million accommodations worldwide.

In Q1 2025, revenue grew 8%, EPS increased 22%, surpassing analyst expectations. Customer base remains robust, especially in Europe and Asia.

Key Data:

• Current Price: $5,216.55
• Market Cap: $169.75 billion
• Forward P/E: 32.74
• EPS (TTM): 162.76

5. Marriott International (MAR) – Largest Global Hotel Chain

Founded in 1927, Marriott expanded into the hotel industry in 1957. It’s now one of the world’s largest hotel groups.

In early 2025, Marriott reported a 4.1% increase in RevPAR globally. It also acquired the Dutch hotel chain citizenM and announced a 6.3% quarterly dividend increase, reflecting confidence in future growth.

Key Data:

• Current Price: $272.59
• Market Cap: $74.66 billion
• Forward P/E: 31.22
• EPS (TTM): 8.81
• Forward Dividend Yield: 0.98%

6. Carnival Corporation & plc (CCL) – World’s Largest Cruise Line

Founded in 1972 by Ted Arison, Carnival owns over 10 cruise brands including Carnival Cruise Line, Princess Cruises, Holland America, Seabourn, holding the largest market share.

Post-COVID restructuring and new strategies, the company shows continued recovery with strong advance bookings, new ships with better tech, and modernized operations.

Key Data:

• Current Price: $22.99
• Market Cap: $29.87 billion
• Forward P/E: 15.14
• EPS (TTM): 1.62
• Forward Dividend Yield: 0.5%

7. Uber Technologies (UBER) – Digital Mobility & Transportation

Uber revolutionized transportation and logistics, with services beyond taxis, including Uber Eats and freight.

In Q1 2025, Uber beat earnings expectations with EPS of $0.83 and over 150 million monthly active users. The company is expanding into autonomous vehicles, seen as a major opportunity.

Key Data:

• Current Price: $90.41
• Market Cap: $189.06 billion
• Forward P/E: 15.99
• EPS (TTM): 5.85

8. Expedia Group Inc (EXPE) – Pioneer in Online Travel Booking

Supported by Microsoft since 1996, Expedia offers brands like Hotels.com, Vrbo, Orbitz, Travelocity.

In Q1 2025, bookings grew 6%. The company pays quarterly dividends of $0.40 per share and plans to develop AI to improve booking experiences.

Key Data:

• Current Price: $169.22
• Market Cap: $21.51 billion
• Forward P/E: 19.95
• EPS (TTM): 8.97
• Forward Dividend Yield: 0.95%

9. United Airlines Holdings (UAL) – US Airline with 100 Years of History

Founded in 1926, UAL is among the earliest US commercial airlines, with hubs in Chicago, Denver, Houston.

In early 2026, UAL expects EPS of $11.50–$13.50 in 2025. Despite economic concerns, strong international routes and premium markets support growth. Its low valuation relative to earnings offers upside potential.

Key Data:

• Current Price: $78.99
• Market Cap: $25.80 billion
• Forward P/E: 7.53
• EPS (TTM): 11.14

How Strong Are These Travel Stocks?

Below is a comparison table of key financial metrics:

From valuation perspective, these stocks can be grouped as:

• Lower P/E (value) stocks (P/E < 20): TCOM, RCL, UBER, EXPE, CCL, UAL — suitable for value-oriented investors.

• Higher P/E (growth) stocks (P/E > 30): BKNG, MAR — indicating strong market confidence in future growth despite higher valuations.

• Digital platform leaders: TCOM, BKNG, EXPE, UBER — with high growth potential driven by online travel expansion.

Positive Factors and Risks to Consider

Positives for Travel Stock Investment

According to WTTC (2025), the industry is set for a record year:

1. Market Size: Expected to reach $11.7 trillion (10.3% of global GDP), surpassing previous highs.

2. Consumer Spending: Despite economic uncertainties, travel expenditure remains robust; US travel spending projected to grow 3.9% to $1.35 trillion.

3. Employment & Long-term Growth: Travel industry projected to add 14 million jobs, totaling 371 million worldwide, indicating sector strength.

4. Long-term Outlook: By 2035, industry value could reach $16.5 trillion (11.5% of global GDP), with an average growth rate of 3.5% annually, outpacing global economic growth.

Challenges and Risks

1. Economic Downturn Risks: Skift Research revised growth forecasts downward to 2-5% in 2025 due to recession fears in the US.

2. Uneven Recovery: Major markets like US, China, Germany show mixed recovery signals.

3. Trade Policy Uncertainty: New import taxes and trade restrictions could impact travel stocks.

4. External Risks: Political instability, pandemics, natural disasters remain threats that could disrupt travel.

Notable Travel Stocks to Watch

• Online Booking Platforms: BKNG, EXPE, UBER benefit from online travel growth and tech innovation.

• Cruise Lines: RCL has solid fundamentals; CCL offers high recovery potential at current levels.

• Diversified Companies: DIS offers risk diversification beyond travel.

• Niche Markets: TCOM benefits from Asia’s travel rebound, especially China.

How to Invest in Travel Stocks for Thai Investors

For Thai investors interested in travel stocks, options include:

Method 1: Buying Actual Stocks via International Brokerage Apps

Use platforms like Dime or Innovest X to purchase foreign stocks directly, owning shares with voting rights and dividends.

Steps:

1. Register and verify identity on the platform.
2. Transfer funds and exchange currency.
3. Place buy orders at favorable prices.
4. Hold in your portfolio and receive dividends.

Suitable for long-term holding; requires full capital upfront.

Method 2: Using CFDs (Contracts for Difference)

Trade CFDs to speculate on stock price movements without owning the underlying shares, leveraging margin for higher gains.

Steps:

1. Open a trading account (demo accounts available).
2. Deposit funds.
3. Find travel stocks like ABNB, TCOM, RCL.
4. Set position size, leverage, and risk management (TP/SL).
5. Open positions to profit from price swings.

This method offers flexibility and short-term trading opportunities but involves higher risk.

Summary

Travel stocks are attractive investments, especially as the industry recovers and approaches pre-pandemic levels. Many stocks are still in the recovery phase, presenting opportunities for value and growth investors alike.

Choosing the right stocks depends on your investment horizon and risk appetite—long-term dividend income or short-term trading. For active traders, CFDs can be a useful tool, but require careful risk management.

Overall, the travel sector offers compelling opportunities for those looking to diversify and capitalize on the industry’s resurgence.