In this article, we will look at the 10 Best Travel Stocks To Buy Right Now.
The State of International Tourism in 2024
According to a report by UN Tourism published on September 19, international tourism revived back 96% of the pre-pandemic levels during the first seven months of 2024. Around 790 million tourists were traveling around the globe during the said time, which is 11% greater than that in 2023 but still 4% less than in 2019. As per the report, the key drivers of this growth have been a strong demand for travel in Europe and also the re-opening of markets in the Asia Pacific region.
The Secretary-General of UN Tourism, Zurab Pololikashvili noted that the growth in international tourism has been in line with the projections made by the department. He mentioned that the sector is on its way to achieving full recovery from the biggest crises in history and that too in an environment of economic and geopolitical challenges. Pololikashvili suggested that the recovery highlights the growing demand for international tourism planning and managing companies to cater to the revival in a way that benefits the communities through inclusive and sustainable policies. In addition, to an increase in tourism, the air connections have also improved along with an easing in visa restrictions.
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The report also highlighted that increased air connectivity and visa facilitation have supported the recovery. Data collected by the UN World Tourism Barometer showed that the Middle East remained the strongest region relative to others as it surpassed the 2019 levels by 26% during the first seven months of 2024. Moreover, Africa also remained strong and hosted 7% more tourists than in 2019. On the other hand, Europe and the Americas which host the most tourists combined recovered 99% and 97%, respectively. Despite the robust growth, certain challenges remain unaddressed including geopolitical challenges, extreme climate conditions, and high inflation in certain regions of the world. Regardless, the report anticipates continued recovery and expects strong revenue from international tourism to persist for a long period.
With that let’s take a look at the 10 best travel stocks to buy right now.
A family boarding an airplane with their suitcases, symbolic of the company’s reach into the global travel industry.
Our Methodology
To compile the list of the 10 best travel stocks to buy right now, we used the Finviz stock screener. Using the screener we aggregated a list of travel services stocks sorted by market capitalization. Next, we ranked these stocks based on the number of hedge fund holders as per Insider Monkey’s third-quarter 2024 database.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Travel Stocks To Buy Right Now
10. Travel + Leisure Co. (NYSE:TNL)
Number of Hedge Fund Holders: 32
Travel + Leisure Co. (NYSE:TNL) is a membership and leisure travel company that primarily focuses on vacation ownership and travel services. It sells vacation ownership interests (VOIs), which allow individuals to purchase the right to use a vacation property for a specific time each year. The company also manages various resorts, providing services such as housekeeping, maintenance, and reservation management for property owners, while providing financial assistance to customers purchasing vacation ownership interests.
Travel + Leisure Co. (NYSE:TNL) has identified an embedded revenue potential of over $19 billion over the next decade, driven by its strategy to grow the new owner base. New owners spend significantly more than their initial purchase, providing a consistent revenue stream. During the fiscal third quarter of 2024, the company increased its new owner sales mix to above 35%, while the revenue from Vacation Ownership increased 2% to $825 million compared to the same period last year, driven by a 4% increase in tours and a 9% rise in new owner tours.
Currently, the average age of their owners is in the mid-50s. However, management noted that sales to younger generations, such as Gen X and millennials, are increasing. This trend suggests a growing interest in vacation ownership among younger consumers. Moreover, the company reported strong performance from existing owners during the quarter. Its Volume Per Guest (VPG) exceeded $3,000, nearly 30% higher than pre-pandemic levels in 2019, indicating that customers value their ownership more than ever. It is one of the best travel stocks to buy right now.
9. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 33
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a major global cruise company that operates three well-known cruise brands, including Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company has a fleet of 32 ships that can accommodate around 66,500 passengers under its brands. Each brand provides a variety of features, including dining options, bars, lounges, spas, casinos, and much more.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) has implemented a strategic initiative called Charting the Course, aimed at enhancing guest experiences through a focus on four key areas: people, product, growth platform, and performance. As a result of strong adherence to its strategic initiatives, the company achieved its highest quarterly gross revenue and adjusted EBITDA in history. The trailing 12-month adjusted operational EBITDA margin improved significantly, rising nearly 10 percentage points from the previous year. The company generated approximately $2.8 billion in total revenue, marking an 11% increase compared to the same quarter in 2023, driven by a 4% growth in capacity.
Management noted historically capacity growth has been a major driver of revenue and EBITDA growth for the company. Therefore, it plans to continue this trend with the introduction of new vessels. For instance, Norwegian Luna, the 21st ship in the fleet, is expected to launch in April 2026 and Norwegian Aqua is on track for its launch in early 2025.
8. Tripadvisor, Inc. (NASDAQ:TRIP)
Number of Hedge Fund Holders: 34
Tripadvisor, Inc. (NASDAQ:TRIP) is an online travel company that connects travelers with various travel-related services through its platform. Its platform allows users to book over 350,000 experiences (such as tours and activities) from more than 55,000 operators globally, through its Viator marketplace. Moreover, it also allows users to discover and make reservations at restaurants across 11 countries.
Management has previously noted some softness in its hotel bookings and was expecting third-quarter results accordingly. During the fiscal third quarter of 2024, the company generated $532 million in revenue, which is flat compared to the same quarter last year. As expected, the Brand Tripadvisor revenue declined 12% year-over-year due to challenges in its legacy hotel offerings. However, on the bright side, its Viator and TheFork brands performed well. Viator revenue reached $270 million, reflecting a 10% year-over-year growth, with Gross Booking Value up 9%. While TheFork achieved a record revenue of $49 million, a notable increase of 17% year-over-year.
Management is focusing on transitioning from its legacy offerings to more strategically focused growth areas, particularly in experiences and dining reservations. Moreover, the company is also leveraging generative AI to enhance customer service and improve product recommendations, which has contributed to increased app bookings and user engagement. It is one of the best travel stocks to buy right now.
7. Viking Holdings Ltd (NYSE:VIK)
Number of Hedge Fund Holders: 49
Viking Holdings Ltd (NYSE:VIK) is an experiential travel company that specializes in offering unique travel experiences across all seven continents. It offers three main cruise categories including River Cruises, Ocean Cruises, and Expedition Cruises. Each cruise is designed to immerse travelers in the local culture and environment. Its fleet comprises over 92 small, modern ships, which are likened to floating hotels.
The company differentiates from its competitors based on its direct marketing strategy and ability to source passengers through direct channels thereby reducing customer acquisition costs. Another competitive edge is its high occupancy rate, which also indicates high demand. During the fiscal third quarter of 2024, Viking Holdings Ltd (NYSE:VIK) maintained a high occupancy rate of 94%. Moreover, as of November 3, 2024, the company had sold 95% of its capacity for the 2024 season and 70% for the 2025 season, reflecting robust forward bookings and consumer interest.
Financially speaking the company achieved total revenue of $1.68 billion, marking an 11.4% increase or $171.9 million more than the same quarter in 2023. This growth was primarily driven by higher revenue per Capacity Passenger Day (PCD) in 2024. Viking Holdings Ltd (NYSE:VIK) Chairman and CEO, Torstein Hagen, emphasized the strength of their brand and loyal customer base as key drivers behind their impressive results. The company aims to continue expanding its fleet and enhancing its marketing efforts for upcoming seasons, positioning itself for sustained growth in the travel industry.
6. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 50
Trip.com Group Limited (NASDAQ:TCOM) is a major online travel agency based in China that provides a one-stop travel platform for users. The platform allows users to book various travel services including Hotels, Flights, and other booking services such as train tickets, car rentals, and guided tours.
On January 3rd, research analysts at CitiGroup upgraded TCOM from a Hold to Buy rating and raised their price target from $73 to $78. The company is benefiting from a strong comeback in travel internationally. During its fiscal third quarter results for 2024, management highlighted its international business experienced robust growth across all segments. Its outbound hotel and air reservations rebounded by around 120% when compared to the pre-pandemic levels in 2019. Whereas, the air tickets and hotel reservations were up 60% year-over-year.
As a result, Trip.com Group Limited (NASDAQ:TCOM) grew its third-quarter revenue by 16% compared to the same quarter in 2023 and 24% from the previous quarter. James Liang, Executive Chairman of the Board noted that AI will revolutionize the travel services sector and further increase the demand for online travel booking. Management has been integrating AI into its platform to provide personalized recommendations. For instance, TripBest analyzes over 100 million user reviews to suggest hotels, destinations, and experiences, while TripGenie serves as a virtual assistant that creates personalized itineraries and answers user queries in real-time. Trip.com Group Limited (NASDAQ:TCOM) is one of the best travel stocks to buy right now.
5. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 52
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a major player in the travel industry, it operates three well-known cruise brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Its vast fleet of 68 ships travels to approximately 1,000 destinations across all seven continents, providing diverse itineraries that can last from a few days to several weeks. The company also has a stake in TUI Cruises and Hapag-Lloyd Cruises, which cater to the German market.
Royal Caribbean Cruises Ltd. (NYSE:RCL) had a remarkable year driven by increased travel demand internationally. Its load factor, which indicates how well the ships are filled, reached an impressive 111% during the fiscal third quarter of 2024. This resulted in the company’s revenue growing 17.45% year-over-year to reach $4.9 billion, with a net income of $1.1 billion. More impressively, management was able to improve its gross margin yields by 13.4%, while Net Yields rose by 7.9% in constant currency, driven by higher pricing and onboard spending.
Management expects elevated demand patterns to persist into 2025 and raised its full-year 2024 Adjusted Earnings Per Share (EPS) guidance to a range of $11.57 to $11.62. Moreover, Royal Caribbean Cruises Ltd. (NYSE:RCL) continues to innovate its fleet, it recently launched the Utopia of the Seas, which has received positive market feedback. Additionally, a fourth Icon-class ship is planned for delivery in 2027. It is the 5th best travel stock to buy right now.
Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q2 2024 investor letter:
“Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance. Stronger than anticipated consumer demand, healthy onboard spend, robust pricing and solid cost containment lifted recent results. Additionally, RCL is benefitting from several new megaships, more island destinations and re-entry into the China market. The resiliency of the core cruise consumer, in combination with management’s superior operational expertise and revised earnings outlook, lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program, a year earlier than expected.”
4. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 52
Expedia Group, Inc. (NASDAQ:EXPE) is a major online travel company that helps people plan and book their travel experiences. It operates through three main segments including B2B, B2C, and Trivago. It is renowned for three main travel brands including Vrbo, Hotels.com, and Expedia. It generates a majority of its earnings through online booking transaction fees.
On December 18, BofA upgraded its stance on EXPE from Neutral to Buy. It raised its price target from $187 to $221 on the back of improved travel trends in the United States and Wall Street estimates of 10% EBITDA growth in 2025. The stock of Expedia Group, Inc. (NASDAQ:EXPE) has already grown by 28.50% over the past year due to strong travel demand in its B2B and B2C segments. Management noted that it continued to witness an accelerated booking growth rate for the second consecutive quarter in the fiscal third quarter of 2024, whereas its advertising and B2B segment also delivered strong double-digit growth.
During the fiscal third quarter of 2024, Expedia Group, Inc. (NASDAQ:EXPE) grew its revenue by 3% year-over-year, driven by 7% growth in gross bookings and a 32% surge in advertising revenue. Management introduced several new features aimed at improving customer experience, such as destination comparison tools and flexible date searches. These enhancements contributed to a 25% increase in package bookings during the quarter.
Carillon Chartwell Mid Cap Value Fund stated the following regarding Expedia Group, Inc. (NASDAQ:EXPE) in its Q3 2024 investor letter:
“Expedia Group, Inc. (NASDAQ:EXPE) is an online travel services provider with several leading brands including Expedia, Hotels.com, and Vrbo. The company saw accelerating bookings growth at Expedia and a return to growth at vacation rental platform Vrbo.”
3. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 54
Airbnb, Inc. (NASDAQ:ABNB) is an international online platform that connects people looking for places to stay with those who have space to rent out. Guests can browse host listings and book a place to stay directly through the Airbnb website or app. Unlike traditional hotels, the company offers a wide variety of accommodations, catering to different preferences and budgets. This includes everything from private rooms in someone’s home to entire houses.
The company has been actively upgrading its platform to streamline the process of listing and booking, thereby enhancing the overall user experience. Over the past three years, Airbnb, Inc. (NASDAQ:ABNB) has launched more than 535 new features to improve user experience. Recent upgrades include personalized app features and enhanced listing quality, with over 300,000 low-quality listings removed to ensure better guest experiences. Moreover, the company has rolled out more than 50 upgrades in 2024 alone. These efforts have turned out to be fruitful as during the fiscal third quarter of 2024, the company witnessed an increase in bookings through the Airbnb app, which now accounts for 58% of total nights booked, up from 53% last year.
The company generated $3.7 billion in revenue, marking a 10% increase compared to the same quarter last year. This growth was attributed to a steady rise in nights and experiences booked, which totaled 123 million for the quarter. Management noted that it is experiencing a rise in first-time bookers, particularly among young travelers. Looking ahead to Q4, Airbnb, Inc. (NASDAQ:ABNB) anticipates continued growth in bookings despite potential challenges from tougher year-over-year comparisons. The company plans to introduce more features aimed at enhancing user experience and expanding its market presence globally.
Polen Focus Growth Strategy stated the following regarding Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2024 investor letter:
“Airbnb, Inc. (NASDAQ:ABNB) declined in the period on concerns around a weaker demand outlook for the quarter as well as increasing marketing spend planned for the second half of 2024, pressuring near-term margins. Given the company’s exposure to the health of the consumer and related willingness to spend on leisure travel, we believe it’s important to take a step back to see the larger picture. Global accommodations have been and will likely continue to be a mid-single-digit growth market. Still, as private rentals become increasingly mainstream and the dependability of those private listings improves, we would expect private rentals to continue to gain market share. We continue to see Airbnb as a likely double-digit revenue grower over the next five years, and with modest margin expansion, we could expect mid-to-high-teens earnings growth.”
2. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 54
Carnival Corporation & plc (NYSE:CCL) is a major leisure travel company that primarily operates in the cruise industry. It owns and operates several well-known cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, and more. The company caters to North America, Australia, and Europe.
The company took a hard hit during the pandemic as its revenue declined by more than 73% in 2020 and around 65% in 2021. However, it has recovered well from pandemic lows as the stock has rallied more than 44% over the past year. Moreover, Carnival Corporation & plc (NYSE:CCL) posted an all-time high revenue of $25 billion for the full year 2024, indicating a 15% increase year-over-year. The growth was driven by a robust demand and increased consumer spending on traveling. Management of the company has developed a strong profitability model, which led fiscal 2024 net income to surpass its September guidance by $130 million to reach $1.9 billion. CEO, Josh Weinstein, noted that the company outperformed its initial guidance for 2024 by $700 million, contributing nearly $2 billion more to its bottom line year-over-year.
Looking ahead, Carnival is optimistic about 2025, predicting continued growth with yield increases expected to surpass historical rates. Management is enhancing its destination strategy to attract more guests and increase global awareness of cruise travel. The company has already booked over half of its available cabins for 2025 at higher prices than in 2024, indicating sustained demand and pricing power in the market. It is one of the best travel stocks to buy right now.
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) is a major player in the online travel and restaurant reservation industry. It operates several well-known brands that help consumers plan and book various travel-related services. Its flagship Bookings.com platform offers access to about 3.4 million properties across more than 220 countries, including places to stay such as hotels, apartments, hostels, and vacation homes. Through its other brands, the company also offers airline ticket booking, car rentals, restaurant reservations, and vacation packages.
Booking Holdings Inc. (NASDAQ:BKNG) has not only fully recovered from the pandemic effects but is posting impressive financial results. Its operating income for the fiscal third quarter of 2024 was $3.2 billion, which is well above the pre-pandemic value of $2.4 billion in Q3 2019 and also shows growth on a year-over-year basis. It posted better-than-expected results across all major indicators. The Room Nights Booked increased 8% year-over-year, whereas the Gross Travel Bookings grew 9% during the same time.
As a result of larger booking values, stronger growth in the Asian Market, and resilience in Europe, Booking Holdings Inc. (NASDAQ:BKNG) grew its total revenue by 9% year-over-year to $8 billion. The company is still in the early stages of AI integration and management noted that it aims to improve customer experiences and streamline operations, with initiatives such as AI travel assistant. This integration is expected to further improve the platform thereby attracting more users. Looking ahead, management expects room nights to grow between 4% and 6% in the fourth quarter of 2024, driven by healthy demand for travel.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”
While we acknowledge the potential of Booking Holdings Inc. (NASDAQ:BKNG) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BKNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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