We recently compiled a list of the 7 High Growth Travel Services Stocks For 2025. In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) stands against the other high growth travel services stocks.
The COVID-19 pandemic dealt a severe blow to both cruise and air travel industries. The mere thought of traveling in a closed compartment with people from all over the world scared travelers. Hospitality businesses like hotels and restaurants were less affected but still felt the heat.
Over the last year, the air travel industry has recovered to the pre-pandemic levels. Cruise passengers have grown in numbers for the second successive year in 2024, and are likely to post a record in 2025 as well.
On the back of this recovery, travel services stocks have performed well and are likely to continue performing well in the future. We looked at the top 7 travel services stocks by screening them based on sales growth since the pandemic.
To come up with the list of high-growth travel services stocks, we only considered stocks with a market cap of at least $10 billion and a 5-year sales growth rate of over 20%.
A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries.
Norwegian Cruise Line Holdings Ltd (NYSE:NCLH)
Norwegian Cruise Line Holdings Ltd is a cruise company running globally. The company operates in Regent Seven Seas Cruises Brands, Norwegian Cruise Line, and Oceania Cruises. The company is riding a positive wave of industry-wide growth in bookings, which is evident from its one-year returns of over 63%. According to data from AAA Travel, the number of Americans going out on cruises will hit a new record in 2025, for the third year in a row.
At a broader level, the industry is expected to grow at 4.77% in 2025. NCLH has already been able to maintain its market share, as evident by the cumulative bookings hitting the upper end of the company’s expectations. If the company can grow with the industry, there is no reason why it cannot continue to do so in 2025.
Another driver of the company’s growth is its fleet expansion. The company expects to add two new vessels, the Prima and the Allura Class by 2028. These new cruises are fuel-efficient and have a larger capacity, helping the company improve its operations in the long run.
Overall NCLH ranks 3rd on our list of the high growth travel services stocks for 2025. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NCLH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.