In 2020, travel stocks were in bad shape. Many hotels and airlines faced short-term revenue declines of up to 75%. And for sectors like cruise lines, the damage was even worse. Forecasts were lowered, and dividends were slashed or suspended. It was a bad time.
But if you had the foresight and the risk tolerance to buy into this sector at that time, you would've been able to take some of that profit to... well... travel.
And that's what millions of Americans did, whether they invested in travel stocks or not. Despite the ongoing analysis that the consumer is wearing out, the earnings reports of many travel companies do not show it.
By early 2024, U.S. consumer travel spending exceeded 2019 levels. But what has investors excited about 2025 and beyond is the resurgence in international travel and the return of business travel.
That's why it's still a good time to invest in travel stocks. In this special presentation, we're highlighting seven travel stocks to buy if you're looking for a second chance to pull some profits from this sector.
Quick Links
- Delta Air Lines
- Airbnb
- Walt Disney
- Marriott International
- Booking Holdings
- Viking Holdings
- Vail Resorts
#1 - Delta Air Lines (NYSE:DAL)
For many investors, owning airline stocks is like buying a boat. The two best days are the day you buy and the day you sell. But there’s no denying that air travel continues to be strong, particularly as international travel has regained sound footing.
That’s a reason to put Delta Air Lines Inc. (NYSE: DAL) on a watch list of travel stocks to buy for 2025. Through the first three quarters of 2024, revenue is up about 2%. However, the company’s full-year guidance for 2025 suggests a mid-single-digit top-line gain. And if fuel costs grow slower than that revenue, it will allow the company to post stronger earnings.
Analysts are on board with that outlook. The consensus price target of $75.83 is 19.4% higher than the DAL stock price on December 4, 2024.
With DAL stock up more than 55% in 2024, it’s pushing up against its 52-week high and short interest has been increasing. But investors should take any pullback as an opportunity to get in on one of the best pure-play airline stocks to own.
About Delta Air Lines
Delta Air Lines, Inc provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Sao Paulo, Seoul-Incheon, and Tokyo.
Read More - Current Price
- $60.93
- Consensus Rating
- Buy
- Ratings Breakdown
- 14 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $75.83 (24.5% Upside)
#2 - Airbnb (NASDAQ:ABNB)
Since going public late in 2020, Airbnb Inc. (NASDAQ: ABNB) hasn’t been a consistently solid investment. In fact, in the five years since ABNB stock has been trading publicly, the total return is negative 1.29%. And in the last three years, that negative return has been even more pronounced at negative 17.5%.
However, after confirming a level of support around $111 in September, ABNB stock has an attractive setup for investors. One of the first things investors should look at with Airbnb is its 24% compound annual growth rate since 2017, which now has about 40% of the company’s revenue realized as free cash flow (FCF).
Another bullish consideration is the company’s business model, which includes a reverse cash conversion cycle. This means that while you pay Airbnb at the time you book your stay, the host doesn’t get paid until your stay is complete. In the meantime, Airbnb can invest that capital and get a healthy return.
Airbnb is aggressively planning to expand into other markets, such as experiential travel, rental cars, and tour packages. That’s reason to believe the analysts who are forecasting low double-digit earnings growth in 2025.
About Airbnb
Airbnb, Inc, together with its subsidiaries, operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers private rooms, primary homes, and vacation homes.
Read More - Current Price
- $134.21
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 19 Hold Ratings, 6 Sell Ratings.
- Consensus Price Target
- $139.48 (3.9% Upside)
#3 - Walt Disney (NYSE:DIS)
For years, The Walt Disney Co. (NYSE: DIS) was one of the best sum-of-its-parts stocks an investor could own. And for many years, in the late 2010s, the company was firing on all cylinders. The strength of the company’s business model meant that even a global pandemic that shuttered its theme park and cruising business couldn’t slow down DIS stock.
Until it did. The initial revenue spike the company got from its Disney+ streaming service turned into a drag on earnings. That brought back a rebuild led by former CEO Bob Iger. The turnaround has been slow, but looks to be on solid footing.
But the company isn't all the way back. In its fourth-quarter 2024 earnings report, Disney reported an operating income of $1.7 billion, its lowest quarterly result in two years. This suggests the consumer is under pressure. But lower interest rates and increasing confidence in a stronger economy should provide a lift for Disney and DIS stock.
About Walt Disney
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
Read More - Current Price
- $112.03
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $123.58 (10.3% Upside)
#4 - Marriott International (NASDAQ:MAR)
Despite posting disappointing quarterly earnings in early November, Marriott International Inc. (NASDAQ: MAR) stock is up 11% in the 30 days ending December 4, 2024. At 30x forward earnings, there may be even more upside for investors.
One reason for that may come from Marriott’s continuing investment in the experiential luxury category. An income transfer from aging baby boomers to millennials and Gen-Z consumers puts the spotlight on experiential luxury with a focus on responsible travel and wellness.
And Marriott is making a major investment in this area. The company plans to open 30 luxury properties in 2025 and has over 200 more in development. Trading at $289 per share, analysts view MAR stock as fairly valued—meaning investors may want to wait for a pullback before getting involved. But if the company reports strong earnings in February, investors may find themselves having to chase MAR stock higher.
About Marriott International
Marriott International, Inc engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St.
Read More - Current Price
- $283.96
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $266.25 (6.2% Downside)
#5 - Booking Holdings (NASDAQ:BKNG)
If you’re looking for evidence to support future travel demand, look no further than Booking Holdings Inc. (NASDAQ: BKNG). Booking’s focus on AI-driven tools is already starting to show up in its top and bottom lines. The company continues to post revenue and earnings that surpass prior year levels. That's one reason that, despite carrying a hefty share price of $5,233.27 as of December 4, 2024, BKNG stock is up more than 47% in 2024.
The current share price may keep some investors away. It’s simply too large for many retail investors to comfortably own a significant number of whole shares. Even analysts, while bullish on BNKG stock, see it as overbought at its current price.
But if the stock were to split, as it did in 2003, it would make the stock more accessible without changing the company’s valuation. On the other hand, with the stock showing such strong growth, the company may decide that a split isn’t warranted.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc, is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands.
Read More - Current Price
- $5,048.59
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $4,909.90 (2.7% Downside)
#6 - Viking Holdings (NYSE:VIK)
Cruise line Viking Holdings Ltd. (NYSE: VIK) is a relative newcomer to investors. The company went public in 2024 but is already up 42.7%.
The stock price growth is backed by strong fundamentals. Topline revenue more than doubled between the first and second quarters and continued to grow sequentially in the third quarter. The same is true of earnings per share (EPS). The company posted positive EPS in the second quarter and increased that by over 5% in the third quarter.
Viking's business model focuses on a specific traveler. Its ships do not have onboard casinos, nor do they allow passengers under 21 years of age. These aren't traveling cities, but they’re popular, and that demand is set to continue into 2025. Analysts are forecasting 70% revenue growth for VIK stock.
Although short interest is a small part of the company’s float, it shot higher in the month ending December 4. A pullback would be welcome news for investors looking to start a position in a stock that looks to continue its strong growth in 2025.
About Viking
Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships.
Read More - Current Price
- $46.23
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $42.85 (7.3% Downside)
#7 - Vail Resorts (NYSE:MTN)
If you’re looking for a seasonal stock to trade in the travel sector, Vail Resorts Inc. (NYSE: MTN) may be a nice fit. The company is the largest and most recognizable publicly traded operator of mountain resorts and urban ski areas in the United States. The company has 34 ski resorts in North America alone.
And you don’t have to be a skier to appreciate the investment proposition. That’s because, in addition to the obvious revenue and earnings the company generates, it has an eye toward sustainability—something younger travelers are looking for. Vail Resorts invests in renewable energy and reducing waste.
In 2020 and 2021, the price action for MTN stock was an outlier both for its weakness in early 2020 and its strength throughout 2021. Since then, it has been a consistent seasonal stock. And historically, the end of the year is a good time to consider a short-term trade.
About Vail Resorts
Vail Resorts, Inc, through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities.
Read More - Current Price
- $184.32
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $205.50 (11.5% Upside)
Many travel stocks are part of the consumer discretionary sector—which is expected to be one of the strongest growth sectors in 2025 as lower interest rates improve consumer sentiment. The seven stocks in this presentation give you a fair representation of a broad sector, but it's far from a comprehensive list.
That's a good reason to consider all that you get as a MarketBeat All-Access subscriber. One tool that comes in handy for a sector like travel stocks is the competition tab that's found on each individual stock page. It's an ideal jumping-off point for your own due diligence as you get an at-a-glance look at how a stock stacks up to many of its peers.
And that's in addition to our Stock Screener, which can help narrow your focus to stocks that fit a specific investment thesis you may have.
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