In December 2024, the travel industry reached a significant milestone, particularly in air travel, as traffic in multiple continents surpassed 2019 levels for the first time since the onset of the 2020 pandemic. One of the primary drivers behind this resurgence is the resurgence of the business traveler.
## The Travel Industry’s Financial Landscape
– Total U.S. travel spending is anticipated to hit $1.35 trillion in 2025, representing a 3.9% increase.
– By 2028, U.S. spending is forecasted to climb to $1.46 trillion.
– Global travel spending is expected to exhibit even more robust growth in 2025, reaching around 9%.
Amidst a market climate where investors are paying a premium for many stocks, the question arises – which travel stocks are positioned to capitalize on the ongoing travel boom? Recent and forthcoming earnings reports shed light on three stocks that offer promising opportunities for investors.
## 1. Expedia: A Strong Contender in the Travel Sector
Leading up to its fourth-quarter earnings report on February 6, shares of Expedia (NASDAQ:) experienced an 8% decline in 2025 as investors braced for lackluster results. However, Expedia surprised the market with robust growth in key metrics such as room nights, gross bookings, revenue, and EBITDA margins.
The company provided an optimistic outlook for 2025, projecting gross booking and revenue growth in the 4% to 6% range, with analysts forecasting a 26% earnings increase. Additionally, Expedia announced the reinstatement of its dividend, a move welcomed by income investors. Following this announcement, EXPE stock surged by 15%, prompting analysts to raise their price targets post-earnings report.
## 2. Marriott International: A Long-Term Growth Story
Despite a slight decline in its stock price after the earnings report, Marriott International (NASDAQ:) reported revenue and earnings that exceeded estimates. However, weak guidance for the upcoming quarter unsettled investors. As part of the consumer discretionary sector, travel stocks like Marriott have been trailing the broader market.
An intriguing insight from Marriott’s earnings commentary highlighted a dip in RevPar on weekdays but strong demand on other days. The company noted a resurgence in small and medium-sized business travel, contrasting with the sluggish recovery in corporate travel. Despite the stock trading close to the consensus estimate, analysts are bullish on Marriott, suggesting substantial upside potential.
## 3. Viking Holdings: A Standout Performer in 2025
Viking Holdings (NYSE:) emerges as a standout player in the travel sector in 2025. The cruise line sets itself apart by targeting the “sophisticated traveler” and offering cultural experiences tailored to affluent clientele. Since going public in 2024, Viking has reported profitable earnings and witnessed a 51% increase in its stock price in the past six months.
While bookings remain strong, investors should note the premium valuation of Viking stock, indicating a potential pullback if the company reports any weaknesses during its earnings release on February 18. Those considering investment in VIK stock should exercise caution and await the earnings report before making a decision, as the stock currently trades 12% above the consensus price on MarketBeat.
In conclusion, the travel industry’s resurgence post-pandemic presents a wealth of opportunities for investors seeking to capitalize on the travel boom. Expedia, Marriott International, and Viking Holdings are three key players poised to benefit from the industry’s recovery, offering investors promising prospects for growth and returns.