The travel and tourism industry has staged one of the most robust comebacks of the post-pandemic era.
U.S. travel spending alone is projected to grow 3.9% in 2025 to $1.35 trillion, with further growth to $1.46 trillion expected by 2028 on an inflation-adjusted basis. Globally, travel spending could rise as much as 9% this year.
These numbers underscore a powerful trend: consumers continue to prioritize experiences over goods. From cruises to booking platforms, travel companies are benefiting from record demand. Yet investors must recognize the diversity of the sector—some stocks resemble technology companies with scalable platforms, while others are asset-heavy operators more exposed to fuel and tariff risks.
Booking, Expedia, and Tripadvisor: Digital Gatekeepers of Travel
Booking Holdings (BKNG) sits atop the online travel ecosystem with platforms like Booking.com, Priceline, and Kayak. The company reported a 13% increase in gross bookings and 16% revenue growth in its latest quarter, highlighting both its pricing power and global reach. Analysts remain optimistic, with a consensus Buy rating and a one-year price target suggesting modest upside. With a $181 billion market cap and near-97% gross margins, Booking is less a travel operator and more a dominant digital marketplace.
Expedia Group (EXPE), owner of Hotels.com and Vrbo, continues to execute well. In 2024, the company boosted gross bookings by 13% and doubled operating income, while also rewarding shareholders with higher dividends and $1.6 billion in buybacks. Shares have surged more than 50% over the past year, outperforming peers, though analysts remain cautious with a consensus Hold.
Tripadvisor (TRIP), long a go-to for reviews and travel inspiration, is more of a value play. Despite underperforming peers, it has delivered a 19% stock gain over the past year. Analysts remain lukewarm with a Hold consensus, but its “A” grade in value metrics suggests the stock may appeal to contrarians looking for turnaround potential.
Booking Holdings (BKNG) sits atop the online travel ecosystem with platforms like Booking.com, Priceline, and Kayak. The company reported a 13% increase in gross bookings and 16% revenue growth in its latest quarter, highlighting both its pricing power and global reach. Analysts remain optimistic, with a consensus Buy rating and a one-year price target suggesting modest upside. With a $181 billion market cap and near-97% gross margins, Booking is less a travel operator and more a dominant digital marketplace.
Expedia Group (EXPE), owner of Hotels.com and Vrbo, continues to execute well. In 2024, the company boosted gross bookings by 13% and doubled operating income, while also rewarding shareholders with higher dividends and $1.6 billion in buybacks. Shares have surged more than 50% over the past year, outperforming peers, though analysts remain cautious with a consensus Hold.
Tripadvisor (TRIP), long a go-to for reviews and travel inspiration, is more of a value play. Despite underperforming peers, it has delivered a 19% stock gain over the past year. Analysts remain lukewarm with a Hold consensus, but its “A” grade in value metrics suggests the stock may appeal to contrarians looking for turnaround potential.
Cruises and Experiences: Royal Caribbean and Viking Ride the Wave
The cruise segment is another pocket of strength. Royal Caribbean (RCL) offers investors both dividend income (0.67% yield) and growth. Its payout ratio of just 18% leaves room for sustainability, even in a capital-intensive business. With pricing power fueled by strong demand and limited new ship supply, Royal Caribbean is positioned to ride industry momentum.
Meanwhile, Viking Holdings (VIK) has joined the public markets, offering investors exposure to one of the most recognizable names in river and ocean cruising. Known for its premium, experience-driven voyages, Viking taps into the growing appetite for luxury travel. Its public listing gives investors another direct avenue into a segment benefiting from demographic shifts and global travel demand.
Conclusion: A High Season That Keeps Getting Higher
The travel sector has proven it is no longer a purely cyclical industry. As digital nomads expand in number and global consumers prioritize travel spending, the market increasingly resembles an “always high season.” For investors, companies like Booking and Expedia provide digital scale, while Royal Caribbean and Viking Holdings offer direct exposure to leisure experiences. Tripadvisor lingers as a potential rebound story.
While tariffs, fuel prices, and macro uncertainty remain risks, the fundamental growth drivers—rising global travel budgets, digital adoption, and consumer preference for experiences—point to a bullish case. For those seeking exposure, travel stocks in 2025 remain one of the most compelling plays on consumer demand worldwide.
The travel sector has proven it is no longer a purely cyclical industry. As digital nomads expand in number and global consumers prioritize travel spending, the market increasingly resembles an “always high season.” For investors, companies like Booking and Expedia provide digital scale, while Royal Caribbean and Viking Holdings offer direct exposure to leisure experiences. Tripadvisor lingers as a potential rebound story.
While tariffs, fuel prices, and macro uncertainty remain risks, the fundamental growth drivers—rising global travel budgets, digital adoption, and consumer preference for experiences—point to a bullish case. For those seeking exposure, travel stocks in 2025 remain one of the most compelling plays on consumer demand worldwide.
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