The travel industry has always been a powerhouse in the global economy. Just to give you an idea, in 2022, the sector contributed $7.7 trillion (around £6.1 trillion) to global gross domestic product (GDP), equal to 7.6%. And the World Travel and Tourism Council (WTTC) forecasts this GDP contribution could more than double to an eye-popping $15.5 trillion (about £12.3 trillion) by 2033, amounting to 11.6% of the world’s economy.
Now, as with anything in life, there are no guarantees. But if these projections hit their mark or even come close, long-term investors who’ve hitched their wagon to the travel sector could be laughing all the way to the bank. With this in mind, here are the best travel stocks to consider for your portfolio.
| Stock | Icon | 1-year performance (to Feb 2024) | 5-year performance (to Feb 2024) | Link to invest |
|---|---|---|---|---|
| Chipotle Mexican Grill (CMG) |  | 63.44% | 335.45% | Invest with XTBCapital at risk |
| Booking Holdings (BKNG) |  | 55.10% | 94.36% | Invest with XTBCapital at risk |
| Marriott International (MAR) |  | 41.66% | 104.06% | Invest with XTBCapital at risk |
| Flutter Entertainment (FLTR) |  | 35.35% | 178.91% | Invest with XTBCapital at risk |
| Hilton (HLT) |  | 28.97% | 135.06% | Invest with XTBCapital at risk |
| Airbnb (ABNB) |  | 26.78% | 5.99% | Invest with XTBCapital at risk |
| Oriental Land (4661) |  | 20.62% | 114.29% | Invest with XTBCapital at risk |
| McDonald’s (MCD) |  | 8.74% | 60.84% | Invest with XTBCapital at risk |
| Yum! Brands (YUM) |  | -1.70% | 38.41% | Invest with XTBCapital at risk |
| Starbucks (SBUX) |  | -10.34% | 37.60% | Invest with XTBCapital at risk |
Travel stocks are shares of companies that make money in travel. This is a broad sector that includes a wide range of companies, from those that provide direct transportation services to those that offer accommodation. There’s also firms that help people book for these services, acting as middlemen.
Travel stocks come in various flavours, each offering a unique taste of the industry. The main players are:
People gravitate towards travel stocks for a variety of reasons, here’s a rundown of the main areas:
| Response | % |
|---|---|
| 75+ years | 2.36% |
| 65-74 years | 10.63% |
| 55-64 years | 15.75% |
| 45-54 years | 15.75% |
| 35-44 years | 16.14% |
| 25-34 years | 22.44% |
| 18-24 years | 16.93% |
Just like any adventure, it’s not always smooth sailing. Be wary of the following risks when investing in travel stocks:
The US usually takes the limelight for most investing sectors, but Europe has plenty to offer when it comes to travel stocks. Along with having plenty of hotel chains, cruise companies and travel firms - Europe is home to major manufacturers like Airbus (the largest aeroplane manufacturer in the world).
Europe is also the base for well-established airline companies and popular travel stocks like Ryanair, Deutsche Lufthansa, International Airlines Group and Tui (which does a bit of everything). So, don’t be afraid to look closer to home if searching high and low for the best travel stocks.
Venturing into travel stocks doesn’t always mean buying individual company shares. Here are several other ways to invest in the best travel stocks:
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Investing in travel stocks means tapping into an industry with huge growth prospects, not to mention one of the most historically resilient sectors.
Just keep in mind there’s never a guarantee for positive returns when it comes to investing, even if you find the best travel stocks on the plant. Make sure to research your investments before you put your hard-earned cash in them.
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