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.
Travel stocks: Best travel stocks to invest in
Discover popular stocks plus considerations when investing in the travel industry.
Everyone loves a holiday — whether you want a photo of you “holding up” the Leaning Tower of Pisa, or fancy scuba-diving in the deep seas of Australia. Or maybe you prefer a cosy cottage in the Cotswolds for a staycation among nature (with a hot tub, of course!). The travel industry’s market size was $1,868 billion (around £1,345 billion) in 2019. This reduced down to just $1,094 billion (about £788 billion) in 2020.
The vaccine rollout and traffic light system have helped travel stocks recover a little. The predicted market size for 2021 was $1,311 billion (around £946 billion).
UK travel stocks
The UK is home to some major recognisable travel brands, so if you’d prefer to keep your investments closer to home, it’s a possibility.
Some UK travel stocks include:
Investing in global travel stocks from the UK
You don’t have to jet off abroad to invest in global travel companies (but that could make it more exciting!). Some of the largest travel companies in the world are based outside of the UK.
Booking Holdings (BKNG.US)
Booking Holdings is a travel technology company based in Connecticut. It owns Booking.com, Priceline.com, Agoda.com. Kayak.com, Cheapflights, Rentalcars.com, Momondo and OpenTable.
Booking Holdings takes care of a lot of holidays. According to its annual report, its customers booked 845 million rooms in 2019, as well as 7 million flights.
Booking Holdings went public in 1999 as Priceline,com. It became Booking Holdings in 2018.
Compare brokers to buy Booking Holdings shares
Expedia Group (EXPE.US)
Expedia is a travel company with several different websites, all travel fare aggregators. This means that they show reviews and compare prices to help you choose. Expedia’s sites include Expedia.com, Hotels.com, trivago, Travelocity and CarRentals.com. The company was originally a division of Microsoft, but was spun off in 1999.
Compare brokers to buy Expedia Group shares
Royal Caribbean Group (RCL.US)
Royal Caribbean Group is a cruise company that owns three cruise lines: Royal Caribbean International, Celebrity Cruises and Silversea Cruises. Royal Caribbean holds a 50% stake in TUI Cruises.
Compare brokers to buy Royal Caribbean Group shares
A new type of travel stock: Space
If planet Earth isn’t your jam, there’s a hot new type of travel stock that you can get in on. You can now go on a holiday that’s literally out of this world, albeit at a huge price tag.
Virgin Galactic Holdings Stock (SPCE.US)
Virgin Galactic Holdings is developing commercial spacecraft to offer spaceflights to “space tourists”. It hit the news in mid-2021 when the company founder Richard Branson travelled into space with 3 employees. There are two more planned test flights, and regular paid passenger flights are due to begin in 2022.
Compare brokers to buy Virgin Galactic Holdings shares
Why invest in travel stocks?
Travel used to be a luxury, but it’s quickly become a necessary part of life — whether it’s just a weekend getaway, or a couple of weeks lounging by the pool, unaware of what day of the week it is and sipping cocktails.
Travel is starting to bounce back — the coronavirus stock market crash had a huge impact on the stock prices of travel companies, as most countries closed their borders and airlines were forced to stay grounded.
With vaccine passports, COVID travel tests and the traffic light system, the world is slowly opening up again, and travel stocks are seeing some uplift. Those not prepared to stick cotton swabs up their noses in the name of sunshine are staying local, which has helped companies like TripAdvisor and Airbnb.
How to invest in travel stocks
- Choose stocks to invest in. You can check out some travel stocks above and find out more about them.
- Choose an investment platform. You’ll need one that lets you invest in the stock exchange that your chosen stocks are listed on.
- Sign up and fund your account. You might need to wait for your account to be verified and for your funds to hit the account before you can begin.
- Find your chosen stock. You can search its name or ticker.
- Review and buy. It’s as easy as that!
The risks of travel stocks
Of course, there are risks to investing in the travel industry. In 2019, we saw the collapse of Thomas Cook. The company issued a profit warning in 2009, ten years before it collapsed.
Researching the financial information of travel companies can help to protect you from investment risk. You should also consider diversifying your portfolio, by having stocks from a range of different sectors and countries.
The coronavirus pandemic is an ongoing risk of airline stocks. At the moment, it looks like stocks are recovering, but this could change if more restrictions are put in place – it’s worth keeping tabs on.
Bottom line
There aren’t many things better than changing your Slack status to “on holiday” and jetting off abroad. With countries opening their borders, the travel industry is seeing some uplift in share prices, so it could be an exciting time to get on board. Make sure you’re aware of company financials and the risks involved before you get started.
Compare platforms to buy travel stocks
1 - 20 of 27
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.
Browse all travel stock guides
A
I
Q
Read more on this topic
-
How to buy Norwegian Cruise Line shares
Ever wondered how to buy shares in Norwegian Cruise Line? We explain how and compare the best share dealing platforms that can give you access to many brands, including Norwegian Cruise Line.
-
How to buy Air Canada shares
We explain how to buy Air Canada shares and compare the best share dealing platforms. Plus a detailed analysis for ACDVF and full financial history.
-
How to buy Hilton Worldwide shares
Ever wondered how to buy shares in Hilton Worldwide Holdings? We explain how and compare a range of providers that can give you access to many brands, including Hilton.
-
How to buy Marriott International shares
Ever wondered how to buy shares in Marriott? We explain how and compare a range of providers that can give you access to many brands, including Marriott.
-
How to buy Booking.com shares
Ever wondered how to buy shares in Booking Holdings? We explain how and compare a range of providers that can give you access to many brands, including Booking Holdings.
-
How to buy Wizz Air shares
Ever wondered how to buy shares in Wizz Air Holdings? We explain how and compare a range of providers that can give you access to many brands, including Wizz Air Holdings.
-
How to buy Stagecoach Group shares
Find out how to buy shares in Stagecoach, see Stagecoach’s share prices over the last three months and check out our must-do checklist if you’re looking to invest.
-
How to buy National Express Group shares
Find out how to buy shares in National Express, see National Express’ share prices over the last three months and check out our must-do checklist if you’re looking to invest.
-
How to buy Hostelworld Group shares
Our guide to buying shares in Hostelworld, we look at the costs and fees you might face. We also have a checklist for anyone looking to invest in a company.