Travel Stocks 2025: Which Ones to Choose for Your Portfolio? 9 Picks to Watch

Behind the Recovery of Travel Stocks

Since the end of the COVID crisis, the global travel industry has been on a path to a new era of growth. Data from the World Travel & Tourism Council (WTTC) in April 2025 indicates that this industry will generate up to $11.7 trillion in economic value, accounting for 10.3% of global GDP.

International travel is projected to reach a record high of $2.1 trillion, surpassing pre-COVID levels in 2019. This reflects the resilience of the sector and humans’ insatiable desire to explore the world.

In the context of investment, travel stocks appear to be an attractive field, especially considering long-term growth opportunities. However, investors must be aware of manageable risks.

How to Select Travel Stocks: A Framework

Choosing travel stocks is not just about instinct; it requires a clear methodology.

1. Prioritize macroeconomic cycles – The travel industry is sensitive to economic cycles. The early stages of economic expansion are the best times to enter this sector.

2. Follow market momentum – Changes in consumer behavior, such as booking trends and travel patterns, can reveal hidden opportunities within travel stocks.

3. Assess competitive advantage – Markets with low competition often generate broader profits. Evaluate a company’s strengths, such as expertise, brand, and market position.

4. Consider financial health – Companies with strong financials, stable cash flow, and low debt ratios are better equipped to withstand shocks and adapt to market changes.

5. Evaluate risk stability – Travel stocks are vulnerable to external factors like political instability, natural disasters, and severe weather. Review historical data and risk management strategies of each company.

9 Travel Stocks with Less Volatility Beyond the Mainstream

1. Trip.com Group Limited (TCOM) – A Gateway to Asian Travel

Founded in 1999 to compete in online travel bookings, Trip.com has grown into a comprehensive travel platform, handling hotel reservations, flights, car rentals, and package tours.

Valued at $43.45 billion, the company has a forward P/E of 15.98, with an EPS of 3.63. The high EPS and a target price of $95.06 suggest a 43% upside from the current $66.38.

• Market Cap: $43.45 billion
• Forward P/E: 15.98x
• EPS (TTM): 3.63
• Current Price: $66.38

2. Royal Caribbean Cruises Ltd (RCL) – Creator of Sea Experiences

Founded in 1968 by Norwegian cruise pioneer, Royal Caribbean operates 67 ships under various brands.

Q1 2025 results show strong momentum, with EPS reaching $2.71 and quarterly dividends of $0.75 per share. Premium cruise demand remains high. A target price of $272.78 reflects confidence in growth.

• Current Price: $251.36
• Market Cap: $68.26 billion
• Forward P/E: 20.81x
• EPS (TTM): 12.32

3. The Walt Disney Company (DIS) – The Entertainment Queen

This entertainment giant was founded in 1923 and diversifies revenue across travel, content, streaming, and other sales.

Q2 2025 shows signs of recovery, with total revenue up 7% and Disney+ membership increasing by 1.4 million. Multiple revenue streams give the company a more stable business profile.

• Current Price: $112.94
• Market Cap: $203.24 billion
• Forward P/E: 22.75x
• EPS (TTM): 4.91

4. Booking Holdings Inc (BKNG) – Gateway to Global Bookings

Founded in 1997 as Priceline, now owning brands like Booking.com, Agoda, KAYAK, and OpenTable.

Q1 2025 revenue increased by 8%, with EPS rising over 22%. Its comprehensive platform with 2.7 million properties worldwide and a large customer base positions it strongly.

• Current Price: $5,216.55
• Market Cap: $169.75 billion
• Forward P/E: 32.74x
• EPS (TTM): 162.76

5. Marriott International (MAR) – The Hotel Dynasty

Founded in 1927 by J. Willard Marriott and his wife Alice, evolving from “Hot Shoppe” into a global hotel chain.

Q1 2025 shows steady growth with RevPAR up 4.1% globally. The company announced a 6.3% quarterly dividend increase and plans for significant expansion in Asia-Pacific and the Middle East.

• Current Price: $272.59
• Market Cap: $74.66 billion
• Forward P/E: 31.22x
• EPS (TTM): 8.81

6. Carnival Corporation & plc (CCL) – A Rebounding Cruise Giant

Founded by Ted Arison in 1972, it is the world’s largest cruise line operator with over 10 brands.

Post-crisis, Carnival restructured debt and is on the rise. In 2025, bookings are strong, average prices are rising, and new energy-efficient ships are being introduced. Growth potential from the current price of $22.99 is significant.

• Current Price: $22.99
• Market Cap: $29.87 billion
• Forward P/E: 15.14x
• EPS (TTM): 1.62

7. Uber Technologies (UBER) – Leader in Digital Mobility

Founded in 2008 out of frustration with hailing taxis, Uber now offers ride-hailing and delivery services.

Q1 2025 results exceeded expectations, with EPS of $0.83 and over 150 million monthly active users. The company is expanding into autonomous vehicle technology, which CEO calls a “growth opportunity.”

• Current Price: $90.41
• Market Cap: $189.06 billion
• Forward P/E: 15.99x
• EPS (TTM): 5.85

8. Expedia Group, Inc (EXPE) – Destination for Travel Bookings

Founded by Microsoft in 1996, Expedia has expanded into numerous brands like Hotels.com, Vrbo, Orbitz, and Travelocity.

Q1 2025 bookings increased by 6%. The company started paying quarterly dividends of $0.40 per share from March 2025 and is investing in AI to improve booking experiences.

• Current Price: $169.22
• Market Cap: $21.51 billion
• Forward P/E: 19.95x
• EPS (TTM): 8.97

9. United Airlines Holdings (UAL) – The National Airline Team

Founded in 1926 by Walter Varney as Varney Air Lines, now a leading US airline.

Q1 2025 forecasts EPS between $11.50 and $13.50 despite concerns over disruptions. Despite a 4% reduction in domestic flights in Q3, strength in international and premium routes remains. Its low P/E offers potential if the economy remains stable.

• Current Price: $78.99
• Market Cap: $25.80 billion
• Forward P/E: 7.53x
• EPS (TTM): 11.14

Comparison Table: Key Financials

Market Outlook 2025: Opportunities and Risks

The Colorful Aspects

• Travel demand remains unstoppable: Despite uncertainties, consumers still prioritize travel. Spending on travel in the US is expected to grow 3.9% to $1.35 trillion in 2025.

• Job creation opportunities: WTTC projects the sector will support 14 million new jobs, reaching 371 million worldwide.

• Bright long-term outlook: By 2035, the travel industry will be worth $16.5 trillion (11.5% of GDP), with an average growth rate of 3.5% annually, outpacing global economic growth at 2.5%.

The Challenges to Consider

• Disruption fears: Widespread concerns about new tax measures potentially affecting travel demand. In early April 2025, the Skift Travel 200 index declined 5%.

• Uneven recovery: While some regions are thriving, large markets like the US, China, and Germany are slowing down.

• External factors: Uncertain interest rates and inflation, although forecasts suggest rates will decline by late 2025.

Recommendations: Travel Stocks by Group

Quality online booking platforms:

• Booking Holdings (BKNG) has a relatively high valuation but remains a solid long-term choice.
• Expedia (EXPE) has recovered from COVID with attractive P/E ratios.

Premium cruise operators:

• Royal Caribbean (RCL) has strong financials and a good dividend yield of 1.19%.
• Carnival (CCL) offers profit growth potential from its current price.

Integrated travel companies:

• Disney (DIS) diversifies revenue streams, reducing risk.

Niche markets:

• Trip.com (TCOM) benefits from Asian travel, especially China.

How to Invest in Travel Stocks: Two Approaches

First Option: Buy Actual Shares

Register through international stock trading platforms, transfer funds, and place buy orders. This gives you ownership rights and dividends but requires full capital and profits only in bullish markets. Suitable for long-term investors.

Second Option: Use Derivatives (CFD)

Trade via experienced brokers. This approach is highly sensitive, uses leverage, and can profit from both rising and falling markets but carries higher risks. Suitable for short-term traders.

Final Summary

Travel stocks should be part of the modern investor’s portfolio. Post-COVID, many remain in recovery phases aligned with industry shifts driven by technology and new lifestyles. For investors seeking growth potential, travel stocks continue to be a worthwhile area.