Best Travel Stocks in the US
Get access to the top travel stocks in the US market as global tourism enters a long-term growth cycle. Travel and tourism spending is projected to grow to as much as $19.8 trillion by 2033, driven by rising global mobility, premium experiences, and the growing “bleisure” trend (WTTC). For those looking to invest in US stocks from India, this guide highlights the top travel companies, from airlines and hotels to digital platforms powering the future of travel.
What are Travel Stocks?
Travel stocks are shares of companies involved in tourism, transportation, and hospitality, such as airlines, hotels, cruise lines, and booking platforms. These stocks benefit from rising global travel demand and consumer spending on experiences.
List of Best Travel Stocks in the US Market
Travel Industry in the US
The travel industry is dominated by several key segments, each with its own market leaders:
- Airlines: These companies are the backbone of long-distance travel. E.g.. Delta Air Lines (DAL), Southwest Airlines (LUV), United Airlines (UAL), American Airlines (AAL), Latam Airlines (LTM), Alaska Air Group (ALK).
- Hotels & Lodging: This category includes global hotel chains and alternative accommodation platforms. E.g.. Marriott International (MAR), Hilton Worldwide (HLT), Hyatt Hotels (H), Airbnb (ABNB), Wyndham Hotels & Resorts (WH)
- Cruise Lines: These companies offer all-inclusive vacations at sea and have seen a dramatic rebound in demand. E.g.. Royal Caribbean Group (RCL), Carnival Corporation (CCL), Norwegian Cruise Line Holdings (NCLH), Carnival Plc (CUK)
- Online Travel Agencies (OTAs) & Booking Platforms: These tech companies are the digital storefronts for the travel industry. E.g.. Booking Holdings (BKNG), Expedia Group (EXPE), TripAdvisor (TRIP)
- Travel Services & Infrastructure: Includes companies that support the broader travel ecosystem, such as airport operators, rental car providers, and travel tech firms. Eg. Travel + Leisure Co. (TNL), Avis Budget Group (CAR), Sabre Corporation (SABR)
Why Invest In US-listed Travel Stocks?
The investment case for the travel sector is supported by strong consumer trends and favorable market dynamics:
- Shift to Experiential Spending: Consumers are increasingly prioritizing spending on experiences over goods. This secular trend provides a powerful, long-term tailwind for the entire travel industry.
- Strong Pricing Power: Strong demand has allowed airlines, hotels, and cruise lines to implement significant price increases, boosting revenues and margins.
- Powerful Loyalty Programs: Major travel companies have built massive moats through their loyalty programs which create sticky customer relationships and provide invaluable data for personalized marketing.
- Global and Premium Recovery: The rebound in high-margin international and business travel continues to accelerate. Airlines see significantly higher revenue per seat on international routes, making this a key driver of profitability.
How to Invest in US Travel Stocks from India
You can invest in US travel stocks from India by opening a US stock account on the INDmoney app and completing a quick digital KYC. Fund your account under the RBI’s Liberalised Remittance Scheme (LRS). Once funded, you can search and invest in leading travel stocks like Marriott, Airbnb, and Royal Caribbean, or explore travel-focused ETFs, all with the option to start small with just ₹100 using fractional shares.
What To Consider Before Investing in Travel Stocks?
- Economic Sensitivity: Travel is a highly discretionary expense, making the sector one of the most vulnerable to economic downturns. During recessions, both leisure and business travel are often among the first budgets to be cut.
- High Fixed Costs and Debt: Airlines and cruise lines have massive fixed costs (aircraft, ships, labor) and often carry significant debt loads. For example, major cruise lines took on billions in debt to survive the pandemic, and servicing this debt can constrain future growth.
- Geopolitical, Health, and Weather Risks: The travel industry is exceptionally sensitive to external shocks, including health crises, geopolitical conflicts, and extreme weather events, all of which can halt travel with little warning.
- Input Cost Volatility: Airlines and cruise lines are heavily exposed to volatile fuel prices, which can represent 20-30% of their total operating expenses. Unexpected spikes in fuel costs can severely impact profitability
Frequently Asked Questions (FAQs) about Travel Stocks:
Which travel stock is best?
There is no single "best" travel stock, as the ideal choice depends on your investment strategy. For an asset-light, high-margin business model, an OTA like Booking Holdings might be a choice. For a direct play on the premium consumer, a hotelier like Marriott could be a fit. For higher risk and reward, a cruise line like Royal Caribbean, which is highly sensitive to consumer sentiment, could be an option.
What are the top 5 travel companies?
The top 5 U.S.-listed travel companies by market capitalization as of early 2025 are typically:
Is the travel sector a good investment?
The travel sector offers strong growth potential driven by long-term consumer trends, but it is also highly cyclical and carries significant risks. It can be a good investment for those with a long-term horizon who can tolerate volatility, but it may not be suitable for risk-averse investors.
What is the difference between an OTA and booking directly?
Online Travel Agencies (OTAs) like Expedia and Booking.com are aggregators that offer a wide selection of travel options in one place, earning a commission on each booking. Booking directly with a hotel or airline can sometimes offer benefits through their loyalty programs. OTAs have an "asset-light" model (they don't own the planes or hotels), which often leads to higher profit margins compared to their travel provider partners.