- Globally a record 4.7 billion passengers are expected to fly this year, according to the International Air Transport Association.
- According to an Abacus Data survey, 50 per cent of Canadians intend to travel in 2024 with 57% expressing an interest in international travel
- Booking Holdings Inc. saved more than US$300 million annually after the pandemic through cutting its global workforce and had almost fully recovered by Q1 2022 as measured by free cash flow
- Marriott International’s share price has increased more than 55 percent in the past year
Post-2020, travel and tourism has emerged as a top growth industry, making it easy to be bullish on travel and tourism stocks.
Some of the hot travel and tourism spots for 2024, according to travel sites Kayak and Hopper, are London, Rome, Tokyo, Cancún and Las Vegas, as well as beach destinations such as the Cayman Islands and French Polynesia.
Globally a record 4.7 billion passengers are expected to fly this year, according to the International Air Transport Association. And according to the U.S. Travel Association, in early 2024 U.S. domestic travel spending was above pre-pandemic levels. Historically, U.S. travel spending has grown between 2 per cent and 4 per cent annually, according to the U.S. Travel Association.
As well, according to an Abacus Data survey, 50 percent of Canadians intend to travel in 2024 with 57 percent expressing an interest in international travel and 45 percent travelling in Canada (outside of their province).
Here are five travel and tourism related stocks to watch as summer travel heats up.
Marriott International Inc (NASDAQ: MAR)
Marriott is one of the world’s largest hotel companies, and it has more that 8,000 properties spread across almost 140 countries. The 30 brands inside the Marriott holding company include Marriott, Sheraton, Westin, The Ritz-Carlton, Courtyard Hotels and the Residence Inn.
The company has an asset-light business model, and doesn’t incur the expense of actual property ownership. Rather it earns fees for licensing its brands and managing properties to franchisees. In the past year, company shares have increased more than 55 percent and more than 3,000 percent since 1995.
Company shares were last trading at US$232.92.
Host Hotels & Resorts Inc. (NDAQ:HST)
The Fairmont is part of Host Hotels & Resorts along with the Four Seasons, Hyatt and Ritz Carleton. Host is an S&P 500 company that is the largest lodging real estate investment trust and one of the largest owners of luxury and upscale hotels. As of Dec. 31, 2023, the company owned 77 upscale hotels containing approximately 42,000 rooms in the United States, Brazil and Canada. The company has a market cap of more than $14 billion and is up more than 800 per cent from its public start in November 1984.
Host Hotels & Resorts Inc. shares were last trading at a little more than US$19.
Airbnb Inc. (NDAQ:ABNB)
Online vacation and home rental marketplace Airbnb has amassed a vast number of listings (almost 8 million as of early 2024) across the globe. Remote work and extended-stay bookings have been top growth areas for Airbnb since 2021. Airbnb has a market cap of more than US$102 billion and company shares are up more than 14 per cent all time.
Airbnb Inc. shares were last trading just over US$159.
Booking Holdings Inc. (NDAQ:BKNG)
Booking Holdings is the parent company for several travel booking sites including booking.com, priceline.com, kayak.com, rentalcars.com and Agoda. The company saved more than US$300 million annually after the pandemic by cutting its global workforce. In 2021 revenue and profitably rebounded and by the first quarter of 2022 had almost fully recovered as measured by free cash flow. Booking Holdings has a market cap of more than US$120 billion and is up more than 600 per cent since its start, April 1, 1999.
Company shares were last trading at US$3,408.04.
Samsonite International SA (HKG:1910)
Founded in 1910, Samsonite is an American luggage manufacturer and retailer, with products ranging from large suitcases to small toiletries bags and briefcases. The company was founded in Denver, registered in Luxembourg and is listed on the Hong Kong Stock Exchange. Some of its subsidiaries include Tumi, ebags.com and Samsonite Canada. In the past year shares have increased by more than 17 percent. In the past three years the company has undergone a massive growth in earnings per share.
Samsonite International SA shares were last trading at US$15.72.
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