In December 2024, the travel industry hit an important milestone, at least in terms of air travel. That is, traffic in many continents exceeded 2019 levels for the first time since the 2020 pandemic. One of the key reasons for this is the return of the business traveler.
Total U.S. travel spending is expected to reach $1.35 trillion in 2025, which would be a gain of 3.9%. And by 2028 U.S. spending is expected to grow to $1.46 trillion by 2028. And global travel spending is expected to come in even stronger in 2025 at around 9%.
But at a time when investors are paying a premium for many stocks, which travel stocks are set up to capitalize on the travel boom? Recent and upcoming earnings reports show three stocks that are good candidates to continue to reward investors.
Expedia Bounces Higher and May Have Further to Grow
Heading into its fourth-quarter earnings report on February 6, shares of Expedia Group Inc. (NASDAQ: EXPE) were down about 8% in 2025 as investors braced for weak results. Expedia delivered the opposite, with solid growth in key metrics such as room nights, gross bookings, revenue, and EBITDA margins.
The company also offered a bullish outlook for 2025 and guided to gross booking and revenue growth in the 4% to 6% range. Analysts project 26% earnings growth. The company also plans to continue its share buyback program.
And, in news that will delight income investors, Expedia is reinstating its dividend which it suspended in 2020. Chief Executive Officer (CEO) Ariane Gorin said the reinstatement “reflects our confidence in our long-term outlook and commitment to shareholder returns.”
That sent EXPE stock soaring 15%, but there may be more upside to come. Analysts have been raising their price targets since the earnings report. Oppenheimer and B Riley have been the most bullish, with a price target of $235.
Marriott’s Long-Term Growth Story Remains Intact
Marriott International Inc. (NASDAQ: MAR) stock is down over 6% after it released its earnings report. The report was fine, with revenue and earnings both coming in ahead of estimates, but investors were spooked by weak guidance for the coming quarter. Travel stocks like Marriott fall into the broader category of consumer discretionary stocks, which continue to lag the market.
An interesting note in Marriott's earnings commentary was that RevPar was down on Monday, Tuesday, and Wednesday, but there was strong demand for the rest of the week. It also said that small—and medium-sized business travel is back in a big way, but large corporation travel continues to lag.
However, this could be an example of why investors and traders think very differently. Analysts are raising their price targets. That means even though MAR stock is trading close to the consensus estimate from analysts followed by MarketBeat, there appears to be much more upside for the hotel stock.
Viking Holdings Stands Out in 2025’s Travel Sector
Viking Holdings Ltd. (NYSE: VIK) is one of the shining stars in 2025. The cruise line distinguishes itself from other cruise lines by targeting what it brands the “sophisticated traveler.” The company’s cruises are defined by offering cultural experiences for relatively affluent travelers. To that end, its fleet of ships does not have casinos and is restricted to passengers over 18.
Viking went public in 2024, but it’s already begun posting profitable earnings to match its growing revenue. That’s reflected in the VIK stock price, which has been up 51% in the six months ending February 14.
Bookings may not be the problem, but the valuation may be. Investors are paying a premium for Viking stock, which means that a pullback is likely if there’s any weakness when the company reports earnings on February 18. Investors thinking of getting involved should wait until after the report before making a decision on VIK stock, which is trading 12% above the consensus price on MarketBeat.
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The article "3 Travel Stocks That Show the Travel Boom Is Far from Over" first appeared on MarketBeat.
