Summer travel heatwave hits, a sneak peek at the leading tourism stocks recommended list

As the global pandemic recedes, the tourism industry is experiencing a revenge-driven growth, and this recovery is far from over. With summer approaching, foot traffic and consumer demand will rise again, making the list of recommended tourism stocks a focus for investors. The current tourism industry faces structural challenges but also harbors significant profit opportunities—the key lies in choosing the right targets.

Post-Pandemic Pain Points and Opportunities in the Tourism Industry

During the pandemic, many tourism-related companies faced survival tests. Many adopted aggressive financing strategies to get through the tough times—massive share issuances, high-interest debt—leading to expanded equity and increased debt burdens. Even as foot traffic recovers today, corporate profits have not rebounded in tandem due to deteriorating capital structures.

On the other hand, the surge in people’s travel intentions has driven prices upward. Airline fares, hotel room rates, and dining expenses have all increased compared to pre-pandemic levels, and consumers, due to long-term suppressed travel demand, have become less sensitive to prices. This means that as companies pass the high-interest debt maturity window or borrow again in a future environment of lower interest rates, profit improvement potential is considerable. Especially in summer, bookings for major travel companies are already saturated, and subsequent revenue realization is promising.

Investment Logic in the Tourism Industry

The concept of tourism covers a wide range—hotels, airlines, scenic spots, car rentals, and online booking platforms—almost any industry related to “eat, stay, travel, and play” can be included. But true investment opportunities depend on how much of a company’s revenue comes from tourism operations.

Taking the Taiwan market as an example, Wang Pin (2727.TW), although a leading tourism stock, has its main business in dining, which does not have obvious seasonal characteristics. In contrast, Regent (2707.TW) is a more pure tourism concept target—hotel occupancy rates remain high, room prices continue to rise, new stores are opening rapidly, and restaurant revenue is expected to supplement income. These are reasons to recommend tourism stocks.

Analysis of Top Global Tourism Stocks

Booking Holdings (BKNG): Monopoly position of an all-in-one travel platform

Booking Holdings owns top global brands such as Booking.com, Agoda, Priceline, Kayak, etc. Its business model is similar to consumer giants like Procter & Gamble—multi-brand strategy ensures market penetration. The company’s revenue consists of agency fees, dealer margins, and advertising income, with the first two accounting for over 90%.

CEO Fogel has signaled that the company will integrate AI technology to launch “connected trip,” an all-in-one travel service, further strengthening competitive barriers. As the online transformation of the travel industry deepens, BKNG’s market share and profitability will continue to expand.

Airbnb (ABNB): Exploring blue ocean markets from C-end hosts

Unlike Booking, ABNB bypasses traditional hotels, directly connecting hosts and travelers. Data shows that the average annual profit per host worldwide reaches $9,600, reflecting a win-win model. ABNB’s platform average price is about $67, far lower than traditional hotels, targeting consumers seeking experience and value.

The company addresses safety and hygiene concerns through user reviews, insurance mechanisms, and big data algorithms. Its core competitiveness lies in matching efficiency and customer service quality. As the supply of listings continues to grow, ABNB’s growth potential is more promising than traditional booking websites.

Disney (DIS): Long-term value from IP ecosystem and theme parks synergy

Disney operates globally renowned theme parks and has recently actively entered the streaming entertainment field, developing original content and film IPs simultaneously. Although short-term financial reports are under pressure, streaming business has turned profitable, indicating successful model validation.

Once any IP project succeeds, Disney can immediately monetize through movies, merchandise, and theme parks across the entire industry chain. The current low stock price presents a good opportunity for long-term investment.

Royal Caribbean Cruises (RCL) and Carnival Cruise Line (CCL): Recovery stories under aging demographic dividends

The global cruise market is dominated by the duopoly of CCL and RCL. Both benefit from rising prices and passenger flow recovery, but their business models differ: RCL targets high-end customers with high per capita onboard spending and thick margins; CCL focuses on mass markets, mainly earning from ticket sales.

With global aging trends, demand for cruises—an activity favored by older adults—continues to grow steadily. RCL, with its relatively balanced profit structure and growth potential, is a more attractive option among tourism stocks.

Marriott International (MAR): Scale effects from global room expansion

Founded in 1927, Marriott has grown into the world’s largest hotel operator, covering luxury, upscale, and business segments. The company has raised global room rates accordingly, with global RevPAR increasing by 4.2% annually, and added 46,000 rooms in 2023.

Investing in Marriott is equivalent to exposure to the global tourism recovery, with greater risk diversification and growth space compared to regional targets.

Sands Group (LVS): Beneficiary of Asia’s rising financial centers

Sands’ main revenue comes from Macau and Singapore. Macau benefits from demand recovery in Greater China, while Singapore aims to become Asia’s financial hub after Hong Kong, attracting capital and visitors. The company plans to increase investments in both locations to strengthen its market leadership.

Key Risks and Opportunity Windows in Tourism Stock Investment

The primary risk in investing in the tourism industry stems from systemic shocks like infectious diseases. The industry collapse during the pandemic serves as a lesson. Additionally, revenue fluctuations due to seasonal peaks and troughs are worth monitoring—booking data and average spending trends can help anticipate profit momentum.

For example, RCL has sold out cruise tickets for 2024, with price increases expected in 2025. Investors can quickly estimate next year’s growth by multiplying this year’s revenue by the expected fare increase. As debt matures gradually and profit momentum is released, it is an ideal time to build positions.

Why Tourism Stocks Are Considered Summer Concept Stocks

Outdoor activities and scenic viewing are mainly concentrated in summer, coupled with the peak travel during school holidays. Tourism industry revenues are significantly higher in summer than in other seasons. Similar to the Olympics, which are mainly held in summer, winter tourism has特色 projects but overall scale and quantity are still far less than summer. Therefore, tourism stocks are also called summer concept stocks.

Conclusion

With summer vacation approaching, travel bookings are already booming. Leading companies on the recommended tourism stock list are at a critical point of revenue realization. Whether it’s global online travel platform BKNG, sharing accommodation innovator ABNB, entertainment giant DIS, or leading cruise, hotel, and gaming companies, all show new growth potential driven by post-pandemic recovery and consumption upgrades.

Investing in the tourism industry essentially involves betting on people’s lasting pursuit of a better life. When you book rooms, buy tickets, and spend through platforms, you can also hold shares of these companies simultaneously, turning travel expenses into long-term investment returns.