Most travel and tourism-related companies have seen significant growth over the past couple of years following the large travel drop-off for the average consumer due to the pandemic. The industry is in a much better place financially, with demand for traveling growing. Companies operating in the tourism space have experienced a healthy sales rebound, and the industry’s future looks bright, especially for these top travel stock picks.
Travel stocks have been performing well, which makes them a great addition to a diversified portfolio. With the promising outlook and with consumer spending for traveling not expected to see a slowdown soon, investors should pick up some companies surrounding tourism.
Expedia Group (EXPE)
Expedia Group (NASDAQ:EXPE) is an operator of an online travel company that is based in Seattle, Washington. The company comprises three segments: Expedia Business, Expedia Products and Expedia Brands. Expedia Brands includes popular consumer brands such as Vrbo, Trivago, Hotwire, Travelocity and Cheap Tickets.
In Expedia’s most recent earnings report, the company stated for the second quarter an increase in revenue of 6% and earnings per share of $2.54. It has also recorded $1.2 billion in share repurchases year-to-date. Additionally, gross booking for lodging grew by 9% compared with last year.
Following the news regarding its second-quarter earnings, the company’s stock price fell by 19%. Over the past year, its share price is up 6.2%, with plenty of room to grow, making it one of the top travel stock picks.
Royal Caribbean Cruises (RCL)
Royal Caribbean Cruises (NYSE:RCL) is a cruise ship operating company located in Miami, Florida, with multiple brands they operate under, including Silversea Cruises, Celebrity Cruises and Royal Caribbean International. The company operates a fleet of 64 cruise ships.
Back in late July, Royal Caribbean announced its second-quarter earnings results. The company saw total revenue growth of 61% compared to last year, which is due to passenger ticket sales increasing by over 72% within the same time period. Additionally, it reported a net income of $462 million for the second quarter of 2023. In Q2 0f 2022 they have a net loss of $522 million. Its full-year guidance was increased following an impressive earnings report with expected earnings per share of between $6.00 – $6.20 which is an increase on the prior prediction by 33%.
Over the past year, Royal Caribbean’s stock price over the past year has more than doubled to 137%, making it the best-performing stock within its industry.
On August 25, the company announced a partnership with Inter Miami CF, a major league soccer team. Royal Caribbean will become Inter Miami’s leading partner’s official vacation sponsor. This partnership is a multiyear partnership.
Bluegreen Vacations Holdings (BVH)
Last on our list of trop travel stock picks is Bluegrass Vacation Holdings (NYSE:BVH) is based in Boca Raton, Florida and operates as a vacation holding company. They market vacation ownership interest, manage many vacation destinations and resorts throughout the U.S. and own one resort in Aruba. The company has an interest in 68 destinations. Some of their more popular resorts include Bluegreen Club 36, SeaGlass Tower, Solara Surfside, Suites at Hershey and The Club at Big Bear Village.
In April of this year, the company, alongside Bass Pro Shops, announced that they would be acquiring the Cedars Resort located in Ridgedale, Missouri. This acquisition will now be their fifth location in and near Branson, Missouri. In May, Bluegreen Vacation Holding also reported that they were expanding into the Nashville, Tennessee market with the acquisition of two locations and the city’s historic district.
Over the past year, the company’s share price has increased by approximately 74%. On August 2, they reported second-quarter results with total revenue growth of 11% and net income of $26 million, which is an increase of 21% compared to the year before. Following their most recent earnings report, the company’s Board of Directors declared a quarterly dividend of $0.20 per share which is payable on September 18.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
