These blue-chip top travel stocks to buy represent the best way to capture that upward momentum with minimal risk, considering each has a dominant market share within their respective categories. At the same time, each demonstrates a solid reversal from pandemic-era travel slumps as per-share pricing pushes back toward (or exceeds) 2019 levels.
Airbnb (ABNB)
While the peak of the professional Airbnb (NASDAQ:ABNB) host era may be subsiding, this shift doesn’t spell doom for the travel stock giant. Instead, Airbnb’s user base is reverting to the platform’s original concept of using spare space as a budget-friendly alternative to hotels. Airbnb is navigating through some challenging times among travel stocks, including a $10 million fine for deceiving international customers by listing prices in USD rather than the local currency. Despite these challenges, Airbnb’s dominance remains untouched.
Airbnb commands a 20% share of the total vacation rental market, an impressive feat considering its competition includes established hotel chains. Moreover, the platform’s listing and booking rates have surged beyond their 2019 pre-pandemic levels, illustrating Airbnb’s successful maneuvering through the pandemic’s challenges.
In its latest earnings report, Airbnb reported a nearly 17% increase in revenue year-over-year, with a 15% growth in gross booking value. This growth, reflective of the holiday travel boom, should persist as we enter spring and summer seasons.
Marriott International (MAR)
Marriott International (NASDAQ:MAR) is enjoying record-setting years, trading more than 100% above pre-pandemic levels and returning 41% in the past year alone. The hotel chain enjoys a massive lead over competitors when it comes to global market share, capturing 17.77% of the international hotel segment, with only MGM Resorts International (NYSE:MGM) coming close at 12.11%.
Notably, Marriott is leaning into an emerging customer segment: remote and hybrid workers seeking excitement coupled with the comfort and amenities that digital nomads expect (and need). To that end, Marriott is expanding its remote worker-friendly Courtyard offerings to include a Bali location and similar resort destinations while expanding existing amenities such as a lazy river in one Tennessee Courtyard property.
Moving forward, expect big things from the big-time hotel chain operator as it expands its global reach and fully realizes post-pandemic travel resumption. For value investors, Marriott offers a respectable 6.33% total yield, reinforcing its balance between expansion and shareholder value.
Trip.com Group (TCOM)
Trip.com Group (NASDAQ:TCOM) is a Chinese travel stock finally rebounding after its government halted Zero-Covid initiatives, returning 21% since January 1st and trading close to pre-pandemic levels. That positioning sets TCOM up for a solid run-up as the company caters to more than half the total Chinese tourism market across airline ticketing, hotel booking and general travel planning.
The Chinese tourism market, as you can likely guess, is an economic powerhouse (or was, before the pandemic). In 2019, nearly 155 million Chinese tourists traveled internationally. The stat fell to around 20 million in 2020, but in 2023’s first half, nearly 40 million traveled abroad. The trend will likely accelerate going forward. That, in turn, will drive TCOM’s per-share pricing to (probable) record levels.
Trip.com is also widening its lens to focus on the broad Asian international travel market and is even setting its sights on other markets. The company is also pushing toward greater digitization and personalization to “appeal to ever-evolving consumers” and “capture short attention spans and spur brand loyalty in an increasingly competitive landscape.”
On the date of publication, Jeremy Flint held no positions (directly or indirectly) in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.