Tourism is gaining momentum internationally, despite tourists' budgets affected by inflation, bringing significant increases in the share prices of companies in the field, especially those that organize cruises, but also for hotels, airlines and travel agencies.
Some cruise companies have tripled their stock prices. Photo by Shutterstock
As winter draws to a close and despite household budgets remaining under pressure from inflation, demand for travel shows no sign of abating, says eToro analyst Sam North in his analysis of travel stock returns.
The analysis shows that an equally weighted basket of major travel-related stocks is up 17% over the past year, 108% over the past three years and 124% over the past five years. These gains extend to major travel firms, including airlines, hotels, online booking companies and cruise operators, highlighting how travel demand has remained resilient despite the ongoing cost of living crisis and the ever-changing economic environment.
This development is reflected in both consumer behavior and markets, with a 2026 report from the United Nations Tourism Organization showing a 4% increase in international tourism in 2025, with a similar increase in tourism expected in 2026. At the same time, a survey by Barclays in 2024 found that 57% of people would prefer to spend money on experiences over material goods. Travel is turning from a luxury to a necessity, with people increasingly placing more importance on memories than objects.
“Travel has not become immune to pressure, but consumers are finding it increasingly difficult to give it up” said Sam North, market analyst at eToro.It's not just a post-Covid recovery. In a world dominated by online activity, real-life experiences have become highly valued, with people actively seeking to prioritize tangible, on-the-ground escapes over digital consumption. Consumers are still looking for value for money, but are less and less willing to forego travel altogether. Investors are rewarding companies that are best positioned to take advantage of this demand,” he added.
Cruises are gaining ground
Royal Caribbean International (formerly known as Royal Caribbean Cruise Line) is one of the world's largest and most innovative cruise lines, founded in 1968 in Norway and headquartered in Miami, Florida. Part of the Royal Caribbean Group, it operates a vast fleet, including the largest passenger ships, offering global vacations and leading innovation with 26-28 ships.
In three years, the company's share price has risen 360%, far outperforming the rest of the group, while Carnival has gained 160%.
Airlines also saw very strong returns, with IAG up 142%. Online platforms continue to benefit from repeat bookings, with Expedia up 132% and Booking Group up 107%. However, the recovery has been uneven. Big names such as AirBnB saw more modest returns, up 15% over three years, and EasyJet fell 6%, showing investors remain discerning and underscoring the importance of researching specific stocks.
The disparity within the sector suggests that tourism is entering a more mature phase. Experience-focused providers, especially cruise operators, have benefited from consumers looking for high-impact getaways with clearer costs and fewer contingencies. Hotels and booking platforms, meanwhile, have seen more stable and recurring demand as travel becomes a more regular part of spending patterns rather than a once-a-year extravagant expense.
“While travel stocks have performed well over the past five years, two companies have struggled, with Airbnb's underperformance partly reflecting its initial valuation as a fast-growing technology company rather than a travel company. EasyJet, on the other hand, continues to disappoint as it struggles to keep up with low-cost competitors such as Ryanair. In contrast, cruise operators have benefited from a value proposition clearer, with more costs built in upfront and less aggressive price increases, which has helped companies like Royal Caribbean and Carnival achieve outstanding long-term returns”said Sam North.
The table shows the performance of a basket of tourism-related stocks. Index performance is calculated in US dollars. Data provided by Refinitiv.
