Travel-related stocks have risen 124% over five years — airlines, hotels and cruise operators post sustained gains Cruise operators and global travel platforms lead long-term returns as investors become more selective. Results suggest consumers increasingly choose experiences over material goods.
With winter dragging on and household budgets still under pressure, demand for travel is showing only slight signs of cooling. A new analysis by investment and trading platform eToro indicates that a balanced basket of leading travel-sector companies is up 17% year-on-year, 108% over three years, and 124% over five years. These gains span the sector’s core players—airlines, hotels, online booking platforms, and tour and cruise operators—highlighting the resilience of travel demand despite an ongoing cost-of-living squeeze and a volatile macroeconomic backdrop.
The shift is visible both in consumer behavior and in financial markets. A 2026 UN Tourism report points to a 4% increase in international tourist arrivals in 2025, with a similar 4% rise expected in 2026. Meanwhile, a 2024 Barclays survey found that 57% of respondents prefer spending money on experiences rather than material goods. Travel is increasingly moving away from being a discretionary luxury and becoming a regular line item in household spending, as building memories takes priority over owning more things.
“The travel industry hasn’t become immune to cost pressures, but consumers are finding it harder to give up trips,” said Sam North, market analyst at eToro. “This isn’t just a post-COVID rebound. In a world dominated by online activity, the premium placed on real-life experiences has risen meaningfully, and consumers are actively seeking tangible ways to switch off. They still hunt for value, but they’re less likely to abandon travel altogether. Investors are rewarding the companies best positioned to capture that demand.”
Over a three-year horizon, Royal Caribbean Cruise Line recorded a 360% share-price increase, far outpacing other names in the comparison, while Carnival Corporation & plc gained 160%. Airlines also delivered strong returns—International Airlines Group (IAG) rose 142%. Online platforms benefited from repeat bookings: Expedia Group gained 132%, while Booking Holdings rose 107%. The recovery, however, has been uneven. Well-known brands such as Airbnb posted more modest gains—15% over three years—while easyJet fell 6%, underscoring investors’ increasingly selective approach and the importance of stock-by-stock fundamentals.
The divergence within the sector suggests it is entering a more mature phase of the cycle. Experience-led businesses—especially cruise operators—have benefited from consumers looking for attractive holiday offers with clear, upfront costs and fewer surprise expenses. Hotels and booking platforms, in turn, are capturing steadier, recurring demand as travel becomes a regular spending habit rather than a one-off annual splurge.
Sam North added: “While travel stocks have performed well over the past five years, two companies have struggled. Airbnb’s weaker performance partly reflects its initial valuation as a fast-growing tech company rather than a traditional travel business. easyJet, meanwhile, has continued to disappoint as it faces competitive pressure from low-cost carriers such as Ryanair. By contrast, cruise operators have benefited from a clearer value proposition—more costs included upfront and less aggressive price-hike dynamics—allowing companies like Royal Caribbean Cruise Line and Carnival Corporation & plc to generate above-average long-term returns.”
Travel-related companies — returns
| Company | 1-year return | 3-year return | 5-year return |
|---|---|---|---|
| Ryanair | 42% | 81% | 91% |
| Carnival | 13% | 160% | 53% |
| IAG | 27% | 142% | 196% |
| Booking Group | 7% | 107% | 158% |
| Expedia | 57% | 132% | 105% |
| IHG | -4% | 77% | 119% |
| Hyatt | 5% | 44% | 130% |
| Hilton | 20% | 105% | 184% |
| Royal Caribbean Cruise | 26% | 360% | 341% |
| EasyJet | -2% | -6% | -23% |
| Airbnb | 5% | 15% | -31% |
| Marriott | 11% | 82% | 163% |
| Basket average | 17% | 108% | 124% |
The table shows performance of a basket of travel-sector stocks.
Stock prices are based on market close on 27 January 2026. Index results are calculated in US dollars. Data source: Refinitiv. Past performance is not indicative of future results.
