Summer is approaching, travel enthusiasm is heating up, hotel stocks recommendations, and global tourism investment opportunities

As temperatures gradually rise and summer vacation approaches, people’s desire to travel post-pandemic remains strong, fueling a new wave of investment opportunities. Many are beginning to consider: How can investing in travel-related companies profit from the travel boom? This article will analyze the investment logic of the tourism industry, compare high-quality targets in Taiwan and the US, and help investors seize seasonal opportunities.

Core Logic of Travel Industry Investment

The scope of the travel industry is extremely broad—covering accommodation, transportation, entertainment, itinerary planning, and more. However, most travel concept stocks are not solely focused on travel services; hotels may also operate business receptions, airlines may run cargo services, etc.

The key to investing in travel stocks is to identify the proportion of revenue derived from tourism. Only by accurately understanding how much the travel segment contributes to overall profits can precise investment decisions be made.

Opportunities and Challenges Post-Pandemic Recovery

During the pandemic, the travel industry was severely impacted, with many companies facing bankruptcy risks. To survive, operators adopted aggressive strategies—expanding debt, issuing new shares, and even transforming significantly (e.g., hotels offering takeout, airlines converting cargo planes).

These measures have left lasting impacts. In 2022, global high inflation triggered a rate hike cycle, and companies’ high-interest debt burdens continued to accumulate. Even as travel flows recover, increased equity issuance and debt burdens still suppress profitability.

But opportunities also emerge. Post-pandemic, consumers’ long-term travel aversion has decreased price sensitivity, allowing major travel, accommodation, and transportation companies to raise prices. As high-interest debt is gradually repaid and a rate-cut cycle begins, the growth potential of travel stocks will be fully unleashed. Even more encouraging, many travel companies have reported full bookings for summer trips, and revenue recognition as these trips commence will further boost stock prices.

Recommended and Analyzed Taiwanese Hotel Stocks

Wang Pin Group (2727.TW)

Wang Pin, as a leading Taiwanese tourism concept stock, owns multiple restaurant brands. However, its main business remains daily consumption, with less seasonal fluctuation, lacking typical seasonal characteristics.

Regent Taipei (2707.TW)

Regent Taipei is a true high-quality Taiwanese hotel stock. The group offers a range from backpacker to five-star rooms, maintaining high occupancy rates. Recently, room rates have steadily increased, new hotels continue to open, and dining revenue has grown seasonally. During the pandemic, Regent actively enhanced non-room income, and this strategy has proven effective, providing stable growth momentum.

Top Global Travel Investment Targets

Compared to Taiwan stocks, US travel industry stocks have greater growth space and global diversification advantages. Here are some companies worth long-term attention:

Booking Holdings Inc. (BKNG)

As one of the world’s largest online travel platforms, BKNG integrates flight, hotel, car rental, attraction tickets, and more into a one-stop booking service. Its brands include Booking.com, Agoda, Priceline, Kayak, and other well-known websites, employing a multi-brand strategy to ensure market penetration.

Revenue mainly comes from three channels: agency commissions (hotel service fees), reseller profits (markup on booked rooms), and advertising income, with agency and reseller revenues accounting for over 90%. CEO Fogel has revealed future plans—integrating AI technology to launch a “one-stop travel experience,” expecting continued profit growth.

Airbnb Inc. (ABNB)

Unlike Booking’s B2B model, Airbnb primarily connects hosts and travelers. According to data, global hosts earn an average of $9,600 annually, reflecting a mutually beneficial business model. Compared to traditional hotels, staying in local homes allows travelers to experience local culture more deeply.

The average global room price on Airbnb is about $67, far lower than traditional hotels, attracting budget-conscious and cultural explorers. The platform addresses safety and hygiene concerns through user reviews, insurance mechanisms, and big data algorithms. Airbnb’s core advantages are “matching efficiency” and “customer service quality.” As long as it continues to optimize review systems and handle disputes fairly, its growth potential will far surpass traditional booking platforms.

The Walt Disney Company (DIS)

Disney operates world-class theme parks and has recently expanded into high-quality content with a Netflix-style model. Its rich IP library and the synergy with theme parks (movies → merchandise → park experiences) create a strong moat.

From 2010 to 2020, growth was driven by movies and parks, while decline mainly stemmed from shrinking advertising revenue. To counter this, Disney launched its streaming platform, Disney+. Although recent financial reports show modest performance in the travel segment, the streaming business has turned profitable, shifting from loss to profit. As long as any IP succeeds, Disney can maximize its commercial value.

Royal Caribbean Cruises (RCL) and Carnival Cruise Line (CCL)

The global cruise market is divided between Carnival Group and Royal Caribbean. They follow very different routes—RCL targets high-end customers with higher per-guest spending and margins; CCL targets mass markets, mainly earning from ticket sales, with limited onboard spending.

Benefiting from rising travel expenditure and aging trends, both companies’ ticket prices have increased. With hotel and airfare prices soaring, more consumers are turning to cruises. For growth-oriented investors, RCL’s potential is comparatively greater.

Marriott International (MAR)

Founded in 1927 as a family-owned small shop, Marriott has become the world’s largest hotel group, covering luxury, upscale, and business segments. With global travel expenditure expected to rise, Marriott has strategically increased room rates. Currently, global RevPAR (revenue per available room) is growing at 4.2% annually, and the number of rooms continues to expand, adding 46,000 rooms in 2023.

Investing in Marriott is akin to investing in an “upgraded version of Regent Taipei,” with a diversified global portfolio that mitigates risk. For those optimistic about the tourism industry, it’s a must-watch.

Sands Group (LVS)

Sands is known for its Macau and Singapore operations. Macau benefits from the recovery of demand in Greater China, while Singapore’s rise as an Asian financial hub after Hong Kong offers promising prospects. The company plans to increase investments in both regions to strengthen its leadership, with a clear revenue growth outlook.

Factors to Watch When Investing in Travel Stocks

Disease Risks and Seasonal Fluctuations

The pandemic taught us how devastating infectious diseases can be to the industry. Evaluating disease risk is essential when investing in travel stocks. Additionally, seasonal fluctuations are normal—although stock prices may not surge during peak seasons, booking volume, revenue, and popularity can indicate future performance. For example, RCL has announced that its 2024 cruise tickets are sold out, with price increases expected in 2025.

Financial Outlook Predictions

Investors can estimate next year’s profits by multiplying this year’s revenue by expected ticket price increases. More precise calculations should include interest savings from maturing high-interest debt. If significant growth is expected next year compared to this year, the investment outlook is promising. As travel budgets increase, profit margins in the tourism industry will also rise year by year.

FAQs

Why are travel stocks also called “summer concept stocks”?

Outdoor activities and scenic viewing are most suitable in summer, and the summer vacation stimulates travel demand, making summer revenue in the tourism industry much higher than in other seasons. Although winter features special trips (like Winter Olympics), the number of projects and visitor volume are still far below summer, so the industry tends to refer to tourism stocks as “summer concept stocks.”

Conclusion

With midsummer approaching, travel investments are entering a new高潮. Whether heading to the beach for surfing or mountain retreats, investors can participate in profit sharing by holding stocks of these companies while enjoying travel services. For overseas-focused investors, US travel stocks such as BKNG, ABNB, DIS, RCL, MAR, and hotel stocks are all worth in-depth research. Seizing seasonal opportunities and selecting high-quality hotel stocks will help your portfolio ride the wave of tourism recovery.