We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Stocks to Buy on Americans' Travel Plan Despite Rising Prices
Read MoreHide Full Article
Inflation and fears of the economy slipping into a recession haven’t demoralized Americans from canceling their travel plans. In fact, an increasing number of Americans are traveling and more people are planning to go on vacations through 2023.
This comes despite higher air ticket prices and hotel tariffs as people are ready to shell out more. Traveling, which had almost come to a standstill in 2020 due to the pandemic, rebounded strongly in 2022, and this year, too, people want to travel at least as much as last year.
More Americans Traveling
According to a Forbes Advisor survey, 87% of the respondents plan to travel as much as they did in 2022, while 49% plan to travel more. Understandably, young people are more inclined toward traveling.
Among those who plan to travel more, 59% are between 18 and 26. Among them, 45% traveled at least once or twice in 2022, while 22% traveled on three or more occasions.
This means a large number of people plan to travel more than three to four times this year. Also, all types of trips are popular this year. The survey also shows that more than 50% of those traveling plan to go on vacations or pleasure trips, which include road trips, beach vacations and trips.
High prices have been posing a major challenge for the travel industry but people are willing to spend more knowing that costs are a lot higher than in 2022. Among those who plan to travel this year, 45% have a higher budget, while 28% have the same budget. Most people plan to spend $4,000 or more on traveling and vacationing this year, while 28% plan to have a budget between $2,000 and $3,999.
Hotels, airlines and other leisure companies had a solid holiday season in 2022 as millions of Americans went on vacations after staying almost indoors for two years owing to the pandemic. The trend seems to be continuing this year too.
Inflation, too, has been showing signs of easing and the Fed has finally paused its interest rate hikes. Lower borrowing rates thus bode well for both the vacationers and the travel industry. Given this situation, it would be ideal to invest in hotels, leisure, and airline stocks, which tend to benefit from the travel boom.
Marriott International, Inc. (MAR - Free Report) is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in November 2011. During the first quarter of 2023, MAR added 79 new properties (11,015 rooms) to its worldwide lodging portfolio. At the end of first-quarter 2023, Marriott International’s development pipeline totaled 3,060 hotels, with approximately 502,000 rooms. Nearly 200,000 rooms were under construction.
Marriott International’s expected earnings growth rate for the current year is 25.4%. The Zacks Consensus Estimate for current-year earnings has improved 8% over the past 60 days. MAR has a Zacks Rank #2.
InterContinental Hotels Group PLC (IHG - Free Report) offers information and reservations capability on the Internet for InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn hotels, Holiday Inn Express hotels, and Staybridge Suites by Holiday Inn hotels. IHG owns, manages, franchises, and leases hotels across all continents.
InterContinental Hotels Group’s expected earnings growth rate for the current year is 10.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. IHG has a Zacks Rank #2.
Royal Caribbean Cruises Ltd. (RCL - Free Report) owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Royal Caribbean Cruises’ cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
Royal Caribbean Cruises’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 46.1% over the past 60 days. RCL currently sports a Zacks Rank #1.
Alaska Air Group, Inc. (ALK - Free Report) , together with its partner regional carriers, serves more than 120 cities across North America. ALK’s mainline operating fleet included 203 B737 jet aircraft and 22 Airbus A320 family jets as of Dec 31, 2022.
Alaska Air Group’s expected earnings growth rate for the current year is 44.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. ALK presently has a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Stocks to Buy on Americans' Travel Plan Despite Rising Prices
Inflation and fears of the economy slipping into a recession haven’t demoralized Americans from canceling their travel plans. In fact, an increasing number of Americans are traveling and more people are planning to go on vacations through 2023.
This comes despite higher air ticket prices and hotel tariffs as people are ready to shell out more. Traveling, which had almost come to a standstill in 2020 due to the pandemic, rebounded strongly in 2022, and this year, too, people want to travel at least as much as last year.
More Americans Traveling
According to a Forbes Advisor survey, 87% of the respondents plan to travel as much as they did in 2022, while 49% plan to travel more. Understandably, young people are more inclined toward traveling.
Among those who plan to travel more, 59% are between 18 and 26. Among them, 45% traveled at least once or twice in 2022, while 22% traveled on three or more occasions.
This means a large number of people plan to travel more than three to four times this year. Also, all types of trips are popular this year. The survey also shows that more than 50% of those traveling plan to go on vacations or pleasure trips, which include road trips, beach vacations and trips.
High prices have been posing a major challenge for the travel industry but people are willing to spend more knowing that costs are a lot higher than in 2022. Among those who plan to travel this year, 45% have a higher budget, while 28% have the same budget. Most people plan to spend $4,000 or more on traveling and vacationing this year, while 28% plan to have a budget between $2,000 and $3,999.
Hotels, airlines and other leisure companies had a solid holiday season in 2022 as millions of Americans went on vacations after staying almost indoors for two years owing to the pandemic. The trend seems to be continuing this year too.
Inflation, too, has been showing signs of easing and the Fed has finally paused its interest rate hikes. Lower borrowing rates thus bode well for both the vacationers and the travel industry. Given this situation, it would be ideal to invest in hotels, leisure, and airline stocks, which tend to benefit from the travel boom.
Our Choices
Given this situation, it would be wise to invest in these four stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marriott International, Inc. (MAR - Free Report) is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in November 2011. During the first quarter of 2023, MAR added 79 new properties (11,015 rooms) to its worldwide lodging portfolio. At the end of first-quarter 2023, Marriott International’s development pipeline totaled 3,060 hotels, with approximately 502,000 rooms. Nearly 200,000 rooms were under construction.
Marriott International’s expected earnings growth rate for the current year is 25.4%. The Zacks Consensus Estimate for current-year earnings has improved 8% over the past 60 days. MAR has a Zacks Rank #2.
InterContinental Hotels Group PLC (IHG - Free Report) offers information and reservations capability on the Internet for InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn hotels, Holiday Inn Express hotels, and Staybridge Suites by Holiday Inn hotels. IHG owns, manages, franchises, and leases hotels across all continents.
InterContinental Hotels Group’s expected earnings growth rate for the current year is 10.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.4% over the past 60 days. IHG has a Zacks Rank #2.
Royal Caribbean Cruises Ltd. (RCL - Free Report) owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, RCL has 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises. Royal Caribbean Cruises’ cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
Royal Caribbean Cruises’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 46.1% over the past 60 days. RCL currently sports a Zacks Rank #1.
Alaska Air Group, Inc. (ALK - Free Report) , together with its partner regional carriers, serves more than 120 cities across North America. ALK’s mainline operating fleet included 203 B737 jet aircraft and 22 Airbus A320 family jets as of Dec 31, 2022.
Alaska Air Group’s expected earnings growth rate for the current year is 44.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.9% over the past 60 days. ALK presently has a Zacks Rank #2.