A higher number of Americans are gearing up for Thanksgiving travel this year. Increased travel demand should boost revenues and profitability of the travel and tourism industry players, thereby driving up share prices.

Investors can tap this trend through ETFs that stand to profit big time from the upbeat Thanksgiving travel trend. As such, ETFMG Travel Tech ETF (AWAY Quick QuoteAWAY - Free Report) , Defiance Hotel, Airline, and Cruise ETF , AdvisorShares Hotel ETF (BEDZ Quick QuoteBEDZ - Free Report) , U.S. Global Jets ETF (JETS Quick QuoteJETS - Free Report) and Themes Airlines ETF (AIRL Quick QuoteAIRL - Free Report) are intriguing picks.

Solid Travel Trends

Travel service provider American Automobile Association (AAA) expects 2024 to be the busiest Thanksgiving travel season in the United States. About 79.9 million people will travel 50 miles or more from home this Thanksgiving, up 1.7 million from last year. Of them, 71.74 million (up 1.8% year over year) will go on road trips, 5.84 million (up 2%) will fly and the remaining 2.28 million (up 9%) will travel by train, bus or cruise. 

However, travelers may face challenges due to weather conditions. Forecasters around the United States have issued severe weather warnings for another wave of winter storms that could potentially affect travel around the upcoming Thanksgiving holiday. 

As the Thanksgiving holiday travel approaches, gas prices have dropped to the lowest level since May 2021. Notably, the national average price of gasoline fell to $3.01 per gallon this week, down 23.7 cents from last year. AAA says the national average price of gas could dip below $3 this week. On the other hand, the demand for rentals will be the highest in Atlanta, Las Vegas, Los Angeles, Miami, Oahu, Orlando and Phoenix, with most renters scheduled to pick up their cars Wednesday before Thanksgiving, per AAA car rental partner.

According to AAA booking data, air travelers are paying 3% more for domestic Thanksgiving flights this year, while the number of flight bookings is similar to last year. International flight bookings are up 23% from last year due to reduced flight costs internationally. Cruising continued to gain popularity due to red-hot demand. Domestic and international cruise bookings are up 20% compared to last Thanksgiving (read: Leveraged ETFs to Make the Most of Thanksgiving Spend).

Airline companies also expect record travel demand this Thanksgiving week. The Transportation Security Administration expects to screen 18.3 million airline passengers from Nov. 26 to Dec. 2, suggesting 6% growth from the last year.

Let’s delve deeper into the abovementioned ETFs:

ETFMG Travel Tech ETF (AWAY Quick QuoteAWAY - Free Report)

ETFMG Travel Tech ETF is the first ETF that offers direct access to the technology-focused global travel and tourism industry. It follows the Prime Travel Technology Index, charging investors 75 bps in annual fees. ETFMG Travel Tech ETF holds 30 stocks in its basket, with American firms accounting for 37.2%, followed by 13% share each in China and Australia. 

ETFMG Travel Tech ETF has accumulated $62.8 million in its asset base and trades in an average daily volume of 12,000 shares.

Defiance Hotel, Airline, and Cruise ETF  

Defiance Hotel, Airline, and Cruise ETF tracks the BlueStar Global Hotels, Airlines, and Cruises Index, which measures the performance of globally listed companies primarily engaged in the passenger airline, hotel and cruise industries. Holding 55 stocks in its basket, American firms make up 46.5% of the portfolio, while Liberia, the United Kingdom and Panama round off the next three with single-digit exposure each. 

Defiance Hotel, Airline, and Cruise ETF has gathered around $25 million in its asset base and charges 45 bps in annual fees. Volume is lower as it exchanges around 9,000 shares a day on average.

AdvisorShares Hotel ETF (BEDZ Quick QuoteBEDZ - Free Report)  

AdvisorShares Hotel ETF is actively managed and provides exposure to the global hotel and and travel-related services. It holds 25 stocks in its basket, with American firms accounting for about 92% share in the basket. 

AdvisorShares Hotel ETF charges 100 bps in annual fees and trades in an average daily volume of 500 shares. It has amassed $3.9 million in its asset base.

U.S. Global Jets ETF (JETS Quick QuoteJETS - Free Report)

U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 62 securities and charges 60 bps in annual fees (read: 5 ETFs to Binge on This Thanksgiving Week). 

U.S. Global Jets ETF has gathered $1 billion in its asset base and sees a heavy trading volume of nearly 3 million shares a day. JETS has a Zacks ETF Rank #3 (Hold) with a High risk outlook. 

Themes Airlines ETF (AIRL Quick QuoteAIRL - Free Report)

Themes Airlines ETF offers exposure to the largest 30 airline companies by market capitalization by tracking the Solactive Airlines Index. American firms make up the largest share in the basket at 48.8%, followed by United Kingdom firms with a 12.1% share. 

Themes Airlines ETF has managed assets worth $1 million and charges 35 bps in annual fees. It trades in an average daily volume of under 500 shares.