Travel Demand Still Rising in 2026? 4 Stocks to Ride the Boom

Industry Overview - U.S. travel spending is projected to grow 2.2% in 2026, reaching $1.2 trillion, driven by sustained consumer demand and supportive monetary policy [2][8] - Domestic leisure travel is expected to expand 1.9% to $920.5 billion, while international inbound travel is forecasted to grow by 3.7% to 70.4 million visits, supported by major events like the FIFA World Cup [3] Macroeconomic Factors - The Federal Reserve's three consecutive interest rate cuts in 2025 have reduced the federal funds rate by 75 basis points, enhancing consumer spending capacity in discretionary categories, including travel [4] - Projected GDP growth of 2.3% for 2026 indicates favorable economic conditions for continued leisure spending momentum [4] Emerging Travel Trends - Travelers are increasingly seeking wellness-focused retreats and quiet escapes due to digital fatigue, while AI integration in booking platforms is streamlining trip planning [5] - There is a growing interest in literary and film-inspired travel, and road trips are resurging as cost-conscious travelers seek affordable alternatives [5] Company Performance - Expedia Group has shown a 27.2% increase in stock price over the past three months, driven by B2B momentum and margin expansion, with a projected EPS of $18.23 for 2026 [6][10] - Airbnb's stock increased by 6.4%, supported by diversification initiatives, with an expected revenue growth of approximately 9.7% to $13.49 billion for 2026 [6][15] - Booking Holdings' stock declined by 1.8% despite strong operational results, with a projected EPS of $262.93 for 2026, reflecting its dominant position in the travel market [6][13] - TripAdvisor's stock fell by 23.1% as it transitions to an experiences-focused marketplace model, with a projected EPS of $1.69 for 2026 [6][12]