The world is gearing up for a travel boom in 2026, and investors are starting to take notice with their stock rotations. Travel is moving from a laggard to a leadership group as demand drivers reaccelerate and visibility improves across airlines and hotels.
With several major events on deck and premium spending holding up, the setup is improving even before the peak travel months arrive. The travel industry is one of the formerly downtrodden sectors, producing outsized gains to start 2026, and several fundamental factors are driving the rally.
Three stocks could stand out as potential leaders if the 2026 travel boom materializes.
Global Travel Demand Expected to be Strong in 2026
Pent-up demand, several catalysts, and economic dynamics are converging to create a strong environment for global travel. Many stocks in this space have already started breaking out, and the outlook has improved over 2025’s weak travel season. Some of the key factors that have investors intrigued by travel stocks include:
- Return of Business Travel: You’re probably tired of hearing about the K-shaped economy, but the phenomenon is boosting a lagging area of the industry. Business travel is rebounding significantly, resulting in higher spending, as corporate clients tend to occupy the upper tier of the K and opt for premium options. Analysts at Morgan Stanley anticipate corporate travel budgets growing 5% in 2026, while hotel room rates are projected to increase 3.9%.
- Global Sporting Events: 2026 is shaping up to be a big year for international sports, with some of the world’s biggest spectator events occurring within a few months of each other. The Winter Olympics in Milan are currently underway, followed next month by the World Baseball Classic (WBC). But the biggest event, the 2026 FIFA World Cup, is scheduled for this summer across the U.S., Canada, and Mexico. It’s been more than 20 years since the U.S. last hosted a World Cup, but the 1994 tournament attracted more than 3.5 million attendees.
- Sector Rotation: Market mechanics are also at play here, and the travel industry is a beneficiary. The AI rally is starting to fizzle as investors seek safer sectors such as consumer staples and financials. Travel stocks have several catalysts on the horizon, and are a natural landing spot for some of the capital flowing out of tech right now.
3 Travel Stocks Breaking Out This Month
If a breakout in travel stocks is imminent, it will likely get its start with these three companies. Each stock benefits from increased spending by more affluent clientele and has technical momentum behind its breakout.
Hilton: Stock Breaking Out of Year-Long Consolidation
Hilton Worldwide Holdings Inc. (NYSE: HLT) is a premium brand with an asset-light business model that makes it an intriguing investment in the current market environment.
The company reported more than 515,000 rooms in its pipeline during its Q3 2025 report back in October and is targeting 6-7% annual growth in 2026 and 2027.
Management also projects 2-3% growth in 2026 in the crucial Revenue per Available Room (RevPAR) metric, which was flat in 2025.
The company reports its Q4 and full-year 2025 results on February 11 before the opening bell, and investors will be watching closely for 2026 RevPAR guidance projections.
Analysts are bullish on the stock ahead of earnings. The stock received five different price target boosts last week, including new $330 targets from TD Cowen and Goldman Sachs.
The chart also shows a stock with strong bullish momentum. Despite a summer Golden Cross, the stock was stuck in a tight range for most of the second half of 2025 before breaking out above the 50-day simple moving average (SMA) in November. HLT shares have already reached several new all-time highs this year, and there could be more upside if the company reports strong earnings this week.
Delta Air Lines: Corporate Travel Boosting Earnings Growth
Delta Air Lines Inc. (NYSE: DAL) has soared to new all-time highs this year thanks to strong earnings growth boosted by corporate travel clients.
The company released its Q4 2025 earnings report on January 13 and posted a slight EPS beat and a slight revenue miss, but the slowdown in sales growth can largely be attributed to the government shutdown.
More importantly, the company reported a record $4.6 billion free cash position and projects 20% year-over-year (YOY) EPS growth in 2026, driven by further increases in premium cabin revenue.
If the economy-class clientele recovers, the 20% EPS growth estimate could prove modest. The stock’s breakout is also backed by several technical signals, including strong support at the 50-day SMA and an uptrending Relative Strength Index (RSI).
Marriott: High-End Clientele and Loyalty Program Provide Solid Floor
Marriott International Inc. (NASDAQ: MAR) is also a global premium hotel brand, and its Bonvoy loyalty program is widely regarded as the industry standard, with nearly 237 million members.
The company projects 2026 revenue to grow more than 6% YOY, and its RevPAR projections are improving after just 0.5% growth in Q3 2025.
MAR shares spent most of the fall consolidating around the $270 mark in a very tight range before breaking out above the 50-day SMA in November.
The 50-day moving average is now acting as support, with the RSI trending upward, providing strong bullish momentum to this rally.
Marriott reported its Q4 results on Feb. 10 and posted a strong revenue beat and a slight earnings miss, but optimistic 2026 guidance sent the stock surging 8% after the release.”
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The article "3 Stocks to Play the Summer Travel Boom as Demand Surges Again" first appeared on MarketBeat.
