The travel industry had a near-death experience because of COVID, with revenues falling 75% in 2020. Now, according to a report from consultant McKinsey & Co., "travel is roaring back." Two-thirds of the 5,000 people the consulting firm recently surveyed worldwide said they were more interested in traveling now than before the pandemic.
Markets often anticipate such trends. For example, shares of Marriott International (MAR), the largest hotel stock by market capitalization (shares times stock price), have returned an annual average of 19.6% over the past three years, compared with 11.9% for the S&P 500 stock index. But some analysts see travel prospects dimming as the period of pent-up demand comes to an end. (Prices and returns are through September 30; stocks I like are in bold.)
