The global travel industry is set for a new phase of growth, as it looks far more durable than the initial post-pandemic ricochet. The industry continues to benefit from pent-up demand, driving record bookings. Travel activity is now being supported by structural shifts in how people live, work, and spend.
Air travel volumes are approaching, and in some markets exceeding, pre-2020 levels, while hotel occupancy and room rates remain firm across both leisure and business destinations. Importantly, the recovery is no longer limited to a handful of tourist hotspots. International routes, secondary cities and experience-driven destinations are seeing renewed interest, broadening the opportunity set for travel companies.
At the same time, the industry itself has changed. Airlines are managing capacity more carefully, hotel operators are leaning into asset-light models, and digital booking platforms are becoming increasingly sophisticated in how they capture and monetize traveler demand.
Looking ahead to 2026, the investment case for travel stocks is shifting from short-term normalization to longer-term earnings durability. Companies that survived the pandemic have emerged leaner, more disciplined, and often more focused on profitability than pure scale. Many are benefiting from improved pricing power, stronger loyalty ecosystems and diversified revenue streams that were previously underdeveloped.
While macroeconomic risks, such as fuel costs, currency fluctuations and geopolitical uncertainty, remain part of the equation, the underlying demand for travel appears structurally stronger than it was before the pandemic.
Against this backdrop, select travel stocks across airlines, hotels and online platforms stand out as potential long-term winners. These businesses are not just riding a temporary surge in tourism but are positioning themselves to compound growth as global travel continues to evolve through 2026 and beyond.
As we approach 2026, companies like Delta Air Lines, Inc. DAL, Expedia Group, Inc. EXPE and Hilton Worldwide Holdings Inc. HLT are better positioned to gain from the aforementioned factors.
Delta Air Lines stands out among airlines for its emphasis on premium cabins, international routes and disciplined capacity growth. Despite concerns of a slowdown of the economy, the overall scenario regarding air travel demand following the pandemic remains impressive. While air travel demand remains stable on the leisure front, business travel has also made an encouraging comeback.
Premium leisure and long-haul international demand continue to outperform domestic economy travel, and Delta is well exposed to these trends. As global travel volumes normalize further into 2026, Delta’s strategy positions it as a higher-quality airline play rather than a purely cyclical bet.
The Zacks Consensus Estimate projects 2026 sales to rise by 3.6%, while earnings are expected to grow 20.2% year over year. In the past year, this Zacks Rank #3 (Hold) stock has surged 20.8% compared with the S&P 500’s gain of 18.1%.
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Expedia Group represents the platform side of the travel recovery. As travelers increasingly book entire trips online, combining flights, hotels, and experiences, Expedia benefits from scale, brand recognition, and technology investments.
Expedia runs a robust marketplace that effectively links travelers with suppliers, creating a virtuous cycle that underpins consistent demand and steady growth in gross bookings. Its well-established portfolio of trusted brands enables the company to cater to a wide range of traveler preferences across geographies, driving strong traffic, higher booking volumes and solid monetization. A deep and diverse global supply network further strengthens its competitive position, while ongoing investments in technology and strategic partnerships continue to enhance its reach and execution in international markets.
The Zacks Consensus Estimate projects 2026 sales to rise 6.3%, while earnings are expected to grow 20.8% year over year. In the past year, this Zacks Rank #1 (Strong Buy) stock has jumped 61.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hilton is benefiting from strong net unit growth, hotel conversions and recovery across international markets. Management expects continued momentum across key international markets, forecasting low single-digit RevPAR growth in Europe. The company’s focus on expanding its luxury portfolio, along with digital advancements, remains a key positive. Also, its focus on a capital-light model and disciplined capital return strategy bodes well.
Hilton’s expansion remains a fundamental driver of its growth strategy, underscoring its strong position within the global hospitality sector. In third-quarter 2025, the company achieved robust 6.5% net unit growth, with 199 new hotel openings adding over 24,000 rooms to its portfolio. Hilton’s development pipeline continues to impress, surpassing 515,000 rooms, nearly half of which are currently under construction. This positions the company to maintain its target of 6-7% annual net unit growth over the next several years.
The Zacks Consensus Estimate projects 2026 sales to rise 9%, while earnings are expected to grow 14.2% year over year. In the past year, this Zacks Rank #3 stock has gained 17.8%.
The global travel industry is moving beyond a rebound phase into a more durable growth cycle, supported by resilient demand and improved industry discipline. Delta Air Lines, Expedia Group, and Hilton offer well-balanced exposure across airlines, digital platforms, and hotels, each benefiting from strong brand positioning, scalable business models and improving profitability. While macro risks persist, these companies appear positioned to capitalize on sustained tourism growth and deliver steady earnings momentum in 2026 and beyond.
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