7 Global Travel & Tourism Stocks Defying Gloomy Headlines

Rising oil prices, geopolitical tensions and higher interest rates would normally spell trouble for travel and leisure companies. Yet hotel, airline and luxury goods stocks continue to climb. In this analysis, we explore what resilient travel demand says about consumer confidence, economic growth and the outlook for equity markets.

Travel and tourism are resilient amidst the Gulf conflict

Whenever I harbour doubts about US financial markets (very bubbly) and its economy (poor consumer sentiment), there are charts that promptly knock me back to my senses. 

Take a quick look below at the four largest hotel stocks listed in the US:

Marriott (US:MAR) the largest hotel stock in the world, with a market cap exceeding $100 billion. Prices recovered to new highs in April and have been rallying to new ground ever since (see below).

Hilton Worldwide (US:HLT) – broke out last year emphatically at $275; long-term uptrend extends to new highs regularly. Each reaction is higher than the previous one.

International Hotels Group (US:IHG) – is leaping sharply higher in a vacuum of supply. Medium-term price target near $180.

Hyatt Hotels (US:H) – broke out decisively at $180 lately. As prices race upwards, clinching that $200 round number level should not be too difficult. Watch for some consolidation moves there before prices vault higher.

Consumer Spending Holding Up

The first impression I get from these long-term charts is their definite bullishness. These US global hotel chains are surging to their highest levels ever despite the following negative market impulses: 

• heightened geopolitical tensions in the Gulf
• $90+ oil prices; shortages in certain fuels (jet and diesel)
• rising interest rates
• more expensive airfares, et cetera

In other words, hotel chains are brushing aside all these downside scenarios and are projecting a resilient demand for travel and tourism globally.

Here is what Marriott Hotels had to say about its strong Q1 earning report last month:

International Hotels Group affirmed the sector’s bullish projection (7 May):

Even airlines’ shares have stopped falling and picked up some momentum lately. A quick glance at Delta Airlines (DAL) shows a sharp breakout to new multi-year highs last month.

In the UK, International Consolidated Airlines (IAG) also rebounded above £4.

These share rallies happened despite the projection that global airlines will see profits slashed by a staggering $100 billion this year.

As travel and tourism kept pace with demand, consumers are too continuing to spend, especially on high-end items.

Here I see Compagnie Richemont’s (CFR), one of the world’s largest luxury groups, rebounding sharply towards the higher side of its long-term range. Its recent annual report (ending March 2026) showed good revenue and profit growth for the year. As such, an upside breakout to new all-time highs later this year is a possibility.

As for LVMH and Ferrari (RACE), their share prices are basing out; a minor bullish breakout may occur.

Conclusion

The take from all these charts is that some sectors are weathering the jump in economic uncertainty.

Concrete numbers from many global hotel chains, for instance, are telling us that travellers are still spending. High-end luxury groups are reporting modest growth, not major sales contractions. This goes contrary to many negative headlines.

Perhaps the massive wealth effect from many booming stock markets around the world is boosting asset-rich consumers.

More importantly, major listed companies are reporting decent revenue and profit growth. This is helping to sooth investor nerves and to underpin a market rally.

Here are some interesting numbers from a recent opinion piece from the FT (paywall, entitled: “Earnings, not valuations, are fuelling the US stock market“):

For the first quarter this year, S&P 500 companies reported earnings per share growth of 18 per cent on a year-on-year basis, excluding some idiosyncratic one-time benefits. Setting aside the megacap technology stocks, the median S&P 500 company reported growth of 14 per cent, making this the strongest quarter in over a decade outside of the 2018 tax cuts and the 2021 Covid reopening period.

Still, why do many investors feel nervous these days?

For one, massive equity lumps about to hit markets. SpaceX (IPO this week!), OpenAI, Google, Meta are expected to issue more shares to the public.

Central banks, too, are worried about rising inflation pressure. Most major banks are preparing to hike interest rates later this year. This will increase borrowing costs across the yield curve and hit a wide array of industries and household.

Finally, of course, the Strait of Hormuz is still large shut.

Given all these conflicting factors, should we all bail from the equity market? Not yet, as the hotel sector shows. A fair number of stocks remain on their cyclical upward march and as long as the bull trend continues, we should follow the major trend.