Have you ever watched a stock trade sideways for months, maybe even a full year, and wondered if it was building energy for something bigger? It’s like that quiet moment before a wave crashes – everything seems calm on the surface, but underneath, pressure is mounting. Lately, I’ve been paying close attention to the travel sector, and one particular hotel name stands out as it’s finally pushing through that prolonged consolidation. In a year where consumers kept spending on trips despite all the noise about costs, this feels like perfect timing.
Why Travel Stocks Are Having a Moment
Let’s be honest: 2025 turned out to be a banner year for anything related to getting away from home. People booked flights, cruises, road trips – you name it. While some parts of the economy dragged, travel just powered through. It’s fascinating how resilient this area has been. Families flew to see relatives, couples jetted off to warmer spots, and business folks started hitting the road again. All of that added up to serious tailwinds for hotels, airlines, and booking platforms.
In my view, this strength isn’t some fluke. Consumers prioritized experiences over stuff, even when budgets felt tight elsewhere. And looking ahead, there are some massive catalysts on the horizon that could keep the momentum rolling well into the next decade.
Record-Breaking Holiday Travel Wraps Up the Year
As we’re closing out December, the numbers coming in are pretty staggering. Millions of people hit the roads and skies for the holidays. Projections showed over 120 million travelers between late December and early January – that’s a solid increase from the prior year. Airports expected tens of millions of passengers, and highways were packed.
What’s interesting to me is how this plays out against complaints about everyday expenses. Folks grumble about grocery bills but still splurge on vacations. It speaks to how deeply travel is embedded in priorities these days. Perhaps it’s the post-pandemic rebound still echoing, or maybe just a shift toward valuing memories.
Either way, the industry wrapped up 2025 on a high note, with total spending likely topping $1.5 trillion. That’s real money flowing into hotels and related services.
The Big Events Coming Down the Pike
If the holiday rush felt busy, just wait for what’s scheduled over the next several years. There’s a lineup of major U.S.-hosted events that should drive enormous visitor numbers. Think global soccer tournaments in 2026, the country’s 250th birthday celebrations that same year, summer games in Los Angeles in 2028, and winter sports in Salt Lake City further out.
These aren’t small gatherings. They’re the kind of spectacles that bring in international crowds, fill hotel rooms for weeks, and boost everything from local transport to dining. For domestically focused companies, this “mega-decade” could translate into sustained demand surges.
On top of that, business travel is steadily recovering. Domestic corporate trips grew modestly this year, but rates are projected to climb as companies invest more. By 2027 or so, business bookings might even outpace leisure in pricing power.
- Massive international sporting events drawing global attention
- Historic national milestones attracting domestic travelers
- Gradual return of full-scale corporate conferences and deals
- Ongoing consumer preference for experiences over material goods
All these factors create a pretty compelling backdrop for travel-related investments heading into 2026 and beyond.
Spotlight on Leading Hotel Names
Within the hotel space, two giants have been catching my eye: Hilton Worldwide and Marriott International. Both have shown impressive chart action lately, pushing to new highs after periods of building bases.
Hilton, for instance, spent much of the year consolidating but ignited in the fall. It finally cleared that yearlong range, which often signals institutional interest stepping up. Marriott followed a similar path, breaking out in the fourth quarter.
From a fundamentals angle, both project healthy earnings growth – around 12-13% for 2026. Valuations reflect optimism, with forward multiples in the high 20s to low 30s, but that’s typical for quality growth in a strong demand environment.
Growth like this doesn’t happen in a vacuum – it’s backed by real consumer behavior and upcoming catalysts.
I’ve found that when charts align with improving industry trends, it often pays to pay attention. These moves feel like more than short-term pops.
Airlines Joining the Party
It’s not just hotels benefiting. Major carriers like United and Delta have also powered to fresh highs recently. Both are adopting more shareholder-friendly policies, whether through aggressive buybacks or dividend hikes.
United launched a sizable repurchase program and has been actively reducing shares outstanding while targeting lower leverage. Delta, meanwhile, boosted its payout significantly and sits on strong cash generation – enough to cover a meaningful portion of its market value annually.
In my experience, when management teams shift toward returning capital, it often reflects confidence in the outlook. Combined with resilient passenger demand, these names look positioned to keep climbing.
A Standout Booking Platform Example
Earlier in the year, online travel agencies showed similar setups. One major player consolidated for a while before exploding higher on a stellar earnings report. Bookings grew double digits, profitability expanded sharply, and guidance went up.
The key insight? Smart money was accumulating ahead of the report. History shows that positive surprises tend to cluster in uptrends, while disappointments hit during weakness. Following price action can give valuable clues about underlying conviction.
That particular stock hasn’t even retested its longer-term moving averages since the move. At this point, trailing stops make sense to lock in gains while letting winners run.
Managing Risk in a Hot Sector
Of course, no trend lasts forever. That’s why risk management matters, especially after strong runs. For longer-term holders, tracking weekly moving averages can provide objective exit signals on meaningful breaks.
Traders might watch daily momentum indicators or shorter averages for signs of exhaustion. The goal is staying with the trend until evidence suggests otherwise – not guessing tops or trying to time every wiggle.
- Identify your time horizon and choose appropriate trailing methods
- Monitor for volume changes or divergence in strength measures
- Stay disciplined about predefined exit rules
- Remember that pullbacks are normal even in strong uptrends
I’ve learned over the years that the biggest mistakes often come from abandoning positions too early or ignoring warning signs. Balance is key.
Looking Ahead to 2026 and Beyond
Putting it all together, the travel theme feels far from over. Lower interest rates could provide additional support by easing consumer and corporate budgets. Combined with the event calendar and ongoing experience prioritization, demand drivers look solid.
For investors comfortable with cyclical exposure, quality names in hotels, airlines, and booking platforms offer interesting potential. Of course, markets can surprise, and broader economic shifts matter. But right now, the weight of evidence leans positive.
Perhaps the most exciting part is that we’re potentially at the early stages of a multi-year expansion in U.S. travel infrastructure and spending. Those positioned ahead of the curve could benefit meaningfully.
As always, do your own homework and consider your personal risk tolerance. But keeping an eye on these developments feels worthwhile as we turn the calendar.
Travel has proven remarkably tough this year, and the setup heading into 2026 looks even brighter. Whether it’s hotels finally breaking out or airlines rewarding shareholders, the sector offers plenty to watch. In a market full of uncertainties, pockets of real strength stand out – and this feels like one of them.
(Note: This article reflects personal observations on market trends and is for informational purposes only. It does not constitute investment advice. Always consult qualified professionals before making financial decisions.)
