Best Tourism Stocks To Consider Buying In 2021
Are you looking to invest in tourism stocks that are on the brink of shining once again as we move further into 2021?
Take a look as we have chosen 8 standout tourism stocks that have a lot of potential to offer you as we move closer to be able to travel the world once again.
The Top 8 Tourism Stocks For You to Consider in 2021:
So let's take a look at 8 of the top tourism stocks across various markets to look to be a part of in 2021.
1. EasyJet
2. Walt Disney
3. Airbnb Inc
6. InterContinental Hotels Group
You can buy all of these top stocks, as well as many others, at eToro and pay 0% fees!
Tourism Stocks For 2021
The tourism industry has taken a beating, to say the least in 2020.
Across the world hotels, theme parks, Airbnb’s, holiday resorts, the aviation industry and many more, have all mostly come to a stretching halt as the coronavirus infection took over and still continues to dominate.
As the UK is currently within its third national lockdown period, along with other countries having imposed curfews and limited travel restrictions. This is a huge impact on the $9 trillion global industry.
To show you how big this industry is within the UK, it has been forecast that the tourism industry in Britain will be set to reach £257 billion by 2025, creating around 3.8 million jobs which makes up around 11% of the total number of jobs within the UK.
It is amazing just how big the travel and tourism industry is and how much globally, we all rely on this powerful force of an industry when it is taken away from us.
With the global major vaccination operation underway, this brings positive hopes for many industries and the tourism industry is one big industry along with the aviation and hospitality sectors. All of who have arguably been the hardest hit industries across the globe.
In recent days, tourism stocks across various markets have seen a surge in their share prices. As the closer we become to lifting restriction measurements across the globe, people are going to be wasting no time at all in order to hit the skies and book holidays or short-getaways for mid-late 2021.
On the same note, with the likes of the online travel agency Booking.com, you can look to book and secure deals without any prepayment needed and with a free cancellation policy.
This enables individuals to book in advance with hopes of just booking last minute flights once they have been given the all-clear to travel.
Although it is taking time to return to the new normal, to which is going slower than expected, positive hopes and time is what is leaving investors to look or jump into these stocks. As for when the day comes when the world can operate more normally, will see them rise once again.
Additionally, these stocks share prices at relatively good prices is a huge benefit for investors, as they will most certainly see these stocks perform and grow well in the year and the coming years.
Top 8 Tourism Stocks to Consider Buying in 2021!
Here is our list of 8 of the top tourism shares spread across various industries and countries:
1. EasyJet plc (EZJ)
The first name to come on the list of the top tourism stocks is the British airline company EasyJet.
This stock has witnessed its share price increase over recent weeks as investors are optimistic that once the enrollment of the vaccinations has progressed further, this will see travel corridors open and the aviation and tourism industry start lifting off the ground.
Not only has its share price driven upwards, in a statement recently Chief Executive Johan Lundgren, expressed his confidence in the industry once the current restrictions are lifted.
It was confirmed that easyJet has seen a huge surge in summer bookings already in comparison to 2020, having surged by a huge amount of 250% with May being the most popular month for travellers looking to take off.
EasyJet holidays is a relatively new sector for the brand as it came into play towards the end of 2019 and from then on, it has not really had a clear opportunity until now to excel, as 2020 was taken over by Covid-19.
This figure is a huge indication of just how in-demand the travel and tourism industry is at the moment and as time goes on, we are sure it will increase further.
The company's strategic plans moving forward are set firmly on delivering the best for consumers along with focusing on the company's balance sheet, improving their cost position and maximising their revenue with their strong network.
Analysts are giving the British airline company a growth earnings forecast of 77.76% per year as we move forward.
With a current consensus rating of ‘Hold’ based on 10 analyst predictions who are covering the firm.
The company's share price, as stated, has grown over the recent weeks and as it stands, writing this report sits at 846.80p continuing its rise upwards.
The company currently has a 52-week range of 470.70 at its lowest and 1,552,00 at its highest.
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2. Walt Disney Co (DIS)
Walt Disney Co is a brand which arguably everyone on this planet knows very well. Not just for its theme parks but it has its feet firming in cruise line operations too, along with other avenues of course.
All the Disney parks across the globe draw in impressive revenue results every year, with Florida being the biggest earner as it is the largest out of all six of its Disneyland parks.
Before the coronavirus pandemic in 2020, this tourism avenue was bringing in tremendous results, until it all came crashing down as the brand had to halt cruise liners to come to a standstill and the closures of all Disneyland parks across the globe.
As of today, Disneyland Paris has been ordered to delay reopening for a further two months, which is now set to reopen in the second week in February.
Whilst other Disneyland resorts are open but following Covid-19 safety measures set to keep the spread of the virus at bay and to which still bring in some revenue and enjoyment to individuals.
Disney’s cruise liners are still suspended until further notice.
In the company's Q4 results the Disney parks, Experiences and Products revenues were down by a total of 61% to $2.6 billion, along with segment operating results declining from $2.5 billion to a loss of $1.1 million. These results were a solid and direct result of what the Coronavirus pandemic has brought on the company.
Whilst it may take some time for the Disney parks to be back to full capacity and its cruise operations to reach highs and be able to operate fully, Disney may need to carry on further relying on their other avenues. Including one impressive avenue, Disney+.
Disney+ which had a revenue of $1.94 billion at the end of 2020 with over 73 million subscribers as of the end of Q4, is set to potentially archive $4 billion in the USA alone by 2022.
Disney has a share price today of 172.54p with a 52-week 82.72 at its lowest and 182.38.
With forecast revenue earnings to grow by 45.81% per year moving forward.
Even though Walt Disney has a consensus Zacks Rank #4 ‘Sell’ rating, we believe now may actually be an opportune time to consider either holding or looking at this tourism stock, as it is only a matter of time before we are hopeful of coming back to normality.
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3. Airbnb Inc (ABNB)
Airbnb is arguably one the most talked about and most attractive tourism stocks on the market today.
As we look to be able to jet set around the world again shortly, ABNB has proven that it is actually more popular than hotel chains around the world.
The American vacation rental company offers ease, simplicity and most importantly affordability for accommodation all across the globe for individuals to relish and enjoy.
This unique service which ABNB offers has been extremely popular, even amongst the Covid-19 pandemic, enabling people to be able to have short-term rentals for a relatively more affordable price as opposed to staying in a hotel whilst they had to see longer stays due to lockdown measures.
Because this stock was able to operate in some form during the pandemic, in the company's Q3 trading update report ABNB still generated a profit of $219 million. Although its revenue fell by 19% this was to be expected given the world events.
As we look to the future, Airbnb will be popular there is no denying and it will pull in great revenue results in no time at all we expect.
As of the company's share price, some may say that this stock is priced highly. However, in terms of this company's future growth potential, it may not actually look to be that high as they may initially believe.
The company's share price stands 168.83p with a 52-week range of 121.50 at its lowest and 187.42 at its highest.
As it stands currently it is yet to be profitable, but this we believe will only be a temporary position as the world moves forward following on from the global vaccination enrolment.
The company has an earnings growth revenue forecast of 24.71% per year moving forward.
With a Zacks Rank #3 ‘Hold’ rating for the stock with a grade B score for Growth potential.
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4. Bookings Holdings Inc (BKNG)
Arguably one of the most popular online travel agents on the market today, Booking.com is a tourism stock that could deliver in 2021 and the coming years.
The future is looking strong for this stock as it continues to offer many advantages when looking to plan your perfect getaway. Whether it is a weekend of a longer period from all over the world, booking.com can accommodate your needs.
Making a booking on the Booking.com website or app, has a unique added advantage of offering a free cancellation policy, with some policies applying the same day you are due to arrive.
This stand out feature is one big feature that attracts consumers to operate through this leading brand.
Along with hotel, apartment and house bookings, booking.com also offers much more including operating car rentals through Rentalcars.com.
There is no wonder with such strong avenues, dispute the Covid-19 pandemic the stock gained 5.4%.
Today the company’s share price sits at 2,131,87 with a 52-week range between 1,107,29 being the lowest and 2,290,04 being its highest.
Analysts have given a consensus ‘Hold’ rating for the stock given by 37 analysts who are covering this stock.
As the steps closer are being made to edge closer to normality, people are already one step ahead as they continue to utilise booking.com’s unique cancellation feature to forward book holidays this year.
Booking.com stock could rise for years to come, which is set to be a good long-term investment to have in your stock collection.
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5. Royal Caribbean Cruise Ltd (RCL)
Royal Caribbean cruise lines is a stock to keep an eye on leading into the year, as realistically we can see cruise ships sailing the seas more frequently in 2022.
Cruises are very popular and seem to be even more popular amongst the older generation, but having said that, more and more of the younger generation who are looking for a trip that includes a little bit of everything, are jumping on this avenue.
Due to the coronavirus pandemic, RCL took a big hit at the start of the year which ended up hitting a loss of 44% at the end of the year.
But the future outlook is looking very optimistic for this sailing stock as it has been reported that the company's profits could hit around $1.5 billion per year, assuming that the world goes back to normal or the ‘new normal’ post-Covid-19.
In recent news Royal Caribbean is set on their plan of selling Azamara Line for $201 million, this will then add more cash to the company as it continues to await its return.
Considering this stock's potential the current share price is at 74.29p with a 52-week range of 19.25 at its lowest and 133.35 at its highest.
As its earnings have been forecast to grow by a whopping 85.05% per year.
Royal Caribbean stock is certainly a tourism stock to consider in 2021.
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6. InterContinental Hotels Group Plc (IHG)
InterContinental Hotels Group plc is a British multinational hospitality company who manages, owns, leases and franchises hotels across the globe.
IHG owns some of the most known hotel brands including Holiday Inn Express, InterContinental, Kimpton Hotels and Resorts, Crowne Plaza and more.
But the British company does not just operate hotels, the company also operate resorts, restaurants and much more.
The company reported declining results naturally, in the companies Q3 report as lockdown measures impacted heavily across the globe. The Group revenue was down by 52.3% however, other avenues continued to fare well including the opening of 82 hotels. In regards to the company's cash flow, this was positive as it increased to $2.1 billion.
With so many people gearing up to have a well deserved holiday, hopefully, this year this brand is looking like it is ready to gain good momentum and growth as we look to the long-term.
In fact, IHG has been forecast to see ‘Huge Growth’ by 2026 along with other hotel chains, Market Insight reported.
Along with Market Insights’s predicted forecast, further analysts have also given the brand a growth revenue forecast of 87.54% per year as they see this brand excelling well as the current together restrictions look set to lift.
The company's share price today is 4,858,00 is slightly up from the day prior, with a 52-week range between 2,385,50 and 5,121,00 at its highest.
InterContinental Hotels Group has had a lot of attention over recent months and stock experts think that this tourism stock is one in which to keep an eye on for 2021 as the world slowly opens up.
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7. Uber Technologies Inc (UBER)
The American Ridesharing company who is also much more is on to a good start going into 2021.
The company's shares are already up by around 16% as we sit in the third week in January, as investors who were not a part of this stock have vastly become a part of the growing stock. Whilst its current shareholders sit in a positive position within the stock.
This company benefits hugely from tourism as no matter where you go in the world, there will be Uber operations running no doubt. This is an easy avenue as you can stay on your current app whilst it updates your location settings.
Along with tourism, locals who are regular users of the Uber firm have not used this company to travel much over the past year. This could be for a mixture of reasons including that they are scared or simply that they have nowhere to go as the world sits with tighter restrictions.
The company’s Uber eats business has been on hand to help through this challenging period, as the automotive side of the business hits trouble, food delivery services have picked up the pace over the years.
This stock is very popular with the younger generation as it offers ease along with time efficiency in both departments.
There is no wonder and no doubt as to why investors are jumping on this stock more so in recent times and as we lead further into 2021.
The company's share price today is 55.69 and holds a 52-week range between 13.71 at its lowest and 59.08 at its highest.
What does the future hold for this stock?
Well as we have explained this stock is not going to go anywhere soon, if anything we believe it will continue or furthermore become even more popular as the years unfold.
As Uber's share price target has increased to $70.00, thirty-seven analysts have also given the stock a consensus ‘Buy’ rating to confirm which way they see this stock moving forward in all areas.
Uber Technology’s revenue has been forecast to grow by 22.26% per year.
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8. Expedia Group Inc (EXPE)
The last tourism stock to be named on the list as one to watch in 2021 is Expedia Group Inc.
The American online travel company is popular with consumers and investors alike, even though it has even been considered as overvalued by analysts in recent days. Alongside, the stock has been given an increased price target which has risen to $175.00 by analysts.
Deemed to have been one of the best recovery stocks along the second half of 2020, Expedia Group did have its challenges as it was hit hard at the start of the year with the Covid-19 pandemic.
But the operation of cutting costs and regenerating the stock was on the companies list of tasks to undertake. Looking at getting back on track is a huge reason as to this stock's increasing demand over the last couple of months as the travel-sector looks to return within the coming months, all being well.
To give you an idea of the company's future plans they are aiming to use the company's 2019 performance to look ahead, if this is to go by will see the company's operating income soar to a new level as the company's operating revenue hit $903 million in 2019.
The company's share price today is 107.22 with a 52-week range of between 40.76 at its lowest and 147.55 at its highest.
An earnings forecast has been set for the company to grow by 68.95% per year.
Could this stock look at becoming the best online travel company in the world? Only time will tell.
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Summary
These top 8 tourism stocks are looking like good additions as we look to the future.
These stocks offer fantastic growth potential along with being good long-term investments which have good value leading into 2021 and realistically setting up nicely for 2022 and beyond.
Although these stocks do pose their own risk elements, it is advised to conduct further research before investing.
So now maybe the time to look at exploring into tourism stocks as they get ready to set sail once again.
How To Invest In The Best Tourism Stocks?
Now we have discovered 8 of some of the best potential tourism stocks looking set to have a positive outlook once the world is able to operate normally, now it's time to learn how you can look to invest in them.
Investing in any stocks across various markets has never been so quick and easy.
Following and sticking to the right guidance, along with not picking up any ‘Tip-Offs’ along the way is also wisely advised.
The first step you will need to undertake is to look for a broker or the best online trading platform that suits and meets all of your investing needs.
There are many online trading platforms and brokers on the market today but upon choosing it's wise to make sure that your chosen broker or platform is licensed to trade.
You will see on the companies trading website if it holds the regulated licences it needs to operate as it will be displayed on the companies homepage along with a trusted broker, whose license may not be visible online, if not you can confirm before selecting.
Once you have a broker and or a trading account in mind, you are ready to begin and start your journey into trading stocks.
If it is international stocks that you are also wishing to invest in, this is another vital point where research comes in handy is to make sure that your broker is licensed to operate within International markets.
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Key Takeaways
- The tourism industry is a huge sector and is worth roughly $9 Trillion to date.
- 8 Top tourism stocks are set nicely to potentially perform as this year and 2022 sees us hopefully into the new normal.
- The tourism industry in normal times, is definitely an industry in demand.
- Some of these tourism stocks share prices are already on the up and others are sitting nicely and relatively cheap considering their potential for growth in the years and many more years to come.
- According to stock experts, Tourism stocks are good long-term investments.
- Conducting additional research into your chosen tourism stocks is always advised before you look to invest.
- Investing wisely and smartly is always advised as well as investing within your financial means.
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