4 Stocks To Play The Global Travel Boom



Forget austerity. Despite a recession in Europe, a slowdown in China and a U.S. economy that is just muddling through, travel is back in vogue across the globe.

The consumer is opening up his wallet and springing on travel in 2013.

Tui Travel one of the largest European travel companies recently reported bookings were up for the summer even at higher sales prices.

Tui Travel, which sells all-inclusive tour packages, recently told Sky News that its sales for the summer were up 4% over 2012 while bookings in the month of January jumped 2%.

The UK saw a 9% increase in summer bookings despite negative GDP growth last quarter. The Nordic countries also had strong bookings, rising 10%. Germany and France, however, saw demand fall. The company, which is publicly traded in London, guided to the high end of its previous full year 2013 guidance range.

How Should Investors Play The Travel Boom?

There are a bunch of directions investors could go when looking for travel plays. The most obvious is the hotel and resort companies. The airlines and cruise ships are another.

But what about the companies that consumers go to to plan their trips? The Internet has revolutionized travel. Twenty years ago, to plan a trip, you'd have to go to a travel agent with your ideas of your trip and the best you could do was to pick up some brochures.

Now, travelers have the world at their fingertips on the Internet but that has caused its own problems as there is so much information, who has time to sort through it all?

Companies that present the easiest way to search through information are moving to the forefront of the travel industry. Traveling has gone social in a big way. Travelers want to make connections with other travelers and they want deals. Companies that give travelers these two basic things will thrive.

And while you may think that some of these companies have been around a number of years so that there isn't much growth, they are still finding it in the emerging market countries where the middle class is expanding. A growing middle class means more discretionary spending money which should translate into more travel.

4 Companies Cashing In On The Dream Trip

1. TripAdvisor
2. TravelZoo
3. Expedia
4. Priceline.com

TripAdvisor (TRIP)

TripAdvisor is the largest online travel research company in the world. Who doesn't go on it and dream of that dream vacation every once in awhile- especially in the midst of winter's cold and snow?

It offers reviews of hotels, restaurants and attractions around the world. It operates tripadvisor sites in 30 countries as well as China, which operates under the brand daodao.com. In 2012, TripAdvisor was averaging about 60 million unique monthly visitors.

In the third quarter of 2012, TripAdvisor made 79% of its revenue from click-based advertising, 11% from display-based advertising and 10% from subscription.

The company was spun off from Expedia in 2011 and shares have had a rocky ride during that however they recently hit a new all-time high.

For a company trading with a forward P/E of 28, expected earnings growth isn't that great for 2012. But earnings are supposed to ramp up in 2013.

2012 expected earnings growth of 5%
2013 expected earnings growth of 20.3%

TripAdvisor is a Zacks Rank #2 (Buy). It reports first quarter earnings on Feb 13.

TravelZoo (TZOO)

TravelZoo is a particular favorite of travel fans dreaming of that 'too good to pass up' dream trip. Every Wednesday, it blasts out the TravelZoo Top 20 deals to its 26 million subscribers in North America, Europe and Asia Pacific.

TravelZoo has had 1.5 million downloads of its smart phone app. It isn't restricted solely to travel as it also publishes deals on restaurants and entertainment.

On Jan 24, TravelZoo reported its fourth quarter results and it beat the Zacks Consensus by 9%. Revenue rose 5% to $37 million. TravelZoo is the smallest of these four stock picks with a market cap of only $329 million.

The stock soared in 2011 to $100 a share before crashing back to earth. It has traded in a narrow range since.

Shares aren't cheap though. TravelZoo trades with a forward P/E of 17.2. Earnings growth is also expected to be negative in 2013.

2013 expected earnings growth of -7.5%.

TravelZoo is a Zacks Rank #3 (Hold).

Expedia (EXPE)

Expedia is one of the world's largest online travel agents with its Expedia.com brand available in 30 countries. It also operates hotels.com, hotwire.com, Venere and eLong, China's second largest online travel agency.

On Feb 5, the company reported its fourth quarter results and it beat the Zacks Consensus by 2 cents. Revenue rose 24% while gross bookings jumped 19%. Its biggest growth region was Asia-Pacific. International bookings were up 32% in the quarter.

Expedia is not resting on its laurels. It will acquire a 61.6% stake in Germany's trivago, a hotel metasearch company, for $647 million. Its expected to close in the first half of 2013.

The earnings growth is still there.

Expected 2013 earnings growth of 16.4%
Expected 2014 earnings growth of 20.6%

The shares are at two year highs. They're not exactly cheap as Expedia trades at 20x forward estimates. It's a Zacks Rank #3 (Hold).

Priceline.com (PCLN)

Priceline.com is one of the world's largest online travel agents. It operates a bunch of travel sites including Priceline.com, booking.com, agoda.com and rentalcars.com. Most are familiar with Priceline's 'name your price' promotion with William Shatner.

But booking.com has been its key to growth over the last several years. Booking.com is the largest hotel booking site in the world. Headquartered in Europe, and concentrating on the European market, booking.com wasn't launched in the United States until 2008.

The company isn't afraid of acquiring companies to extend its growth. In November 2012, Priceline.com announced it was acquiring airline fare site Kayak for $1.8 billion. It's expected to close in the first quarter of 2013.

Shares have soared over the last few years as growth has surged. Priceline.com is still an aggressive growth story.

Expected 2012 earnings growth: 33%
Expected 2013 earnings growth: 21%

But the secret is out. Like its peers, Priceline.com isn't cheap either. It trades with a forward P/E of 19.3, well above the average of the S&P 500 of 13.5. It's a Zacks Rank #3 (Hold). Priceline.com is scheduled to report fourth quarter 2012 earnings results on Mar 4.

Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec.

EXPEDIA INC (EXPE): Free Stock Analysis Report

PRICELINE.COM (PCLN): Free Stock Analysis Report

TRIPADVISOR INC (TRIP): Free Stock Analysis Report

TRAVELZOO INC (TZOO): Free Stock Analysis Report

Zacks Investment Research

More From Zacks.com


Get stories like this on the Yahoo app and discover more every day.
Download it now.
  • Dollar holds gains on Fed rate hike bets AFP - 14 minutes ago

    The dollar held its ground Wednesday as traders bet on a US rate hike while poor Japanese factory output pressured the yen. Investors have been piling into the greenback since Fed boss Janet Yellen hinted ... … More »

  • Tokyo stocks up by break, led by exporters AFP - 33 minutes ago

    Tokyo stocks rallied Wednesday morning as a weaker yen boosted major exporters, offsetting below-par factory output data that aggravated concerns about Japan's stalled economy. Toyota and Nissan led the ... … More »

  • Dim Sum Market Spurned by Companies After Yuan Devaluation (2) Bloomberg - 45 minutes ago

    There were only three corporate issuances of yuan debt in the offshore market this year, down from a record 73 two years ago, data compiled by Bloomberg show. Overall sales tumbled 49 percent to 118.1 billion yuan ($17.7 billion), with almost all … More »

  • Yuan Heads for Monthly Drop as Fed Outlook Renews Bearish Bets Bloomberg - 52 minutes ago

    The yuan traded in Hong Kong, which is outside of the mainland’s capital controls, fell 0.9 percent this month to trade at 6.6896 a dollar as of 11:28 a.m. local time on Wednesday. While China has hastened steps to open its onshore market, the … More »

  • Asian stocks mixed ahead of US jobs data
    Asian stocks mixed ahead of US jobs data Associated Press - 54 minutes ago

    Asian stocks were mixed in listless trading Wednesday ahead of key jobs data later this week in the U.S. that could lead to higher interest rates. KEEPING SCORE: Japan's benchmark Nikkei 225 gained 0.8 ... … More »

  • BELOW $1 MILLION: 999-year-leasehold apartment near Whampoa
    BELOW $1 MILLION: 999-year-leasehold apartment near Whampoa The Edge Property - 1 hour 11 minutes ago

    A one-bedroom-plus-study, 797 sq ft unit at Vetro is looking for buyers on TheEdgeProperty.com at $800,000, or $1,004 psf.Vetro is a 999-year-leasehold apartment located at Mar Thoma Road. The 32-unit development was completed in 2010. Schools … More »

  • China’s Top Steel Mills Warn on Outlook After Profit Rebound (2) Bloomberg - 1 hour 14 minutes ago

    China’s biggest mills including Hesteel Co. Ltd. are warning that the improved conditions and rising prices in the first half that helped them to lift earnings may soon be about to give way. “Industry prospects are not optimistic,” Hesteel, the … More »

  • Asia markets mostly down but Tokyo soars on weak yen
    Asia markets mostly down but Tokyo soars on weak yen AFP News - 1 hour 17 minutes ago

    Tokyo stocks resumed a rally on Wednesday as the yen fell against the dollar on US interest rate talk but most other Asian markets struggled as investors were spooked by the prospects of higher borrowing costs in the world's top economy. Dollar … More »

  • China Stock Traders Bet $305 Million on Military Tensions (1) Bloomberg - 1 hour 21 minutes ago

    The ETF creators are seeking to capitalize on escalating geopolitical tensions, with an international tribunal ruling in July that China’s efforts to assert control over the South China Sea exceeded the law and South Korea agreeing to allow the U.S. … More »

  • 'Principal architect' of IS attacks on West killed in Syria
    'Principal architect' of IS attacks on West killed in Syria AFP News - 1 hour 32 minutes ago

    One of the Islamic State's top leaders, Abu Mohamed al-Adnani, described by the US as the "principal architect" of the group's attacks on the West, has been killed in Syria, the jihadist organisation announced. The truce was announced separately by … More »

  • EU ruling on Apple stirs calls for U.S. tax reform
    EU ruling on Apple stirs calls for U.S. tax reform Reuters - 1 hour 35 minutes ago

    A European Commission order requiring Apple Inc to pay Ireland $13 billion euros (11.07 billion pounds) in unpaid taxes on Tuesday drew swift rebukes from the Obama administration and lawmakers in Congress, while reigniting calls for U.S. tax … More »

  • Exclusive: SWIFT discloses more cyber thefts, pressures banks on security
    Exclusive: SWIFT discloses more cyber thefts, pressures banks on security Reuters - 1 hour 39 minutes ago

    In a private letter to clients, SWIFT said that new cyber-theft attempts - some of them successful - have surfaced since June, when it last updated customers on a string of attacks discovered after the attack on the Bangladesh central bank. The … More »

  • Gold near two-month lows on rate hike worries
    Gold near two-month lows on rate hike worries Reuters - 1 hour 47 minutes ago

    * Spot gold was little changed at $1,310.48 per ounce at 0104 GMT. * U.S. gold futures slipped 0.2 percent to $1,313.90. * Fed Chair Janet Yellen said on Friday the case for higher rates was strengthening, though she gave little clarity on the … More »

  • Singapore bank lending rises in July Reuters - 1 hour 48 minutes ago

    Singapore' total bank lending rose in July from the previous month, helped by increases in general commerce loans and lending to financial institutions, central bank data showed on Wednesday. Loans and advances by domestic banks in the city-state … More »

  • Apple to fight record EU tax bill
    Apple to fight record EU tax bill AFP News - 1 hour 56 minutes ago

    Silicon Valley tech titan Apple will fight an EU demand for a record 13 billion euros in back taxes in Ireland, a move Washington warned could damage transatlantic economic ties. Brussels said Apple, the world's most valuable company, avoided … More »

  • China H Shares Set for World’s Best Monthly Gain as Profits Beat Bloomberg - 1 hour 57 minutes ago

    The Hang Seng China Enterprises Index is up 7 percent in August, the most among 94 benchmark equity gauges tracked by Bloomberg. Banks and insurers have led the the advance, with Industrial & Commercial Bank of China Ltd. surging 14 percent, while … More »

  • Japan factory output disappoints in July
    Japan factory output disappoints in July AFP News - 2 hours 16 minutes ago

    A drop in household spending, weak exports, and disappointing inflation figures have dealt a blow to Japan's war on deflation, which will heap fresh pressure on the Bank of Japan to unleash another wave of growth-boosting stimulus. Shipments, … More »

  • Tokyo stocks open higher as weaker yen offsets Wall Street loss AFP - 2 hours 50 minutes ago

    Tokyo stocks rallied in opening trade on Wednesday as a weaker yen offset more disappointing economic data and a lacklustre lead from Wall Street. Wednesday's session started with strong gains as investors ... … More »

  • Oil prices dip on stronger dollar; rise in U.S. crude stocks data
    Oil prices dip on stronger dollar; rise in U.S. crude stocks data Reuters - 3 hours ago

    Crude oil futures fell in early trade on Wednesday as the U.S. dollar held around three-week highs and industry stocks data indicated a build in U.S. crude inventories. International Brent crude oil futures (LCOc1) were trading at $48.27 (36.9025 … More »

  • 10 Awesome Things To Do With Your Kids In Singapore
    10 Awesome Things To Do With Your Kids In Singapore GET.com - 3 hours ago

    Looking to make the most of your weekends with your children? There are loads of places in... … More »

  • Asian shares ease, taking cue from Wall Street, oil slips Reuters - 3 hours ago

    Asian shares eased on Wednesday following modest losses on Wall Street, but were still on track for a monthly rise as investors waited to see if upcoming job data could prod the Federal Reserve into raising interest rates as soon as September. … More »

  • Kuroda Helicopter Money Denials Fail to Stop Theories Rising (1) Bloomberg - 3 hours ago

    From Japan-based economists to global investors including Templeton Emerging Markets Group Executive Chairman Mark Mobius, there’s a reluctance to rule out the controversial policy coming as soon as next month amid the monetary authority’s struggles … More »

  • Shell's U.S. deal to unlock global oil asset disposals
    Shell's U.S. deal to unlock global oil asset disposals Reuters - 3 hours ago

    Royal Dutch Shell's first oil field sale after its $54 billion (41.25 billion pounds) BG Group acquisition bodes well for its disposal talks in the North Sea, Gabon and New Zealand, according to sources, signalling buyers will meet its expectations … More »

  • Asia Stocks Rise as Japan’s Topix Rallies Amid Stronger Dollar Bloomberg - 4 hours ago

    The MSCI Asia Pacific Index climbed 0.3 percent to 138.40 as of 9:14 a.m. in Tokyo. The currency fell for five straight days through Tuesday, its longest such streak since March, on mounting speculation the Federal Reserve will raise interest … More »

  • Japanese Shares Headed for August Gain as Yen Drops on Fed Bets Bloomberg - 4 hours ago

    Banks and carmakers led gains on the Topix index as of 9:04 a.m. in Tokyo, putting the measure on course for a 0.1 percent advance in August, while the yen fell 0.8 percent against the dollar this month. Fed’s Vice Chairman Stanley Fischer said on … More »

Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
to view quotes in your portfolios.


  • Most Actives
    Most Actives
    NamePriceChange% Chg
  • % Gainers
    % Gainers
    NamePriceChange% Chg
  • % Losers
    % Losers
    NamePriceChange% Chg

Market Data

  • Currencies
    NamePriceChange% Chg
  • Commodities
    NamePriceChange% Chg
  • Bonds
    TreasuryYield (%)Yield Change