3 skipped travel stocks will return in 2024

Skipped Travel Stocks - 3 Skipped Travel Stocks will return in 2024

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The travel industry is reviving in 2024, making it a great time to consider major overlooked travel stocks to buy. Subdued demand, relaxed travel restrictions and a new sense of wanderlust are driving a surge in bookings.

While airlines are often the first stocks that come to mind for travel investors, this resurgence extends far beyond traditional carriers. These companies represent different aspects of the travel experience, offering investors a diversified approach to capitalizing on the travel boom. With interest rate cuts on the horizon, these travel stocks are set for a massive comeback.

Now, let’s unpack the top three overlooked travel stocks to buy now!

Holdings Reserves (BKNG)

a person opens Booking.com on a smartphone

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Reservations Holdings (NASDAQ:BKNG) is a giant in the global travel industry, owning well-known brands such as Booking.com, Price line, Kayak AND Agoda. This diverse portfolio allows Booking Holdings to capture travelers across different price points and booking preferences.

One of the main competitive advantages of Booking Holdings is its wide gap and powerful digital platform. The company has invested heavily in technology, including its large database of customer reviews. This has created a user-friendly experience, translating into higher customer satisfaction and repeat bookings. Additionally, Booking Holdings’ vast amount of customer data allows for targeted marketing campaigns, maximizing its reach for its various brands.

Over the past 3 years, the company has experienced average revenue growth of 47%, and its EPS and FCF have grown significantly. In FY23, gross travel bookings grew 24% year-on-year (YOY) to $150.6 billion. Net income rose 40%, or $117.40 per share. The company reached an impressive milestone in fiscal year 2023 with more than 1 billion rooms booked on its platforms. Management remains confident in the long-term headwinds in the travel and leisure sector, making Booking Holdings a no-brainer travel stock to buy.

Airbnb (ABNB)

Airbnb (ABNB) logo on available phone screen image.

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Airbnb (NASDAQ:ABNB) has revolutionized the lodging industry, offering travelers unique and often budget-friendly travel options. The company has thrived since the 2020 COVID pandemic and is set to benefit from increased travel demand in 2024.

Airbnb’s peer-to-peer model allows its hosts to monetize their space, offering a unique experience and a diverse range of properties. Diversity sets Airbnb apart from the traditional hotel industry, creating an entirely new segment of travel. Additionally, Airbnb continues to use the most up-to-date technology to improve guest communications and bookings. Its unique offerings perfectly fit the trends of travelers seeking more personalized and on-site experiences.

Fiscal year 2023 was a transformative year for the company, with its hosting community surpassing 5 million users. Revenue grew 18% year over year to $9.92 billion, with active listings exceeding 7.7 million. Additionally, Airbnb is creating a powerful AI strategy with it GamePlanner.AI appropriation. The company is already using LLMs and machine learning to help improve the customer experience. This makes Airbnb one of the most overlooked travel stocks to buy in 2024.

Uber Technologies (UBER)

Uber sign on its headquarters building in San Francisco, California, USA - June 6, 2023. Uber Technologies is a transportation conglomerate.

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Uber Technologies (NYSE:UBER), known primarily for its travel service, is emerging as a major player in the broader travel industry. Beyond connecting passengers with rides, Uber offers services like grocery delivery, bike rentals and microtransit options.

Uber currently operates in 72 countries and more than 10,000 cities worldwide. The company has fully diversified its offerings to include other services such as Uber Eats and Uber Freight. This has opened up new revenue opportunities and further enhanced its mission to drive shareholder value and profitability. Moreover, the company may have reached a key inflection point in 2023 as they instill confidence in shareholders about the company’s long-term growth prospects.

In FY23, Uber’s audience grew even more, with the platform averaging nearly 26 million daily trips. Gross bookings remained strong, up 19% year over year to $137 billion. Additionally, EPS shifted from negative to positive, with FCF skyrocketing 762% YoY to $3.36 billion. The company continues to invest in new growth opportunities while trying to adequately manage its Capex. As travelers become more comfortable relying on app-based services for transportation, Uber stands to be one of the biggest beneficiaries.

As of the date of publication, Terel Miles did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publication guidelines.

Terel Miles is a contributing writer at InvestorPlace.com with more than seven years of experience investing in the financial markets.

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