Forget the Weak Dollar—These 3 Travel Stocks Are Still Taking Off

Key Points

• Booking Holdings stock continues to outperform as strong summer travel demand and AI-driven pricing power lift earnings and margins.
• Marriott benefits from record RevPAR growth in Asia-Pacific and a robust pipeline of upscale hotels supporting revenue in 2025.
• Royal Caribbean stock surges on record bookings, premium pricing, and major debt reduction that strengthens its balance sheet.

Investors are frequently instructed to never doubt the strength of the consumer. In 2025, there could be an amendment to that statement: Never doubt the consumer, especially when they are determined to travel.

According to the IATA (International Air Transport Association), global air passenger traffic increased 15% year-over-year in the first half of 2025, with Asia-Pacific and Europe posting the strongest growth.

This surge in international travel comes despite the U.S. dollar falling nearly 10%, its worst first-half performance since 1972. A weaker dollar makes international travel more expensive and should put pressure on consumer discretionary stocks.

But the dollar’s weakness is being offset by strong wage growth in the United States. This increase in income, coupled with pent-up demand from for international destinations that weren’t accessible several years ago, is fueling a robust travel market.

As we move into the second half of 2025, these three stocks may offer promising gains for investors looking to capitalize on the enduring appetite for travel.

1. Booking Holdings: AI-Powered Growth Justifies Premium Price Tag

Booking Holdings Inc. (NASDAQ: BKNG) is an expensive stock by most measures. In addition to trading at a price-to-earnings (P/E) ratio above its historical averages, BKNG stock now trades for over $5,600 per share. That turns off some retail investors.

However, the company continues to justify its premium valuation with growth. In its most recent quarter, the company beat earnings expectations by nearly 30%. That underscores Booking Holdings’ pricing power, increasingly driven by artificial intelligence (AI) and reflected in its impressive 86% gross margins.

For skeptics needing more convincing, the second and third quarters are typically Booking’s strongest periods, driven by demand for travel to Asia Pacific and Europe.

With the share price at its current level, some investors are hoping for a stock split. However, management has said there are no plans to take such action and instead focuses on share buybacks.

2. Marriott International: Global Luxury Demand Drives Resilience

One of the key metrics for hotels is RevPAR (Revenue per Available Room). And in the first quarter of 2025, Marriott International Inc. NYSE: MAR reported that its global RevPAR was up approximately 4%, with international (defined as outside of the U.S. and Canada, Marriott’s largest markets) up more than 6%. The growth was particularly strong in Asia Pacific.

While U.S. demand shows signs of moderation, Marriott’s diverse brand portfolio and expansion in luxury and upscale properties allow it to pivot toward less price-sensitive consumers.

MAR stock recently broke above a three-month high and is now trading near its 20-day simple moving average. However, this appears to be driven more by sector-wide momentum and possible end-of-quarter rebalancing than by company-specific catalysts. The next catalyst for the stock is likely to come from its quarterly earnings report on July 30.

3. Royal Caribbean: High-End Cruising and Debt Cuts Fuel a 100%+ Rally

The cruise ship industry is in the middle of an epic, yet predictable, recovery from its lows of 2020 and 2021. Cruise capacity throughout the industry is expanding, and booking volumes continue to set records quarter after quarter.

Royal Caribbean Cruises Ltd. NYSE: RCL is one of the best-performing stocks in the sector. RCL stock is up more than 106% in the last 12 months and over 40% in 2025 alone. The company caters to a higher-end consumer willing to pay premium prices for the cruise line’s newer ships and longer itineraries.

Investors are particularly pleased with Royal Caribbean’s significant debt reduction efforts. In 2024, the company refinanced approximately $3 billion in short-term debt and repaid about $2.1 billion in principal on the strength of its operating cash flow and robust bookings.

Those actions have pushed Royal Caribbean’s debt-to-equity ratio down to 2.21, more than 60% lower than its 2022 peak. It also compares favorably with that of Carnival Corp. NYSE: CCL, which has a debt-to-equity ratio of 2.58.