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EEven after the economy reopens after the pandemic, the travel and tourism industry is still active as consumers return to more normal routines. Any news about new coronavirus variants can cause stocks to go off the rails for fear it will derail any momentum they’ve built.

While it is premature to give the clear signal, there is good reason to believe that 2022 and beyond will present much better opportunities for the industry. The following trio of companies represent some of the best chances to capitalize on an industry that is still dejected but poised to expand.

Image source: Getty Images.

Norwegian Cruise Lines

The cruise industry was arguably the hardest hit by the pandemic, as ships were banned from sailing long after the rest of the economy reopened. And when ships were cleared to return to sea, it was at a significantly reduced capacity than before.

To survive the crisis, cruise ship operators have had to take on massive debt. Norwegian Cruise Line (NYSE: NCLH) saw its long-term debt soar from $ 6.8 billion to over $ 11.7 billion by the end of 2020, and its financial report last month showed it was worth more than $ 12, $ 4 billion at the end of September. He recently said he would add almost another billion dollars in total.

While the navigation may not be smooth, Norwegian is doing better than it has been, even before the pandemic. Some 40% of its total capacity is back in the water, which represents 11 ships of the Norwegian, Oceania and Regent Seven Seas brands. It also notes that its cumulative reserved position for 2022 is in line with what it experienced in 2019, which was a banner year for the cruise line. And it gets high bookings at higher prices, even taking into account the impact of the credits it gives passengers for cruises that were canceled during the pandemic.

Although Norwegian stock is down 64% from what it was before the crisis, it has more than doubled from the lows it hit immediately after the crisis. Wall Street expecting the cruise ship to hit 2019 revenue parity next year, then grow 35% over the next two years, Norwegian Cruise Lines looks like an investment in the form of a ship.

Smiling child with glowing lights in the background.

Image source: Getty Images.


Being diverse is usually a sign of strength in that it offers protection when you downturn. But it wasn’t a shield for Disney (NYSE: DIS), which has seen virtually all of its operations affected by the near complete shutdowns of nearly all of the world’s economies.

Its theme parks were closed, theaters went dark, and stores were closed, all of which led to a drop in advertising because consumers were not shopping. And yes, his cruise ships were also banned from navigation.

The only bright spot was Disney +, the streaming service launched just before the pandemic, which broke all kinds of subscriber records as people forced to stay at home signed up in droves.

While it still operates under COVID-related restrictions that prevent a full recovery, that will change. As the crisis recedes further into the rearview mirror, the synergies of its distant operations that make Disney a juggernaut will once again be fully highlighted.

Disney theme parks are profitable again, they are making movies again and its other media components are back on the right track. As characters inspire toys, theme park rides, and spin-off TV shows, the power of the Disney brand will come to the fore again.

Disney shares are down 18% in 2021, but the revenue drivers are expected to spring to life, nearly doubling to $ 122 billion in five years, leading to a tripling of earnings. It is a destination for investors looking to capitalize on a recovery.

Family loading luggage into a vehicle.

Image source: Getty Images.


Airbnb (NASDAQ: ABNB) has a simple business model of connecting people who want to get away on a short-term vacation with people who have accommodation they are willing to rent. Its stays tend to be cheaper and more convenient than those at traditional hotels, and its recent findings show that the pandemic has not permanently shaken consumer demand for these rentals.

Travel began to rebound in earnest earlier this year, allowing Airbnb to post a record third quarter, with 1 billion global traveler arrivals. It ended 2020 with around 5.6 million registrations and the number of active registrations has increased quarterly this year. And there is still plenty of room to grow.

Although there are over 130 million households in the United States, there are as many as 1 billion worldwide, and given that short-term residential travel accommodation is still an industry in the near future. In its infancy, Airbnb has the brand to capture an even greater share of the market.

And now Airbnb is also branching out into rentals for longer stays, which offers a whole new avenue of growth.

Analysts expect revenue to grow from $ 5.9 billion this year to over $ 13.6 billion in 2025, representing a compound annual growth rate of 23%. While the market has incorporated much of this opportunity into the stock, stocks are down 25% from their recent highs, although management expects growth to accelerate in the fourth quarter.

Its lean asset business model keeps overheads low and profit margins high, and Airbnb is one travel and tourism stock that investors will want to check out.

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Rich Duprey has no position in the stocks mentioned. The Motley Fool owns and recommends Airbnb, Inc. and Walt Disney. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.