The global travel industry has firmly entered an expansion phase following its post-pandemic recovery. International tourism receipts surpassed US$1.7 trillion in 2025, exceeding pre-COVID levels, while global tourist arrivals fully normalized. Industry forecasts now call for annual growth of roughly 6–8% through 2026, supported by rising disposable incomes, easing inflation, and improving airline capacity.
Canada’s travel sector has mirrored this momentum. Domestic and inbound tourism spending topped $110 billion in 2024, exceeding 2019 levels, and is projected to grow at a 4–6% annual rate through 2026 as international visitation improves and Canadians increase outbound travel. Airlines, hotels, rail operators, and travel services companies are benefiting from higher occupancy rates, stronger pricing power, and expanding margins.
Globally, the economic impact of travel remains substantial. The World Travel & Tourism Council estimates the sector will contribute over US$11 trillion to global GDP, with gross travel bookings expected to rise from US$1.7 trillion in 2025 to nearly US$1.8 trillion in 2026, reflecting steady mid-single-digit growth. Key trends include sustained demand for experiential and premium travel, wider adoption of travel technology, and easing cost pressures as labor and fuel markets normalize.
For investors, these growth rates highlight why travel stocks are once again attracting attention. Below, we break down the top Canadian travel stocks to watch in 2026 and what makes them compelling opportunities.
What are travel stocks?
Travel stocks are a widely diverse bunch. They touch on every aspect of tourism and travel, from hotels and airlines to booking companies and amusement parks.
They can be tech companies, like Airbnb, or hotel chains, like Marriott International. However different they seem, travel companies unite in that they sell experiences.
And those experiences are immensely profitable. The global travel and tourism sector is one of the world’s largest sectors. In 2023, the industry’s contribution to the global GDP reached approximately $9.9 trillion, accounting for 9.1% of the global economy.
Top travel stocks
Because travel stocks are so widely varied, it can be difficult to pick the best ones for your portfolio. So one thing to note: because travel stocks come from different market sectors, it’s not helpful to compare their valuation metrics. For example, you wouldn’t want to compare Air Canada’s price-to-earnings (P/E) ratio with the P/E of Airbnb, as the average P/E ratio for airlines is different from tech companies.
That said, here are a few solid front-runners in the travel industry, as well as two Canadian growth travel stocks that are worth watching.
| Travel Stock | Description |
| Airbnb (NASDAQ:ABNB) | Hospitality app that allows travelers to rent spaces from property owners across the world. |
| Booking Holdings (NASDAQ:BKNG) | World leader in online booking services. |
| Air Canada (TSX:AC) | Canada’s biggest airline service, serving around 50 million passengers annually. |
| American Hotel Income Properties REIT (TSX:HOT.UN) | American hotel REIT that develops and manages luxury hotels. |
| Transat A.T. Inc. (TSX:TRZ) | Canada-based tour operator headquartered in Montreal. |
1. Airbnb
Airbnb is a tech stock that has revolutionized the tourism industry. In the past, travellers had limited accommodation options, which often restricted where they could go. Airbnb has built a vast network of home stays that allows travellers to go where no hotel has gone before.
In 2025, Airbnb continued to deliver solid growth and strong profitability. Revenue reached about US$2.3 billion in Q1 (+6% YoY), US$3.1 billion in Q2 (+13%), and US$4.1 billion in Q3 (+10%), reflecting resilient global travel demand. Net income totaled roughly US$154 million in Q1, US$642 million in Q2, and US$1.4 billion in Q3, with net margins remaining in the low-to-mid 30% range. Free cash flow exceeded US$4 billion on a trailing 12-month basis, allowing Airbnb to continue sizable share buybacks while maintaining a strong balance sheet.
Airbnb’s success rides on the fact its brand goes beyond “travel-as-vacation” to embrace “travel-as-a-lifestyle.” In this way, travellers with remote jobs can book experiences through Airbnb, combining work and travel with greater ease than we’ve ever seen before.
This work/culture combination will likely help this company grow tremendously, especially as more people seek out work remote lifestyles.
2. Booking Holdings
Booking Holdings is a massive digital travel agency that owns numerous iconic travel sites, such as:
- Booking.com
- Priceline.com
- Kayak.com
- Rentalcars.com
Over the years, Booking Holdings has built an empire in the online booking sector, where travellers can do everything from buying plane tickets to booking hotels to renting cards in a seamless experience.
In 2025, Booking Holdings continued its strong growth trend. In Q1, revenue increased about 8% to US$4.8 billion with gross bookings up 7% and adjusted EBITDA rising over 20% as room nights grew 7% year-over-year. Q2 saw revenue climb 16% to US$6.8 billion and gross bookings rise 13%, while adjusted EPS jumped roughly 32%, though GAAP net income declined amid currency and cost pressures. In Q3 2025, the company posted US$9.0 billion in revenue, up around 13%, with gross bookings near US$49.7 billion (+14%) and adjusted EPS up nearly 19%, reflecting continued strong travel demand and operational execution across its global platforms.
With Booking Holding, one thing to watch for is scale. The company has grown extremely large, and it’s not exactly clear how it can continue to scale upward, especially with other competitors, like Airbnb, now dominating the space.
Even so, Booking Holdings remains a world leader in the travel space, one that could be a good investment.
3. Air Canada
Air Canada (TSX:AC) is Canada’s leading commercial air carrier, as well as the owner of Canada’s most popular travel rewards program, Aeroplan. Before the COVID-19 pandemic, Air Canada was flying around 50 million passengers a year, and in 2019 it even brought in $19 billion in revenue.
In 2025, Air Canada delivered stable revenues but softer margins amid operational and labor pressures. Revenue remained broadly flat in the first half of the year before dipping modestly in Q3, while adjusted EBITDA stayed near C$900–960 million in peak quarters, reflecting resilient demand. Operating income declined year over year, but the airline maintained positive free cash flow overall and reported net income of C$264 million in Q3. Management continued emphasizing cost control, capacity optimization, and capital returns, including a C$500 million share buyback, positioning the airline for more normalized profitability beyond 2025.
Looking ahead, Air Canada is focusing on strategic growth, expanding its international network, and improving operational efficiency. The airline aims to strengthen its market position by increasing capacity, enhancing customer experience, and maintaining financial stability despite competitive pressures. While challenges such as fluctuating demand and cost management remain, Air Canada’s long-term strategy reflects a commitment to sustainable growth and resilience in the evolving travel industry.
4. American Hotel Income Properties REIT
Based in Ontario, American Hotel Income Properties REIT (AHIP) pools investor money and reinvests it in hotel real estate properties across the U.S. This real estate investment trust (REIT) doesn’t invest in just any old hotel, however. They invest in premium branded hotels, such as Marriott or Hilton.
In 2025, AHIP REIT focused on balance sheet repair and portfolio optimization. Following modest same-property NOI growth in late 2024, AHIP sold non-core assets and used proceeds to pay down debt, then strengthened liquidity with a $43 million CMBS refinancing in early 2025. While revenue growth remains muted, management’s capital discipline and cost controls have improved financial flexibility. Analysts project a sharp earnings rebound in 2025, driven by lower interest expense and operational leverage rather than top-line expansion.
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5. Transat A.T. Inc.
Headquartered in Montreal, Transat is a growth stock company that specializes in organizing travel packages and tour operations in more than 60 destination countries.
The company is perhaps most well-known for its airline, Air Transat, which won World’s Best Leisure Airline by Skytrax in 2021, the fourth time it’s won the award. Before the pandemic, Transat had gotten so popular that Air Canada was going to buy it for $18 per share. Once air travel shut down, however, Air Canada backed out of the offer, and Transat nearly went out of business.
In 2025, Transat A.T. continued its gradual recovery following a stronger fiscal 2024. The company exited FY2024 with $3.28 billion in revenue, up 7.7% year over year, supported by higher capacity and traffic, and delivered positive adjusted EBITDA in Q4 as demand improved. For fiscal 2025, Transat is pursuing measured capacity growth of about 2%, prioritizing route profitability and cost discipline over aggressive expansion. While near-term margins remain pressured, analysts expect continued operational improvement, with profitability targeted in 2026 as fleet efficiency improves and demand normalizes.
Are travel stocks right for you?
If you’re interested in investing in growth or value stocks, then travel stocks might be right for you. The COVID-19 pandemic has left many great stocks trading at values below what they’re underlying companies are intrinsically worth. The pent-up demand for travel could help these companies regrow to pre-pandemic levels and possibly beyond.
Travel stocks, however, aren’t without their risks. As the pandemic showed, the travel industry is vulnerable and sensitive to global crises. In fact, the industry as a whole is cyclical, meaning travel stocks tend to move with the ups and downs of the economy.
When the economy is doing well, travellers have more disposable income and they can buy more plane tickets, book more hotels, and go on more cruises. During economic downturns and inflationary periods, however, travel companies could suffer losses, as travellers are less likely to spend as much on leisure activities.
If you’re more risk-averse, or you don’t want to handpick individual travel stocks, you could always invest in a travel-focused exchange-traded fund (ETF). They can help you diversify your holding, potentially spreading your money across numerous travel companies.
Common travel-focused ETFs in Canada include:
- Harvest Travel and Leisure Index ETF
- Dynamic Leisure and Entertainment Invesco ETF