5 Reasons Why Travel Stocks Are Spiking

M&A, increased wealth in emerging markets and big expectations are all helping the travel industry.

Author:: TheStreet Staff
Publish date:: Feb 13, 2017 3:58 PM EST

1. Travel stocks have rebounded so far this year and MKM Partners Christopher Agnew says corporate travel (which would affect hotel companies specifically) will spike in 2017.

2. Hotel companies have benefited from a surge in global expansion, Hilton Worldwide alone expanded its presence in 91 countries in 2016 including Russia, China and the United Arab Emirates.

3. The global expansion by hotel operators can be attributed to the signing on of more franchisees, creating zero risk for the companies, and as the upper and middle classes rise in emerging markets, according to Raymond James analyst Bill Crow.

4. Cruise companies have been adding new cruise ships and trips, Norwegian Cruise Lines, Royal Caribbean and Carnival each recently expanded their offerings to Cuba. Norwegian is approved to sail through year-end.

5. M&A has also contributed to an influx in tourism. Vail Resorts' acquisition of Australia's Perisher and Canada's Whistler Blackcomb has led to a spike in tourism from Australia and Canada as season pass holders can go to any resort in any country under Vail.

This article was written by a staff member of TheStreet.