Why These Three Tourism Stocks Could Double in 2025: An Investment Analysis

The travel and hospitality sector has experienced a remarkable turnaround following years of pandemic-related disruption. With international tourism reaching 88% of pre-crisis levels by the end of 2023 and global spending touching $1.4 trillion annually, the recovery narrative is compelling. Looking ahead to 2025, several factors support continued momentum: anticipated interest rate reductions, strengthening consumer spending patterns, and sustained pent-up demand for travel experiences.

Understanding the Tourism Recovery Backdrop

Before diving into specific opportunities, it’s worth noting that industry experts project favorable conditions throughout 2024 and into 2025. The combination of macroeconomic normalization and potential monetary policy shifts creates an environment where travel-related businesses could flourish. This optimistic outlook has renewed investor interest in tourism stocks that operate across different market segments and geographies.

Tripadvisor: Margin Expansion Potential

Tripadvisor (NASDAQ: TRIP) operates a diversified portfolio spanning its flagship platform, Viator adventure experiences, and TheFork restaurant reservation service. The company’s valuation metrics appear reasonable, with a forward price-to-earnings ratio of 17, suggesting room for appreciation as operational performance improves.

The 2023 financial results tell an interesting story. Total revenue reached $1.8 billion with EBITDA at $334 million. The core Tripadvisor brand demonstrated exceptional profitability, posting a 34% EBITDA margin—a testament to the value of its review and recommendation platform. However, the more dynamic growth engine is Viator, which contributed 38% of overall revenue but hasn’t yet achieved profitability in margin terms.

What makes Tripadvisor compelling is the margin trajectory. While consolidated revenue grew 7% year-over-year, Viator accelerated at 49%, representing the fastest segment expansion. As Viator’s operations scale and margin performance improves, the entire company’s cash generation could expand significantly. This operational leverage represents the primary catalyst for potential stock appreciation.

MakeMyTrip: Capitalizing on Emerging Market Growth

MakeMyTrip (NASDAQ: MMYT) represents exposure to one of the world’s fastest-expanding travel markets. Recent momentum has been substantial, though valuations remain reasonable relative to growth prospects.

India’s demographic and economic trajectory is exceptional. The country is positioned to be among the globe’s fastest-growing economies for the next decade. With a rapidly expanding middle class and favorable age demographics, domestic travel demand continues accelerating. Industry projections indicate Indian travelers will undertake five billion additional trips by 2030, with total spending on travel and tourism expected to reach $410 billion by the decade’s end.

MakeMyTrip holds the leading position in India’s online travel marketplace and maintains strong operational leverage. Post-pandemic, the company has demonstrated sustained improvements in operating margins, which should continue supporting stock performance as revenues expand. The sheer magnitude of India’s tourism opportunity—coupled with MakeMyTrip’s market leadership—positions the stock as a potential multi-year performer.

Expedia Group: Attractive Valuation with Strong Execution

Expedia Group (NASDAQ: EXPE) presents another interesting opportunity in tourism stocks. Despite gaining 41% over the preceding six months, the company remains attractively valued at a forward price-earnings ratio of 11—a discount that suggests limited valuation expectations are priced into current levels.

The company’s operational performance supports a more optimistic view. Expedia operates the world’s leading online travel platform with extensive global reach and partnership ecosystem. During 2023, full-year revenue increased 10% to $12.8 billion, while adjusted EBITDA expanded 14% to $2.7 billion, demonstrating strong operational leverage. The fourth quarter of 2023 marked the strongest such period in company history by revenue.

What’s particularly encouraging is Expedia’s ongoing effort to expand its partner network across the global travel ecosystem. As distribution widens and platform benefits compound, revenue acceleration appears likely. The combination of an already attractive valuation multiple, improving operational metrics, and structural industry tailwinds creates conditions where a double seems plausible before 2025 concludes.

Conclusion: A Diversified Tourism Opportunity

These three tourism stocks each offer distinct pathways to potential appreciation. Tripadvisor provides margin expansion upside as a faster-growing subsidiary matures operationally. MakeMyTrip offers exposure to one of the world’s most compelling emerging market demographics. Expedia delivers a combination of attractive valuation and demonstrated execution in the world’s largest online travel market.

Collectively, they represent how the tourism sector recovery extends across geographies, business models, and operational profiles, offering investors multiple ways to benefit from renewed global travel activity in 2025.