Summer is finally here, which means your summer vacation (hopefully) isn’t too far away. Whether this means jetting off to a beach with friends or refusing to leave the house for a week, everyone and their cousin is cobbling together plans to avoid work for at least a week.
Yet while you’re figuring out flights and your hotel sitch, you could also take advantage of the multi-billion-dollar vacation industry on the stock market. To put it simply: yes, you can invest in summer vacation. For profit.
Look to the sky and the ocean.
Unless it’s a staycation, your plans probably include some kind of travel. As it turns out, tons of popular transportation options are publicly traded. This includes major airlines like American Airlines ($AAL) or United Continental ($UAL). You can also check out smaller, domestic companies like JetBlue ($JBLU) or Spirit Airlines ($SAVE).
If you prefer to relax on the water, cruise lines are also traded on the public market. Carnival Corporation ($CCL) is the largest cruise company, dominating the market by their massive customer base. There are also other, smaller options, including the educational line Lindblad Expeditions ($LIND).
Invest in a hotel, motel, or Holiday Inn.
Unless they’re chilling in a yurt, travelers turn to more traditional accommodations to unwind. Investing in hotels, resorts, and everything in between could make all kinds of sense for your portfolio.
Massive hotel companies with business around the world are often the bigger players in this space, especially the Hilton ($HLT) and Marriott ($MAR) brands. If you can’t find your favorite smaller scale chain, it may be listed under a different name. Some smaller brands like Holiday Inn and Crowne Plaza are all a part of InterContinental Hotels Group ($IHG).
Investing in multiple hotels at once is possible through a real estate investment trust, or REIT. REITs specifically invest in multiple similar resorts and other like properties. Host Hotels & Resorts ($HST), for instance, focuses on luxury resorts. Ryman Hospitality ($RHP) invests in hotels that serve as destinations for conventions.
You can also invest in themed resorts. There’s always Disney ($DIS) and Universal Studios ($CMCSA), which both operate hotels and amusement parks. There are also brands that exist only as vacation hotspots, so you can invest directly in the travel industry rather than multiple industries. Great Wolf Resorts ($WOLF) and SeaWorld Entertainment ($SEAS) are two great publicly traded examples of themed resorts.
People use the Internet to plan their breaks from the Internet, so why not invest in the travel websites you know and love? If you have a favorite website, check if it’s offered on the market. It could be the next big addition to your travel-loving portfolio.
Keep in mind that some travel providers are owned by a larger company. You won’t find KAYAK or Booking.com on the stock market, but you will find Booking Holdings Inc. ($BKNG), which owns them both. The same goes for Expedia ($EXPE), which owns several providers.
Some providers operate outside of the U.S., but are available on American stock markets. Chinese company Ctrip.com ($CTRP) and Indian provider MakeMyTrip Limited ($MMYT) are just a few of many foreign travel investments you can look into.
The summer vacation ideal is a blissful week of relaxation. Yet with all the planning that comes beforehand, the stress can be overwhelming. Investing in vacations doesn’t have to be as taxing, but investments do require some research beforehand. Make sure to check out which vacation stocks are right for you, and you might find yourself having a better time than you did on your last vacation.