JBLU, HLT, BKNG to benefit from growing leisure travel trend News ad

This new era of travel presents unique opportunities for eagle-eyed investors. In fact, the global Bleisure travel market is projected to reach an impressive $3.5 trillion by 2033.

Let’s take a look at three stocks that are set to benefit from Bleisure’s massive travel potential.

1. JetBlue: High-flying on-demand fun

The airline industry is strategically adapting to the rise of Bleisure and JetBlue Airways. NASDAQ: JBLU provides a compelling example.

JetBlue has taken significant initiatives to position itself as a major player in the premium leisure segment that includes Bleisure travelers. One of the key elements of JetBlue’s strategy is network expansion. The airline is strategically adding routes to popular Bleisure destinations domestically and internationally.

This expansion meets growing demand for travel to destinations offering business and leisure opportunities. To improve the travel experience for Bleisure passengers, JetBlue is also investing in product improvements. Beginning in 2025, the Even More Space offering will be complemented by new amenities and benefits designed to provide additional comfort and convenience. This focus on premium seating matches the preferences of Bleisure travelers, who often prioritize comfort during long trips.

JetBlue’s fiscal 2024 third quarter earnings report reflects the challenges and opportunities in the current market. Although the airline reported a net loss of $60 million, its revenue also rose 0.5% year-on-year to $2.4 billion. Notably, customer satisfaction increased by double digits and the company generated $275 million in additional revenue from its revenue growth initiatives. These results suggest that JetBlue’s strategic focus on the Bleisure segment is beginning to yield positive results.

As of December 30, 2024, JetBlue shares are trading at $8.01, reflecting a 44.3% year-to-date gain and a new 12-month high. Despite analyst consensus for a downgrade, the recent rating upgrade and price target increase indicate growing optimism about the airline’s prospects. The opening of a new crew base in San Juan, Puerto Rico further strengthens JetBlue’s position in the Caribbean, Bleisure’s key market. The move is expected to improve operational efficiency and provide greater flexibility in responding to market demands.

2. Hilton: Leading an Entertainment Revolution

The hotel industry is also making changes to meet the needs of Bleisure travelers. Hilton Worldwide Holdings New York Stock Exchange: HLT is a prime example of how a hotelier is adapting to this trend. With a diverse portfolio of brands, Hilton caters to the wide range of preferences of Bleisure travelers. The addition of Small Luxury Hotels of the World to Hilton’s portfolio further expands Hilton’s capabilities in unique and desirable destinations.

Hilton’s fiscal 2024 third quarter earnings demonstrate the company’s strong performance. Revenue grew 7.3% year-over-year to $2.867 billion and net income reached $344 million. The company achieved system-wide RevPAR growth of 1.4% and impressive divisional net growth of 7.8%. Hilton’s growth plan is going well, with 492,400 rooms in the works, including the opening of its 8,000th hotel worldwide. This expansion, including new hotels such as the Hilton Kyoto, underscores the company’s commitment to growth in key international markets.

The increase in Hilton’s share repurchase authorization, which now stands at approximately $4.8 billion, demonstrates strong confidence in its future performance.

While the consensus among Hilton’s analyst community is currently a Hold, sentiment is changing as some begin to reassess the stock’s potential. This is evidenced by upward revisions to the price target by three analysts in December, with one of them setting it at $277.00. These changes demonstrate continued confidence in Hilton’s ability to successfully implement its strategic initiatives.

3. Booking Holdings: a digital path to pleasure

Online booking platforms are critical to making travel easier Bleisure, and Booking Holdings NASDAQ: BCNG is the dominant force in this space.

Through its brands, including Booking.com, Priceline, Agoda, KAYAK and OpenTable, the company offers a full range of travel services, from airfare and accommodations to car rentals and restaurant reservations. The Booking Holdings platform is particularly well suited for Bleisure travelers who need to seamlessly manage the business and leisure aspects of their trips.

Booking Holdings’ earnings for the third quarter of fiscal 2024 highlight the company’s continued success. Revenue grew 9% year-over-year to $8.0 billion and net income reached $2.5 billion. Room night bookings rose 8% and gross travel bookings rose 9% to $43.4 billion.

These figures demonstrate strong demand for online travel services, driven in part by the Bleisure trend.

The company’s mission to “make it easier for everyone to experience the world” is perfectly aligned with the desires of Bleisure travelers seeking a hassle-free and efficient booking experience.

On a wave of pleasure

The Bleisure travel trend represents a fundamental shift in the way people approach travel, blurring the lines between work and play. This trend is changing the travel industry, creating new opportunities for companies that adapt to the changing needs of travelers. JetBlue, Hilton and Booking Holdings are examples of companies strategically positioning themselves to capitalize on the growing Bleisure trend.

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