BMO Capital maintains market weight on global travel stocks

Investing.com -- BMO Capital kept its market weight stance on the global travel industry for 2026, citing uncertainty and pressure on average consumers alongside an uneven customer base.

Travel demand stayed healthy in the first half of 2026, with strength remaining focused on high-end market segments. U.S. inbound travel demand growth became negative in April 2026 and declined during the second quarter of 2026.

Global air passenger traffic fell for the first time since the pandemic and decreased slightly in the U.S. Lodging trends showed positive movement as average occupancy grew in the second quarter of 2026, while average daily rate growth roughly doubled from the first quarter of 2026.

BMO Capital reaffirmed its outperform rating on Booking Holdings (NASDAQ: BKNG) with a $240 price target. The firm described Booking as the highest-quality name in the sector, benefiting from favorable geographic exposure and growth in alternative accommodations.

The firm maintained its ratings, estimates, and price targets for Airbnb (NASDAQ: ABNB), Expedia (NASDAQ: EXPE), and TripAdvisor (NASDAQ: TRIP). BMO Capital said it will wait for signs of demand improvement before taking a more positive view on these online travel agency names.

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