Welcome to Travel Season! Here's How to Profit

Travel season has kicked off, and we’re already off to a busy start!

Last Friday, nearly 3 million people were screened at TSA checkpoints — a record high since the TSA was founded in 2001.

And the day before that was the third-highest on record, making this Memorial Day weekend the busiest few days for airlines by far.

Of course, all of these trips will naturally pad the profits for travel-related companies, leading to big trading opportunities.

Let's take a look at some of the investments you can make this summer to profit from a surge in travel spending.

The Travel Boom Continues This Summer

Typically when airlines are in the headlines, it's for all the wrong reasons. Flight delays, turbulence, and unruly passengers are just a few of the many challenges airlines face.

Despite these very real concerns, there’s no denying that airlines have been incredibly busy lately.

As I mentioned earlier, last weekend’s holiday travel was the busiest on record for airlines. But this is part of a much larger trend…

According to TSA data, five of the 10 busiest American airport travel days have occurred in the past two weeks. And nine of the top 10 days took place just in the past year!

This strong appetite for travel has shown no signs of letting up, setting the stage for another blockbuster summer season.

Two key factors are driving this sustained boom in travel stocks.

First, robust retail demand persists despite concerns about the economy. Consumers are prioritizing experiences over material goods, fueling leisure travel.

But it's not just vacationers hitting the road and skies. We're also witnessing a resurgence in business travel as companies embrace more flexibility in work arrangements.

This dual tailwind of retail and corporate demand is a powerful combination for travel companies.

Equally significant is the shifting trend in when people are traveling.

Rather than the traditional Monday morning and Friday evening rush, we're seeing travel spread more evenly throughout the week.

The lines between "weekday" and "weekend" are blurring as remote work becomes entrenched. This interesting shift in dynamics is a massive productivity boost for airlines.

With demand more balanced across all days, carriers can optimize routes and fill more seats on more flights. It's a game-changer that should drive higher profitability.

This summer, I'll be watching airline stocks very closely for potential trading opportunities.

Airlines like Delta Air Lines (DAL) should benefit from the flexibility to operate more efficiently.

I don't typically like to hold these stocks for long-term investments. That's because too many variables can hurt even the most well-run airline.

Worker shortages and strikes, bad weather, regulations, and competition tend to drive stock prices lower every few years.

But during high-profit seasons, airlines can trade sharply higher, giving nimble investors some excellent profits.

Of course, airlines aren’t the only companies that benefit from this travel boom.

Hotel chains like Marriott International Inc. (MAR) will capitalize on growing leisure and business demand.

And cruise operators such as Royal Caribbean Cruises Ltd. (RCL) are well-positioned as consumers spend on experiences.

(Please note that while these are all great stocks to buy before travel season picks up in earnest, these aren’t official “buy” recommendations.)

So get ready for another summer of busy airports, packed hotels, and booked cruises.

The travel boom is here to stay, leading to some big trading opportunities across the travel sector.