Travel demand shows no signs of slowing — 3 stocks from Josh Brown

Ritholtz Wealth Management’s Josh Brown and colleague Sean Russo have underscored ongoing strength in travel demand and added travel-exposed names to their "Best Stocks in the Market" list, notably Delta Air Lines, Expedia Group and Marriott International. Their commentary highlights consumer spending on travel remaining robust even amid broader economic concerns.

Brown pointed to concrete passenger metrics — including a record TSA screening day on November 30 — as evidence travelers continue to fly in significant numbers. Russo emphasized Delta’s shift toward higher-margin segments, noting that premium products, loyalty and partnerships accounted for roughly 60% of the airline’s revenue in the third quarter. Expedia reported an 11% year-over-year increase in U.S. room nights in the same period and raised guidance after a strong earnings beat, supporting the thesis that booking platforms are benefiting from sustained demand.

Market reaction has favored select travel equities that combine pricing power with operational reliability. Analysts and CNBC coverage point out that Delta’s operational performance and Marriott’s recovery in room demand have helped those shares outperform peers in recent sessions, while Expedia’s booking momentum has translated into upgraded forecasts and a re-rating by some investors. These dynamics have reinforced investor appetite for quality exposure to leisure and business travel recovery.

In the broader macro context, resilient travel spending contrasts with weaker sentiment in other consumption areas, reflecting a bifurcated consumer where higher-income households continue to spend on experiences. Key risks to the theme remain energy cost shocks, potential softening in corporate travel budgets if economic data deteriorates, and currency movements that can affect international inbound flows. Investors should weigh these variables when sizing positions.

Looking ahead, market participants expect upcoming quarterly reports and forward guidance from travel companies to be the primary catalysts. If Delta sustains premium mix gains and Expedia maintains room-night growth while hotels show improved pricing power, the sector case may strengthen. However, prudence is advised: analysts recommend monitoring margin trends, fuel hedges and capital allocation moves before increasing exposure materially. Brown and Russo’s selections thus offer a thematic way to ride travel demand, but within a risk-managed framework.