If you are looking for exposure to the travel sector, then it could be worth listening to what Macquarie Group Ltd (ASX: MQG) is saying.
Its analysts have just picked out their top ASX stock picks in the sector. Let's see what they are recommending:
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Flight Centre Travel Group Ltd (ASX: FLT)
Macquarie's top-rated ASX stock pick in the travel sector is Flight Centre. Macquarie has an outperform rating and $22.34 price target on its shares.
The broker highlights that Flight Centre recently guided for underlying profit before tax (PBT) of $365 million to $405 million for FY 2025. And while a soft first half performance has it tracking toward the lower end of that range, the broker isn't too concerned. It also notes that Flight Centre has historically delivered a second-half profit skew, so the required performance to meet guidance isn't unprecedented.
Macquarie also acknowledges that the near-term outlook is clouded by macroeconomic uncertainty, particularly in the Corporate division, with softness noted by several U.S. airlines. However, it points out that the medium-term picture remains favourable. Especially with Flight Centre gaining ground in its FCM Corporate business globally, and the SME-focused Corporate Traveller arm is also performing well. It said:
Looking through the volatility and near-term uncertainty, the medium-term growth outlook remains favourable; FLT continues to win market share in its FCM Corporate business, while the SME focused Corporate Traveller business is also tracking strongly. Further, several of FLT's large business started 2H25 strongly including the global Leisure business, Australian Leisure business, Corporate Traveller USA, and Scott Dunn.
Serko Ltd (ASX: SKO)
Coming in second is New Zealand-based travel technology company Serko. Macquarie also rates as outperform with a price target of NZ$4.38 (A$4.07).
While Serko is still loss-making, the broker forecasts a notably improvement in FY 2025. This is expected to be driven by multiple growth levers, including the annualisation of its GetThere acquisition, an increase in bookings volume, and stronger average revenue per booking.
Macquarie also highlights that Serko is targeting significant top line growth in the coming years. It has guided for FY 2025 revenue of NZ$85–92 million and set an ambitious longer-term goal of NZ$250 million by FY 2030.
Web Travel Group Ltd (ASX: WEB)
Rounding out Macquarie's top three is Web Travel Group (formerly known as Webjet). However, it only has a neutral rating and $4.83 price target on its shares.
While not quite as favoured as the other two, Webjet still offers upside potential — particularly if it can execute on key margin and growth targets. It said:
WEB has guided to FY25 EBITDA of $117-122m, TTV of $5bn and medium term revenue margins of c6.5%. Management expects WebBeds FY26 EBITDA margins will return to c.50% and longer term are targeting FY30 TTV of $10bn.
