One section of the ASX that has struggled significantly in 2026 is travel stocks.
While it doesn't operate as one of the core sectors of the ASX, "travel stocks" refer to companies that operate in the leisure, travel, or tourism sectors.
Fundamentally, travel companies sell goods and services that help people get from one place to another – be it for business or pleasure.
Image source: Getty Images
Why are travel stocks struggling in 2026?
Travel is largely a discretionary activity.
That means it's not an essential need for the everyday consumer.
A clear comparison can be made between consumer staples and discretionary companies.
Staples are goods and services we can't live without, like groceries, healthcare, or utilities.
These companies generally have steady, non-cyclical earnings, regardless of economic factors.
Travel stocks, on the other hand, are highly sensitive to a mix of economic factors that influence people's ability and willingness to travel.
These factors include:
- Economic growth (GDP) – Strong growth increases travel demand
- Disposable income & consumer confidence – Higher income and confidence lead to more spending on travel
- Interest rates – Higher rates reduce spending power and travel budgets
- Fuel prices – Rising fuel costs increase expenses, especially for airlines
- Exchange rates – Currency strength affects affordability of international travel
- Inflation – Higher inflation raises costs and reduces real spending power
- Employment levels – More jobs can mean more people able to afford travel
- Global stability & events – Crises or disruptions can quickly impact travel demand.
Glancing over this list, you might see why travel stocks have struggled this year, with plenty of these headwinds influencing people's ability to travel.
However, many travel stocks have now been heavily sold off.
This means if headwinds subside in the back half of 2026, there could be value.
Let's look at three options to consider buying low.
Web Travel Group Ltd (ASX: WEB)
Web Travel Group is an online travel agency that enables customers to search and book domestic and international travel flight deals, travel insurance, car hire, and hotel accommodation worldwide.
Its share price has fallen more than 44% year to date.
However, 8 analyst forecasts via TradingView place an average price target of $5.86 on this travel stock.
That indicates an upside of 121% from today's price.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre operates a vast network of travel agencies under various brands worldwide, including Student Universe, Travel Money, Corporate Traveller, and Topdeck.
Its share price has tumbled nearly 25% year to date.
A recent note out of Citi included a $16.75 price target on Flight Centre shares.
This indicates a potential upside of 48% from today's opening share price of $11.30.
Helloworld Travel Ltd (ASX: HLO)
Helloworld is an Australian-based travel distribution company. It comprises a wide array of travel brands across three key business pillars: retail, wholesale, and inbound.
Its share price is down more than 17% year to date.
However, Shaw and Partners placed a 12-month share price target of $2.80 late last month.
This indicates nearly 80% upside from current levels.
