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What are ASX travel shares?
'Travel shares' is an umbrella term for stocks in companies that operate in the leisure, travel, or tourism sectors. In 2026, this remains one of the most diverse and dynamic corners of the ASX. Fundamentally, travel companies sell goods and services that help people get from one place to another – be it for business or pleasure.
But this broad market sector does much more than just sell plane tickets. It includes companies that help people get the most out of their holidays and business trips by offering tourist packages, luxury hotel stays, unique experiences, and other add-ons.
As you can imagine, this is an extensive group, ranging from major airlines and travel agents to caravan and motorhome companies.
Why invest in ASX travel stocks?
Travel, tourism, and other related sectors have contributed significantly to the Australian economy – and the numbers in 2026 paint an impressive picture. Tourism GDP reached $81.1 billion in 2024–25, a 3.8% increase on the year prior and a remarkable 44% higher than pre-pandemic levels. Total tourism consumption hit $211.1 billion in 2024–25, up 43% on 2018–19, with tourism GDP, filled jobs, exports and imports all reaching record highs.1
For many Australians, travel is simply a way of life, and that appetite has historically made travel shares sound long-term investments. In the bull market that preceded COVID-19, shares in companies like Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group (ASX: FLT) soared on the back of a booming economy and low interest rates.
The pandemic wiped billions from valuations almost overnight, but the recovery is now well underway. Australian tourism industry revenue has rebounded at an annualised rate of 15.3% over the five years to 2025–26, reaching $213.1 billion.2
That said, 2026 comes with its own headwinds. The RBA has now raised the cash rate to 4.10%, marking its second consecutive hike this year and adding fresh cost-of-living pressure on Australian households. Rising oil prices linked to geopolitical tensions also threaten to pressure airline margins. Investors should weigh these risks carefully against what remains a structurally strong and recovering sector.
Top travel stocks on the ASX
Travel shares can include companies from various market sectors. For example, Australia's flagship carrier Qantas is grouped into Industrials, along with other airlines and airports. However, other travel shares, like travel agents, fall under the consumer discretionary category.
Travel shares encompass a diverse group of companies. Many analysts group airports into "travel stocks", which would make Auckland International Airport Limited (ASX: AIA) one of the largest travel shares on the ASX (with a market capitalisation of around $11.4 billion). However, Qantas has now surpassed AIA in size, with a market cap of approximately $13 billion as of early 2026.
Other companies some analysts may include under the umbrella of travel stocks are real estate investment firms that focus on hotel and hospitality venues, like the Elanor Commercial Property Fund (ASX: ECF), as well as hotel managers like micro-cap Alloggio Group Limited (ASX: ALO).
However, for our list below, we'll focus more exclusively on airline and travel agent shares, which makes Qantas our biggest ASX travel stock. Here are our three top ASX travel stocks ranked by market cap from high to low.
| Company | Description |
| Qantas Airways Limited (ASX: QAN) | Australia's flagship carrier and largest airline |
| Flight Centre Travel Group Ltd (ASX: FLT) | Travel agency with a strong bricks-and-mortar presence |
| Corporate Travel Management Limited (ASX: CTD) | Leading Australian corporate travel agent |
Qantas
Qantas (ASX: QAN) is Australia's flagship carrier and one of the oldest airlines still operating anywhere in the world. It holds around a two-thirds share of the domestic market, effectively competing in a duopoly with Virgin.
The pandemic hit Qantas hard, but the recovery has been strong. Shares surged 88% in FY2025, before pulling back in early 2026 amid rising fuel costs and broader market volatility. On the earnings front, Qantas reported an underlying profit before tax of $1.456 billion for the first half of FY26, with revenue of $12.9 billion.
Near-term headwinds include rising jet fuel costs linked to geopolitical tensions and RBA rate hikes putting pressure on household discretionary spending. That said, Australia's geographic isolation and concentrated airline market create natural barriers to entry, giving Qantas a structural advantage that few competitors can threaten.
Flight Centre
Flight Centre (ASX: FLT) is an Australian travel agency with an extensive network of retail outlets and a focus on face-to-face customer service. That model was a strength before the pandemic but became a costly burden during lockdowns, and the share price took a heavy hit.
The recovery since has been a mixed picture. Group total transaction value reached a record $24.5 billion in FY2025, up 3% year-on-year, though underlying profit before tax fell 9.8% to $289.1 million amid softer consumer sentiment and underperformance in Asia. More encouragingly, the first half of FY2026 showed improving momentum, with TTV rising 7% to $12.5 billion, revenue up 6% to $1.4 billion, and underlying EBITDA climbing 9% to $213 million.
The FLT share price is down around 30% since the start of 2026, and remains well below its pre-pandemic highs. However, the underlying business is arguably in better structural shape than before COVID, with a leaner workforce and growing corporate travel division providing a more resilient earnings base going forward.
Corporate Travel Management (CTM)
Corporate Travel Management (ASX: CTD) provides business travel solutions to corporate clients, focusing on larger enterprises where employees need to travel regularly for work. Like other travel companies, its revenues plunged during the pandemic and have since rebounded, but 2026 brings a fresh set of complications.
CTM reported unaudited first-half FY26 revenue of $348.5 million and underlying EBITDA of $77.7 million. However, the company is currently navigating a significant challenge: an ongoing UK remediation plan has delayed its audited financial results, and it is targeting reinstatement of ASX share trading in the second quarter of 2026, subject to approvals. Despite this, client retention has remained strong at around 97%, with continued new business wins.
CTM has flagged some softness in trading over the second half of FY26, as audit-related uncertainty continues to influence client decision-making. Investors should monitor the resolution of the UK review closely, as it remains the key near-term overhang on the stock.
What might the future hold for Australia's travel industry?
With the headline recovery numbers already covered, the more interesting question for investors is what comes next. The near-term picture is mixed. Household budgets remain under pressure from RBA rate hikes, which could temper leisure travel demand, while rising jet fuel costs are squeezing airline margins industry-wide.
On the international front, Tourism Research Australia forecasts that international arrivals will exceed pre-pandemic levels in 2026, with domestic travel also picking up after a stable period in 2024 and 2025. Longer term, total visitor spend is forecast to reach approximately $233 billion by 2030, with international arrivals expected to hit 10.9 million.3
Corporate travel tells a similarly nuanced story. Business travel has recovered, but companies are spending more selectively. GBTA forecasts 8.1% growth in global business travel spend in 2026, though large enterprises remain cautious, with 20% forecasting budget reductions, while small and mid-sized businesses show stronger momentum.4
Leisure travel growth is expected to outpace business travel, with visitors staying longer and spending more. For investors, the structural growth story remains intact over the medium term, but near-term volatility means the sector still rewards careful stock selection over broad exposure.
Benefits of investing in travel shares
Vested government interest: As discussed, travel significantly contributes to the Australian economy. And, worldwide, many nations rely heavily on their travel and tourism industries to sustain their economies. This means many governments are vested in seeing their travel and tourism sectors performing well. This has generally made travel shares good long-term investments, even if they tend to be more volatile over the short term.
Ability to leverage a strong economy: Travel shares are particularly good to own in a booming economy when consumer confidence is high, and could help boost the overall performance of your portfolio.
And the cons
Subject to economic strength: Of course, the opposite is also true: travel shares tend to perform especially badly when the economy is in a recession, which could compound losses elsewhere in your portfolio. This can make them terrible stocks to own in a bear market.
This is because the market considers travel and tourism shares to be cyclical stocks. When interest rates are low and inflation is under control, people can borrow more freely, and their costs are lower. This leaves them with more disposable income for luxe purchases like expensive holidays.
This can translate to higher earnings for travel companies, likely resulting in higher share prices. However, when the economy is contracting and household costs are higher, people have less money available for discretionary purchases, particularly travel and holidays.
Commodity prices: Airline stocks are particularly sensitive to oil prices, as jet fuel is often these companies' most significant expense. Rising costs without rising revenue eats into profits, which can lead to reduced dividends and, potentially, falling share prices.
Are ASX travel stocks a good investment?
In 2026, ASX travel stocks occupy an interesting position. The post-pandemic recovery is largely complete, with industry revenues back above pre-COVID levels and international arrivals on track to surpass them. For investors, the focus has shifted away from recovery and toward what sustainable growth looks like from here.
The challenges are real. Two consecutive RBA rate hikes have pushed the cash rate to 4.10%, squeezing household budgets, while rising oil prices linked to geopolitical tensions are placing upward pressure on airline operating costs. But visitors are staying longer and spending more, and demand for Australian experiences remains strong.
Travel stocks can be highly cyclical and sensitive to factors outside any company's control. Before investing, weigh the risks carefully against potential returns and ensure any exposure sits within a well-diversified portfolio.
