Prior to the hectic summer vacation season, purchase these five travel stocks

Traveling may be becoming more costly, but you can at least try to turn a profit by investing in the travel industry

As the weather warms and British people feel the need for a much-needed vacation, attention is shifting to the summer holidays.

Shorter lines at passport control may have been anticipated as a result of the UK's Brexit trade agreement with the EU, but travelers may be feeling fatigued by the cost of airfare.

According to the most recent inflation data, airfares increased by 27.5 percent annually in April, and cruise fares are also rising.

It coincides with a 5 percentage point increase in services inflation.

However, there may be a chance for investors to profit from growing travel-related costs.

The pandemic and geopolitical tensions have hurt the travel and tourism sector in recent years, but a busy summer vacation is anticipated, and there are some airline and vacation stocks to think about purchasing that are profiting from an increase in demand.

Cheap flights help easyJet's recovery.

One popular airline among travelers on a tight budget is EasyJet (LON: EZJ).

The airline is well-known for its reasonably priced flights, particularly to Europe, which, as the cost of living crisis worsens, customers are increasingly choosing over more costly transatlantic vacations.

The brand is anticipating a busy year ahead, even though its first half results for the six months leading up to 2025 showed a loss that was attributed to investments in longer routes.

Easier than this time last year, EasyJet reported that its third quarter is 80 percent booked and its fourth quarter is 42 percent.

A 25 percent increase in anticipated customers this year helped its holiday business turn a profit of 44 million, up from 31 million. EasyJet reported that 77 percent of forward reservations for vacations in the second half were sold.

According to eToro market analyst Adam Vettese, "diversifying revenue streams rather than depending only on core airline operations should help give earnings more stability." Potential contributing factors include fuel price volatility and geopolitical tensions.

"Over the last three years, the share price has had difficulty rising above the 600p mark, and long-term holders will recall many years of a handle much higher. Investors will need to determine if they have the patience to wait or if EasyJet has enough fuel left to return to those levels.

Package vacations help Tui.

The same patterns that are helping easyJet also apply to Tui.

In its second quarter (Q2) results, the airline and vacation brand, which delisted from the London Stock Exchange in 2024 to concentrate on its Frankfurt listing, stated that it has 8.6 million reservations in the pipeline for the summer of 2025.

Its airline revenue increased by 1% to £3 billion in the second quarter of 2025.

Cruise sales fell 17% due to refocused itineraries, while hotel and resort revenue increased 32%.

The company anticipates that its airline, vacation, and cruise brands will generate between 5 and 10 percent more revenue this year, reaching 23 billion.

Since Tui is no longer listed in London, you would have to buy shares from the Frankfurt Stock Exchange via your investment platform. Risks associated with exchange rates and other expenses might be present.

Whitbread's staycation boom is encouraging.

Premier Inn is owned by Whitbread and is a low-cost hotel choice for staycations.

Premier Inn, owned by Whitbread (LSE: WTB), is a low-cost staycation option. As customers look for more economical options, demand for its rooms has increased.

Whitbread outperformed the market despite a 1% decline in total accommodation sales in the UK, according to its full-year results.

However, room sales in Germanya major market for the brand's expansionrose 23%.

Whitbread stated that it is on track to generate an additional profit of at least £300 million by 2030, despite the fact that group revenue decreased by 1% and pre-tax profits decreased by 14% during the year.

The company has previously issued a warning that its growth in Germany and the UK will have a negative impact on profits.

A one-stop shop with room to grow.

A marginally different approach to travel investing is provided by WH Smith (LSE: WHS).

The brand has been moving its attention from the high street to airports, where it has a strong market position and has been growing its footprint quickly.

In March 2025, it sold its high-street locations to Modella Capital.

Travelers heading to far-flung places frequent WH Smith's hundreds of stores, which are mostly located in airports and train stations. The company plans to open an additional 90 stores this fiscal year alone, with 60 already open.

According to the brand's interim results, travel revenue increased by 6% in the six months ending in February 2025. This was composed of growth of 7% in the United Kingdom, 5% in North America, and 15% globally.

Additionally, the overall profit from travel trading increased by 12% to 56 million.

Remember to include the bus boom.

Coach operator Mobico Group (LSE:MCG), formerly known as National Express, has profited from ongoing train delays and strikes.

The company's top and bottom lines in the UK, Spain, and Germany have been boosted by consumers searching for less expensive alternatives to rail travel as prices rise, whether they are traveling for a staycation or to airports for more distant travel.

The most recent results from the company show that group revenue increased by 9% annually in the first quarter of the year.

However, a large portion of this was due to the impressive performance of its European division, ALSA, whose sales increased by 13% yearly, while those in the UK decreased by 2%.