Travel ETF Report | May 2025

Travel ETF Key Takeaways

In April 2025, the global hotel industry experienced strong momentum, with Revenue per Available Room (RevPAR) climbing 12.8% year-over-year—mirroring how airlines track profitability through Revenue per Seat Mile. U.S. hotels posted a 2.8% RevPAR gain (excluding eclipse-impacted markets), fuelled by spring travel and rising group demand in key cities. As travel patterns evolve and major global events boost occupancy, this trend underscores the opportunity for hotels to optimize pricing and inventory to capture higher room-level returns.

A study by IATA published on April 16 illustrates that the UAE’s economy has become deeply intertwined with aviation, which contributed $92 billion—or 18.2% of GDP—in 2023 while supporting nearly one million jobs across airlines, tourism, and supply chains. As a global hub, the country’s strategic investments in infrastructure, sustainable fuel, and workforce development are solidifying its role as a cornerstone of international travel.

Macro Outlook

Hyatt Hotels Corp. plans to triple its presence in India over the next five years by expanding from 50 to 150 hotels, Reuters reports, capitalizing on the country’s booming tourism sector driven by domestic travel, weddings, concerts, and wellness experiences. Six new hotels are set to open in cities like Kochi and Jaipur this year as part of this aggressive growth strategy. Hyatt’s expansion reflects confidence in India’s rapidly growing hospitality market, which is projected to reach $131 billion by 2030.

Multi-generational travel is redefining the hospitality landscape in 2025, with 58% of Millennial and Gen Z parents planning vacations that include the entire family—from toddlers to grandparents. This growing trend, driven by a desire for quality time, presents a clear opportunity for hotels to position themselves as all-in-one destinations that cater to every age group. By designing experiences and amenities that foster togetherness, hoteliers can boost bookings and build lasting loyalty across multiple generations of travellers.

Sources available upon request. Please remember that when you invest in ETFs, your capital is at risk.

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