ASX Stocks
Two ASX Travel Stocks Set to Surge 58% & 62% in 2025
Australia’s travel sector is showing strong signs of revival, and two ASX-listed travel stocks are tipped to soar by 58% and 62%, catching the eye of investors looking for post-pandemic recovery opportunities. Are these undervalued stocks worth adding to your portfolio right now? Let’s break it down.
Flight Centre Travel Group is among Australia’s most prominent travel brands, with operations spanning leisure, corporate, and wholesale travel across 20+ countries. Despite its wide reach, FLT took a major hit during the pandemic as border closures and travel restrictions crippled its revenue and pushed its share price down.
Why It’s Undervalued
The primary drag on FLT’s valuation is the lingering impact of COVID-19. With heavy reliance on international travel, the company’s recovery has been slower than expected. Rising operational costs, supply chain hurdles, and fluctuating demand have kept analysts cautious.
Growth Prospects
Analysts now forecast a 58% rise in FLT shares, driven by renewed international tourism and strong demand for group tours, corporate travel, and premium services. The company’s push towards efficiency and expansion into high-margin segments, including luxury travel, could boost its profitability in 2025.
Risks to Watch
The travel sector is highly sensitive to global economic trends, fuel costs, and geopolitical events. FLT also faces growing competition from online booking platforms, and any future travel disruptions could weigh on earnings.
Helloworld Travel, known for brands like Qantas Holidays and AOT Group, provides both retail and wholesale travel services. Like FLT, HLO’s share price plunged during the pandemic and has yet to return to its former highs.
Why It’s Undervalued
A slower-than-anticipated recovery in international travel, rising expenses, and debt concerns have kept HLO’s stock subdued. Weak financial performance in recent quarters has also dampened investor sentiment.
Growth Prospects
Despite recent challenges, HLO could surge by 62% as corporate and leisure travel rebounds. Its focus on premium services, luxury travel packages, and a leaner operating model positions it for sustained growth in the medium term.
Risks to Watch
HLO faces similar sector risks as FLT, including market volatility, competition from digital platforms, and dependence on global travel flows.
With domestic tourism thriving and international borders reopening, the Australian travel industry is on the upswing. Government investment in tourism, growing demand for experiential and luxury travel, and the release of pent-up consumer demand are all contributing to the recovery momentum.
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Potential Upside: FLT (58%) and HLO (62%) both have significant room for growth.
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Key Risks: Reliance on international travel, competition, and global uncertainties.
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Investor Profile: Best suited for those with moderate-to-high risk tolerance and a medium- to long-term outlook.
Both FLT and HLO are positioned to benefit from a recovering travel market, but they come with risks typical of the sector. Diversification remains essential — consider allocating a portion of your portfolio to these stocks rather than going all in.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research or consult a licensed adviser before making investment decisions.