Dana Dunne, CEO of eDreams ODIGEO.
Having spent years in the travel sector, first working in the airline industry and then leading a travel technology business, I’ve had a unique view of the market’s profound evolution. The global travel market is a titan of the world economy—a $1.72 trillion industry whose sheer scale makes it a natural magnet for investment. However, I believe the real opportunity lies not in chasing every venture, but rather in identifying the standouts poised for superior, resilient growth.
In my experience, these top opportunities are most often found at the intersection of an industry’s most dynamic trends. Within travel, the clear engine for growth is the shift to online travel. Phocuswright anticipates that 65% of the global travel market will be online in 2026, up from 61% in 2023.
Parallel to this digital transformation is the rise of the subscription business model, with an economy of 1.4 trillion euros (about $1.6 trillion). To put the power of this model into perspective, subscription businesses have grown revenue “11% faster than the S&P 500 over the past two years.”
For investors, the convergence of these two high-growth giants may represent a new category of business that is poised to deliver not just growth, but also efficient, durable value.
What Makes A Strong Investment Case
The travel ecosystem is diverse. At one end, you have the foundational, asset-heavy pillars: airlines, major hotel chains and car rental brands. At the other end are the asset-light players: technology platforms built on scalability and data. Both are important, but they offer fundamentally different investment theses. In such a complex market, how does one identify the best opportunities?
One of the clearest ways I’ve found to identify a genuine investment opportunity is to look past surface-level growth and instead analyze a company’s financial engine. This involves looking at the cash-generating power you are buying for every dollar you invest. One effective method for testing this is by observing a company’s free cash flow (FCF) yield. This metric connects a company’s real-world cash generation directly to its market valuation, which can reveal potential disconnects between operational strength and current share price, thereby creating an investment opportunity.
For example, by comparing the FCF yields of hotels, airlines, online agencies, B2C subscription businesses and travel subscription businesses, you can determine if certain sectors are being undervalued by the market compared to their yield. This can point you toward the type of companies that may be ripe with potential growth and valuation opportunities.
The Engines Behind The Numbers: Technology And Talent
In my experience, a superior financial model is the result of a durable competitive advantage. In today’s market, I’ve learned this advantage is built on two powerful, non-financial pillars: technology and the talent that commands it. The first is proprietary technology, notably in AI. For investors, it’s important to look past the hype and find companies where AI has already been turned from a “promise” into tangible revenues and margin gains.
But technology is only as powerful as the talent that leads it. When looking for companies with a strong investment case, seek those that have a world-class team of tech innovators. In my experience, this human capital is what truly sustains the innovation cycle and defends a competitive edge, and it’s a factor that can carry significant weight in any serious investment analysis.
Final Thoughts
2025 is shaping up to be a defining year for the global travel sector—one marked by record-breaking passenger volumes, renewed investor enthusiasm, and a shift toward higher-margin, tech-enabled business models. As one of the most resilient and dynamic sectors globally, travel can offer compelling opportunities for investors, especially where its most dynamic and growing segments intersection.
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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