Premium Travel Demand Gives Airlines, Hotels And Cruises An Edge in 2025: Goldman Sachs

In a turbulent first half of 2025 for the global travel sector, Goldman Sachs sees an edge for investors: “premiumization.”

From lie-flat airline seats to luxury cruise cabins and high-end hotel brands, premium travel products have shown striking resilience to macroeconomic pressures—and companies leaning into this segment are emerging as the strongest performers.

Premium travel is "increasingly driven by higher-income consumers less impacted by short-term macro volatility," said Goldman Sachs analyst Catherine O'Brien.

According to O'Brien, stocks most exposed to "premiumization" include Buy-rated Alaska Air Group, Inc. ALK, Delta Air Lines, Inc. DAL, United Airlines Holdings, Inc. UAL, Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL.

Airlines: Premium Demand Leads

In a note shared Thursday, O'Brien highlighted that premium cabins outperformed economy in the first quarter across all major U.S. airlines.

Delta Air Lines posted a 6.8% year-over-year increase in premium revenue in the first quarter, while its main cabin revenue declined 1.2%. United Airlines reported international Polaris cabin revenue up 8% and Premium Plus up 5%.

Alaska Air said premium accounted for 34% of total revenue, with Hawaiian routes contributing a 17% jump in high-end bookings.

Airlines like JetBlue Airways Corp. JBLU and American Airlines Group Inc. AAL echoed similar trends, with premium class outperforming main cabin across both domestic and international routes.

This shift isn't just cyclical. Airlines have introduced more segmented products—from extra legroom economy to exclusive suites—making premium more accessible while preserving upsell potential. Delta's domestic first-class load factor jumped to 75%, from just 12% fifteen years ago.

Hotels: Luxury RevPAR Resilience

In lodging, luxury continues to drive performance.

Marriott International Inc. MAR said its luxury tier had the strongest occupancy and average daily rate (ADR) growth globally in the first quarter, while Hyatt Hotels Corp. H saw luxury RevPAR (revenue per available room) rise over 8%.

By contrast, Choice Hotels International Inc. CHH and Wyndham Hotels & Resorts Inc. WH, both focused on economy and midscale properties, slashed their 2025 outlooks by up to 300 basis points.

Premium hotel supply remains constrained due to higher construction costs and longer breakeven timelines, which support pricing power and margin sustainability. Growth in luxury RevPAR has led all chain scales for four straight quarters, with the first quarter of 2025 showing 7.5% year-over-year growth.

Cruise Lines: Premium Pricing Power

The cruise sector is also sailing toward premium. Goldman notes that Norwegian Cruise Line and Royal Caribbean Cruises have priced their newest ships at up to 60% premiums over older vessels.

For instance, Royal’s Icon of the Seas commands a 43% price premium, while NCLH's Norwegian Aqua leads with a 59% markup.

Premium cruise offerings such as "The Haven" suites on Norwegian ships continue to sell out early and achieve top customer satisfaction scores. RCL also noted that ships built after the Oasis class generate 2x the EBITDA of older ships.

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