Best Travel ETF Opportunities Emerging as Summer Getaway Costs Hit Historic Lows

The leisure travel sector is experiencing a notable resurgence as affordability reaches unprecedented levels. After months of market hesitation dampened vacation enthusiasm, a confluence of factors—easing geopolitical tensions, receding recession anxieties, and sharply declining travel costs—has reignited consumer appetite for summer adventures.

The Memorial Day Indicator: Travel Momentum Building

Memorial Day traditionally serves as a crucial barometer for summer travel patterns, and this year’s trajectory suggests robust momentum ahead. AAA’s projections indicate that 45.1 million Americans will venture at least 50 miles from home during the holiday period, representing a 1.4 million-person increase compared to 2024. Major destination hubs including Orlando, New York City, Las Vegas, and Seattle are bracing for elevated passenger volumes.

According to travel industry data, nearly 1 in 5 Americans are actively planning to boost their summer vacation spending, demonstrating a meaningful shift in consumer confidence despite broader economic headwinds.

Airfare Compression: A Tailwind for Leisure Travel

The most striking development reshaping travel economics is the dramatic compression in flight costs. Domestic round-trip airfares have settled at an average of $265—a 3% decline year-over-year—while international routes have become substantially more accessible. Cross-Atlantic bookings now average under $900, reflecting a 6% reduction, while Asia-bound travelers enjoy exceptional value with fares averaging $1,337, down 14% from the prior summer.

Long-haul destinations have become particularly attractive. Sydney and Hong Kong routes have seen airfare reductions of 23% and 16% respectively, with even peak Fourth of July travel commanding nearly 10% savings versus last year.

Fuel and Transportation Economics

Gas prices continue supporting road-trip viability, having retreated from $3.59 per gallon last Memorial Day to $3.19 currently. This shift reinforces multi-modal travel flexibility, as consumers weigh driving versus flying based on comparable economics.

Rental car pricing remains stable at approximately $47 per day, maintaining parity with 2024 summer rates.

Best Travel ETF Plays for Summer Rally

As travel demand accelerates, several leisure-focused exchange-traded funds stand positioned to capture the sector’s upside momentum:

Amplify Travel Tech ETF (AWAY) – Has appreciated 13.7% over the past month, capturing technology-enabled travel innovation

Invesco Leisure and Entertainment ETF (PEJ) – Posted gains of 17.1%, reflecting broader entertainment and hospitality strength

US Global Jets ETF (JETS) – Demonstrated strongest recent performance at 23.6% monthly gains, directly capturing airline sector tailwinds

AdvisorShares Restaurant ETF (EATZ) – Advanced 13.7% past month, benefiting from increased dining and hospitality spending among traveling consumers

The convergence of lower travel costs, seasonal demand recovery, and positive consumer reallocation toward experience-based spending creates a compelling backdrop for leisure-focused ETFs. These vehicles offer differentiated exposure to specific segments within the broader travel ecosystem, from transportation and accommodation to hospitality services.