This stock may not come to mind as a travel stock...but think about it. It owns nearly every one of the 13 tolls roads in Sydney except the Harbour Bridge and Tunnel. It owns Melbourne’s CityLink and West Gate Tunnel, half a dozen roads in Brisbane including the AirportlinkM7, as well as half a dozen in the USA (most of which are in the Greater Washington area). In many instances, Transurban has monopoly concessions lasting several decades.

In 1HY24, it generated $1.76bn in toll revenue and just $464m in proportional costs, leading to $1.33bn EBITDA and a near ~75% margin. What’s more is that there are clear tailwinds showing the need for more roads, including population and employment growth in all of its markets. Even if no more concessions were granted, this means more cars on existing roads.

Travel management services are offered by Corporate Travel Management to businesses all around the world. The organization provides several services, including the management of travel policies, budgets, and reporting in addition to the booking of flights, hotels, auto rentals, and visas. Although business travel is yet to return to pre-COVID levels, it is higher margin than leisure travel and therefore a better space to be in.

In FY24, its revenue increased 9% to $716.9m and its profit was $113.3m in an underlying basis and $84.5m on a statutory basis, up 22% and 9% respectively.

Australian-based Alliance Aviation is a charter and group travel specialist. Despite the pandemic’s impact on air travel, the airline benefited from the increased demand for charter transportation services, especially among FIFO workers. It has benefited from a wet lease deal with Qantas, although an attempt by Australia’s flag carrier to buy the company has proven unsuccessful due to the ACCC’s concerns about the impact on competition.

In FY24, it made $637.2m in revenue (up 25%) and it made an $86.3m profit before tax (up 65%). It closed the period with 72 aircraft in service, and net debt of $305.9m which is less than 0.4x the book value of its fleet and inventory as well as less than 2x EBITDA.