Shares in the travel and leisure industry are increasingly catching the eye of value investors, presenting discounted valuations alongside promising growth prospects for the upcoming tourist season.

Since the start of the current bull-market rally, major industry exchange-traded funds (ETFs) tracking travel and leisure companies have underperformed relative to the broader stock market.

The Defiance Hotel, Airline, and Cruise ETF (NYSE:CRUZ), the Alps Global Travel Beneficiaries ETF (NYSE:JRNY), and the AdvisorShares Hotel ETF (NYSE:BEDZ) have gained 28%, 24.5%, and 22.8%, respectively, compared to a 29% surge in the SPDR S&P 500 ETF Trust (NYSE:SPY) since late October 2023.

Yet, the outlook for travel-related stocks is improving, drawing interest from traders looking to invest in underperforming sectors amid the broader bull market.

Chart: Travel Stocks Lagged Behind The Broader S&P 500 In The Current Bull-Market Rally

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What Happened: On Tuesday, Airbnb Inc. (NASDAQ:

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