Peacock, who is the MP for Barnsley South in Yorkshire, takes over from Sir Chris Bryant, who has moved over to the Department for Business and Trade.
It comes after prime minister Keir Starmer was forced into a reshuffle, prompted by the departure of deputy prime minister Angela Rayner last Friday (5 September). A new aviation minister is yet to be announced.
Bryant had only been in post for just over a year, but nonetheless became the first tourism minister to say he considered outbound travel to be as important as the inbound market.