Experiences Over Stuff
skd@skdugar
The idea
I believe younger generations are spending more on experiences than things, so this basket leans into travel and live entertainment: hotel brands, the booking apps people plan trips on, cruise lines gaining younger travelers, and the airlines flying them there, plus concert promoters, venues and live-entertainment companies. It's spread across six groups with steadier, larger names carrying more weight, a slice held in cash, and no single stock dominating. I'm thinking in years, not quarters, and I'd rethink this if younger spending clearly shifted back toward goods over experiences.
What will be bought
- Hotel brands earn steady fees on millions of stays without owning most of the buildings, so they profit from travel demand without the capital costs. · Marriott InternationalIt is the biggest hotel brand in the world, so when travelers spend on trips, many of those nights land in its hotels., Hilton Worldwide HoldingsIt earns fees for its name and loyalty program while other operators own most of the buildings, generating steady revenue when travel demand is strong., Hyatt HotelsIt leans toward upscale hotels and resorts, catering to the splurge trips people save up for when the destination itself is the point.20%
- Travel booking apps take a cut from nearly every hotel and flight reservation, earning fees on a huge share of the world's trips. · Booking HoldingsIt operates multiple travel booking platforms that collect fees on hotel and flight reservations globally, so its revenue grows as travelers book trips online., AirbnbIt is the go-to choice for younger travelers seeking a home or local feel instead of a standard hotel room., Expedia GroupIt sells flights, hotels and packages together and owns Vrbo for vacation rentals, capturing people planning complete trips.19%
- Cruise lines sell all-inclusive trips at one price, which appeals to younger first-timers and families looking for a complete vacation experience. · Royal Caribbean CruisesIt has led the way in selling cruises as an experience for younger travelers and families, with large ships and private islands., Carnival CorporationIt offers the most affordable entry point onto cruise ships for first-timers and younger travelers on tighter budgets., Viking HoldingsIt sells river and ocean cruises built around destinations, appealing to travelers willing to pay for experiences centered on places., Norwegian Cruise Line HoldingsIt is the smallest of the major cruise lines, making it the riskier cruise bet that gains most if demand for cruising stays strong.19%
- Live concerts and sports events where fans pay for a single night out have become a major way younger audiences spend on entertainment. · Live Nation EntertainmentIt promotes more concerts than anyone and owns Ticketmaster, making it the most direct way to own the live music and ticketing side of the take., TKO Group HoldingsIt owns UFC and WWE, which sell out arenas and draw younger audiences who want to experience live events in person., Madison Square Garden EntertainmentIt owns Madison Square Garden, Radio City Music Hall and other famous venues where people go for nights out they will remember., Sphere EntertainmentIt runs the Las Vegas Sphere, a venue built around shows that can only be seen in person, making it a pure bet on experiences.17%
- Airlines earn most of their profits from premium seats and loyalty cards, so they benefit when travelers splurge on better cabins for bigger trips. · Delta Air LinesIt makes much of its money from premium seats and credit card partnerships, so it gets paid when people decide trips are worth spending more on., United Airlines HoldingsIt has the largest international route map of US airlines, capturing people booking bucket-list trips overseas.11%
- Theme parks and ski resorts sell the day or season out itself, making them direct plays on people choosing to spend on experiences rather than things. · Vail ResortsIt sells season passes to ski mountains, where people commit to trips and visits before winter even starts., Six Flags EntertainmentIt runs theme parks, which are classic day-out experiences for younger crowds and families.6%
- Cash8%