Forget
the
days
of
aimless
sightseeing
and
generic
vacation
packages.
Today’s
tourists
are
increasingly
driven
by
a
desire
for
passion-fuelled
experiences.
This
emerging
trend,
known
as
passion
tourism,
caters
to
travellers
seeking
in-depth
exploration
of
their
hobbies,
interests,
and
obsessions.
From
attending
a
K-Pop
concert
in
Seoul
to
chasing
the
Northern
Lights
in
Iceland,
and
witnessing
rare
celestial
events
such
as
the
total
solar
eclipse
in
Mexico,
passion
tourism
goes
far
beyond
the
typical
postcard
destinations.
The
economic
impact
of
passion
tourism
is
substantial.
For
instance,
Taylor
Swift’s
UK
Eras
Tour concerts
provided
a
bump
of
over
$1.3
billion (£1
billion) to
the
British
economy,
with
accommodation
costs
even
keeping
inflation
higher
than
otherwise
might
have
been
expected.
Nevertheless,
this
shift
in
consumer
behaviour
presents
a
significant
opportunity
for
the
hospitality
and
online
travel
industry.
Investing
in
stocks
positioned
to
capitalise
on
this
growing
trend
could
be
an
opportunistic
move
for
investors
seeking
long-term
growth.
With
their
global
and
growing
footprint,
the
following
hotel
and
travel
companies
are
well
aligned
with
passion
tourism,
and
their
stocks
are
poised
to
capitalize
on
this
exciting
industry
trend.
Wyndham
Hotels
&
Resorts
(WH)
• Fair
Value
Estimate:
$88.00
• Price/Fair
Value:
0.83
• Economic
Moat:
Narrow
• Capital
Allocation
Rating:
Standard
• Morningstar
Rating: ★★★★
Global
hospitality
giant
Wyndham
Hotels
&
Resorts
operates
872,000
rooms
across
more
than
20
brands.
Super
8
is
the
largest
brand
(around
19%
of
all
rooms),
while
Days
Inn
(13%)
and
Ramada
(14%)
are
the
next
two
prominent
brands.
The
US
accounts
for
57%
of
total
rooms.
Wyndham
Group
aggressively
capitalised
on
the
April
total
solar
eclipse
craze,
enticingly
promoting
its
properties
along
the
path
of
this
rare
cosmic
phenomenon,
as
it
swept
across
North
America,
from
Texas
to
Maine,
passing
throw
Niagara
Falls
and
into
Canada.
Wyndham-owned
Ramada
hotel
in
Miramichi,
New
Brunswick, experienced
a
significant
surge
in
bookings
due
to
the
eclipse,
with
all
its
rooms
reserved
for
the
nights
surrounding
the
event.
The
rates
at
Wyndham’s
Niagara
Falls
property
in
Ontario
reportedly
skyrocketed
from
$100
to
an
astounding
$3000
per
night
during
the
solar
eclipse,
as
eclipse
chasers
flocked
to
the
area
for
prime
viewing.
“Despite
near-term
macroeconomic
challenges
for
the
consumer –
still-elevated
inflation,
depleted
consumer
savings,
we
expect
Wyndham
Hotels
&
Resorts
to
gradually
expand
room
share
in
the
hotel
industry,”
says
a
Morningstar
equity
report.
The
operator
boasts
an
impressive
40%
share
of
all
US
economy
and
midscale-branded
hotels,
while
its
pipeline
is
set
to
expand
by
about
28%
of
its
current
unit
base.
“As
a
result,
we
see
room
growth
averaging
over
3%-4%
during
the
next
10
years
(2024-33),
above
the
1%-2%
lift
we
model
for
the
US
hotel
industry,”
contends
Morningstar
equity
analyst
Dan
Wasiolek,
who
pegs
the
stock’s
fair
value
at
$88.
Accor
(AC)
• Quantitative
Fair
Value
Estimate:
€42.96
• Price/Quantitative
Fair
Value:
0.91
• Quantitative
Economic
Moat:
Narrow
• Capital
Allocation
Rating:
None
• Quantitative
Morningstar
Rating: ★★★★
Hospitality
heavyweight
Accor
owns
50
brands
operating
821,518
rooms
ranging
from
economy
to
luxury
segments.
Its
most
visible
brand,
Ibis,
accounts
for
35%
of
total
rooms,
while
midscale
brands
Mercure
(16%)
and
Novotel
(13%)
are
other
notable
brands.
Geographically,
Europe
and
North
Africa
make
up
44%
of
rooms,
followed
by
Asia-Pacific
(34%),
the
Americas
(13%),
and
India,
Middle
East,
and
Africa
(10%).
Earlier
this
year,
Accor
Stadium
in
Sydney,
Australia
hosted
four
successive
Taylor
Swift
shows,
drawing
a
whopping
335,000
fans.
Accor
has
a
number
of
hotels
strategically
located
near
the
Accor
Stadium,
which
it
owns.
As
a
result,
the
hospitality
group
saw
a
record
level
of
hotel
bookings,
as
well
as
boost
to
its
ALL-Accor
Live
Limitless
loyalty
programme.
Accor
is
reportedly
in
talks
to
acquire
luxury
hotel
brand
Habitas,
which
operates
luxury
properties
in
Mexico,
Namibia,
Morocco,
and
other
countries,
with
rapid
growth
in
Saudi
Arabia.
“Accor’s
growing
room
share
is
being
driven
by
an
increased
presence
in
higher-end
luxury
and
premium
rooms,
which
was
23%
of
its
total
in
2023,”
says
Morningstar
equity
report.
The
company
is
projected
to
continue
to
enjoy
economic
growth
over
the
next
decade
“as
a
result
of
its
solid
loyalty
membership
of
around
90
million
and
increasing
exposure
to
the
premium,
luxury,
and
lifestyle
segments,”
says
Wasiolek,
who
appraises
the
stock
to
be
worth
€43.00.
Expedia
Group
(EXPE)
• Fair
Value
Estimate:
USD
185.00
• Price/Fair
Value:
0.7
• Economic
Moat:
Narrow
• Capital
Allocation
Rating:
Standard
• Morningstar
Rating: ★★★★
Online
travel
behemoth
Expedia
offers
services
for
lodging
(80%
of
total
sales),
air
tickets
(3%),
rental
cars,
cruises,
in-destination,
and
other
(11%),
and
advertising
revenue
(6%).
The
firm
operates
several
branded
travel
booking
sites,
including
Expedia,
Hotels.com,
and
Vrbo.
It
also
owns
a
metasearch
brand,
Trivago.
Since
the
announcement
of
three
Taylor
Swift
shows
in
Vancouver
for
December
2024,
Expedia
has
reported
a
staggering
5,000%
spike
in
searches
for
the
city,
a
surge
it
attributes
to
Gen
Z
travellers
who
are
increasingly
favouring
experiential
travel.
Among
its
experiential
itineraries,
Expedia
includes
a
Guided
Northern
Lights
Tour
in
Iceland.
In
addition
to
new
travel
trends,
the
online
travel
agency
is
poised
to
continue
to
benefit
from
remote
working
trend,
turbocharged
by
the
pandemic.
“We
think
worker
flexibility
will
increase
long-term
travel
demand,”
a
Morningstar
equity
report
say.
Expedia’s
strong
user
base
stems
from
its
leading
online
travel
network,
a
key
advantage
that
will
persist
over
the
next
decade,
despite
challenges
from
supplier
consolidation
in
US,
the
report
adds.
Moreover,
Expedia’s
ongoing
push
for
the
expansion
of
its
international
presence
could
further
strengthen
its
network
advantage
over
time.
“In
emerging
markets,
the
company
has
a
collaboration
with
Trip.com,
the
leading
online
travel
agency
in
China,”
points
out
Wasiolek,
who
pegs
the
stock’s
fair
value
at
$185.
More
recently,
the
company
has
embraced
the
transformative
power
of
AI
evidenced
by
the
introduction
of
over
40
new
AI-powered
product
and
features,
designed
to
offer
a
more
personalized
experience
for
travellers.
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