Bad Bunny is making Puerto Rico the hottest trip of 2025
That is precisely what's happening in Puerto Rico.
Bad Bunny's residency, "No me quiero ir de aquí," in San Juan, is not only breaking records in sales and attendance, but has become one of the most powerful economic and cultural catalysts the island has seen in recent years. Its impact is not anecdotal: according to an analysis by Moody's Analytics cited by Bloomberg, Puerto Rico is defying the tourism slowdown that many markets in the United States are experiencing. While hotel occupancy in several U.S. cities has decreased, in Puerto Rico it has increased. And it's no coincidence.
While the World Travel & Tourism Council projects a loss of $12.5 billion in international travel spending this year in the United States, Puerto Rico is headed in the opposite direction.
According to Discover Puerto Rico, the island recorded a 25% increase in hotel occupancy in the first quarter of 2025 and an 11% growth in lodging revenue, compared to the same period last year. At a time when the global tourism economy is showing signs of cooling, Puerto Rico stands out as an example of how culture can become a real economic engine.
The experience is worth it
The Puerto Rican economy, historically tied to the ups and downs of the U.S. economy, rarely grows on its own. But this time, there is a cultural factor that is tipping the balance: identity.
Bad Bunny's new album, in addition to being a musical phenomenon, is a declaration of principles – a love letter to his homeland. From the lyrics to the visual promotion, the artist has made it clear that traveling to the island is more than tourism: it is an experience, it is pride, it is connection.
Those of us who work in the travel and digital content industries need to reflect. For years, the equation seemed simple: look for the cheapest fare, even if the trip was mediocre. But the consumer has evolved. Today, more than ever, it wants to save, yes, but without sacrificing what really matters: experience.
Travel should be transformative, not transactional. Travelers want to get to know a country, not just visit it. They want to savor its cuisine, understand its history, and walk its streets with local music in the background. Bad Bunny has organically created that with his music and platform. It has turned Puerto Rico into an emotional desire, not just a geographical destination.
At a time when so many tourism markets are facing decline, Puerto Rico is teaching us a powerful lesson: culture drives the economy. Authenticity isn't just good for the soul; it's also good for hotels, restaurants, and airlines.
The future of tourism is not measured only in hotel occupancy or the number of flights. It is also measured in songs, in identity, in how a place makes us feel. That's why, when we hear about Bad Bunny, let's remember that his impact goes far beyond reggaeton: he's redefining how and why we travel.
Wilson "Wil" Santiago Burgos is the founder of Mochileando.com, one of the largest travel platforms in Puerto Rico and the Latin American market in the U.S.
This article originally appeared on USA TODAY: Bad Bunny's concerts are doing what ads can't
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Marriott International, Inc. (MAR)'s Raise Was Great, Says Jim Cramer
We recently published . Marriott International, Inc. (NASDAQ:MAR) is one of the stocks Jim Cramer recently discussed. Marriott International, Inc. (NASDAQ:MAR) is one of the largest hotel chains in the world. Its shares have lost 1% year-to-date and are down by 10.8% since their peak in February. The stock has struggled due to worries about consumer sentiment and a slowdown in travel spending. Cramer's previous comments about Marriott International, Inc. (NASDAQ:MAR) have speculated that a part of the reason that the firm's shares have lost ground is because of self fulfilling prophecy in the travel market. This time, he linked GE Aerospace's backlog with Marriott International, Inc. (NASDAQ:MAR) raising its full-year guide in May to wonder whether the travel industry was coming back: 'The backlogs we're talking about, it's just that such a bull market in travel and flight that makes me say like you knowraising numbers Marriott raising. . .' A row of iconic five-star hotel properties from the company situated along the skyline of a major city. Previously, Cramer commented on Marriott International, Inc. (NASDAQ:MAR)'s share price drop: 'Well, I know that there's a lot of questions about going out to dinner and going out to dinner, the restaurants that charge too much, not good. The travel boom. Many people feel is over. . .if it's the airlines. . .Marriott has started to come down. This group is rolling over, but it's a little self-fulfilling in the sense that you know David, once you get, one of them down, people just say I'm getting out all of them.' While we acknowledge the potential of MAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
Airbnb: A Capital-Light Compounder Hiding in Plain Sight
There are very few businesses in the world where demand grows, margins expand, capital needs shrinkand yet the market stays skeptical. Airbnb is one of them. For most of its life, Airbnb has been misunderstood. It was called a tech startup. Then a travel rebound play. Then a meme IPO. Today, it's simply a cash machine that runs with no physical inventory, minimal capital expenditure, and compounding brand equity in 220 countries. This is not a story stock. It's a structurally advantaged platform with embedded network effects, high-margin scale, and a founder still running the show. This could be described as simple, proven, and unusually resilient. Let's break it down. Warning! GuruFocus has detected 3 Warning Sign with ABNB. Airbnb is a global travel platform that connects guests to hosts offering short-term rentals, long-term stays, and experiences. It doesn't own properties. It doesn't operate hotels. It simply facilitates transactions between supply and demandand collects a take rate for doing so. Guests book stays. Hosts provide homes. Airbnb charges both. It makes money when people travel, but unlike hotels or airlines, it has no physical assets tying it down. The business model scales with almost zero incremental cost. Airbnb isn't just a booking site it's a global operating system for travel. By the end of 2024, over 5 million hosts had welcomed guests across 220 countries and regions. The company has now facilitated more than 2 billion guest arrivals a staggering figure that reflects both the platform's global reach and repeat engagement. In 2024 alone, travelers booked 492 million nights and experiences. That kind of volume isn't a one-off surge it's the compounding power of a model that grows stronger with every stay. Revenue is driven by Nights and Experiences Booked (NEBs), average daily rate (ADR), and take rate. Margins are lifted by the platform's asset-light DNA, which removes most fixed costs and creates operating leverage as volume scales. Airbnb's product segments include: Stays (the core): short- and long-term rentals. Experiences: in-person or virtual activities hosted by locals. Airbnb for Work: corporate and team travel. Its power lies not just in what it offersbut in what it doesn't need to offer. There's no capex drag, no inventory risk, and no geographic dependency. The global travel accomodation (lodging) industry is massive, it is expected to reach over $2 trillion by 2033but it's still quite fragmented. Hotels, hostels, and vacation rentals all compete for travelers' wallets. Online Travel Agencies (OTAs) like Booking Holdings (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) sit between supply and demand, collecting fees. Airbnb operates in this same spacebut with a fundamentally different structure. Let's run it through Porter's Five Forces: Competitive Rivalry: Highbut mostly indirect. Expedia owns Vrbo, Booking pushes alternative accommodations. But Airbnb's brand has become a verb. No competitor has matched its community, design, and product consistency at scale. Threat of Substitutes: Moderate. Hotels remain an alternative. But the pandemic changed traveler behavior. People now seek privacy, kitchens, flexibility, and unique experiences. Airbnb wins here. Buyer Power: Low. Millions of users, no major customer concentration. Supplier Power: Fragmented. Hosts are individuals or small operators, with little collective leverage. Barriers to Entry: Very high. Network effects, brand trust, and regulatory relationships are hard to replicate. The trust loop (reviews, identity, payments, safety) is a deep moat. Its primary moat is a combination of network effects, brand, and scale efficiency. As more hosts join, more guests book. As more guests book, more hosts list. This feedback loop creates high switching costs for both sides. It also benefits from a growing data advantageAirbnb sees pricing, booking trends, and guest preferences across millions of listings. This allows better matching and dynamic pricing over time, improving user experience and profitability. The moat is widening. New features like AirCover (insurance), verified listings, and AI-driven matching deepen customer loyalty. Competitors can replicate some featuresbut not the trust that's been built over 15 years. Brian Chesky, Airbnb's co-founder and CEO, still controls the narrative. He owns around 11% of the company economically but holds over 30% of the voting power through high-vote Class B shares. That gives him both skin in the game and the final word a setup built to prioritize long-term compounding over short-term noise. Chesky has shown flexibility as a leader. In 2020, when the pandemic froze travel, Airbnb laid off 25% of staff and rewrote its roadmap to focus on core hosting. That discipline helped the company return to profitability quicklyand today, Airbnb runs leaner than most tech peers. Capital allocation has been rational. Airbnb doesn't pay a dividend but uses excess cash for buybacks. No splashy M&A. Just excess cash funneled into buybacks. Since 2023, it has repurchased $6.5 billion worth of stock, with another $2.5 billion still authorized. No empire-building. No gimmicks. Just a machine quietly returning cash while it compounds. The compensation plan is increasingly tied to FCF and adjusted EBITDA growthaligning incentives with durable profitability. This is not a management team chasing quarterly targets. They're optimizing for optionality, longevity, and resilience. It is the managerial candor with rational capital deployment. The numbers tell the story. Airbnb has graduated from blitzscaling to sustainable, capital-light compounding. In 2019, revenue was $4.8 billion. By 2024, it reached $11.1 billiona CAGR of ~18.2%, despite a pandemic pause. More impressively, net income grew from a ($674 million) loss in 2019 to $2.65 billion profit in 2024nearly 24% net margin. Gross margin sits at 83%, among the highest in travel. Operating margin reached 23%, thanks to disciplined cost structure and high incremental margins. Free cash flow was $4.5 billion in 2024, a 40% margin. ROIC stands at 28%, versus an estimated 11.5% weighted average cost of capital. Airbnb creates value with every dollar it touches. And it does it with minimal reinvestmentcapex was only $34 million last year (0.3% of revenue). The company is net cash positive, with $10.6 billion in cash and $2 billion in zero-percent convertible debt. It has no liquidity issues, no looming maturities, and full flexibility to investor return capital. At ~$139 per share, Airbnb trades at around 35x trailing earnings and 17.4x forward FCF. That's not cheapbut I do not think it's expensive for what you're getting. This is a 24% net margin, 40%+ FCF margin business, growing double digits, with high ROIC of 28%. The market is pricing in mid-teens earnings growthexactly what Airbnb has been delivering. Among platform-based businesses, Airbnb stands out for its combination of profitability, capital efficiency, and strategic clarity. Booking Holdings, despite a lower free cash flow margin of 33%, trades at a premium 21.4x forward free cash flow. Expedia appears attractively priced at 11.3x, yet faces structural headwindsincluding brand fragmentation, ongoing technology integration challenges, limited traction in alternative accommodations, and continued dependence on paid traffic. Marriott, by contrast, posts a robust 39.4% free cash flow margindriven by its scale and recurring revenue modelbut trades at a premium 26.3x forward FCF. Airbnb, with its capital-light structure and global brand strength, strikes a more compelling balance. It combines high free cash flow margins with lower reinvestment needs, supporting a more scalable and flexible growth profile. For investors evaluating high-growth platforms, these comparisons underscore the long-term value of monetization efficiency, structural leverage, and disciplined capital allocationkey elements as the company transitions from top-line growth to durable free cash flow generation. This isn't a bet on travelit's a bet on platform leverage in a massive, fragmented market. No investment is risk-free. Airbnb faces: Regulatory tightening: Cities like New York and Barcelona are cracking down on short-term rentals. This could limit supply or require costly compliance. Macroeconomic risk: Travel demand can fall in recessions. A weaker consumer, or geopolitical shocks, could hit bookings. Brand reputation: Safety incidents or bad PR can erode trust. Airbnb must maintain its host screening, guest review, and resolution systems. Competitive response: Hotels are adapting. OTAs are investing in alternative lodging. But Airbnb's moat still appears intact. These are real risksbut manageable. Airbnb has diversified geographically and pivoted before. Regulation may constrain supplybut that could increase pricing power for remaining listings. Airbnb isn't cheap on traditional metricsbut it's not traditional. It's a capital-light, global platform with widening moats and disciplined leadership. This is a wonderful business at a fair price. Not a bargain-bin stockbut a structurally advantaged one that could quietly compound for a decade. Many investors could think Airbnb is a cyclical travel name. But the numbers say otherwise. This is a cash-generating platform with software-like economics and global scale. If you want durable growth without the capex, with a founder still running the ship, and a model that gets stronger the more it scalesthis might just be your long-term compounder. This article first appeared on GuruFocus.
Yahoo
an hour ago
- Yahoo
Airbnb: A Capital-Light Compounder Hiding in Plain Sight
There are very few businesses in the world where demand grows, margins expand, capital needs shrinkand yet the market stays skeptical. Airbnb is one of them. For most of its life, Airbnb has been misunderstood. It was called a tech startup. Then a travel rebound play. Then a meme IPO. Today, it's simply a cash machine that runs with no physical inventory, minimal capital expenditure, and compounding brand equity in 220 countries. This is not a story stock. It's a structurally advantaged platform with embedded network effects, high-margin scale, and a founder still running the show. This could be described as simple, proven, and unusually resilient. Let's break it down. Warning! GuruFocus has detected 3 Warning Sign with ABNB. Airbnb is a global travel platform that connects guests to hosts offering short-term rentals, long-term stays, and experiences. It doesn't own properties. It doesn't operate hotels. It simply facilitates transactions between supply and demandand collects a take rate for doing so. Guests book stays. Hosts provide homes. Airbnb charges both. It makes money when people travel, but unlike hotels or airlines, it has no physical assets tying it down. The business model scales with almost zero incremental cost. Airbnb isn't just a booking site it's a global operating system for travel. By the end of 2024, over 5 million hosts had welcomed guests across 220 countries and regions. The company has now facilitated more than 2 billion guest arrivals a staggering figure that reflects both the platform's global reach and repeat engagement. In 2024 alone, travelers booked 492 million nights and experiences. That kind of volume isn't a one-off surge it's the compounding power of a model that grows stronger with every stay. Revenue is driven by Nights and Experiences Booked (NEBs), average daily rate (ADR), and take rate. Margins are lifted by the platform's asset-light DNA, which removes most fixed costs and creates operating leverage as volume scales. Airbnb's product segments include: Stays (the core): short- and long-term rentals. Experiences: in-person or virtual activities hosted by locals. Airbnb for Work: corporate and team travel. Its power lies not just in what it offersbut in what it doesn't need to offer. There's no capex drag, no inventory risk, and no geographic dependency. The global travel accomodation (lodging) industry is massive, it is expected to reach over $2 trillion by 2033but it's still quite fragmented. Hotels, hostels, and vacation rentals all compete for travelers' wallets. Online Travel Agencies (OTAs) like Booking Holdings (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) sit between supply and demand, collecting fees. Airbnb operates in this same spacebut with a fundamentally different structure. Let's run it through Porter's Five Forces: Competitive Rivalry: Highbut mostly indirect. Expedia owns Vrbo, Booking pushes alternative accommodations. But Airbnb's brand has become a verb. No competitor has matched its community, design, and product consistency at scale. Threat of Substitutes: Moderate. Hotels remain an alternative. But the pandemic changed traveler behavior. People now seek privacy, kitchens, flexibility, and unique experiences. Airbnb wins here. Buyer Power: Low. Millions of users, no major customer concentration. Supplier Power: Fragmented. Hosts are individuals or small operators, with little collective leverage. Barriers to Entry: Very high. Network effects, brand trust, and regulatory relationships are hard to replicate. The trust loop (reviews, identity, payments, safety) is a deep moat. Its primary moat is a combination of network effects, brand, and scale efficiency. As more hosts join, more guests book. As more guests book, more hosts list. This feedback loop creates high switching costs for both sides. It also benefits from a growing data advantageAirbnb sees pricing, booking trends, and guest preferences across millions of listings. This allows better matching and dynamic pricing over time, improving user experience and profitability. The moat is widening. New features like AirCover (insurance), verified listings, and AI-driven matching deepen customer loyalty. Competitors can replicate some featuresbut not the trust that's been built over 15 years. Brian Chesky, Airbnb's co-founder and CEO, still controls the narrative. He owns around 11% of the company economically but holds over 30% of the voting power through high-vote Class B shares. That gives him both skin in the game and the final word a setup built to prioritize long-term compounding over short-term noise. Chesky has shown flexibility as a leader. In 2020, when the pandemic froze travel, Airbnb laid off 25% of staff and rewrote its roadmap to focus on core hosting. That discipline helped the company return to profitability quicklyand today, Airbnb runs leaner than most tech peers. Capital allocation has been rational. Airbnb doesn't pay a dividend but uses excess cash for buybacks. No splashy M&A. Just excess cash funneled into buybacks. Since 2023, it has repurchased $6.5 billion worth of stock, with another $2.5 billion still authorized. No empire-building. No gimmicks. Just a machine quietly returning cash while it compounds. The compensation plan is increasingly tied to FCF and adjusted EBITDA growthaligning incentives with durable profitability. This is not a management team chasing quarterly targets. They're optimizing for optionality, longevity, and resilience. It is the managerial candor with rational capital deployment. The numbers tell the story. Airbnb has graduated from blitzscaling to sustainable, capital-light compounding. In 2019, revenue was $4.8 billion. By 2024, it reached $11.1 billiona CAGR of ~18.2%, despite a pandemic pause. More impressively, net income grew from a ($674 million) loss in 2019 to $2.65 billion profit in 2024nearly 24% net margin. Gross margin sits at 83%, among the highest in travel. Operating margin reached 23%, thanks to disciplined cost structure and high incremental margins. Free cash flow was $4.5 billion in 2024, a 40% margin. ROIC stands at 28%, versus an estimated 11.5% weighted average cost of capital. Airbnb creates value with every dollar it touches. And it does it with minimal reinvestmentcapex was only $34 million last year (0.3% of revenue). The company is net cash positive, with $10.6 billion in cash and $2 billion in zero-percent convertible debt. It has no liquidity issues, no looming maturities, and full flexibility to investor return capital. At ~$139 per share, Airbnb trades at around 35x trailing earnings and 17.4x forward FCF. That's not cheapbut I do not think it's expensive for what you're getting. This is a 24% net margin, 40%+ FCF margin business, growing double digits, with high ROIC of 28%. The market is pricing in mid-teens earnings growthexactly what Airbnb has been delivering. Among platform-based businesses, Airbnb stands out for its combination of profitability, capital efficiency, and strategic clarity. Booking Holdings, despite a lower free cash flow margin of 33%, trades at a premium 21.4x forward free cash flow. Expedia appears attractively priced at 11.3x, yet faces structural headwindsincluding brand fragmentation, ongoing technology integration challenges, limited traction in alternative accommodations, and continued dependence on paid traffic. Marriott, by contrast, posts a robust 39.4% free cash flow margindriven by its scale and recurring revenue modelbut trades at a premium 26.3x forward FCF. Airbnb, with its capital-light structure and global brand strength, strikes a more compelling balance. It combines high free cash flow margins with lower reinvestment needs, supporting a more scalable and flexible growth profile. For investors evaluating high-growth platforms, these comparisons underscore the long-term value of monetization efficiency, structural leverage, and disciplined capital allocationkey elements as the company transitions from top-line growth to durable free cash flow generation. This isn't a bet on travelit's a bet on platform leverage in a massive, fragmented market. No investment is risk-free. Airbnb faces: Regulatory tightening: Cities like New York and Barcelona are cracking down on short-term rentals. This could limit supply or require costly compliance. Macroeconomic risk: Travel demand can fall in recessions. A weaker consumer, or geopolitical shocks, could hit bookings. Brand reputation: Safety incidents or bad PR can erode trust. Airbnb must maintain its host screening, guest review, and resolution systems. Competitive response: Hotels are adapting. OTAs are investing in alternative lodging. But Airbnb's moat still appears intact. These are real risksbut manageable. Airbnb has diversified geographically and pivoted before. Regulation may constrain supplybut that could increase pricing power for remaining listings. Airbnb isn't cheap on traditional metricsbut it's not traditional. It's a capital-light, global platform with widening moats and disciplined leadership. This is a wonderful business at a fair price. Not a bargain-bin stockbut a structurally advantaged one that could quietly compound for a decade. Many investors could think Airbnb is a cyclical travel name. But the numbers say otherwise. This is a cash-generating platform with software-like economics and global scale. If you want durable growth without the capex, with a founder still running the ship, and a model that gets stronger the more it scalesthis might just be your long-term compounder. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data