Deutsche Bank Analyst's Top Picks: Six Flags and Theme Park Evolution

Travel and Leisure Outlook for 2026

• ✈️ Travel is expected to remain strong heading into 2026, with spending continuing at the higher end of the spectrum.
• 🚢 Cruise lines are focusing on out-of-cabin spend, including private island destinations and onboard premium dining, similar to strategies seen in Las Vegas.
• 💰 While a value-conscious customer exists, cruise lines see limited price sensitivity among most customers, though budget options like interior cabins are available.

Theme Park Investment Thesis

• 🎢 Theme parks, particularly Six Flags, are highlighted as top picks despite potentially appealing to a lower-income spectrum.
• 🎤 Companies like Six Flags are evolving by adding live immersive entertainment, celebrity appearances, and enhanced dining experiences beyond traditional roller coasters.
• 📈 This evolution in content and offerings is believed to be underappreciated by the current market.

Challenges in Winter Tourism

• ⛷️ Ski resorts face affordability issues and are heavily impacted by a lack of snow, making it difficult to attract visitors.
• ❄️ The current snow conditions in most of the western US are poor, affecting the viability of ski destinations.