This year is almost in the books, but investors are already fretting about 2023. At best, a sharp economic slowdown looms as the world economy continues to grapple with high inflation and the U.S. Federal Reserve and other central banks' aggressive interest rate hikes to try and curb rising cost of living.

Headed into this outlook, I'm looking to increase my position in Airbnb (ABNB -1.28%), so it surpasses Disney (DIS -2.83%) as my top travel and entertainment stock. The travel industry could be in for a pullback if consumer spending takes a step back next year in this category, and that could dent Airbnb's financials. However, with shares already down over 40% in 2022, much of this potential weakness looks priced in.  

Here are three reasons why I'll be dollar-cost averaging to increase my position in Airbnb.

1. Airbnb has a clearly defined business model

I recently wrote how I've made the hard decision to put my longtime position in Disney on a short rope. The return of Bob Iger to the CEO position gives me some optimism, but it has become clear that Disney's business model is suffering from too much complexity.

By contrast, Airbnb has a clearly defined business model. It provides a marketplace for people to list their real estate for rent, either as a short-term vacation stay or for longer durations. The company earns revenue from service fees from both the host as well as the guest booking the accommodation.  

It's an easy-to-understand business, and growth drivers are clearly defined. More listings from hosts in more countries, the better. And as the footprint of unique places to stay grows, Airbnb can attract more guests to its platform.

Now, I'm not saying a clearly defined business model means a perfect business model. On the contrary, as a frequent user of Airbnb myself, I can attest to having some really great stays and some not so great ones. A lot of other consumers have similar complaints. Service fees aren't always transparent either. Airbnb can still do a lot to make sure there's more consistency across the listings on its marketplace. 

Nevertheless, though Airbnb is far from a world-class real estate business, its model is clearly working. Even as the economy slows, Airbnb is still putting up double-digit percentage revenue growth, and it's highly profitable (more on that momentarily). Disney, by contrast, has world-class real estate assets (its theme parks), but is struggling to grow or hold onto any profit right now. The reason? I'd argue it's a lack of focus on its key business growth drivers.

Point to Airbnb.

2. Experimenting with the right new revenue streams 

In recent years, Disney's streaming service Disney+ has been the primary growth driver, as has the rebounding theme park business as early effects from the pandemic ease up.

But streaming TV is an incredibly inefficient business model to get up and running. Disney+ in particular chewed through billions of dollars in the last year, and Disney's decision to forego selling licensing rights to some of its content and moving it directly to its own streaming platform instead has created an additional profit headwind. Disney also shelled out an extra $1 billion in the last year to expand its cruise ship fleet, which I view as a distraction from the core business.

Airbnb is also experimenting with new growth drivers, but it's translating into highly profitable growth. One of them is providing its hosts with the option to list their property for longer-term stays, like a month or more. Remote work makes this possible for many, and Airbnb has turned itself into a top hub for these folks to experience new locations as a local would. 

Another growth initiative is "experiences," things like tours, food tastings, and other small hosted local events that can be booked by guests. Vacationing came back with a vengeance in the U.S. in 2022, and Airbnb has since made the most of it with its one-stop shop for booking accommodations and sightseeing.

These subtle additions to Airbnb's marketplace have paid off big time, since urban and cross-border travel (the main moneymakers prior to the pandemic) have yet to make a full recovery. Even so, smartly adding profitable growth drivers into the business has had Airbnb hitting new revenue records the last two years.

Another point to Airbnb.

3. Its cash can put out economic-induced fires

The net result of Airbnb's focus and incremental experimentation is a massive increase in profits this year. Through the first nine months of 2022, revenue is up 46% to $6.5 billion. Meanwhile, a net loss of $407 million the first nine months of 2021 has turned into net income of $1.6 billion in 2022. Free cash flow has increased at an even faster pace than revenue (up 54% so far this year) to $2.95 billion. Airbnb has also used $1 billion of that free cash flow to repurchase stock.

On the other hand, Disney's free cash flow has suffered. its net income hasn't rebounded nearly as quickly as I've expected either (net income of just $3.2 billion on revenue of nearly $83 billion) at exactly the time one might expect it to also be hitting new highs. Disney also doesn't pay a dividend anymore, nor does it repurchase stock.

By the time 2022 is done, Airbnb will be headed into a sharp economic slowdown from a position of strength. It's highly profitable and has $8.3 billion in cash and short-term investments, and debt of just $2 billion. Disney? Profit margins are paper thin, and the balance sheet features $11.6 billion in cash and equivalents offset by over $48 billion in debt.

Point three to Airbnb.

This is a clean sweep in favor of Airbnb's simple business model. Although the stock has been clobbered by the bear market, the business is doing exceptionally well and has earned the right to become my top travel stock.