As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Hilton Grand Vacations (NYSE: HGV) and its peers.
Airlines, hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% since the latest earnings results.
Weakest Q3: Hilton Grand Vacations (NYSE: HGV)
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE: HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Hilton Grand Vacations reported revenues of $1.3 billion, flat year on year. This print fell short of analysts’ expectations by 5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and adjusted operating income estimates.
“We delivered broad-based operational and financial performance across key channels and geographies in the third quarter, reflecting the strength of our brand and our business model,” said Mark Wang, CEO of Hilton Grand Vacations.
Hilton Grand Vacations delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 11% since reporting and currently trades at $39.33.
Read our full report on Hilton Grand Vacations here, it’s free for active Edge members.
Best Q3: Lindblad Expeditions (NASDAQ: LIND)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $12.05.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.
Marriott Vacations (NYSE: VAC)
Spun off from Marriott International in 1984, Marriott Vacations (NYSE: VAC) is a vacation company providing leisure experiences for travelers around the world.
Marriott Vacations reported revenues of $1.26 billion, down 3.2% year on year, falling short of analysts’ expectations by 4.5%. It was a softer quarter as it posted a miss of analysts’ conducted tours estimates and a significant miss of analysts’ revenue estimates.
As expected, the stock is down 31.3% since the results and currently trades at $46.25.
Read our full analysis of Marriott Vacations’s results here.
Royal Caribbean (NYSE: RCL)
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Royal Caribbean reported revenues of $5.14 billion, up 5.2% year on year. This number came in 0.5% below analysts' expectations. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is down 19.8% since reporting and currently trades at $257.
Read our full, actionable report on Royal Caribbean here, it’s free for active Edge members.
Marriott (NASDAQ: MAR)
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Marriott reported revenues of $6.49 billion, up 3.7% year on year. This print topped analysts’ expectations by 0.9%. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter slightly missing analysts’ expectations.
The stock is up 9.1% since reporting and currently trades at $288.15.
Read our full, actionable report on Marriott here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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