Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Travel + Leisure (NYSE: TNL) and the best and worst performers in the travel and vacation providers industry.
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 19 travel and vacation providers stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 4.5% above.
Luckily, travel and vacation providers stocks have performed well with share prices up 13.3% on average since the latest earnings results.
Travel + Leisure (NYSE: TNL)
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Travel + Leisure reported revenues of $934 million, up 2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ tours conducted estimates.
The stock is up 17.2% since reporting and currently trades at $49.97.
Is now the time to buy Travel + Leisure? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $179.7 million, up 17% year on year, outperforming analysts’ expectations by 18.8%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Lindblad Expeditions pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 23.8% since reporting. It currently trades at $11.28.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $1.15 billion, flat year on year, falling short of analysts’ expectations by 7.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19.8% since the results and currently trades at $40.29.
Read our full analysis of Hilton Grand Vacations’s results here.
Pursuit (NYSE: PRSU)
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE: PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Pursuit reported revenues of $37.58 million, down 86.3% year on year. This result came in 3.5% below analysts' expectations. It was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.
Pursuit had the slowest revenue growth among its peers. The stock is down 3.2% since reporting and currently trades at $28.71.
Read our full, actionable report on Pursuit here, it’s free.
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 $1.2 billion, flat year on year. This number missed analysts’ expectations by 0.7%. Taking a step back, it was still a strong quarter as it recorded an impressive beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
The stock is up 15.8% since reporting and currently trades at $67.40.
Read our full, actionable report on Marriott Vacations here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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