As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the travel and vacation providers industry, including Lindblad Expeditions (NASDAQ:LIND) 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 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 4.6% above.
Luckily, travel and vacation providers stocks have performed well with share prices up 11.8% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 18.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Natalya Leahy, Chief Executive Officer, said "We delivered outstanding results in Q1, and I couldn't be more proud of our team. With 89% occupancy and a historically high yield of $1,521 we've set a powerful tone for the year ahead.
Lindblad Expeditions Total Revenue
Lindblad Expeditions achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19.9% since reporting and currently trades at $10.92.
Founded in 1957, Hyatt Hotels (NYSE:H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Hyatt Hotels reported revenues of $1.72 billion, flat year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
Hyatt Hotels Total Revenue
The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $129.96.
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 16.1% since the results and currently trades at $39.03.
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Carnival reported revenues of $5.81 billion, up 7.5% year on year. This print surpassed analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 13% since reporting and currently trades at $23.96.
Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ:PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $267.3 million, down 11.1% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $13.48.
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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