Wrapping up Q3 earnings, we look at the numbers and key takeaways for the travel and vacation providers stocks, including Hyatt Hotels (NYSE: H) 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.

While some travel and vacation providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.

Hyatt Hotels (NYSE: H)

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 $1.79 billion, up 9.6% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

Interestingly, the stock is up 20.6% since reporting and currently trades at $166.44.

Read our full report on Hyatt Hotels 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 and EBITDA estimates.

Lindblad Expeditions pulled off the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $12.11.

Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.

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, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.1% since the results and currently trades at $41.91.

Read our full analysis of Hilton Grand Vacations’s results here.

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 $1.04 billion, up 5.1% year on year. This result surpassed analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ tours conducted estimates.

The stock is up 12.5% since reporting and currently trades at $68.25.

Read our full, actionable report on Travel + Leisure here, it’s free for active Edge members.

American Airlines (NASDAQ: AAL)

One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ: AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

American Airlines reported revenues of $13.69 billion, flat year on year. This number met analysts’ expectations. It was a very strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is up 11.8% since reporting and currently trades at $13.52.

Read our full, actionable report on American Airlines here, it’s free for active Edge members.

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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