As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Target Hospitality (NASDAQ: TH) 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 18 travel and vacation providers stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 7.8% on average since the latest earnings results.

Target Hospitality (NASDAQ: TH)

Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.

Target Hospitality reported revenues of $61.61 million, down 38.8% year on year. This print exceeded analysts’ expectations by 9.2%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.

"We have made remarkable progress in our strategic initiatives to expand and diversify Target's business portfolio. In the first half of 2025, we announced two new contracts valued at over $400 million across various industries, all benefiting from strong long-term growth trends," stated Brad Archer, President and Chief Executive Officer.

Target Hospitality achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 25.7% since reporting and currently trades at $9.18.

Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.

Best Q2: 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 $116.7 million, down 69.2% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 24.2% since reporting. It currently trades at $37.30.

Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $1.27 billion, up 2.5% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.4% since the results and currently trades at $47.52.

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

Wyndham (NYSE: WH)

Established in 1981, Wyndham (NYSE: WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.

Wyndham reported revenues of $397 million, up 8.2% year on year. This number topped analysts’ expectations by 2.5%. Taking a step back, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ adjusted operating income estimates.

The stock is flat since reporting and currently trades at $86.61.

Read our full, actionable report on Wyndham 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 $1.25 billion, up 9.3% year on year. This result surpassed analysts’ expectations by 2.4%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

The stock is up 4.8% since reporting and currently trades at $78.15.

Read our full, actionable report on Marriott Vacations here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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