Wrapping up Q1 earnings, we look at the numbers and key takeaways for the travel and vacation providers stocks, including Royal Caribbean (NYSE: RCL) 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 10.4% on average since the latest earnings results.
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 $4.00 billion, up 7.3% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates.
"Our strong first quarter results are a testament to the enduring appeal and attractive value proposition of our leading brands and the incredible vacations they deliver," said Jason Liberty, president and CEO, Royal Caribbean Group.
Interestingly, the stock is up 17% since reporting and currently trades at $254.
Is now the time to buy Royal Caribbean? 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 achieved 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 15.1% since reporting. It currently trades at $10.49.
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 13.6% since the results and currently trades at $38.19.
Read our full analysis of Hilton Grand Vacations’s results here.
Norwegian Cruise Line (NYSE: NCLH)
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Norwegian Cruise Line reported revenues of $2.13 billion, down 2.9% year on year. This result came in 0.7% below analysts' expectations. It was a slower quarter as it also recorded a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter slightly missing analysts’ expectations.
The stock is flat since reporting and currently trades at $17.52.
Read our full, actionable report on Norwegian Cruise Line here, it’s free.
Hilton (NYSE: HLT)
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Hilton reported revenues of $2.70 billion, up 4.7% year on year. This print lagged analysts' expectations by 0.9%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is up 12% since reporting and currently trades at $248.26.
Read our full, actionable report on Hilton here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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