Travel and Vacation Providers Stocks Q3 Results: Benchmarking United Airlines (NASDAQ:UAL)

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 United Airlines (NASDAQ:UAL) 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 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 4.5% since the latest earnings results.

United Airlines (NASDAQ:UAL)

Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.

United Airlines reported revenues of $15.23 billion, up 2.6% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ adjusted operating income estimates.

"We've invested in customers at every price point: Seatback screens, an industry-leading mobile app, extra legroom, a lie-flat United Polaris seat, and fast, free, reliable Starlink on every plane by 2027. Our customers value the United experience, making them increasingly loyal to United," CEO Scott Kirby said.

Unsurprisingly, the stock is down 8.7% since reporting and currently trades at $95.14.

Is now the time to buy United Airlines? Access our full analysis of the earnings results 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 delivered the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.8% since reporting. It currently trades at $12.42.

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 11.4% since the results and currently trades at $39.18.

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 $2.94 billion, up 4.7% year on year. This number lagged analysts' expectations by 2.7%. Overall, it was a slower quarter as it also logged a miss of analysts’ revenue estimates and EBITDA guidance for next quarter missing analysts’ expectations.

The stock is down 14.9% since reporting and currently trades at $18.86.

Read our full, actionable report on Norwegian Cruise Line here, it’s free for active Edge members.

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 $99.36 million, up 4.4% year on year. This result beat analysts’ expectations by 16.5%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Target Hospitality scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 14.9% since reporting and currently trades at $6.57.

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

Market Update

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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