Cruise line stocks are recovering from a harsh sell-off following Royal Caribbean's (RCL +1.9%) earnings report. Norwegian Cruise Line Holdings NCLH and Carnival CCL saw some panicking trading yesterday, according to some analysts.
United Continental (UAL +1.6%) and Delta Air Lines (DAL +1%) are also higher on the day. Sector watchers note that the impact of Zika on the carriers may have been overstated.
Priceline Group (PCLN +1.7%) and Travelzoo (TZOO +1.9%) are ahead of broad market indexes.
Hotel stocks Hyatt Hotels (H +2.6%), Marriott International (MAR +1.1%), and Hilton Worldwide Holdings (HLT +1%) are in positive territory in the lodging sector.
Hilton Worldwide and Marriott International are offering better discounts to loyalty club members in a bid to lower the amount of payments doled out to online third-party services, according to the The Wall Street Journal.
It's a trend that's likely to be followed across the industry as chains look to build stickiness with loyalty members.
Many hotel operators have contracts with sites such as Priceline and Expedia that limit their ability to undercut pricing, with the important exception of loyalty members.
Travelzoo (TZOO +8%) is near its highest levels since July (when shares took a major post-earnings swoon) following its Q3 beat.
Top-line pressures continue: North American revenue fell 10% Y/Y to $20.7M, Europe 3% to $10.3M, and Asia-Pac (recently acquired) 3% to $2.7M. Excluding forex, Europe and Asia-Pac were respectively up 8% and 7%.
Total members stood at 28M at quarter's end. North American members were flat Q/Q and up 2% Y/Y at 17.2M. European members rose by 200K Q/Q and 7% Y/Y to 7.8M. Asia-Pac members fell 4% Y/Y to 3.4M.
Cost cuts lifted EPS: Excluding a one-time year-ago gain, GAAP operating expenses fell 12% Y/Y to $28.1M. Travelzoo ended Q3 with $34.6M in cash, and no debt.