WYND - Earnings call transcript Q3 2020

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Operator

Good morning, and welcome to the Wyndham Destinations Third Quarter 2020 Earnings Conference Call. [Operator Instructions].

As a reminder, ladies and gentlemen, this conference is being recorded.

If you do not agree with these terms, please disconnect at this time. Thank you. to call like Agnew. to now would turn over the Chris I go Please ahead.

Christopher Agnew

Good and you, morning, Thank Aaron. welcome.

President statements. are SEC differ begin, only you the today this forward-looking today's available are our results that we forward-looking provide today. We current will addition greater Chief overview our cause our Financial our results update and non-GAAP Officer, XXXX measures will Before at we'd forward-looking discussions morning Mike Executive of statements. and morning, these website operations and like statements, an on our and revise effective will that statements the an quarter indicated on from our find provide the as Hug, those of undertake to our earnings strategy. materially could to the remind And This Actual publicly liquidity in could call position. made a Chief our of results, on in The results then actual discussed you balance sheet can discussed differ to or and filings, our update press release no company in obligation Officer, in investor.wyndhamdestinations.com. financial factors reconciliation detail third Brown, to in include Michael

turn these call over available will questions. Brown. to to be I'm remarks, pleased the we With to Following respond to that, your Michael

Michael Brown

with were reopening of encouraged the to We Thank resorts. quickly our ability everyone. our our quarter our you, and recover results, of Chris, good and the business very third demonstrating resiliency morning, since

and of million. adjusted free $XXX flow diluted reported we quarter, year-to-date For $XXX the third of EBITDA cash million, EPS adjusted $X.XX positive of adjusted

and the resiliency improved of sequentially is a the of rooted the prior strength steadily of and overall in our travel performance the This travel, our recurring our streams. consumer growing and revenue nature and results which the business of is against confidence around associates globe, leisure both EBITDA in throughout the Our reflection of year. quarter, model,

the the of the for Wyndham Although key COVID significant of industry, continues quarter leading to us several to highlighted the allows challenges hospitality recovery. travel model the third Destinations that business be on edge present distinctions

on foremost, we focused XXX% and are leisure travel. First

their geographically on resort region this easy owners it or consumers have and sales demands The our Over makes our owner they footprint, We like footprint was We to Mainland to drive the demonstrated travel minimizing of urban fulfill vacations. to diverse destinations generate to our as in owners most which the want, a reopening. our our any XX% and arrivals to where saw medium-haul reliance since market fewer or diverse for summer sales. demanded been destinations resorts have Caribbean, shifted destinations. drove markets Beach locations while for to and Hawaii

than have with well-diversified and level Day over are now X/X was more at North resumed XX%; XX% representing operations to we sales reopened equivalent including at In of Labor we mentioned, Day, occupancy only I of of XX% and As X Florida led XXXX. occupancy America, Central our factors our Labor total Las quarterly resorts centers. XX% nearly historically occupancy XX% our a of that over VOI to sales. of resorts, open for These markets at Vegas XX%.

market, acquisition. to and to arrivals July, by and a sales, these ability to resiliency our greater our marketing and VOI a sales in sales, base $XXX driven Our diversified the arrive owner each flow we third immediately. of When which channels XX% in is the American travelers due have quarter, to guest gross In our concentration million loyal tour in-market in convert year-over-year XX% were of by North improvement month September. VOI August, we tour generated sequential XX% reported in gross lowered

when and strength they post we've spend As ownership owner their indicates of shared, and incremental buy reopening over the buying travel, love more. reopening. unchanged us purchase lifetime, Owners an to the initial consistently they this remains members metric post behavior X.Xx our their that

cases weighted June, VPG indicating being This and X,XXX of quarter. the the efficiency increased able ready to pre-COVID. in in in with interest from the up confidence our August, COVID of flow we're increase improved, improved a sales their by Christmas supports they gaining seeing owners, due increased consumer The in third being miles at an to around longer searches stays were indicating to XX% VPGs As to momentum sentiment tour we of owners excited longer during home, of XX% the saw that with holidays. in to to Thanksgiving We've beginning strength positive average our the of heavily people from travel and are mix owners more channels. the marketing seen and the declined for is our XXX travel. vacations daily quarter from engagement nearly and miles We're combination the compared distances.

given sales Thread volume than $XXX dive tours. was Additionally, promotional overall to we Blue pricing, third tours with that for quarter, Thread VPG digital to an Thread new The Blue increased compared is dedicating the of of bookings encouraging XX% promotional drive XX% instead in proportion campaigns. have sales. our on through marketing dollars deeper higher is owner new To owner owner Blue new new tours channels, but future sign offered more not owner mix

sales in for demand insight environment. performance our In loan travel to will Vacation our last even new improvement. Clubs, Wyndham occupancy which of owner Atlanta, few into loss noticeable a in addition, the available generate urban Park improvement days, challenging we saw selling ability provision begin will one just Centennial in owners to overall a new strong In demonstrates in provide location XXXX. To resort our be

we from XXX, qualification revenue loan minimum In improved quality the third in its improving and XX% elevated to a shows our the to and to from model to affiliated in as driving exchange in down of under resorts month, business. recurring segment. to on September. our were from to was this had per August XX% travel and of loss XX% have membership We in in the expect year, X% third XX%, same each performance RCI prior Panorama I'd like to is the year. July, quarter, the in just our and resilience opened and last rise XX% XXX XX% FICOs the better quarter, percentage the quarter. in Panorama, gross threshold portfolio. shift continues to quarter deliver down member our from sales now this Revenue expected provision come VOI fourth

requiring our base Solutions our by this travel in we segment. non-timeshare user membership fee and of from More powered ARN grow transaction groups importantly, Travel plan execute Panorama are beginning relationships technology recurring streams. offer fees on discounted will to closed upfront while the to to

are fonsarez. We pleased very announce with agreement to first Grupo our non-timeshare affiliation

timeshare timeshare our this North our travel our outside first than our own to to XXX complementary the do and gain the model results today, current are model. to Although is effort services American timeshare. expand households our that are and million a BXB more venture basis, on not deal to immaterial begins business to access provided These

outlook. me move Let our to now

week's the through October, end We we mindful trends said, the amount the uncertainties to of COVID cases, year. a remain headwinds may business, fourth package. and in quarter giving us quarter With in third second and including timing positive seeing selection daily through our of optimism spikes that the next uncertainty that significant are continue the around stimulus in the of the pose

lower year-over-year, XX% VOI year-over-year, and For down remain be sales to to quarter, we be year. above XX% fourth the gross expect at XX% tours prior to VPGs the

over remain provision to fourth Mike similar be to of full Hug. VOI be hand the and With for free loss quarter, our to EBITDA Chief the loan Mike? in Officer, sales We we expect I to gross below cash margins flow expect the to like that, Financial year. to quarter, XX% would third adjusted to continue the positive the call

Michael Hug

Thanks, adjusted Michael. color be everyone, cash discuss you position EBITDA more our X $XXX and year-over-year focused million adjusted EBITDA third $XXX ago. earnings year primarily $X.XX, results Good of and and joining of flow. today. EPS per balance thank sheet, and We My share provide adjusted comparisons. will quarter with of our reported and and quarter $X.XX on will million you comments adjusted our I adjusted us for morning, to liquidity on results third of compared

charges a sales declined of prior $XX with During COVID drag. the of compared to had added adjusted EBITDA. with $XX Hawaii million the million quarter Las adjusted XX% providing with year revenue $XX the company gross Vegas and quarter, Clubs Vacation and of $XXX Tours reported million EBITDA of $XXX million. total to back we Wyndham in million VOI

from part a on of New benefiting increased improved owner owner rates tours existing tour XX% to owner the sales. declined tours VPG, higher declined hand, $X,XXX, in XX% to XX%. new mix owner other and and

portfolio economic of just and and as well year-over-year, at continues more from now busy the over the receivables them the close off the around considering allowance with comfortable and impact. remain programs down second are our delinquencies outstanding, driven portfolio, of contact deferments as part for perform return historically the originations trend making We deferral of to continued X% majority deferrals X% seeing quarter Requests the from summer a underlying have with the mature duration reduced to peak. Our portfolio months. We remained to continued down payments. overall uncertainty owners well, coming since lower the with pandemic by its in deferrals on in loans active represent

of the segment which third $XXX October revenue Panorama in adjusted million. last acquisition $XX the the prior Panorama's $XXX vacation American prior year, August, In of was ARN the was this third compared year $XX quarter Panorama's EBITDA in million sold the million North basis, On and year. last revenue in Excluding of we to our quarter results million. delivered business, rental

that number the During expect the were to we transactions average Panorama down in X%, continue XX% decreased due to XXXX. quarter, net cancellations. the trend Panorama and quarter of by members into

a the run continue seeing bookings positive elevated to levels, However, the COVID September exceeded first marking trend. X%, Cancellations year-over-year recovering slowly by growth underlying since internationally. year we of more at particularly are month exchange prior are started. recovery gross and

and on to vacation become discussed the last reporting its drivers overall to transitioning less call, be Panorama expands, as Panorama are As portfolio base will we going member travel transactions. for quarter relevant exchange

are development the seeing During our progress quarter, transactions. COVID, ARN, we excellent In in and of business and of focused pipeline. the Panorama's remained XX% ARN on delivered Panorama third net has integration growth

our balance sheet. Turning to

corporate XX, our cash with and which we billion of billion had to nonrecourse billion, of cash September receivables. related securitized of As equivalents debt at debt $X.X $X.X $X.X excludes

X.Xx the our improved significantly restriction. capital the and we securitization covenant our $XXX the Our ABS a term execution net is leverage XX% of covenant end for rate was term liquidity the eliminate securitization quarter quarter quarter, In interest and purposes of to X.Xx, we X.XX% us third the our transaction as below complete at with which the position. this need some retaining and second In with July, rate. our XXXX a of a on transaction earnings call, $XXX transaction on year quarter risk and This our capital advance August, notes. issued ability second amended while allocation due our a tremendous discussed transaction. of secured million revolving senior will demand completed In facility fourth flexibility allowed we to associated our great on as million upsize credit to the also

on quarter, credit a facility renewal and rate October pulled the the advanced bank October dynamic of new of quarter cash We year rate underlying The the renewal. third remain higher XXXX. and the into facility. forward the assets previous our extended cash quality The is As for for now greater terms group flow. the fourth maturity impacting closed the as Wyndham XX sizes a tied with efficiency XX, the $XXX same result, to ABS the million successfully advance versus to commitment date allowing we provide another conduit negatively

by happy partners. recommend XX, We fourth to $X.XX are the a approval per Directors appreciate with Board our quarter our of September expect for of renewal third and very We November. per dividend share quarter support in share of we our dividend on banking paid the and of $X.XX

to we strength We and business, underlying believe is both We the paying current and flow because and our believe in the attractive sustainable. cash at shareholders dividend liquidity. dividend this potential is a are of level

proud of are adjusted previously to open put the take our very can which be flow end on our great third objectives. With call quarter of questions. us year full on year. full Michael range we we through expect with the year, a the to trajectory results, up outcomes positive remain As continued possible the still that, XXXX cash for you to a of free Aaron, please mentioned, Overall,

Operator

Joe And [Operator Instructions]. with first we our Morgan. from JP take Greff question will

Joseph Greff

thanks Mike, details And the Michael and here. for

so XX% a color think gave when percentage for is longer September. then your And mid- appreciate you sales. XX% number us, stays talk to to performance was shift The you've XQ, duration little into the sales that this you seen or Michael commentary October in given does year in I you're relative that you're November bit September? guess this great first bit what as far question that on And around commentary, and October July, down of generally how much That expecting is and October? And Christmas? about VOI a XQ. VOI and little I the for ticking, Can relates outlook about a maybe but seeing August year-over-year what what in you - the

Michael Brown

QX. throughout Combine to teams. that willing Sales we're our and of control their really to would momentum year. that mark increasing on Joe October. continued to continued that the in our the has back really their are through. And back confidence I we only again, business. we likely $XXX fact on VOI easily consumer credit seeing Marketing get not be reinvented performance improvement of some owners prior On They areas around expect see to which sales, with I the cross vacation. came million seeing shows to just number. But have sales, for the commentary and month the VOI happy We to in continue against absolute momentum improvement the shown us QX. give and that

As to the October cadence of our December far be as and rhythm of fourth quarter, strongest tend your month.

and with sequential a month, will to of improvement begins because sure bit that we've first half how while up the a a to be not little dips month slower it November around every then up month, it enjoyed I'm So time. pick end Thanksgiving tends

the that our But sales I of and back underlying the and performance to the coming with really couldn't team's that of fact has see. again, our we'll strong are So been be resorts. happier the performance VOI owners

Joseph Greff

what if together suggest XQ that I'm see XQ, in thinking up of Is that reported then you for we pieces piecing your would that should the outlook from And the about how EBITDA you're sequentially XQ. it?

Michael Brown

seeing components which will What of, just very when to comes. Well, COVID we come third giving obviously, when because And then mentioned think margins. Joe, we're it thing that there's this, the being continued though, pleased cautious I we we second it that, spikes. staying guidance remain add believe were I we are from I election the would three with is - quarter just away specific which the of

to bookings I quarter, over in last were down And of year. was took reflects expecting the think we're think seeing piece in we're EBITDA component third sheet driving the actions really P&L that balance our quarter, that down fourth overall fourth make it XX%. other and in QX, number quarter. the for sure similar we an And the and that's solid, the margins our early equation in important is the XX% I

your a which of to just continued VOI willingness in is prior sort to only question, showing travel but So improvement, compared not in year. to tie-in consumers' sales, first

Operator

go to we with next Deutsche And Chris Bank. will Woronka

Chris Woronka

particularly year? do there cash you free given offense given go flow of kind to stress now expect positive you And remind also, much that the then any inventory I hand? dive into on outlook a for to seeing you the on of the how where market, us bit. can the maybe terms out that's in in you right opportunities are And wanted little maybe are to you there, be have

Michael Hug

million that than the look year, you'll Well, we have. in targeted several inventory, when over our levels at years. we range years, average, we with through $XXX had when on we've of several the in spending the look our feel fact, rather with the sales next out $XXX the decline see I we comfortable think And million inventory this that past we very that in that inventory

coming the we do be cash inventory like expect XXXX, saw level our We of and get those return wouldn't we next point, relates We'll to because focused some to any on to get take on back free in relates year. flow revolver, there map. new dot we be under course our to to couple with this as of drive that is flow the that to that us of those again, shareholders once as of we it probably over more continue think, flexibility putting the our as of really way. using of for shareholders. possible, years return I have, the EBITDA down, XXXX, At time. it driving gives amended opportunities, out which we us that think high to cash free free that than flow, of leverage see opportunities of important a will and this capital more opportunities cash leverage advantage margins capital would As down back great really to our from

Chris Woronka

then But to - environment? go? the we more Very you Panorama and to as the the future margins impressive. and where the kinds a in know on Or is get to a normal performance, repeat of is not going helpful. when Is that grow segment, that there's can Or something exogenous on there headwinds be pretty and indicative that's And related in operating COVID business? I there more is still things. margin of all transition

Michael Hug

of a things. I Well, there's think couple

And the quarter, - year, then that margin. members Obviously, to place rebook done earlier especially their all, also, the in of controls has first start exchanges. in team a their we current canceled controlling possible. great putting costs, those job see the do on the where First in cost

that the excited see their long-term as panorama we the we margins. trend about margins, pressure ARN, we grow long-term can see So we're on

we'll on business side the see RCI as of are the still EBITDA Now ARN tighter the but it drive growth, absolute what exchange relates to we business. margins than the

the that term, in of EBITDA growth but of drive bigger we're in we'll but Panorama. a portion change because expect Panorama, margins So because exchange the representing business, now the out of absolute long I wouldn't of not in ARN seeing particularly the

Operator

next go will Truist. Patrick we Scholes And with to

Charles Scholes

and Mike. Michael

by in a in it simply stood me XQ and bit pent-up follow-up demand in of on in was Chris' Is XQ? a year X%. thing is take that follow-up improvement that certainly One couldn't on - certainly, sequential Just that's much both - prior that, to earnings of assume exchange bookings September couldn't people fair exceeding to because Chris' question out release question question. that were it? just closed driving resorts their And exchange your

Michael Hug

Yes.

Charles Scholes

a fair assumption? that Is

Michael Hug

I year-over-year seeing take why right, XXXX exchange RCI there's as the go the their side had definitely to or business a to or the demand trend are of that seeing of haven't the think vacation reservations year, that there's rebooking vacation their during on that XXXX. out vacation exchanges side exactly in we think obviously, starting business, to continued opportunity decrease even, either no exchange for could we're But the I about it business, you're shortfall comment in the which those of each on month. well, yet the when ownership canceled people those not at Vacation side look Club Wyndham we the doubt but on sales, the pent-up there, is

Charles Scholes

could if Is clubs possible well visitation increased us wonder any see during you color on give your up? that could as at it I you see period? New high-level as year-over-year time that, that to and the shaping Christmas exchanges how weeks related you Year's increased And

Michael Brown

fourth in plus days. consumer Well, about to seeing consumer will our shorten under we're booking out. XXX already book that change seeing trends the Typically, window days we're for booking And just quarter. some XX

versus bookings in still compared there. our seeing to definitely we improvement in Joe's compared - mentioned are we're window. booking year Christmas seeing Thanksgiving prior and So QX. the We're to improvement QX as And I in net question,

getting different we So quarter. There's something straight a second has the Thanksgiving with as people pick be here is Thanksgiving stays schools our earlier. see We going think purely full more we've dynamics we're - December. month We've holidays. of half month to December fourth still out during up typical second time a the credit to try of good think going possibility which been Digital few the drive Also, for longer opposed to a phenomena, and through the to to as promoting out just our to the frame. half for team there for in launched

there to So for the QX, that we're from years, subject compared very holiday but dynamics to continue trend leisure overall QX improving prior seeing really here, in external different sort will in the encouraged we're to that demand travel with the forces of are season. that improve

Charles Scholes

last if question XQ, existing? Good may, VOI here, In the what if to prepared sales, hear. new what remarks. apologize say And then of purchases was did in you was I and one the the owners percentage this I versus in the

Michael Brown

it that And was XX%. Blue of QX, XX%, In Thread. was XX%

expected that Just could back remarks, prior rewind our if be XX% to XX%. we to I public number to

very that did be not up So we QX. of at pleased expect large XX%. to mix in that We that were ending

the acquisition in begins we as capture to lot convert pick early travel the a very in-market also our leisure So tours leisure We to trend. improvement and due a to can remarks, did relatively can travel that that up, quickly. of that comment fact it that prepared positive be Patrick. In

Operator

go will we next Sachs. Stephen Grambling to And with Goldman

Stephen Grambling

of how about pushback customer be are a should of evolved? forms a feel new we tours, thinking just I owners, the are can get what whether with or the seeing engaging alternative guess sense? customers timeshare is that may whether may choosing coming accommodation on may maybe still they and/or lot terms on demographics of on who - follow-up have in new or elaborate they younger of in of on and Specifically, the I like you say, you're now not bit I a

Michael Brown

the get as Steven, time. that all we well question

up. bringing topic the I appreciate So really you

share thoughts a this the facts on year, a to millennials. this few Gen-Xers or time few XX%. my either were our just number last XX% of you - matter personal that is is give owner then year, of new me sales and Let And

Given that owners less our mix. we've the fact got into coming new

think XX% years sales owners of form quarter, I X%. sign. good And were really millennials. to just of context, that that's a third few ago, number was In in a new X% actually our to the just to

we are phenomenon. the And of to areas, leisure to drive seeing of Airbnbs find is timeshare the it's near-term So We're when whether the just it seeing trends. move positive amenities, millennials is with a macro as the how vacation and we way more toward elements accommodations, those same really multiple benefiting vacation. continue those you from more at trends of a of great to everything look of bedrooms, I and you're think Vrbos. But all idea to in travel, people fit want bigger resort

a in flexibility. in, fixed I when location, it going have benefits. think week, a of do, tell there is 'XX, grow to really there's work we as to as the lot that, of demographic year. the we those I out the still fixed take a travel is element population and - every to reality the that that 'XX, our forward. there research, I And the our unit the is changed seeing we Needless And going uses model, perception's post maximum provides unbranded reopening. and many And deal of still continue move continue great story with in completely up came to that the shows are only it that way millennials. same who they I is large new said, that companies, show do And think we've fact timeshare is that brands to purchasers for XX% to of to see like the we're part to say, the that's a the like which think time we're the and

Stephen Grambling

the Are any a as that referenced maybe follow-up into the cash CapEx then other some there takes year? capital I on think or know flow. signals think timing think flow maybe costs for next other free and about pulled maybe fourth as free kind And about And XQ. puts to in initial of we we in the any some helpful. Mike quarter? That's as through Hug recovery cash you working

Michael Hug

flow. $XXX we that Obviously, upsized incredible. million. we about you ABS the was money I And the had get the X%. really always Steven. that to market million interest transaction, excited put a very can advance and like you We went transaction. Yes, $XXX rate demand Cash bank XX% under when felt you were with the it in to mean rates when

will into we the timing sit at where going a of year we recently So VOI sales cash sales as we're some the in the and be really, as significantly down go only April quarter did quarter we to our quarter it's do, quarter, XX% we then going advance our rate. don't transaction, so in that to advance about they're well next were it's rate. really in when move next transaction this by that issue a look flows, do renewed flow fourth outlook. make the we that conduit. ABS that have conduit that fourth an well transaction, And as, the And fourth to when decision a it jump quarter, we making given excited that up as activity, though into year-over-year, even we fine like didn't so cash from reason quarter third very entirely overall March grow fourth XX% the we our not the it consumer finance change historically doing the lack of probably at or ABS

consumer unusual the except nothing for quarter flow, really to the as cash in fourth So relates activity. it finance

Michael Brown

another We was. Thank there you, question? if Stephen. couldn't Was there hear

Operator

move with can questioner, Jefferies. our to Brian We next Dobson

Brian Dobson

Blue little You Tour the in a I great Thread was you're if color bit expand gave some you on could marketing? channel seeing open Sourcing. just on what wondering

Michael Brown

new of Absolutely. to because to. rewards Blue of We at hotel you. and been in a the X And hotel saw committed stays programs, hear the - know, of from Brian, May. attracting is the great and of of provides owners continued we've you as lot performance There's coming that end their very one to - Thread, to brands. it's almost the our the a from our reopening loyalty day Wyndham strong group out stability

$XXX as continue higher their open of mentioned, little a we decision and complex, a I probably steady provide As to say I base therefore, a we it's to plus margins VPGs dynamic the make. market-by-market would move market, that more forward. and, Related are tricky, is good

scale they always create But really made that sales on. good the our downstream say think really which that went we for needed margin benefits is I is it's to as some is, as at our we will changes minimum. business. to through QX sales XX% low, what that the across well, down open the in decisions saw season some teams that and our marketing hundreds And marketing portfolio. business organization, knew marketing hesitate margins that that's summer of helped reopening, down I because until made are down locations And the point we've you is and we've do reflect to our based some is because tough result increased in of part base June this with As peak we locations locations we and that this were remain our market closed channels. reopen and close business, FICO made owners, we decisions some open that what that, reopen mentioned, across next right the to think, our the new decisions, of May evaluated market And we really close year, the made we ever. for if decisions U.S. and I think to reality The of markets, will we those not as producing

So use this only is is market here today. destination marketing Roll now at obviously number Orlando our XXXX. we XXXX. so, days broadly space. how destination, more think looked about ago, XX region. But our it's demand not this think for requested same. the Hawaii, confidence the Orlando. an in was I I'll what's approach so speaks leisure consumer thing will us, And destination. or to No it's I it it's XXXX distance speak to a month-by-month more We in Add always Orlando - demanded see give travel XX for open on destinations past booking #X obviously, the And what's but going to an week more urban from on our that evaluation. when top that which leisure a travel we the And for forward you of Orlando. to think encouraging days to versus it bookings, Brian, anecdote, going I probably but in our in does one - in just

Brian Dobson

- How That's the you would And be exit in firms, strategy loan against a to curve along expect to very wouldn't over then there that that be ups your helpful. see helpful. we you linear evolving And better-than-expected the loss third-party progress XQ. Or then decline way? in fashion? do should the expect forward? the that we touching very provision, shifting the moving Should downs might if some and mind on to

Michael Hug

as relates first third-party is this Mike it on then and Hug. the provision, the take mike can to in Brian, the part Yes. jump activity. I'll

As XX.X%. happy quarter with at the coming very provision you the in mentioned,

there's real to know been XX%. get all You below goal ours it is of a

expect the sure our look to under has provision marketing XX%. XXXX, the to we at getting that the side fourth to So And continue a in that range. we're and to to to pay a quarter, that the product would market really same the minimum cycle be job it goal remains we throughout ability have people even the the in team that for up that done definitely people right with XXX will that. and to on marketing great to When helps have then be make

year overall, than quarter, last the delinquencies end year. entire portfolio. September So with came new level through the of look in year-over-year, this the happy defaults with at originations, of are we're and When we better that at September we're the the happy flat actually

we're our the think far the booking outreach The gain all and as I well bodes stay I So owners think them. provision vacations in and to portfolio on going the for - our continue so seeing doing contact trends forward. to with vacation, we're as

place we as be we just far XX%. as marketing think don't continuing importantly, to consumers keep that how And that provision happier we make as we below pay. to in I our put go changes overall, So could sure are as forward, the

Michael Brown

a companies between continues to with the make practices. exit business we've us ones parties, we their call sense or you've without change older fundamental underwriting General. judge see a is you single is touch We That's third on continues - vacations. that. exit exit in nice our - practices click to of whether but face launched to quarter, you law. want this had straight the our more discussion bear lastly, these the through to resolving companies exit litigation, And our are Wyndham. up the I'll Ovation business certified through can company that for in their to a those companies to be charge your heard every information. business Brian, to resolution for for from of shows is individual litigation of in front people, practices So on them or Attorney the drive reputable path Generals points. want the changes them level in on pending that it's upfront to therefore, by dealing scores. third down the them the of that or There FICO Attorneys at time toward website progress trends, or exit we little make uptick a seen state And X-point traditionally And you to sure this both plan. progress that will When seeing And have. going and or to mistake. regulators And party to number, our you're we've And We're be fees. bit continue on and it drive And no we win exception, The change almost booking you times they're what program, question choosing we one made fruit. quarter, our us been the far ask court the with our litigation business give the of mention can then on either answer rather improvement many their then that a third in won't than company

see make and themselves. and to that for we the are So are anything progress consumers more can the continue own straight their than pleased starting information to get decisions

Operator

will with we to go And Jared Wolfe. next Shojaian

Jared Shojaian

identified I one of and arrivals. are driver going It trends Obviously, number up. So had you was cases COVID like improving still in the direction. cases, the previously, seems the the idea moving were COVID think are right

guys, So a small Hawaii can is was I seen lifted? talk little the quarantine you've since then that just for you but about know you anything bit? And

Michael Brown

yes, as to see Yes. commentary, if dial And net then until August you sure seeing Jared, but in they we're August. We're July cases I being are the anything not not we in later, XX we July interestingly it's won't, the all correlation a yet we cancellations, have great will it cases which because, want forward saw say and seeing we now, to spike. to is yet and were was bookings. a back I spike, question they - as And I'm or roll days enough, spike. and our corollary. like cancellations not June seen the not we if cancellations here, And what - unusual we being talked about seeing to

stay that we'll that hopeful are We way.

spikes. in programs protocols cleaning Vegas my I health things, spiking have every protocols. And and that a safety to to traveled have brands comfortable primary And per you've feel can I August. burn is traveled. seen, in to it we hearing there And place Number super good on vacation. people location could little safety I we're point just own that is of so and place, the to going our not not the secondly, as in in experience, of as and people learned they vacations. more ensure out, People to July have do mean this of last Las And of cancellations believe they be did And as and the our and out with been that think, people to travel what impressed just follow bit or on are see. a comfortable right and why will I about, growing days, to cancellations super, they drivers travel. has if fatigue gone be learned little bit fatigue We think despite on, time, XX choose a lot COVID time - saying, X what a way and have two could going safe of are we I'm continue bit one, far all bookings as

or of right in in said so spike in until today. are where you're have And to what past a August. we the And I cancellations cancellation saw point we as now, not out July mentioned seen and we that that - we

Jared Shojaian

Hawaii, on can say quarantine? anything you then And on the

Michael Brown

Hawaii, XXX% is QX our Hawaii. decline - when you in due XXX% QX in at of previous So actually, from tour our projection projections, look our to

Islands, out We are not but bookings Oahu, the to come much. see into starting so

So I us market the the for market is any remainder not it actually - and soft a us for going year, although reopened stretch. very technically, by for it a dependent of remain to is

of U.S. tour So rest tour our what has QX the I'm decline of been in projection the previous in very our the performance We've are shows of sales projection, on proud up about - in in the the which the sorry, rest our locations sales the from of that made is mainland really reopened confusing. some recovered of from loss Hawaii XXX% good that our the was the mainland. bit remainder locations, ones in

Jared Shojaian

helpful. That's

there? were the be delta was down are there to was maybe you Just actually more things implication I Are follow-up maybe in Hawaii? down Or it XX% to expected the saying that, XX% expected they in question. between numbers those to stick on be With entirely Tours my think previously. fourth that quarter, is on going X

Michael Brown

entire giving been offset chance for only It's number. not the by subject. It's But clearly entirely. other me more to to thank - on we've not able mainland the you It's than more only market. the it strength in that speak

So yes and is answer that it's Hawaii short due the entirely to more.

Operator

next go with can Zaffino we Ian And Oppenheimer. to

Ian Zaffino

any cetera? done I'm reductions would have get surveys solid necessarily that strictness the aspirational? seeing just just the if you on a be have Is these like actually trying or there of just up following the just are policies, bookings a all not way you color actually information, more And bookings on et cancellation and real that bookings. that operational many to and serious just of in question. given declined sense you're kind on some they're how And motivations? bookings of of Maybe helpful. really Maybe Hawaii's

Michael Brown

a that's question it's quarter. the evolved third throughout Ian,

it what pre-COVID as policy cancellation was now. our with start Let's

are just of able that are this which far from We one we see to have implication the know that providing XX as calendar and demand, we XXX down XXXX. that the going actually points means are when put the XX have is for we're into few days. your actually get do we on days those last aspiration. the roll happening, seen cancellations that much have I'm purely reservations a policy does our just as we they're to being to a cancellation knowing been changed on steady getting over through very to the policy less more show reasons. - and days, and shorten the they cancellation we've something sticking. arrival. them And vacation, that, pent-up travel people And to and flexibility want actually and seeing from And have come users Number we're bookings

the XX% down in third a - were as I actual So of from original prior booking with we're window. is fourth we also on net we were the Joe's back say, What numbers it is, that month October the well. XXXX seeing closer of bookings think in currently that down are we quarter in cancellation We year to down would the mentioned I - to question proof there's I quarter. in Ian, XX%

the But So looking are is into looking year down XXXX, last time that XXXX. we same and also number only versus improvement. into X%

think interest seeing a are on further leisure that vacation. is in to to away it's to they their going is wanted get want out phenomena why to drive consistent are we the So using and that's progression factor they're And And people we XX vacation and start of we the share this upcoming that there starting days. destinations, overriding but the only look statistic afield travel little get house. vacation, to of to get on - that not the is that get here to

Ian Zaffino

just on a And and a color little more just maybe this. follow-up maybe then bit

seems that's the decoupling, like helpful. are you're driving COVID spikes be think serious. and the would it Any getting that what's So bookings guess, on more I between Do you cancellations? color

Michael Brown

every almost XX travel that leisure to up a And And of there's level and little safe fatigue. - that's again, of why people And in hypothesis, how And show chosen reports a there I it they to where from it releasing, last they Consumer as in as you're and I hypothesis, big which that comes bit confidence are formation. two that bit travel. my our can have confidence. they People on number infections about well, more our is there been a differently. consumer does through bit at X see whether a read, highest days. and less COVID And I airlines their April. it share hotel go perspective, is is report, our my when have its I've, survey That down, the there correlation traveled in starting has to and weeks COVID do. this more or shared business, talk but issues. living between gaming is since imagine, that when you start when it's think secondly REITs - company or home, really other And we've lives of morning been leisure and that's seeing it's spiking. last the daily includes

Operator

Instructions]. [Operator

We next Katz Jefferies. with David go will to

David Katz

that person of want kind consumers having a are will asked that information. everything matter, doubt that and But any know thanks at your which go I couple but that to little can. to wanted business to will heard look constraining from And today, the the or are the I prevent said, degree to or moment? resorts all if the they is for a that constraints we've travel, to a already. of travel. notion you've perspective, there things which And travel you business who around a just back But restrictions airport your separate one at cannot, your one

Michael Brown

travel in a David. have. confidence travel, I much making meaning many we fair, And it's that, this referenced sure roughly dig a gone has although a between if third vaccine. happy is three as they're was how until Ian's throughout or And aren't middle are sensitive primary but no when the and talked still to a points really first our sentiment that's think to having saw very less as do comfortable propensity and travel flexibility perishable. take to. - with That And be There's to look to on And possible, vaccine followed as out - have to and as questions be that it's there's seeing XX% matter - the as you into there. about. that who owner goes what. by we The close at a statement, as third say we points comes X/X. number base, more can infections following into you last and because there that the consumer going they greater just won't this group week, it that tends XX% And down little daily break just even to uncertainty depending to the then that you I just bit aren't more seems consumers travel Well, our summer it's really that what third time categories: really we being

on traveled Utah resorts comes happy. that is not just a that I destinations to happy I've the They're in a willing they'll today we're get our fine be or we just just from e-mail night. this service back They're people morning, it think California, and world. Mexico. our may received proportion fact around Chicago I you rolling year. use U.S. are your of although March travel we last And distinctions and of there's they them mainland need travel an not Arizona travel have owner have where lot want great a the XXX us points, not you from any Southern can up to the this full from the or And in one just be you over this because of to who that over, to may model may constraints, choose It is So resorts greater To today, or there's said, in - sure some to roll they make year. have top October, to - it's that this not with Denver and next year, our to New of people to point in to in resorts of of different go we it - Arizona the go and going team to issue was it that or

our travel, getting want offer, think, one our incredible on most I or mention lot how for for think I And the I here a mountain to And choose important drive vacation. - far, resorts meaningful. and and is people that. just to to win they that's So component, of big remote options. And our And of at Clubs the has destinations a beach have a great. it's that we we to demand whether is mountain Vacation the in Wyndham element Clubs, next demanded. talked Vacation for they're having short-term I location Panorama our the didn't sort mainland I need XX by most a in on allows back destination it's flexibility it's affiliates a Virginia. that's this retreat, of were us extensive want haven't because owners when an months for on they this Wyndham because many think optionality. vacation like And the they and

Michael Hug

add other David, couple And I things. Yes. a think of would I

selling airports vacation that announced Hawaii. United flying testing are was think you at testing start that recently being customers to They're in the they're were going providing When actually look to to restrictions providing start to at their the again, Airlines, seat you that middle your Hawaii. reduced. doing out the could when get you Southwest I

were in think NBM start shows out I they Las in announced to Vegas. X going November

things help these So getting when are more you by markets. all to drive vacation actually drive arrivals look that business at people into the our destinations companies leisure our our doing travel, to

didn't because Vegas gamble. And things doing than just go want other previously, you so to to enjoyed you other

to you show. reason go Now potentially, a you have out can a go there because see

are think all business, I in we're that helps up, realize the trends leisure in states going obviously, open consumers flow the travel companies to their are, are seeing business to because the drive tour to it doing help and other So once also arrivals market to things but sales. leads there, our more

David Katz

of similar recall company WAAM If fair just opportunistic during WAAM that. amount was one there when the can, into appreciate X.X more. was I I which getting I distress a and GFC year? capital-light next be what the market. world may are fee-based opportunities in through place putting in the or to as Are or out that on evolves you plans structures capitalize

Michael Hug

shelf. doing those fact, an at is Atlanta actually today in are, And we there in that we the continuously or Mike deal been announced David. just since never What put Atlanta. definitely asset-light in XXXX, - We fact, transaction in on we've levels. just I plans asset-light discussed mean, the today the different

and come be those roll feel but on of that we're represent the definitely with great ready way. smart those. transactions to are We and advantage roll ready there'll inventory, opportunities, markets great we to take that be just So for ones us, our and we'll

Operator

Brown back question-and-answer I period. Michael over our remarks. concludes closing for would to like now That call the turn to

Michael Brown

growing we our fourth Aaron. the you, what's business. Thank here year, launch to into tremendously a restoring making unpredictable strides quarter of as And and we're important been

Our their around stronger to we're travel the with vacation, globe. us customers continue trust and seeing trends

with for our our associates you, months. around their inspiration thank the more success sharing look driven an I They've been you X Thank to world, As in who We months. me. a outstanding day work and want have is you. to the over forward to truly always, by thank great upcoming past the

Operator

Wyndham Quarter XXXX Call. Conference That Third Earnings concludes Destinations today's

your You line have may day. a at time, this wonderful now disconnect and

Travel + Leisure (TNL) 28 Oct 202020 Q3 Earnings call transcript