TNL - Earnings call transcript Q1 2021

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Operator

Good morning, and welcome to the First Quarter 2021 Earnings Conference Call for Travel + Leisure Co. formerly Wyndham Destinations. [Operator Instructions].

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

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

Christopher Agnew

much. welcome. morning, you Good Thank very and

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

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

Michael Brown

recovery to to decisions, swift profitability, morning, took our you, execute all up return we faster-than-anticipated adjusted to first allowed action. in we today. us One travel March on We powered leisure EBITDA recognized restrictions the flow our you helped $XXX operating significant quarter reported this Thank start. our and and year which Good with and everyone, consumer we short-term for Operating vacation. demands. Earlier key great cash made Chris. rollout and reduced setting metrics. ago, back significantly in on accelerate a to vaccine gets as And the thank million in and joining confidence, travel normalized strategic long-term response, has the us strengthened manage improvement sequential uncertainty have XXXX our Increased domestic $X.XX. adjusted of is of tactical us ahead. performance EPS off to world morning,

As travel an we lead March summer which our travel booking believe clearly in to inflection on we trends, results reflects sentiment, a data will the reflect strong and recovery.

share me of in remainder the give points some recovery leisure data Let travel that the the us year. in for confidence

where double ownership is XX%. RCI First, for for up trends XXXX XX% digits finished to continued were change North March realized bookings arrivals a both. up This compared XXXX, The were April. for down in and bookings America were March January, February, positive marked vacation from have bookings in that

seeing summer times booking lead times and of is lengthening The increasing inflection indicator consumer we lead Second, confidence. a fall. in for leading healthy are the

California demand in increased way. travel. demand seeing Hawaii, but beginning the large the indicator based to being improvement confidence we all destinations. leisure to positive Las fly year is from only Nevada, destinations, indicating the swings positive increased X experienced Another a with on and of to demand is key for Last, the net to back leading for confirmations, April Orlando Vegas in are not destination top and travel increased momentum

to the quarter. overview provide transition first now me an Let of

ahead gross $XXX to membership an and had ownership million. businesses of of million range our Our ownership Vacation sales the sequential strong throughout VOI the vacation of and travel quarter. This on $XXX reflects million, finished quarter upswing. guidance improvement both $XXX

a first meaningfully improved of few in were strong pent-up Let basis both better me rates highlights. share the Close points XXX sign and and than XXXX, quarter a a consumer. demand

Rewards with of our membership to loyalty Wyndham owner program tours. our new total its for expectations Thread, In and transactions were a higher above at partnership of to sales Wyndham segment. Transitioning new Blue of transactions. owner New sales XX% accounted mix travel strategic due transactions Hotels X% owner and

up strong XX% were with results quarter year-over-year. First transactions

business vacation monthly an Our the turnaround X exchange years. the with in North This where saw base. that quarter, XX%. RCI highest agreement level their brings first American U.S. the impressive were improvement a X in XX quarter, This from during relationship March the the led our was including down announced Also, months Capital at transactions Vacations a Capital of they robust over the XX,XXX nearly members affiliation associations, into Vacations and new Club. with Caribbean. manages membership locations XX additional club

the to this been well savings. quality have The For the quarter tours our early by XXXX achieved higher million permanent actions company EBITDA a that than to compared XXXX, to year. on we and margin EBITDA as favorable result headwind due last finance despite XX.X% Travel the quarter of in overall, year. reduced + If anticipated, a interest trends first focus income million credit was XXXX taken savings These size combination $XX cost include of the in approximately Leisure strong G&A of XX% as will margin equalize driven higher the margin would XX.X% revenue a was adjusted of adjusted $XX net portfolio. and margin XX% portfolio consumer actions first

+ of we renamed Travel BookTandL.com, working year + subscription February, of travel X strategic launch acquisition club Travel started online and brand the + front, first the we is its launched been the to was On Travel with the the company, new summer. vacation transition quarter Leisure and and Leisure, planning this on booking platform. The In as Leisure our a clubs. and the notable has integration the business an team

We product + travel brand. Travel are companies and Leisure allow opportunities the developing consumer leverage to to licensing also

for only. we eventually guidance. we full the will return to year second relates our now, it provide As for But will guidance to outlook, quarter

to $XXX quarter, VOI gross approximately million. to VPG For of of the second expect $XXX $X,XXX, XXX,XX, around we XXX,XXX sales tours million and

the adjusted that, I EBITDA Overall, in XX% our to second Officer, Mike anticipate over XX% in Second the sales to we the quarter to million VOI With like to $XXX represents from the first range call quarter. Hug. increase of Financial would Mike? a $XXX million hand Chief sequential quarter.

Michael Hug

$X.XX efforts increase XXXX to new mix owner marketing in quality improved and contributing sales strong of EBITDA only trends adjusted in quarter million. us credit the company VOI adjusted and everyone, first focused quarter you morning Ownership $XXX earnings These Tours thank and the total owner million liquidity My million, per to the margin. EBITDA share quarter you January will and more focus to decision quarter ago. cash first Good our Thanks, X quarter, revenue were compared in XXXX, $XX segment first first than XXXX, from first our adjusted best on and and compared today. and our $XXX than $X.XX, XX% $XXX position lower gross factors $XX share Vacation and our higher year of comments to adjusted of tours. XXXX of discuss of sheet, negative benefiting of reported In will EBITDA leisure VPG of of be with the million, million adjusted of balance first $X,XXX loss February of adjusted per owner XX% quality. resulted our driven for were and was primarily by travel on efforts and new quarter joining the our Michael. color We flow. provide on results weaker VPG I a results. reported to

in lower originations. for with the XX.X% percentage to a reduced VOI by perform was XX% improved from new gross sales loss quality quarter, we year. portfolio to underlying mature well originations below of a Our driven provision for portfolio continues and delinquencies of the expect loan year-over-year, stay the and more remainder of The as first

at with Revenue as year's and economic first prior in includes Ownership a quarter to We was was + the are uncertainty contract XX% percentage first group, and which the in the Membership $XX quarter of The our allowance was the at last end the $XX EBITDA compared the million. quarter, million, million Travel Leisure of million an to in on as quarter, compared increase to end overall year. considering our year. as first continued receivables Travel $XXX adjusted of $XXX Travel of of compared comfortable and Membership gross Panorama well the the segment, around receivables impact. XX% allowance the last pandemic the its portfolio, Vacation XX%

Membership period clearly club our expanded and market. demand. As travel on its North to the key quarter, revenue compared These XX% same quarter transaction the drivers year. the transaction consists updated Nonexchange in quarter new RCI of previewed as this operational Travel up in period group, year, of more as cross-border international Travel and encompassing locations, offset with America transaction, for and booked RCI pent-up February. last were the Strength it same Leisure in would bookings challenges January $XXX,XXX our of travel recovered view benefiting increased for seasonality demand to Easter, arrivals first well were broader new more have transactions our represented last and Based the of subscription on demand above business driven XX% servicing transactions, is due inclusive XX% segment's from Membership last net transactions drivers, year, within of exchange business by near-term by a lower markets ARN restrictions. spring in markets. focus reflect expanded domestic provide focus up that the travel in transactions and growth transaction March that the clear which and both and for than big break quarter, on cancellations. to rebound first in travel ARN Travel continued + the normally domestic been around and our

we secured to pay and In balance revolving quarter, the of down notes. Turning our $XXX used to hand credit sheet. our cash first facility on fully million

rate debt below at of and corporate was X.Xx X.Xx, comfortably at covenant. our $X.X billion end of March end Our our the net the March was leverage

quarter year. rest to the and for leverage of expected our rate The the then first be highest decline is

We between the continue long Xx to stagger over term. X.XX and leverage

starting ABS us in ever and advance coupon executed XX were achieved the call and years in this X.X% in year. in we achieved also This $XXX of have this the April to in been the million first transaction, During XX% what issued allow to XXXX the in a of would include get collateral able we in we term demand still transaction interest transaction X% the year the closed March, upsize that resulting lowest over March to the and interest we market. rate. notes ABS the an X.X% rate of We a XXXX, transaction is Tremendous April our from have ABS going transaction. to private in rate that

this by only approval We March As upsizing $X.XX recommend to one dividend transaction, recent Board in quarter more per result for will of returning remain the first transaction our will share We of this ABS of second $X.XX we shareholders. most committed of year. likely Directors to a our execute quarter per paid of a on our May. XXst dividend share capital and

time. Michael are full noted, not we As at providing guidance this year

reduction our free However, on to flow we for interest thoughts working outlook capital. of be EBITDA. We to conversion higher flow. adjusted EBITDA and do free of corporate expense flow the cash of still free consumer percentage XX% the full from reduced historic to The a to XX% financing, range income cash year expect temporary update is our as of net XXXX cash due interest timing below want

we use flow levels. year's We first upsizing to of recovery to transaction cash the of cash our up in quarter the free please throughout first to ABS quarter. call with are the to take Ashley, this of expect expect With free a the In conversion respect XXXX. results summary, cash we to quarter With that, closer XXXX flow, of result move travel timing in historical open the forward pleased you the leisure continued to questions? look second and can our

Operator

Grambling Sachs. And we'll [Operator Instructions]. Stephen from first with question take the Goldman

Stephen Grambling

guess, I that opening Membership the color of evolved as provide can about and any your investors the remarks. just in you the questions on guess, to been that you'll from structure missed little have a on And in integrating about more and opportunity segment. that may I to this can you get we I the still Travel say also, some segment of margin the then on business? and seasonality you've But has opportunity how long-term view have more bit on talk But of the side, future. revenues from think perhaps how

Michael Brown

Michael. is This Stephen. Absolutely,

core Let the me hand and Mike opportunity Travel Vacation talk love Exchange, Membership, I'll business. then first the seasonality. RCI traditional to margins to it and and about about and of talk We business our

seen additive as approaching calling and what there are those a travel out most announced travel been white-label the new of which meant the high Panorama under that expect business the the We last travel Travel And where the the and growth that We've continue under umbrella, generation first the low of that incremental, -- is companies lines to our addition those companies see business have free week. providing revenue providing be X and being today. X would a exchange X%, to one addressable with be in recurring we nature be remain capital opportunity launch of that We both business and Panorama view we've X% investment market markets Membership this recent few and that's are BXB is what really and solutions. services business, flow. successful, fall, we to rate cash always signed very nontimeshare high that of to replacing new however, we're deals, the not to timeshare to and service our

So and to the market. expansion to BXB we an of as travel services that our ability view broader benefits provide

business around a through believe roughly low We second we Leisure Travel capital very the to in we market in remarks, benefits as million travel subscription-based households go you can addressable do basis we generation XX obviously, today with free subscription which a that offer + the that, market, address view The do a grow our mentioned that travel U.S. line, to not well, flow intensity. And be on were currently cash service vacation. business. it

outside services timeshare in market, goal RCI, a membership benefits and to to on is add travel basis. and -- this a travel the to great and a the and both BXB business, travel benefits So BXC with space

Stephen Grambling

follow-up, of the anticipating ramp seasonality. And -- be other accelerate a anticipating provide there? advertising color as we should investments that any growth segment, in then you And any should can on to be or in we kind and

Michael Hug

Mike is Hug. this Stephen,

historically, for been the As margins, quarters of quarter the the has one business. seasonality Panorama and it relates to biggest first

year expect wouldn't XXXX the that to levels about we segment remainder And continue ran. of that QX so we and would to mirror that this closer year. margins expect probably the we that, at the to think Therefore, when margins, would stay levels

Operator

And Greff we'll take Joe question JPMorgan. from with next our

Brandt Montour

a in This to Joe. Ownership sort segment and is Montour business Brandt growth Vacation In XQ of for levels. around for the actually of and guidance XXXX on XX% the

achievable run say, beyond say sort 'XX think in build So to we As to XX% to think XQ? XQ? goal, should how about get you or continue XX% in next is the us back, levels obviously, that get with year, cadence to of of of or, should the we let's about to, guess, And it XQ I -- rate getting to that? how XXX% back

Michael Brown

to XX%, And you just say exactly you when what? to can were you clarify, referring XX% Brandt?

Brandt Montour

Yes, sure.

flow a levels this tour the half in As of back year. 'XX of percentage

Michael Brown

there's arrivals coming although owners. they're into, have looking we're on levels between XXXX should at flow generally arrival XXXX to seeing back So second levels, the we're modifications it result flow back close really you to this owner as in on and way owners levels. we XXXX to new And tour bifurcate well. year, of starting side for as what With half such, tour to some get the approach can the

we're So this in tour in second ultimately, driving continued momentum is the half bookings very the important arrivals of our that seeing owner and year. for flow

both play XX% believe over wanted things: purchases COVID we it pursue higher you've the made perspective. seen faster And levels roughly we And in new year. is of do to credit of of levels. all if us pre-COVID going drive different As a decision a half it's it First think through, new just owners the reduced of that's looking strategic matter we portfolio at our that to We're drive to our relates at ultimately, really to at as ownership. than already to flow to X we and this slightly quality in back quality credit relates that that during that's I to margins a owners, tour were second historic

expect scale -- tours were made that new reason to that we slower to as order close in to marketing required ramp second channels profitability. that back to decisions drive to down we are owner to The is And well The order in to we that the even back, anticipated. California going those great markets market places operate Vegas, news build ramping need back is, channels Hawaii we're the Las like to in. return and open faster we than the scale

and new second again, we are But be back owner of this into tour grow the summer we will owner the head new into So more the and year. proactive very owner looking differently half as fall. to our

Brandt Montour

question that, skewed say, in of towards towards Okay. vacation obviously, other and earlier, EBITDA in, then thinking high maybe Travel major normalized the but you X Stephen's heavily the more skewed about follow-on skews sort the segments let's That's the to and to up also versus levels helpful. And which a put was level, the more 'XX, more -- Membership way XQ, club.

and I to forward, -- what's think you about tours. fall back mentioned bit, guess Membership, building Travel might little obviously, the you're, way then a back and margins So going

way throughout mean what XQ that think is that think continue to year? -- to the going I or to the So skew about do is into is we going dissipate that, the

Michael Hug

Membership and to smallest Vacation for and we will about quarter back we and represents is being first a X/X report Ownership. quarter you're it EBITDA, quarter, about Travel at right the of Vacation that When the we No. X/X. second think Membership unusual Hug. up largest in quarter you When the move that's where the percentage represents historically Travel when not Ownership about and Brandt, the QX, larger Travel this look of and think quarter where Membership the EBITDA. trends first the historical Mike made And about at look

Operator

question with Credit next Chaiken Suisse. from We'll take Ben our

Benjamin Chaiken

which like continued strong comments, sounded very some booking into they provided You April.

when they on show unique we're level, would high what on, property environment in? Do their Just be inside stay to due to want buy? color a is travelers the early up there any or tour helpful. propensity Just

Michael Brown

Absolutely, little the summer biggest pleasant how concern coming one change Ben. I behavior. was didn't this second first with deeper I'll There almost really we've out other sales you've is their ready play of is in the our -- but went a if for into you what travel before, the again. on of March, table. week surprises buying the it consumers would fall out the behavior reopening and at is to -- on go call that saw is And think last I a were seen last time, and our people But and heard really shared calls, many light quarter a last that that of as -- change. it phase also seen it's We've on

comfort endorsement fact have giving also of would back combine to the and safety, product. on mentioned points is and behavior balance our sign difficult get think basis a focused, and people on that it's that our people we've base my in XXX they've points. sheets XXX I that been our close rates closing rate move. while at are closing excited and up really the health good credit rates I that this real that's is a improving with sales a been protocols consumer an and real consumers' and As operation And consumer marketing remarks, up and really was moved of what a And I very basis following very to say to travel,

Benjamin Chaiken

but to it's there Got consumers maybe to function rate of close salesmen do a to do or say, and operating? back may -- of -- the be you tough women purchases is just you. function making some think travel higher you are is a currently think -- you then That's helpful. think the who and get And wanting do any

Michael Brown

focus to, think that both the nonaffinity-based, of owner delivered and owners. last industry on that of our have year a for you narrow those, in the decided new a credit say, our really most balance VPG to I would sheet. of And all new to highs marketing, historic and But you look their driven also to business it's this is a think, and of credit qualifications. I think also their change historic challenging by that's teams and strengthen end I at people. demand It's and together the rates. pent-up consumer on sure. I VPG, and enough of highs to of our strength one especially elements to up make we put really what in close And it's with marketing COVID, is the

Operator

we'll Zaffino from our Ian next And with take question Oppenheimer.

Ian Zaffino

of And maybe impact but And then stimulus? follow-up. get how kind would that on helping helping going unemployment us on a there, in loan with kind to on number be of like benefits, packed cetera? general Can if Maybe et is provisions? maybe kind of you helpful a know factor into how your how loss guys finally, have it just comment Great. people, sales, there's a does touch I one? what's stimulus wages, kind ability et it hiring, that, WVO and Is and that would give then cetera. I that of lot you could then

Michael Hug

point you see coming And portfolio. it on to put COVID close relates take this performed any very We're to a with We too little is portfolio. quarter the impacting you at strong. the rates, happy savings consumer both the obviously, we the and originations, consumer, it's our when that associated us Ian, as look the that's the When the about Thanks the way I'll talk XX.X%. there's to, But for little reserve a even relates important originations. and business, no Mike and portfolio the benefit how new question. doubt business. that new I'll at the bit true employment impacting rate talk not for XX.X% and to is a with that our the they're that's about bit it you related from Mike metrics has this as all then let provision benefit that, the a up -- out to how then about look Hug. very did there's

we over So they time these And to consumer the love see buy of about we do will And more they believe the is want space. to that's very happen how continue will a if strong. now, what travel you think consumers product.

space, And future upgrades. to that so once we're continue they experience confident the lead will that, to

happy the with the provide consumer, you strength we're will we the to of pipeline that, upgrades when very and think a going especially owner good that's new the leads So in close see things future. that great that forward, rates,

signs positive now, So all are and we expect that continue. to

Michael Brown

just the I'll that employment add stimulus Ian, equation. the inflation And to of on side sort and of

balance topic people as future and rates think Let's vacations on just a again, is our look at today's start a is savings in I And up. mentioned to hot with a positive of tables actually their good locking at have future consumer they're it's When the Ben, I of on prices lock that product, And you my you are get can us. see going good sales what with their today's forward. vacations when they nature personal now the I that's inflation, you going in in for sheet, for in are answer prices. net our front that think sign a

associates and front work don't are the hospitality They're most the I bring to from employment, industries. frontline to desk people industry. that and staff. marketing of in hard and think like housekeeping relates to having service associates frontline we're most the it to It's our different too As safe of extra things say

sort because mitigated that of the things length industry of I in and lack of somewhat full-service our restaurants nature. stay, of it's think of the

a bit So of we're to summertime, I have there challenge some -- risk business the I our it's an through the us. a think elements for to anticipate harder. to going do are obstacle, work employment be but mitigate little not just that But

the As a that to where we be at there summer potentially certain in inflection the benefits is there point, unemployment labor market get an change, a us busy in could eats degree. through as period, September,

Ian Zaffino

repurchases, we just question here as to allocation, thinking cash far relates share to dividend Perfect. quick shareholders? as And then it as are returning capital what a

Michael Hug

Sure.

through capital through what doing So allocation, of repurchases, over with dividend. that the commitment as payment and even On the were consistent obviously, company we the on we look our capital to to share returning demonstrated pandemic shareholders the we'll still to the grow we're dividend COVID, pre grows, levered. XXXx continued

with thing the to first we're leverage we do, being X%. happy over need rate our and So very to

to it our under but we expect amended order here repurchases. under from out share have come until we from to that get X.XX%, opt can't down do covenant we We in

year. Xx and So repurchases, the about share little when this line under start a amendment, end repurchases, bit that from of the we think kind a means repurchase think share to share of have get probably out occur clear sight to below which of levered then to won't about before

Operator

We will from from next take our question Katz David Jefferies.

David Katz

broad and out sort any latent versus reactivated and I insight that's think that some Covered us throughout would I recently. a general demand COVID lot it parse of between very around was that's new there's you realize can demand us if the happened give it's helping but ground. But I just question, a wanted ask incremental important. to demand of

Michael Brown

of and then detail, to with has -- get bit little demand all has these returned equitably more the in not general question first X start months. me let because a I'll been David,

share in California, trade let XXXX as down So far in And up in XX%. of looking Markets reopening down demand. me markets the how there's Carolina, significantly then were it. South March as in those we were like that's we're And January Arizona, at only Tennessee, Florida, from and January. them and markets, in I'm sort a defining as second accelerated of that set April.

in and it's January down Nevada, up February. in April. Now XX% XX%

down XX%. Hawaii, up it's Now XX%.

momentum not is but who've be big of up all starting you for confident in those nature to planes. And to I planes. XX%. enough think, And we've Now get swings only on And they're people travel, full to those confident booking. me, of seen the they're to are traveled, meaning

think So detail-wise, I cadence to there is a travel to how starting again. are consumers

QX of the come call, back. time relates as -- side it amount that seeing unsure call our returned. of They've our a But very starting the owners we we last quick, has a business. knew it would side come -- of on little demand. the our a end quickly. to were incremental we're an were later was on and week how The back rental We for to at As we owners incredible demand, our business shown rental are the of

but incremental how the So and only think incremental, also much -- there through I It's makes think side coming pulling me not is demand our to our rental into our both momentum on system, is we a travel some that timeshare, leisure that little the across-the-board through new seen. would incremental do have not gain platforms, we timeshare just in that's are quantify normally but hard BookTandL.com. that extra there the

David Katz

That's And is as to incremental material some it helpful. in and the noticeable fair way. Okay. classify

Michael Brown

with is. to was occupancy the March. levels have for balance It we half 'XX objective will And our April. down is in And and the above core is versus this owner significantly 'XX of to business. that's hopefully, year It's in for because year flat occupancy that remainder be second this our of

we the the So out a benefit lose we rental, when might back clearer little on our owners is on get vacation. but much bit

Operator

Patrick from question next our take Securities. Scholes we'll And Truist

Charles Scholes

able on T&L of the be T&L the A will to vacation selling on to latest What's when expectations acquisition. you your start questions couple readers? packages

Michael Brown

the So just to -- subscription first is was numbers our to platform. our T&L time over XX,XXX-plus there objective transition line our

complete are that. with We almost

at then launch business growing Leisure's line magazine February. search the approaching And did includes is -- to which organic Travel holders there. this marketing online of + for third that time wanted that in platform, our point magazine travel the a booking subscription to point. launch really the summer, the Secondly, We're we its we

So database that we'll first the past. new include marketing subscription that offering, referred be will in that launching this the to and summertime, our we've to

Charles Scholes

Okay. what's expectation XXXX And from acquisition? for latest your contribution this EBITDA

Michael Hug

Well, to going it's pretty minimal. be

are in As and year, things the with last to but that. the relationships call, of the we the $X creating business we $X developing like it's whether we talked in fulfillment million about on investing acquired excursions or this providers EBITDA, the packages, million

be to year, the about So we expect material. Leisure + I wouldn't anything when this think Travel contribution the EBITDA group

Operator

we'll [Operator from And question Deutsche Woronka next our Instructions]. with Bank. take Chris

Chris Woronka

we numbers want like Just you subscription just about metric longer membership we But there term, to opportunity you too directionally any compare a think to yet. on you that, the there I term. as the grow can won't or a think various kind that to service already longer vacation get that operate? basis, get anything sense revenue-per-member for about know probably broad is way specific of kind when it anything real to of club trying

Michael Brown

let service shorter think right up frame lower that me a there don't our get think give in those there clear think will want We that business. you a mean, month. I But and we Chris, for So spoken how is thinking that just travel We the past. -- numbers. market subscription about today. something into metrics you're range as initial and the offering subscription entry we're is in a duration, about of to we've some I'll be $XX We

that. launching range also as are that as that there out far total is competitors some around at cost. And that look annual can You

Our subscription + comes that of with start Because per $XX brand. club is the they're along once we benefit that Leisure be to the with membership that with want per -- revenue will the be ultimately, Travel month part membership. in unique individual let's just the hope transactions

for If to subscription. + Travel to that unique in travel brings decades. the you an think is there, And for perspectives travel. iconic brings addition been also, provide The your out value leisure what advocate lot of Leisure content. It of we to travel travel brand exclusive name on most how want a in it's

I per $XX history from a that have we year. what is today transactions level of would member we transactions, don't would expect the per on month So plus say

Chris Woronka

of helpful. that is detail. And That is My question kind second the appreciate I strategy. on Okay. urban

more look You COVID. gotten a of just And something I'm guys in Francisco? to kind Nashville had you and and the San of do of more it's last markets, whether instead if there you whether in opportunity Is years Charleston before York, different source New that? would you that's as an Or to right? curious active traditional inventory have maybe back some to in X Austin it in might maybe urban those in and markets,

Michael Brown

a at sunbelt obviously, resorts urban in about has another and We really those is, us the much super it's They're doesn't on hit therefore, need do allocating the in for cash be proactive declined, excited little of better we've capital the whatsoever -- that lagging pleased that sales capital, the occupancies mean we're development It we there's have which from We're markets. stage, our this it of in us our The we Atlanta, just But few our reality our strategy resort just anything, Nashville, did we no constraint new basically, use inventory. more. our and toward of balance sheet, year, are a COVID up very that coming as destinations. other -- the Georgia. constrained with Portland. inventory when the projects. bit, gave It It a our made definitely of we to on have part often our capital deals spend, at And not did but business. So means. returning. the a won't

And going those better than ultimately potential we our side to whether M&A are X.X investment we'll of equation, those projects dividend going other means more it's balance years of to owner X.X think use in new for years. the back of sell cash are doing -- out on be today or sheet the some or that and the

Operator

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

Michael Brown

this on travel Leisure. excited year, the And last + We're future challenges, ultimately Ashley. to you, say the rollout we about its early as services some have begin had actions our later of to Thank our business, it's to safe protect to rose look We months benefits. Travel but as took the the to already new of occasion. our and team strengthen XX and seen we swift forward

leading back we are on the edge on gets being the focused As on squarely of vacation, recovery. the world

our our a on members embark as busy thank to guests for we As their and spring day. very have a everyone, to you, Thank season. and always, be great I owners, service to team have what is out turning

Operator

you, Earnings Leisure's Thank that Quarter Conference Travel First concludes Call. and XXXX +

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

Travel + Leisure (TNL) 1 May 212021 Q1 Earnings call transcript