TNL - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the Travel + Leisure First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, [ Jill Greer ], Vice President of Investor Relations. Thank you.

You may begin.

Unknown Executive

Thanks, Maria. and call. for everyone, our in to quarter first morning thank dialing you to Good

this the are Chief our the us financial Mike Officer; for will Joining will morning outlook an balance results and year. Chief President provide rest greater growth the Mike sheet Executive and and then our and Hug, strategy, of provide quarter, our overview Financial longer-term Michael Michael Officer. of our Brown, and our on detail

open the we'll up for Following remarks, our call questions. prepared

Before revise to discussions to The actual earnings we these could could you today effective cause as indicated and in are remind will from are results filings differ that today statements. obligation only undertake We or statements, in materially of we'd Actual factors results the today. in release. begin, our like made that forward-looking no the and our forward-looking include our forward-looking discussed press differ SEC statements those update statements. to publicly

find Investor You our in earnings on available a measures press release in discussed non-GAAP today's call financial website. the can Relations of the reconciliation

to Finally, to unless prior the Brown. I'm specifically that, the today pleased comparisons Michael over period year, of stated. With call are all same comments the turn to

Michael Brown

Good and + ], to first Leisure morning, the team. quarter Welcome our welcome, everyone. Travel to call, [ Jill

team's During our execution. on focus our for last and call, we Ownership highlighted demand X themes, Vacation robust

increased guidance performance, with million gotten in to I for and year-over-year, increase year results is the QX of $X,XXX which excellent EBITDA investments made in want the as in with our marketing it The thanks my show including X% great range, Our to adjusted XX%. VPG end as well strong extend a our operations, T+L progressed. the our owner ended important personal these high new $XXX interest because trends earnings has team and of start. Tours off as we've growth, of to XX% per revenue their up new above quarter adjusted benefit which entire locations. QX the the strengthened at tours addition share $X.XX. continuing sizable of our product reflects tour

pleased helps and the central The new travel the most April. in asked question higher VPGs investors demand growth strong the owner view, media I'm We VPG leisure How thus with robust. answer for tour combination often. From and consumer? are also far is remains our of by

arrivals to confident report the normalized, recent trends to is remains book look period the of ahead, among consistent remainder we travelers to increase more with owner that broader sentiment. A financial have compared Partners future in elevated. the Both travel, nights As and we we last that are business X% for same show a signs the travel have optimism in by year car windows and consumer year. room industry and booking has improved seeing are excitement our Future the

industry the outlook. year's With backdrop, near-term strong specifically in confidence Travel travel we momentum good summer at Leisure season, have macro our for this visibility increased the we that have + and

expanding our on As portfolio strategic business organically through focused in both product business, partnerships. and about we and growth growing Vacation longer-term Ownership and the think we're the acquisitions

to this worldwide, the giving adding more every on March, in to more vacation Vacation early put product day. closed the side, Accor have world premium portfolio. international our XXX resorts transaction On than the product Club a in With market we the us acquisition, opportunities now

and team going thank to their how focused the sales specifically its leadership like on as Our smooth ramping at overall to team working thoughtfulness as transition on a already with us well very for making grow Accor the of on forward. is the this business. I'd of transition

of will be a sports-themed making which year resort initial new include to a network our network in for next the a Sports resort. first resorts university complexes, leading also Illustrated broad destinations. With individual provides brands We and locations market brand multiple lifestyle of progress geographic footprint, of expect sales hedge and This we natural are of will both toward leisure fluctuations. start the

a we only our system, of have than produces highly-diversified volume. VOI that fact, as sales one of In resort result more market XX%

In continuing growth, acquiring are we new invest and to terms owners. of innovate in

Blue nearly great results, partnership Thread up Our year-over-year. with sales Wyndham with delivered XX%

new channel to reminder, XX% owner typically our VPG higher a As with than the Blue than tours, a new of other generates XX% owner XX% tours. more Thread

years of average upgrade their consistent current after future behavior half time segment with owner of initial new vacationing survey, is an historically, all year-over-year, found their that to targeted X an future consumer shareholders the XX% seen is points This a owner sequentially important X.Xx as transactions and in ARTIS' nearly total, This pipeline in were years. up of with have X which new purchase next owner that mix. plan within us Our long-term revenue new putting our of points X February well the us. spend we will ownership

overall, Vacation we're really to the a So good position business. in grow Ownership

we came with leisure plans paying the our travel summarize, and efficiently business. generation remains against our which flow cash consumer as we for dividends focus drive its and revenue delivering to shows Membership side, guidance grow the is demand our on range, are robust, within On high free generation. To in Travel and the and results margins for business aligning costs

meet Hug. to great and strong to call and our deliver in like commitments to a execution, are revenue and that, place to track We grow shareholders. With we with hand a I now record returns Mike EBITDA the have our over solid on XXXX would team to of

Michael Hug

Thanks, in morning. everyone Michael, this dialing thanks for and to also

X% $XXX impressive this quarter, reported increased to This $X.XX, into EBITDA million, Vacation noted of respectively. per March of and our $XXX and X% more revenue an reported X%, of expense X%, for million. while year. Breaking units, more this the we adjusted we share segment X of increases business down of million into detail Ownership coming is adjusted $XXX increase adjusted EBITDA diluted result even the interest For headwinds earnings given

transactions. As our segment Membership Michael gives X% in the this was we down are trends $XXX good seeing adjusted million, focused us in Revenue owner on are be to growth and a us business. Revenue returns. in initiatives mix efficiencies helped Travel EBITDA solid this decline tours, improve challenged, deliver to driving cost momentum continues X% and segment on so new described, of this cost VPG in segment. in These for we X%

members, pressured of year's a large transactions lapped the While loss transaction the travel growth in last the discussed will we club previously to exchange exchange to expecting have of grow remain remainder of mix for as shift we're year customer. due

and expectations second more quarter detail for the full our year. Now let me provide some about

and to second $XXX adjusted of compensation in VPGs Ownership, $X,XXX million the the expect $XXX quarter, million, we higher second the overall, which of includes For expect we range quarter Vacation interest million of to VOI and rates EBITDA $XXX impact to sales $X,XXX. gross $XXX expense. In variable year-over-year of million

For adjusted Travel guiding are and million Membership, EBITDA we $XX second million. the in to $XX quarter to of

range For books well, we $XXX business reiterating adjusted million our the for $XXX what to pleased see the guidance the year, million on of full we with for performing and summer. are EBITDA. The we're is

revisit the through our demand, post-summer get we As to have year into opportunity the we'll move if more needed. guidance visibility and update and

cash flow for $XX We our balance free $XX flow quarter. sheet. operating Moving to the and of million cash generated and flow million cash adjusted of

be XX% EBITDA adjusted year. said, expect As to roughly our conversion we cash free previously this flow we to

month, also paid since On the to issued loan move lowest million we transaction closed the we this up debt capital off rate XXXX. earlier access on the our $XXX is continue very we've X.X% sheet, maturity solid markets the pleased from using incremental We over our term July balance last rate see XX%. And ABS the proceeds year. the to that the to we The have achieved first year. were advance and B rate of to interest

XX We have maturities the next for no debt months. remaining

to quarter Our the sets end trend expect in quarters leverage year, below the and This continue in with quarter. reverse levered. prior we increased up the to this ratio fourth year X us X.Xx. Consistent to the X.Xx next for then first

returning growing the to business shape, and is balance the our allocation capital sheet in shareholders. focused With good capital on

growth $XX side, for in the Accor million the On quarter acquisition. we used the

at growth share are per quarter. have Accor for first annually in of buying our results price for strength delivering regulating $XX.X great of average first momentum at to total approval we join our questions. season. With own an million. thanking our our for a shareholder call million take for Between please business $XX that, team of focus. I since average busy closing, market dividend also heading Travel strong meeting. In up the Maria, repurchased share about $XX returned excited to the repurchase we Board shares our We're longer-term $XX in to increased the this total prospects summer XXX,XXX the great entire authorization million provide our of of $XXX the the buybacks, These you and a back a total demonstrate $X.XX can demonstrating that Michael intend quarter. + cap stock. in quarter, additional and we million March, XX% open us request returned for an an We results market provides. In of a we And dividends of and mention spin, Leisure upcoming the on the I'll that into should with

Operator

first from question comes Joe Greff JPMorgan. [Operator Instructions] with Our

Joseph Greff

knocking Thread, owner that there between improve better maybe that something Michael, how mentioned targeted your driving owner you more bit favorable on relationship guest Mike, see and new talk new about relationship Blue that incremental. you not mix is threshold. it or tracking seems like more mix. percentage it's that's you volume forward? else favorable Can maybe And or what's there maybe mean I per going new about new even a you necessarily mix? that's basically Is VPG as owner driving and little your but

Michael Brown

relates for number is sets well, new up first year-on-year let going forward. growth but flow to really us because me it a QX owner not only the share Well, as tour tour XX% that

we marketing over was new new new We that. of that partial going positive good the were locations profitable, in and we're this tours Over said at the XX full we've year new everything of sure a added impact we going making locations. we the pace, X year, those XXXX. now owner owner steady felt opened last to to grow We year a benefit And got tour. years, our get incremental owner was

we through. of marketing we last quarter discuss those year, are the heavier beginning the to Additionally, package pipeline, that started investing and third to were in into come

would sort Mike number forward. I on what our puts or just is executing the Both really that remarks board, is absolute tours of I in execution. and really that So mentioned it going team just say across prepared good the the gross seeing well. you're

efficiently, as to effectively, a steady coming to quality a of organization. tours of manage pandemic, I should the it, what continuation really owner for getting credit to out and new down setting growth a of just not it think has new team our increase of good us really great And the execution up be owner move result really a of the the stretching ahead that put I lot tours. allowed and ourselves of ourselves by growth

I XX% QX is owner typically this an think to and is long, well within it, of and range the already we've but you transactions number and range a bit the was within incredibly our know owner of that high our a quarter answer QX. is mentioned impressive sales QX. new fact I XX% that got XX% highlight in

Joseph Greff

more some of of take maybe few consumer to of perception Fed terms ago? How may a to thinking interest interest set level maybe where rate segment did recently changed that financing of about into Great. business, rate are overall the incorporate the in Or segment you of market your it? can expectations And a be months you pricing talk account expectations versus that what for Vacation delayed given about different take maybe in the a conservatism might relative cuts? rates different of the Ownership. Have you then interest

Michael Hug

Mike Hug. Joe. Sure. Thanks, This is

would interest rate the So as and into the jump with that But execute transaction since point, about business. March then your X rate have in execution portfolio. was rates, March. than I'll interest as transactions far be over it when things changed ABS side, that with I'll higher team interest probably today, the rates, if it on obviously, and relates by transaction. To great interest start we the off we finance bps views to back the time, things as consumer the XX did on transaction the

some, up rates in half we moved but that they had through So XXXX. below XXXX the starting of second have the still and really

only is we to So impacting the be second do transaction year. year it impact will a left and not third big be will EBITDA because partial for this all have the

impact don't EBITDA So much expect this year.

is that XX the we're to headwind expect do XX closely over think where a that's become that the next looking and I interest really to tailwind, interest months, what most we not rates at interest we might to rates. determined tailwind impact going months with in kick over is might be for obviously, But happens us what several as as that's early the thought. next

side, corporate flow year, the debt $X corporate cash rates interest debt our probably at there. variable. paid we beginning on have the XX% what On in We of of corporate about to exposure because compared million significant move in therefore, is up and the of but nothing the

we're don't risk expect a EBITDA. but in this overall, watching it of So closely, year's lot

other consumer to it As piece business, the the of relates finance portfolio. the

note it's as QX, delinquencies; things would at quarter XX.X%. are excited the and You that. to coming all that owner which in grow, higher into provision in the to and XX%, very QX a very which We're the with continues new portfolio happy higher that I head to leads impact means delinquencies coming we X at which level about, leads we're But also less of saw then delinquencies. mix that season, for

we pace full though over. that happy to for our even QX in with first we've standards overall, had in and the we'll little quarter. COVID we was is portfolio. exited see move it bit about remain the below But as even year XX%, in new talked the provision maybe our highest originations, ever being the of average up credit that for a QX end So we range confident average and FICO Mike the which very the put XXX quarter, higher in the in place

that of it's growth portfolio business in So good that get been the high grow we've percentage but because up, to to income sales the will remains interest strong. on focusing that Delinquencies move of the net again. and

Operator

comes Katz with from question Jefferies. David next Our

David Katz

just I wanted to ask about, the criteria for speaking, broadly repurchases.

had in part and through Just a in the noting higher number which how quarter other quarter, little to of repurchases degree or that may purchases investments might about a for of played year, whether we we had the the this rest this we for rolling please? acquisitions just but think have

Michael Hug

question. the Thanks for

You're right. exactly

was first at the we we then right in did M&A, As quarter, strategy, which we been far as dividend by then up that, Accor. we'll repurchases. invest strategic million. the quarter level we the find And the on clear capital business, to $XX then we allocation if being grow we impacted million of opportunity, the share the We've our look took repurchases $X.XX. We $XX spent we pretty believe in spent which in which when Accor dividends, grow found about million first with the we in with the $XX

the you're as roughly So low that far range in for as allocation capital first XXs quarter.

at If repurchases $XX look average, on share you last million. our year, were about

each first probably level then higher. million million to obviously repurchase that I our in be there. the at we $XXX QX, and the $XX averaged share valid kind the with for point of in So last in would terms Board And Accor, track quarter quarter end year, is level, on in share requesting we of of us what million our your puts well absent as been down repurchases will the is authorization at have of of we utilized $XXX this year. And upcoming meeting authorization additional mentioned

have of should plenty share what an to repurchase the capacity first quarter. level did of do we to So in compared we elevated

David Katz

might seen that how otherwise, than ago? you see there Perfect. of out of -- have tuck-in potential what X M&A or seeing right, And you opportunities, do and end, you sort just quarters the to X or that more are up, less to or follow there landscape are

Michael Brown

industry, really we aware, consolidated the think landscape The last don't all I the decade. over are has well changed. as has dramatically

strong industry, think flexibility a is Consumer industries is more when protection broadly there. Consumer balance are very Reputation now the of than industry look companies, to I got favor paramount. branded entire sales paramount. the sheet. the the of at approximately from you XX% is hospitality

there So be as to spun to variety since that we it's it are there. relates done the are continue out -- we'll of we M&A, think a industry. But in in there have of I all And favor XXXX, arise. evaluate strategy. as which Illustrated, had a we're nice ultimately, We've them M&A Sports International. But our very of then Accor with a to opportunities committed organic to as we're acquisition continue partnership and to happy with, addition pure a and companies

gives and diversified ] growth is grow we is So our what what that we think going really [ us are think acquisitions and to a strong organic to our forward. very VO partnerships foundation opportunities solidify ability

Operator

with Chris Our next comes Woronka Deutsche Bank. from question

Chris Woronka

nice contributing really which on mix, was owner I be quarter. results how any for the a channels tour channel would get specific there you both level that contributed owner than impressive, question others sustainable trying as any that of one there kind of pretty to more higher sense guess about Michael, a on the new to another region? geographic more the to guess, right? new I the Just and quarter, of talked some Congratulations that. is. or -- Was type first kind growth were flow or

Michael Brown

simply is me Well, all, let of growth first sustainable. say the

our we're of together, not was and on the grow one. The steady probably X adding singular heard, region-by-region be that $XXX locations with core year, kicking sales, parties singular team owner getting growing focused you over We've the and what methodically done great Travel fruitful, very in. And We within that XX important pipeline great say is The team add and and we in law market to overly have never or a on impact. then both future work is or owner still owner means continued mentioned aspect opening million at years and fourth marketing QX. partnership has that room creating on all focus, to tours. having generation positive but X we the reliant to job last incremental overly that, really that's for a X smallest drumbeat component, team mix, job X and has a new scale really and a means up arrivals It's that as last just being and of a growth, few to new added which the there, it's the nights That's a I to would of which well by gaining more from Hotels , course that areas the Wyndham focused months availability an that + region which over package channel a region. stool, locations I is have traction. leg been I incredible it's The very for tours. on Leisure that been the does an is continues more

early were You which investing have late that year it our that, tends very in talked on say to in we numbers, we we where costs in the to go about year but as in slightly investment. And starting then would it to I it's forward. the up. what's And sustainable package be invest will drive and last we're that pipeline bear -- fruit not

As you they ultimately Accor, leads Sports tour. or Illustrated relationships, them incremental with and as provide those it's well databases incremental whether add incremental bring and

think don't an I So it's anomaly.

result execution it's owner last of commitment the over XX months of and tours. growing the our think I new great

Chris Woronka

But sales? sales of next are year. before know is -- of is And mechanically, all you've deals be I it expect the other into said into Illustrated, it's announce it The a talked go that the to to go before the over there which begin is question. Membership going Very that to for Sports the as transitioning follow-up segment? about. begin you is kind Great. X-part to then helpful. possible One, VOI other to Or markets is Travel going -- part components just and second well? segment this the you Alabama

Michael Brown

for pipeline before the locations. first ever as towns we and been year. anticipate opportunities in it's robust absolutely, announcing The both Sports as more answer university on is relates The short in question other is next as to Illustrated, it locations

more to forward move we sharing we year. do look throughout as locations So this

full just really plan to segment ask we Club side which Illustrated specifically is, I economics start alike and far looks although do little announcing aligning the you and production. Obviously, a as be we investment of spend revenue What will side. front-end it to our you you add, similar be in, and will on at relates as second, didn't resort, with than build to Ownership As once and club our inventory look very results. the get intensive the Sports Illustrated, Vacation you do the and would intention more of the sales, that's what But fourth it business. Club Sports top inventory up with as like third your of to is profile in Sports Illustrated, overall of we to should the usual. spend match success Wyndham have P&L start the running did Wyndham the it line look to as first resort, some a as produce see

Operator

Our question Truist Patrick Securities. Scholes from comes with next

Charles Scholes

in painted a possibly of trends the optimism parent your Wyndham in I domestic the Michael, we at some you year-over-year look How XQ, domestically in remarks, RevPAR. RevPAR leisure specifically company, negative negative your When quarter? might your first customer. your Wyndham, for pretty versus optimistic reconcile RevPAR one saw Great. for picture

Michael Brown

was come single is decision it's the it the the means and for QX ownership are our Orlando, for think out results going love is ago customer first hotel first within our travel ownership, in of all. we of airport. the to would which results day think all, X vacation at moment. which And is think -- they Travel the bigger Mike comment of Hug at the don't of end, which characteristics. In underlying which the I made, XXX, ownership, on secondly, years shows because overly have Well, travel was value any fully made owners in see several which I correlate start to their our accommodation. a of X the to I been in I reiterate wouldn't I our you elevating premise definitely every FICO more leisure paid ever precise owners have the that space, back company, their to to tremendous you highest brand being the broadly based They see our of

comping we And either so broadly an travel group, look what the we a at a across I to to or cruise airline think more see. hotel and leisure opposed just as we parks look line, to

You strong. travel markets, go of Vegas, and XX%. that one And that's very our big is to leisure business strong. one our is of would the execution say I over combination our the Vegas team's success overall model, is travel a

Michael Hug

point, note would XX%, one even is just that Sorry, Vegas I XX%. Patrick. in comes at though it over

many in diversity about the want So times to that off. think pays have XX% talked it's that to XX%, XX%. And important over means over understand only really while noted I portfolio we our an definitely we be we we

So XX% we XX% don't have even or higher. anything that's or or higher

Charles Scholes

follow-up Okay. here. Michael, question a Certainly encouraging.

recovering, I Can is from, pre-fire you far how levels? exposure. about how say, Maui have Maui some are off talk would do You you still

Michael Brown

So have we Big are minimal have of exposures on on Island. -- additional to We really or incremental no for sales Oahu the of our very, Hawaii, very and Maui the Maui. more exposure state

to us, the Maui. is for P&L for our impact So economic nonexistent

Operator

question with next Ben -- excuse from Patrick me, question next Mizuho. Our Scholes from Chaiken comes comes our

Benjamin Chaiken

do the system that ownership Have pool? would broader it, missed then yet? assumption guess the this under can regarding existing an those to to I get find upgraded? Sorry they sell if upgrades there upgrade, from do XX,XXX with opportunity you owners? you I the that for Or stay Accor? talk out about opportunity the legacy owner's And that Is guys Accor,

Michael Brown

It's independently. miss question. you a answer. Clubs operated Vacation Accor Ben, good an did

Club. So -- Vacation they own should we Accor

an if excited So of and COVID. existing for team growing And Accor really they're I the That to resorts of of Club, region is and stay and member, and us. What over and the was transaction think years we felt the more. which it for they'll the Club sales the Accor Accor several business. Vacation quality going well month that great Vacation already own were the nurtured there's owner operation of coming They to activate side they the on about the that that simply XX,XXX. beyond lot members began And Vacation Club we one of the Accor upgrade, of part as been opportunity reopening, that an especially base in a ones, with and that. the business. is was marketed that's out haven't to of opportunities restricted, potential March part we're deal, We of the was did we closed best they of was first when reramping working the

product. been are in the or So whether brand. it's upgrades replicate there's loyal geographically the that's new that of as expanded as Wyndham. that used potential, And forward Vacation great Club to And work owner grow ones a lot opportunity done all with going well more creating and customers

Benjamin Chaiken

pretty And working a beginning but helpful. have of been one. one you then the year. This you couple XQ covered quick against well this things has That's call, Understood. on of

the headwind. got comp variable You've

margin. an 'XX? you done, or expense. but things one quantified in interest You've headwind new got mix mix Have like some and just owner either standpoint EBITDA from don't it's -- And owner the of obviously, these kind the margin new

Michael Brown

Sure.

guidance of headwind how that sense the into the in $XXX of much the of So incorporated question? that million of -- guidance? Is is our million, the $XXX to what

Benjamin Chaiken

got $XX new there you've to quantify so, variable the bracket I on yes. comp, $XX maybe side. Is the interest mix? the how Yes, or -- owner you've expense million million guess like got

Michael Hug

of off at owners, when other way of to the new focus is through on that business. started the spun Well, we we're kind looking we're basically, cover and areas working to

margins first sales look our the see we in margins can new when and XX%. the for of you at percent overall So despite up moving flat year, to basically, are year-over-year the quarter, our owner

cover for that mentioned. the compensation the impact to So most and margins mid to we new challenged when the of about to you expense year, high able up obviously is incremental to XXs owners, on we covering been be moving interest think with that the expect part we've

in the growth factor work think other mentioned impact X did cover we'll to as about of year relates would it in like areas to when just So margins new quarter of first we in full the and items you the that the you overall, kind in the I owners.

Benjamin Chaiken

Understood. more like Yes. going My point was phase. that 'XX, into so

like at is that. to have and mix don't you owner You want new this be It so [indiscernible]. the sounds that

Michael Brown

want owner So going would basis points a than early year make 'XX likely XXX decision the commentary year want the we in mix. like if new to of we progresses be we, not. move heading need XX%, that or grow it this where at started, we more don't so into be having new order would not on to we 'XX, That 'XX, into are in the up out that in would if in a year. But more of QX of that it place remainder that mix continues the do face headwind 'XX the starts we coming to into it put great to

Operator

Our next question with Oppenheimer. from Ian comes Zaffino

Ian Zaffino

on or be follow-up. on Is are touched FICO expected? signs talk the maybe guys seeing the a performing you of side. -- cohort And the score kind Could is how know underperformance? any as a bit. cohorts doing you about I outperformance earlier have FICO of I may little the you maybe Are

Michael Hug

kind but lower on think your you It would is of fuzzy, focused I with definitely saying the kind the band. as Yes. what most think I the on you FICO part portfolio was was quality how for in the question performing less is of COVID we're the is is improvement move end FICO what the The expected. as of exited we portfolio bands. little we off. by up, pressure a that we paying expect, credit line most in And pressure. Overall, as And

XX%. year seeing We're the the full coming you of a in the for quarter at for pressure, little provision but provision to the look bit at So XX.X%.

that normal is band, performance. the I portfolio to So end nothing the at by unusual would the say where it FICO as just sits pressure lower overall comfortable with relates and more

Ian Zaffino

Okay.

seeing anything that. you're low anything So notable on necessarily end maybe not like or the

other more destination more some Orlando or is sales can guide we you of it be define destination you would areas kind could areas? [ then you and stronger give it's and Vegas upon of more helpful. also of -- So and Any other the us ] maybe could what that, or throughs there from saw color that centers maybe kind whether touch

Michael Brown

that think to just To window, seen X around days is of leisure and regions in any data travel I booking if good cohort. points what So muffled, we've booking window windows our a XXX question was the the times. typical of the reaffirmed VPGs, little of is me, and delinquencies, always at the like booking specific very I there's look

the behaving QX that travel does in reconfirmation big us. Top for Daytona Beach, first of for quarter Orlando, our destinations good well. is leisure times bookings drive-to lot back destinations. a sort to a XXs, which than sticking if was XX% as locations. out there's for in really well, like means Myrtle it us in to behaving during remember, therefore, number of we to there's say, got pandemic, As us. consumer had up other they is like low XX% Beach Tennessee, you were the booking drive-to I That nothing great always is the with would

destination, their announced XXX in So that with the we're destinations about from resort partnership nothing excited to very of a new we night, has is our flying partnership unusual. great Air Allegiant exposure. I that our complementary we combination the with any last for mode definitely It's that's system, we're U.S. about transportation. to standing And will have it as don't say, -- and other that the XX% out diversified

also this So another other we're into but a business announce positive last partner brands night. help in put pipeline excited And to with our travel. back grow that case, to example of to business, air partnership great be working package their to

Operator

next with Barclays. from Montour [Operator Brandt comes Instructions] question Our

Brandt Montour

channel with size up So we maybe contrast when the that we and compare that Is that Allegiant. other timing sort can for Mike, Allegiant you us? on can into of my sort flow? -- third-party And just question first sort of and channels it to of can you extend comment, have when tour some on layer was of expect the

Michael Brown

with and members a the our They Well, in of located. loyalty getting to XX of million destinations -- XXX lot U.S., where there's a great lot a is Allegiant we're overlap airline. have

highly partnership, and Affinity. Wyndham with been in So database that people we've working tying successful with Hotels their

would and X it that just do more call brands this and the and that's you So And expect finalized today I Allegiant, initial Margaritaville-packaged combined stay. sales Wyndham have where on but last because size plan get. can't destinations marketing, we'll up week, to agreement the is more cross-promotional air we've overlap. we the or the where

out see you'll play time, So it over pipeline to in our marketing in our and package spend Allegiant. back

Brandt Montour

then the was sales new encouraging. owner. Okay. All really gave there. owners out the And question are new a And guys the toughest metrics helpful. new on That's you owner

you looking at like-for-like and that different cracks put I think, from on rate putting to basis. year? or all helpful X it a great. maybe looking -- that's to finer we're new of us. would for be, showing, owner the sort close on X, a quarters, for over close consumer a into point to owner when it, And look new a So your of guess asking maybe the is rates quarter-over-quarter That obviously, I evolved how sort past X and this direction

Michael Brown

do of mentioned segments: Thread, the to owner sort When with on as and put lot the open going lose XX% add market grow I've scale -- XX%, would of new a you have on as that in to pretty just quarters. Blue at consumer, slightly. you're over a the would and Blue Thread been come I than owner rates down owners new close year-on-year. rate more rates is last tours have much bit X your little Close few those close Yes. consistent and you open likely quarter to market. a owner, look I

decline, I a more look that I scale when consumer. now, it do towards than I But slight right trend. obviously, put it's So at

FICOs their and specifically, the to for next down But market, slightly going I We're rates think portfolio, We've comments lower-end on every different. months. good I'd wondering to got is it. open put where and X company no go scale. that that's at about the looking Mike made close

Brandt Montour

quarter. the on Congrats

Michael Brown

Brandt. Thanks,

Operator

Scholes Our Securities. next question from Truist with comes Patrick

Charles Scholes

business. color a question. us progress from BXB And on on the an Have little give bit attrition or for Can portion another initial BXC the the you seen any color more any update business. sign-ups? Michael, also you of additional in companies the signing up

Michael Brown

the Yes. deeper fourth work precisely go up X forward lower more with more a was align the sign one existing to question. have up to opposed to few utilization. Number wanted decisions. a quarter, with signing and we as internal created good continue we the a to relationships made is more. members the the lot cost Why? It In with It's very expectations. number Absolutely. And more revenue we generation to

grow the our and relationships. ones a So to new more targeted ad is point to existing plan BXB

last are in added greater have getting ecosystem. where growth that on out we getting we're and of the So of our travel the ex few, a group that part year going but conversion dropped clubs, is by on deeper QX members our transaction already bigger

what going already us year. of transaction before conversion like year. And it's more, It's digits clubs of the be projecting Sort we're this of else, everything house, finding And BXB new our look single club recruiting effective and have inside you in case, most and high like which That in-house. is that's through that on on the growth make Travel those have system. at to this our nurture you we're in relying going doing customers. in just we recruiting not the deeper part what growth XXXX, transactions when this Club clubs is

Michael Hug

if And that transaction customer quarter XX%. one year-over-year growth Patrick, actually the from confident we reason lost first exclude you high we're the in single-digit comp, was growth our the is

to the off. paying for said, transactions customer we've made, drive to So customers the lost. existing again, And investments XX% once large that focus was are year-over-year on growth more Mike as exclusive

Operator

to Michael for at time. now comments. would floor questions I further turn no closing back the over are There like this to Brown

Michael Brown

a their strong foundation but our with reiterate In off in year XX% drove for Maria. to performance getting for not continued call speaking all a you. want entire I growth to T+L us only future. VPGs we in the look thank Thank lays next great new in a and again we're Thank forward that to to all the also you closing, mix. to quarter, again tour team this growth, owner the result XX% here, to start you, great would just work on the like and This I July. hard it

Operator

This concludes today's teleconference.

this at you participation. lines your your disconnect time. Thank may You for

Travel + Leisure (TNL) 24 Apr 242024 Q1 Earnings call transcript