TNL - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Travel + Leisure Third Quarter 2024 Earnings Call. [Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce Jill Greer from Investor Relations. Ms. begin. now may you Greer,

Jill Greer

of Mike Thanks, Rob. our are thanks joining Officer; everyone, Brown, Michael Financial will morning quarter call. to and results the sheet balance an Mike outlook Executive longer-term for third and Chief morning of and President and and growth the our our overview provide then With Chief the our provide quarter, our Officer. for and Good Hug, us Michael this strategy, rest year. will greater our financial detail on the

open prepared remarks, one call our follow-up. We Following questions. a ask and analysts we'll to the keep up to for brief the question

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

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

same comparisons today are of Finally, all year, to period specifically prior stated. the unless the

I'm pleased Michael. to that, With to turn over the call

Michael Brown

today QX earnings our joining report. for Good us morning, for thank and you

dedication personally care recognize Milton devastating is extend all owners to our each taking our Before I and for to Safety and in share Helene our professionalism wildfires for California. other their to priority, thanks our our I associates like the results efforts these and events. associates I'd the through in for my their and of top during quarter, want Hurricanes and

solid. key million over adjusted a Our free year for of volume produced cash the that flow. results margin our that our against and priorities $XXX show EBITDA guest, healthy we and third XX.X% demand products We executing for strong remain are quarter per adjusted

We EBITDA which momentum especially the our Our our Ownership million quarters. range. $X,XXX, Vacation remains see good was mix performance our guidance our owner we're above new consistently adjusted above during in even VPG and $XXX peak of pleased with midpoint of business,

end at was ownership. with further existing expectations high that the to their performance of customers especially our VPG owners strong continue evidence value from

We are that reflection consistency, owners a place VPG value premium product. reflecting flexibility our XX% nearly in FICO increased of above XXXX we on the the the and It standards is XXXX. established levels, also of

originations portion over on years. XXX in the portfolio has time And XXX same decreased under that XXX X has from Our increased to FICO average the past the FICO of frame. our is

owner priorities One of grow to the mid-XXs. our mix has been to our new

the higher revenue new in mid-to-high each achieved a In year, New mix new long-term in of our going provide a short benefit XX% forward minimal owner we the mix XXs. owner maintain above mix we pressure owner be expect the new to sales as drive future puts consistent quarter this mix on term, pressure potential. however, owner a source and VPGs. Having

$XX growth in fees. New higher VOI is revenues a to initiatives model. next spend in purchase financing, of through that new momentum confidence with base product our team drive long-term gives sign additional over management owners well an owner a appeals on us our continued from is of to our our initial decade, market. over upgrades and executing The our work target to our property their billion is addition the amount. drive future VPG that revenue sales and their gross This an purchase and X.Xx exchange embedded potential typically With

future growth. past trends our bode in several of owner well we base number that a the years, for Over seen have

mid-XXs amount new This as age decreasing age their First, the our of Gen millennials now younger are average years to sales average steadily age an as of been owner X, generations. is close increasing has is in our and old. XX owners to

disciplined underlying average of origination loan industry. in our portfolio. quality our the has credit Second, sub-XXX best our We loans believe to improved in generation the FICO approach portfolio the tour combination and is

an Finally, of travel integral continues to the be experience economy. part

our Smoky in D.C., and we're other Florida, Mountains. top like While growth Northwest and locations Washington, destinations seeing the Pacific are also in the parts family-friendly

growth. long-term ahead, business a Looking foundation Ownership our solid Vacation has for

variety of Our we by growth consumers. a industry of a forward multi-brand path is the expand range geographic vacation and the strategy ownership wide footprint meeting a in in broad going to driving to Vacation options, expect business. With the is consistent share travel of the and unique Ownership our needs

progress We has Vacation the have which very Accor with ahead pleased Club the initial been to achieve us of allowed our on integration, targets schedule.

$X with X accelerate staffed sites of delivered than Accor fully have We sites and sales expect year. million the we and EBITDA adjusted the growth has in more reopen year-to-date, more expected year. Accor will next by end

to Turning & Membership. Travel

know, is midst As points-based a in and business as our consolidated you of this transformation of the the has become on product -- volumes. seen part standard, is vacation the we've exchange more this is pressure ownership industry

the our size. Across the larger our in fewer resize step steps developers with During footprint. in now took necessary transformation we in quarter, industry, another but are number forward to

Going higher more serve forward, can and them through approach. with targeted quality better efficiency believe we a we

and EBITDA, high were the with focus which on is guidance just was we transactions the playing range. above pleased of out, our quarter's end Our higher-margin

execution. raise the To summarize, on well, and is the performing continue business teams our to bar

our plans We have setting for already XXXX. begun

new Ownership interest We our our and sales expect achieved mix, core continue having to owner rate the easing ramping Vacation in targeted of our of up business momentum headwinds. the

allow term, segment we pipeline We membership provide growth interest also to our XXXX and catalysts our traveler in expect expect rates new Longer our progress further on transformation to Sports stabilize. to in for beyond. Illustrated that owner

more to over call in the turn to detail. quarter the Mike I'll walk through now Mike? And

Michael Hug

third and variable had our compensation. quarter, Michael. with performance. from That of Thanks, we strong rates interest the VPG headwind combined VPG, million cost by solid driven $XX higher disciplined most offset management, Overall, a

EBITDA declined As slightly a our result, to $XXX million. year-over-year adjusted

XX.X% our our margins overcome the margin produce the in adjusted Importantly, resiliency mid-XXs. business to headwinds and consistently of EBITDA shows

We share. $X.XX million had net or $XXX adjusted per income of

of new benefits increased X%. tours results, tours EPS maintained market of consistent growth us With reflects million. strategy adjusted regard good gross business, Ownership the up revenues the X%, Our tour allocation VOI shares. capital growth the repurchasing segment owner Vacation We X% and up in our which to sees the over with with sales $XXX regularly for

came expectations. Las Vegas, summer. in noted the with owner primarily market The higher tours the over growth broader While in year-over-year, new off was modestly industry consistent weakness gaming our that shortfall in

the a quarter. than fourth Wyndham higher We expect accelerate than to came VPG partnership channels. Hotels growth XX% other of our X% which with quarter, in Thread Blue sequentially new more tours, our owner tour with new produced the In owner

pipeline, more with the growth. to solid Our financial stable. our with loan our in should channels Allegiant are remains drive portfolio early consumer are but in future of partnerships package along and Nation tour provide our stages, and trends Live still The strength

to the through in provision expectation for change those provision and year. XX% second the Importantly, normal seasonality anything and quarter, us be that see quarters didn't cause between the the would trends in as consistent in sequential with that we will line third the our increase was our around we guidance. full The with progress

On revenue. EBITDA a the the travel in for membership quarter on side, was X% our adjusted flat decline

in at same As and our Michael laid flows. to generate place out the revenue taking transaction putting per steps foundation earlier, cash margins segment time, to we're and cost the are our improve believe we structure to in high strong continue this a streamline

are to with million. of that guidance the adjusted expectations overall the we full year in on last our line and EBITDA is For be higher the fourth $XXX quarter, the at year. we million start gave our This forecasting than call $XXX to guidance

Membership For adjusted EBITDA to expect $XX million segment, the be & million to fourth quarter. for $XX Travel the we

fact transaction levels to in economic advance able years. of million a balance interest of is rate. ABS our advance third we and of market's securing business. both the the confidence are and through Last markets reflection The July we've of rate X.X% a week, and rate year, over are closed to Turning variety cash been and our of The conditions have XX% we a the the a best improvements sheet ABS access flow. at rate the securitization seen our and resiliency that consistently X over the $XXX

We to quarters flow our interest free year. for and exit end X.Xx flatten at to flow. adjusted that quarter in both leverage, benefits as of With XXXX, expect with transactions, the We in coming flow expect to a we generated the and improved free million in under quarter headwinds continue of rate the conversion are full tailwind the achieving be cash adjusted be cash level the to EBITDA rates of $XXX EBITDA and at ended to the the free neighborhood XX%. expect that we with ABS cash to year we and our just turn providing to the we the

see a balance held moving reduction on in levels to that Longer lower our inventory percentage through higher path term, we sheet. cash and conversion interest

being proven a allocation. very with record our have of shareholder track We focused capital

rate of company, million with repurchases returned $XX the quarter, consistent in the about shares XX%. we dividends annual our in our shareholders of share $XXX and the we of the to With X.XX% million back During buybacks. average quarter, through bought outstanding

I'll questions? open our our you Leisure that, close please this shareholders by great thanking call and Travel Rob, results + far year delivering team for for owners. With for so work entire the the the up could and

Operator

question Ian from Instructions] is [Operator first with the of our Oppenheimer. And line Zaffino

Ian Zaffino

or focused upon guess Or guys scores lower you taking up you haven't the you're of consumer really we the on seeing seen recession seeing kind you're have scores? know touch higher I there? other anything FICO or been now scores you sitting of like Is that. Can I there FICO are far anything maybe what maybe on end them are thinking what And to any lower -- to maybe again a volumes? there? with comments is kind of there like here chance as FICO grow still you as

Michael Hug

the for Thanks sure. question, Yes, Ian.

expect near far that's our owner really we're the as side, quarter, we I we'll new the where last the of adjust don't as most -- talked seeing consumer, on that in as pressure lowering the term. So FICO the portfolio. in about

We're usually that we from -- we're worse portfolio but usually did the not we the quarter, as QX delinquencies We're performed, move how when credit with at in unfavorable generating. do. performed to look expected the they unfavorably, very QX in it direction how quality get happy that as

the will, feel as portfolio we far has stabilized, kind how as it's why of that's moving. if So you

that with We're happy trend.

we're the very quality So with generating. happy

people how Keep we there's opportunity. determine the a [indiscernible] mind, On pay. FICO I of right? had really is mean in owner side, a the things lot that's where instrument, that

owner product, paying So an example, XXX loans for FICO then and missed the years on they're dues and a with other $XX,XXX from X you to that. never if on might auto reduced that for has using marking their we're and like we because or think ahead because the but balance had that been owner, pay has who payment go $X,XXX, things you down about loan a owner their comfortable data, have

data So incremental how more years. was the But data than happy execution side in the use another great Obviously, that's what performed. the drive transaction owner had terms X ABS tour we're best to we've over that we FICO on with gotten trying just primarily with where to portfolio is the do flow. pretty other

is for So the overall, our consumer, is of another solid. at VPG we're end indicator the quarter. range of high business the the

moving seems owners So XXX. of we like that the end always below side, I because And on steady, new low pretty don't watching that, especially us see the consumer are.

Ian Zaffino

more out anything I if guys. maybe You've real that out then be of that or on in? hurricane out seeing you And little you're there M&A. And bit else there's are interested recently. you guess a finally Is -- kind there then anything else What's maybe Okay. been call no your by we But could you'd of kind some there? what focus seeing appetite? active

[indiscernible]? with it like business it's So usual seems as

Michael Brown

consistent think always on we're -- been, I always with is M&A our what which on commentary our capital return. commentary So is has our focused

that Accor, Our of industry base Leisure. we acquisition over few found done consistently Obviously, years. dividend unique + that the opportunities the evaluate is consolidated, return. the through capital and We M&A the of is past the Travel landscape. We've

there. maybe necessarily always -- of think So not out M&A number these are limited the everyone opportunities what would

we've form to return continue buybacks. that, absence we'll of in what So quarters, evaluate the in the which share done in the about do million and of last X of $XX capital is we'll

Michael Hug

in dividends as in million the $XX another well. With quarter

range million $XXX we're far to in right, total So return as shareholders. as that capital allocation

Michael Brown

Ian, just repeat to please? had question. And part you Can that, you then, a second that

Ian Zaffino

hurricane. the of lot whole A

So...

Michael Brown

Yes.

as both resort hurricanes our damage. of West finally still amount has came affected reopened it's a sustained mentioned Helene X Florida, our Atlanta moved the today, Tampa So our the has modestly in North in our up Carolina Clearwater remarks, and and took properties although tremendous that Clearwater weeks. Coast even I where the but of property, up

is One and reopened has one not.

our there. were our that property. in miles but north, within X it Milton into it affected from the up shutting it's east call Florida definitely, across Central Carolina really and our south operations galleries out, one then California, not briefly didn't sales resorts affected affected Daytona And whereas even to wildfires we affecting and west of resorts So our North of to but coming and Helene the

hope we as hurricanes wildfires no, it's did so numbers, the But to call adjustments not was affect We results. a over. the bottom did mentioned out and tough the October. results but they far So line the September over

Michael Hug

North point the some closed would the got think infrastructure, When to couple resorts areas of older rural I resorts. the out were of the you of Carolina, right? were a that reason due because we've where resorts, significant the And damage primarily of not

just Those West on Pete shape. are Tampa. that the then infrastructure the resorts Coast and St. challenged. It's in And with is thing same there a over little good the

shape So fairly in resorts came a it, our standpoint. damage through good from

infrastructure on cases, those So to most are due with in closures the what's the primarily markets. just going in

Ian Zaffino

Okay.

maybe closed any I the then of guess let and impact, I'll was? [indiscernible] I or more. volumes there on And on, hop it kind anything Because to airports second on lot a if wanted sorry. someone were was else was out just there like there. can say you that? impact one like tour call then a And Just of what financial

Michael Brown

approximately resorts with of were I million it it say not cost definitely volume that would tour arrivals owners about there we closed Yes. impacts arriving, affected volume and And and impact. because tour us. $X

of So out. again, nature felt we we out some EBITDA, the volume. or some call call to financial limited need to it want impact, But the that given didn't

Michael Hug

Right. the the the quarter bit year. of little we the I a midpoint hit above -- midpoint holding mean still full

markets, protection by not that's something market to operations quarter or able the XX% over our I that have business. We're market would point other fact about if single just really great disruption diversity of we always you this in us it right, being locations, just do So allows business. a like we've basically the slight when one other gives up the And a Florida, also talked one out us of the is make to through have when will. happened, our in able

the just again the it's having to once think resiliency and get we value business a I point of sales proof from diverse locations. So as the

Michael Brown

October in came Milton September. Ian, was And and Helene in

Operator

line the question of is Joe from JPMorgan. next with The Greff

Joseph Greff

mentioned score about down in doing anything band earlier my were then Can terms in the any implementing the, Las that FICO higher sub-XXX owner of Two payments Ownership. tours in XQ you are you second guess, and spectrum, you're what in seeing relatively Anywhere weaker. Vegas tours quick what question on Vacation the ones I in here or you anticipate new is talk XQ? the or you

Michael Brown

come little a saw and gaming Sure. saw owner in Mike tour Thanks, through everyone saw Brown. I think we -- Yes, new weaker was like This in Vegas, Las we flow. QX, is Joe. our in that

QX. remarks, mentioned be growth of Mike we a he -- As tour mentioned that Hug in will expect reacceleration his in

like is think I weakness the every backwards. has out, all and the in consumer. throughout quarterly as year, of where questions, calls we year feels this been the the the look one So finish It

at look of we're say, our around think we when expectations. the above going to I was VPG turn end back year, this back and our

what Our beginning we tour growth year. of at was right around is XX%, which the said the

our and guidance. tour XX%, we've said Our is the at year, raised beginning above what was new owner growth which of we the

basis And our points portfolio call. by our was increased XXX on last

and you're the ourselves be for performed open that our confident when poking really a in around year at we the been has our put and the to full strength pretty going to position you at the although prodding good to consistent above say or this able XXXX. of look consumer we're expectation So year, consumer XXXX,

think portfolio want to you I do down Mike, as QX, to in the touch relates and it on that? payments just

Michael Hug

We'll a It's protection, on us table to on, Yes. great higher looking we it's levels higher the just risk, if at of portfolio, FICOs. where kind down say, for kind potentially know I look don't portfolio the question, right And overall, mentioned, spot you're payment XXX sales But hey, will is that Joe. the I will. be of expected. But to we're provide as down you across got for probably the line we to going below be payments board. in

any Default elevated, levels a little are get quarter. worse but didn't in the

way with happy ABS the I the transaction. touched pretty portfolio So on the performed.

happy overall, or quarter the potentially through higher we look the QX payments from bit portfolio whether third customers. it with little performed will whether quarter, VPG way and in a it's was some consumer, the So down and for

Operator

Our next Deutsche the questions Chris with are from Woronka Bank. of line

Chris Woronka

doing giving? else? any takes feedback cost And in kind would that, a new if lower firstly we you there you're much higher are as of your doesn't something few it close So timer a you're bit, or top in hoping mix. years? the view, someone collecting know or comes what the naturally changed has I I new they're right? owner research of past the Is And tour a first be buy. on few Is down in reasons of I'm those was intentionally that on when rates focused be could drill But would kind the little curious, more

Michael Brown

on let's just touch that. Well,

rates. between owners. out and our held new that's our much a how of consistent and seen VPG as up, nothing has we to really As go us it's especially stood bit, the little rates relates year progressed, They close quarter to close there's close year. throughout given has a this owners reflection rates it And down really every in modulation haven't up but

of What value ever apparent rates a was came -- always I close years as as that as presented would as in hotel rose, say X our we feedback it's really ago And far about the consumer out we've as were we higher as that owning is rates -- inherent been. is timeshare COVID.

we As and of equation to have but consistently see above today, sort they're that value again, an close rates we've value higher their rates more and they've affordability had moved close It's stayed pre-COVID in and away evaluating the noticeably consumer good come further back and space, where COVID what from is really in than high flexibility pre-COVID. that really with ownership. we

way loan. retention really consumers. those and like the have of fully that off of that X timeshare measure And And out have owners on is XX% rate retention we a X our we paid their to

-- bit it a close along with explanation, but FICO sales rate needs flexibility a increased the it's and pre-COVID to table. what's So at And expanded since wise. affordability to our be led really value, that's there comes stronger consumer

Chris Woronka

you maybe average, spend, And or Okay. repurchase. the move of mix basis an think kind and remind Do of on to 'XX, inventory QX, ask, follow-up, stable appreciate kind on remain kind we want looking to Yes. to just 'XX, more see about inventory X-year time of time? of multiyear all this just then yourselves is the Michael. to a expect where doesn't X- inventory of us And is a you I the forward? up question. as relate really say, over recapture It really, over I again, and your as that perspectives, QX, of or

Michael Hug

is this Chris, Mike Yes. Hug.

pretty to the do relates we the recapture inventory, it to expect As consistent. be

annual is buybacks Our is around million total HOAs the to million, from on an inventory owners, million $XX of market. spend basis $XX $XXX that of resale

is roughly years X we've that's of we got business, for The -- for business. the business, XX% When at domestic million next our enough business. other is the $XX for look inventory which international that our

and COVID about built far talked as like up through the just how that. inventory things that We've as

the years the inventory is on half current which a What the So in $XXX further with for business, go core to as But will comes business. that SI we sheet spend as like SI, spend channels for million carries balance inventory half spot the other that. have is good international incremental things months X relates revenues about to the inventory. see will the of a little next we and today X continue start business to it marketing that recapture, you is bit see up potentially. But for couple we the over of up as normally obviously, about of ramp you to inventory develop the

Operator

Katz Our next line the with David from of questions are Jefferies.

David Katz

I to major bigger, events but as about I you do wanted right? I sort discussion et do And there how that does you that? decision recurring, think because nonrecurring in people's was way on though buy approach? signs model thoughts How So sort customer profound deal about about get just wanted hurricane, do anywhere working with of cetera? weather to How a you most weather on a -- level, it we're in of your but events know that broader thing. travel, basis, any the some a the and of evidence, having no impacting there's seem the see seem do regular to into evidence be your recent for you marketing a think

Michael Brown

Pacific quarters And comes of Well, diversity it's and usually catches region. over matter which geography difference. our years, we've hurricane big, a great makes U.S. spoken big where question, but resorts. it something that's just the in to comes about our and a in path back not the Asia of it no is The

again, of meaningful that resort seen that the and over this does to can years it really the right, to people particular comes a impact. path it's mutes what wasn't have diversity of of our around quarter. disaster it individual And I But diversity a locations but back past it have on other world We've look, it quarter, the a market options. an it an having impact isn't -- overreliance material But lack -- think to did when create. was

we And whenever is obviously, their enjoy still we able location another to them be challenges, there to want look vacation. to to arrival get reaccommodate them to

and real the vacation I we finance in job on team I keep maintaining is has well going great ongoing -- done value locations rates still very in we an annual of world-class equation by basis, our a our think of to with Florida affordable our and the as are that Caribbean and HOAs a cost our that all risk important and a great think Florida pass benefit affordable owners. especially ownership impacted very the that back fees the hurricanes. management maintenance is is to insurance coming important their having offer resorts, can insurance along keep is to that to team component to that in And vacations

So running diversity it's with down. a power combination and companies to costs keep of insurance buying having

David Katz

force. are areas other highlights that about of kind has discussion? any or of we or I the industry follow-up, something wanted talk do, sort been almost your which you've doing getting applying of What the changes where as execution? execution and there that point just anything there of leadership sales sales sort sort a within force any the Is talk are is can changes to never we And you the my management is about strong Perfect. having, right? execution of seeing, been There in

Michael Brown

Yes.

that proactively to discounts as deployed the price that So dispel team or in is a any haven't we that as far question tools that have well, those. nature the is performance, things let's drive of inherent of

with Our COVID, prices didn't through even team discount has sold we pricing.

our in the needs, marketplace. a they're the and So consumer incredibly month the in leadership on the the going again, of dynamic in set team that quick dealt get needs, changing they out is sense That month continue their is with what's dynamic force, to the quality it month the variables, leadership. consistent, really and company's on talent very to down every starting comes don't sales yet with react because, solid, they and perform to to depending on depending leadership of

the sales that in the obviously gone FICOs from tours team that force I the consumer that shouldn't in up can have we've to that tours I force moved as more be think that the move and efficient our the XXX their that direction. XXX on part of over to per a And sales is XX% leadership follows sees say lost that What of would be and the guest having it approximately people VPG. quality a more generating earning means volume are sales well by tighter with pre-COVID, higher market,

So of it culture but our the the organization ends satisfy and vacation best right rewards at gets being sales that people great to rewards leadership. with salespeople, with starts environment, It starts I that reactive on it strategy higher a with think a levels.

their to X sales a takes someone And a tour, a credit, environment is satisfaction buy when I but sell, would also buy. not positive or they years, last say to to the only don't the ability sales scores over have tremendously which whether increased create

it That's right, a doesn't Thanks -- you're we the Dave. about asking sales this run. for marketing and great enough. question. Thanks, But talk business without force, don't

Operator

from is Mizuho with question Ben the Securities. next of Chaiken Our line

Benjamin Chaiken

to where stand of There as are that talking developed the we're of portion versus agree Like the about working down earlier This a you larger more around to on thinking slight like you with in which industry, there you specific And becomes do start may call. that? conversation was Again, TNL, increases of And long-term inventory mix consider? were we then be cost newly entire I frankly, inventory I kind makes picture. suggesting appropriate to we would today? would in a believe of not is mix but big the the sense need common offsets VOI any levels, believe. and

Michael Hug

question, a It's great Ben.

years core inventory X that So today, of on the have sheet. business right, I mentioned, the balance for we as

pre-COVID. say would that pretty was I the pressure have we today we being of Wyndham priced on we inventory procured business long have a related cost product. Most Club today time sales So before or the of the have core to

though did delivered were 'XX have we even those in just-in-time that prices. 'XX and pre-COVID prices So 'XX, got and all transactions some

see on that When the So cost in on cost there up, some of and billion that's that's the come develop on when VOI wouldn't mind, doing over But the near pressure reason sales. sales. cost keep in we to other next $X product. see years, impact ramps of plus could not a sales of size sales on starts it's that term, the significant pressure as that that in huge several you're

about the expect tailwinds think the in you below when that environment over provision down is become the longer down clear rate come road, already going seeing -- term, XXXX. we And We're the tailwind years have, you to that when signs X, back interest to a X we get XX%. X, to would

ability like it's of always overall and those out, at And do sales to look the do. whether years and when what G&A which I it's like pointed some like offset margins XX% keep we rates, the keep sure to in to and those marketing road, our costs get we XX%, said, our do we we'll tailwinds to all cost, business the to whether manage down aspects I try XX% inventory term, feel we've So in we range. try that margins demonstrated XX%, to and the do is several our have the longer higher you whether our interest business, it's make that to

Benjamin Chaiken

internationally. leverage about bit. the we about opportunity you're progress where Accor? thinking any the And of helpful. a here. of curious how path and talk gears Can Would we stand color it. the you're kind switching I is and the curious, believe Very this business. making But brand be Got then trajectory just to on little

Michael Brown

Yes.

region. the in You're And ago, reopened plan locations, in Australia our was great absolutely to that both experiences. our absolutely the integration with opportunity pleased we Pacific resorts grow just fantastic in We're I It's of Asia and X and visiting the weeks internationally Accor. that. correct. South is extremely in Asia, do Pacific to

the the basically synergies first X create in The synergies. more then element first is that in is always the organization and step the the important months revenue accomplished was

a to modest and in very with galleries there first able first quickly is occur this more. target And to those we've the what's of achieved X started dollars, have for how months is put out it it's open well we It's now important, already on sales in resorts the for been X only of to growth XXXX. X integrated year, reopened as We indicative months. sales and really bring how in not more that and small but we've but which team to look the plans brand

pleased X the very first the in months So progress there. with

Benjamin Chaiken

separate? for that Accor think And more is sneak just longer-term there then when growth, open are that developed customers to of a Or Is inventory brand? the to up kind like newly in way And kind one of there. any the broader that is those about -- you to TNL?

Michael Brown

the second is multi-brands separate maintain what you to first So for running is, brands are other need there you to It's separate operations of answer operations. have. nature the and Accor

inventory. to As it a our mentioned operation runs relates between development, that to X of have tight really operation. They months Mike X international future somewhere pretty just-in-time

will and model conversions of that development and combination keeping of the But properties new great future in be So just-in-time working a build. likely region job some well. incredible does that finding really team than more a

Operator

Our line Montour next Brandt the is question Barclays. of from with

Brandt Montour

So the you I you the impact just that gave. total back talked said, want on about circle sales quarter. And think you said just the have bridged I to gross GAP. numbers we third third I one VOI hurricane came the wouldn't in The volume the quarter. guidance for of aspect know guys below

it I of it? there rest big Las was -- guys market. Vegas is like it a that isn't So you Vegas, seems the of for Las mean,

trying just metric, if help just us bridge you that the X could with gap So that? I'm for to

Michael Brown

was was -- is there, second. hurricane summer was given it few owner bridge There other didn't biggest new Vegas beyond shortfalls. Yes, it in and us pretty were to cause up Las closely. leading pretty weak Las And a and is Vegas. that noted but biggest our our that of lines -- the it's markets is tours wasn't our gap. Well, the was Florida Vegas of gap Las well their one And

Nothing will were we in that as that of tour QX. continue. individual Mike or a That's some There trend concern. small in Not just our is other growth a of repeatable pointed regions. expect misses why, reacceleration out,

look and expectation. the back XX% really our look at back I think growth But was yes, our below though first and you modestly the pull QX, at strong in sort for and very the and just were around we you when tour as a of of we again, year X right year, year growth out. quarters XX%, full maintained guidance this tour put come VPG

year, tour above this is and our at range. our mentioned so of or we answer, full when an beginning year VPG our full back earlier year the I will going what said achieve we number you within to be as on And the definitely on look

are believe delivered more the regions So yes, think the of the and QX, to a weakness turn all in to consumer just a despite laid enough we're off out. we're around hindsight, XXXX market -- in expectations and material out numbers be not we primarily around impacts and then strongly and had at beginning a volatility few small that, none higher. going the at to we macro-wise led call recessions we able to bit and are going concern that if we, But that say year, by the other of we're which suffered all and

Brandt Montour

going 'XX what broader question guidance the of Got it. normalization can't the at know just But here. helpful. we're was you about is of I number can a next obviously, for you, from point. talking evolve But about give we and travel we When think different we're thinking to -- on to 'XX? where consumer the you in -- consumer the do And sort a or then across 'XX markets. this just Travel saw talking the super about That's things election you're seeing, year about feel think how follow-up, about and and is the it not Mike. of waiting leisure consumer going year,

Michael Brown

scenarios, right. about going is is year around my little say. in would a 'XX, this to that I I early because perspective flip do that the to that hot had on you're It's years we've business people to uncertainty. our able occupancies remain we've a into in 'XX, owner as yes, feel question we've how Well, the for far last and X consistently middle as very super year those been market and had in vacations high. a deliver of of choppy the both And market in

So think strong. consumer demand do product go remain will when the into we XXXX, for I our

and underlying underlying of our drive We in the seems and I amenities have more recession, commentary, flexibility. positioned. a product a none for our year. case, a high avoids downturn, well economy with business might that -- the model changes the relies accommodation, on bigger on commentary macroeconomic then And people if very next destinations which to if don't more But more And events. branded that's we're

our VO next think business very have X we Traveler & hands fundamental one, of areas steadily core think is areas, We're in the our wheel. those Everything Membership. inventory. I year for on have focus overcommitted number we on and not the I

interest like heard just rate that and on headwinds subsided, interest year next You and to rate neutral we'll answer movements. positive have finally our it looks be

dividends core XXXX. X which reliant are not And the will new but then we seeds overly Vacation and to on Sports pay in businesses, Illustrated, have laid the start Club

X matter XXXX, think set having the I So a a gives beginning by to new business no up macro we're businesses. with and core solid good us what experiment for

Michael Hug

going in XXXX. other their out, Epic biggest markets May Las Florida, our about Central And think Vegas the Universal announced open thing of X being and I'll when you resorts to point that they're

just resort. time. market new next talked Central but that the experience in down strength then about and up that seldom So summer come very the reinforces move for can a long that And all Vegas, to it great Florida know Las but as for softness -- down, we Vegas we people Las stays the of

our bit, markets if are shape. biggest good So in X Vegas comes back a little

are to people our piece that Epic confidence think with our we about where of They the when Orlando. are a markets X at, for especially business represent and travel So get those opening. biggest resorts lot and where of

Operator

Our final with Patrick question Scholes is from Truist Securities. of the line

Charles Scholes

give update stand. on Sports on you you update Curious Illustrated? us where can can you -- Michael, an us give

Sort $XXX And if again, would business million incorrect think the your on for longer-term seeing that vision you've if past, time and and that. I in Correct the expectations be so, I those wrong, I'm the me to what eventually some of million of $XXX numbers. be talked on could that? frame

Michael Hug

Yes.

thanks for Patrick. the So question,

get longer against point, business we million. term. talked Thread, a we've be the new and $XXX look grew what we currently $XXX we're when $XXX that of over [indiscernible] up those, brands Wyndham were to become talk your to this the -- kind time, million with While that able a that to of over the going Blue million at to about about year $XX to to brand kind million do we If the over

million going we million a I to think a I more depend on $XXX time to that that business to that what growing we think starts, And little that $XX million So would year, course, start year over when a is maybe the in expect $XX But of cadence a of but time it's that. be start to sales. the year would business.

over So brand bring other might that's additional that on we it's or kind of math we any whether the brands time. works, how think

Operator

to the session. hand remarks. the closing end question-and-answer reached We've I'll Mike of floor back our for Brown

Michael Brown

you. Thank

experience bar team the and months year-to-date commitments our easier set performance our improve performing solid that for shows is and enhancements a delivering roll technology getting owner enjoy to to and our it make for number the well producing ready coming continues and them share We're that flows -- great out of to results our Our to financial in business execution. vacation. We're to shareholders. on are the to cash a

call and conferences quarter our good to today. everyone. again forward the to and we February. in for on a look you fourth us at thanks quarter to speaking day, joining Have everyone So throughout

Operator

today's We disconnect This time. conference. thank will you your for your lines conclude participation. at this We

Travel + Leisure (TNL) 23 Oct 242024 Q3 Earnings call transcript