VAC - Earnings call transcript Q1 2024 | Marriott Vacations Worldwide Corporation

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Operator

Greetings, and welcome to the Marriott Vacations Worldwide First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Neal Goldner, Vice President, Investor Relations for Marriott Vacations Worldwide. Thank you.

begin. may You

Neal Goldner

Marino, and Quarter Melissa, John the Vacations and Marriott our Chief President Thank Officer. Financial Conference welcome Call. First Jason Officer; Executive Earnings and by Executive I'm Worldwide Vice President and you, Chief to our joined Geller, today

future need everyone to laws. securities cause of in from which These are subject that I risks materially our not and are could federal today to our statements to and facts under remind numerous those uncertainties, implied historical or are comments. many differ comments results considered forward-looking statements expressed by

Forward-looking unfold. statements this night call release updated and we on as only effective issued be when made in last the press are will comments events well actual as not that as

call, financial make the we non-GAAP to references information. will Throughout

find turn call a our attached schedules to With that, my non-GAAP in financial it's on website. of John to remarks our reconciliation our the measures now in over to You to referred Geller. the press and release can pleasure

John Geller

a That's X%. VPG Thanks, for quarter. lasting with earnings we joining our guests and growing running making and at time having to year the great during with our XX% excluding comparison come thank grew so X%, tours year enjoying in see friends with you Neal. It buyer was quarter contract their out. why difficult they a call. in despite resorts, and Maui, QX, first back family first-time And system-wide everyone, memories first Good occupancy sales morning, by many

in new end been and the later Waikiki for strong track this have reservations our year the quarter, taking for to Marriott of on new Club started this also Resort open Vacation property. We which reservations remains at

in resort this it us as of told the already resort few is new system. we a Japanese and the a new that excitement believe new Hawaii they add And plan meaningful consistently with to gallery we ramps Waikiki. sales first Concurrent contributor open arrivals resort better. years. have year-over-year a to wanted timing with the up opening, to be could location bringing the XX% quarter, to over in a be us Owners almost couldn't this up

new market than We've good year. executives by sales XX% expect sales driven adding be in progress $X this contract and continues marketing up in recover. year-over-year, and sales made Asia contract to Maui around more grew International double-digit as to million the Pacific growth still

years. XX-unit in announce co-located hotel I'm and include will is existing we and recently potential new a Thailand. resort an other when Vacation new team Club will be also in ] opportunities development a resort Asia seventh a signed to Resort the This gallery will The the to it Lak on opens on-site Pacific sales region [ few Khao the happy JW working Marriott that busy around be in in Marriott develop our agreement an world. with

tours Our able package nicely. with while simultaneously branded higher grow also to to Hyatt By lower-quality proven continues more our Hyatt leveraging been replacing channels, business tours. pipeline cost-effective quality, progress we've

utilize and program, Club consolidated the through toward product. launching we year continue new owner work we owners a and out to last that Our Hyatt Vacation benefits continue BEYOND enjoy to rolled the Hyatt

and increasing. revenue the performed unchanged quarter, year-over-year line with membership exchange getaway and in active In International members with expectations our third-party our business, Interval management and for

considerable he spent a we transformation a efforts, Officer last amount As our opportunities new drive analyzing previously discussed, to where year, our time of and Chief lie. Information IT hired

the to software data efficiency analytics centered legacy enhance to be campaigns. automation our systems, capabilities our While year this and this is our consolidating a modernizing marketing to while multiyear efforts IT increasing improve continue and journey, continuing of around our will

XXX,XXX with team to quarter the is these working on ended packages, we get vacation. forward, hard and customers our Looking

to to International this although pre-pandemic are and is solid on travel economy with of levels surveyed the consumer business travel time, recover benefit could to inbound the or U.S. this year. expected our approach impact [indiscernible] which the footing, to price continues shift elevated the Meanwhile, recently At their money amount last experience to year planning people to compared the to on same continues XX% of consumers about concerned remains year. spending. levels, same spend more

results. books Finally, our as that, internationally Jason we With months, points to important up are a call discuss and in both the America the vacation keys over to North year-over-year. I'll approach summer on few the turn

Jason Marino

Thanks, sheet feel first and Ownership our very rest our John. Vacation Starting about results. quarter to so of our segment. with knew Coming outlook good the for in position first year, QX, our the difficult going comparison year. to Today, quarter balance results, we we into most review sales our going be was I'm and liquidity our the

the as increased and And while VPG year-over-year. X% year-over-year, tours mentioned, difficult X% Contract grew Maui. declined contract John sales excluding comp, X% to Maui sales due

trends. As The expected, reserve is defaults development a and continuation due run higher to suggest, continue as delinquencies costs sales history higher and VPGs, and a sales as would lower well than marketing year-over-year declined last margin which higher of to unfavorable year's reportability.

see reserve levels, and We loan our hard though to down, continue improve. to we work to do currently need we believe is performance appropriate get at delinquencies

expenses million purposes. year-over-year Rental $XX marketing more for driven were by nights profit increased used rental revenue increased as preview and lower

financing higher resort expense, X% Financing increased profit by profit while revenue, interest management declined higher by partially X%. offset driven

driven development in XX% primarily a adjusted at margins while Vacation in Ownership strong remained quarter. As result, lower the X% our EBITDA profit, declined segment by year-over-year,

to higher year-over-year Hawaii. business. member third-party year, per declined at the partially management prior profit average lower Adjusted offset revenue Moving exchange $X softness with and exchange being our getaways to million while EBITDA volume Aqua-Aston Interval due to and declined in at compared by

As result, X%. adjusted company a total declined EBITDA

And we've paying repurchased repurchasing quarter, common million with during and the first to last $XX million XX of dividends. We shares Moving the outstanding declined shares $XX the stock balance returned the in over year-over-year. months, million diluted sheet. shareholders X% to $XX

with the debt the to maturity EBITDA million which of term cash quarter it extending our seasonality loan, near-term X.Xx we out is the beginning At adjusted flows, refinanced $XXX net Given liquidity. only our April, and in XXXX. we of ended to our of

a our next QX As result, maturity isn't until XXXX.

inventory We balance sheet, support also to billion have of X years future sales. nearly $X including on of and the enough PP&E more inventory than

deal. completed million also We rate a XXX of of which blended the points ABS first $XXX basis is year, securitization raising last X.X%, at below our interest approximately our

guidance. Moving to

million. X% to X% remains the $XXX sales for year second contract wildfires grow the We growth in year adjusted full be at as with of quarter. unchanged lap a Maui in to margin expect the development EBITDA half Our guidance the still down few including we strongest this second year and to sales to our points, million $XXX coming

headwind next profit due a be should a to this to financing year, do increase. higher And continue rates growth costs. to to headwind Financing securitized be debt will we profit again year expect while

year-over-year incremental Our business cost working profit good management we're of the rental and fairly drive a year. show balance had should and first over demand the growth consistent and hard our manage quarter, to

management down revenue for third-party business, slightly our to increase. average member exchange per and and we Interval to In members expect be

still slightly we to be G&A Finally, slightly expense expect -- year-over-year. up

flow. cash to Moving

million adjusted expect cash this in the flow range million year. to $XXX to be $XXX free our We

XXXX. deploy cash of of back cash to by repay and debt end plan to targeting Xx the while some we'll happy Our answer free well shareholders questions. leverage to as dividends Operator? is our get be as to With to corporate to your our through return buybacks our that,

Operator

comes question Chaiken the first Our from Securities. of Ben with Mizuho Instructions] [Operator line

Benjamin Chaiken

to lumpy like for in nights, expect through preview more and the in to I the Would drove year? that rest the pretty dig It elevated prepared rentals. If higher into there year? not, up? from the Do sales what VOI the remarks, a love was to And nights stay marketing? related is the the strength higher preview role that play of sounds guess, you then,

John Geller

you what things. a look the yes, Sure. I had think for and of couple rentals Ben, you the in as first happened year quarter, at

books, You we've higher than last mentioned done And that to the be and continue nights. seeing preview to we're the we do those on all previews the much we packages have year. the given what expect

And the and P&L. marketing on helps perspective tour the a from use obviously geography you of on gets sales. and $X supply over was as inventory those to side. that, charged also of about that with sales It million rental So a that cost right? bit to it's We cost, mentioned, higher

million a was benefit side about to it the of business. $X on the but a headwind So margin, the development rental on

plus were points. in a other the first quarter that uses outperformed The over our bit of area last year, little

terms in we So give those incentives. of as of usage. timing They up points those single-use out the are were the

also And first quarter the year-over-year. benefited so that

balance about heading. the feel So the as rentals for we of year, set we and we're up where better

should the thing about I The mention, on up our RevPAC X%. other was rental too, side,

So flat, we mostly we our about books. points summer lot the of campaigns marketing to a through those to occupancy we're rentals rate the months. to relatively We into go actual continue of but was overall on couple the as are rentals, do up a able talked occupancies get being

seeing people vacation, to our want So that and in we're get on results. rental

Benjamin Chaiken

like then just And coming you. sounds is Maui, it quick demand In follow-up. back. Got a

the forward? limited to million you year-over-year of sales base side, the Maui, expectation so, being think is then what's on meaning so, I contract $X the And about think And major headwind personnel if side? do going alleviate still business that? baseline how is the or you -- sales the like your growth. mentioned In done

John Geller

a occupancies of XXs. in quarter Yes. low couple Sure. it's the things. resort were Maui, the first In One, in

Maui, back we not So typically occupancy. XX% in running were type --

of hopefully balance -- come the flow, to in back levels. are expect back but over that more just pre-fire a we of in-house year that's see and tour so a the obviously back, occupancies get coming to bit So headwind terms continue of that to

good is new in to completely a staffed right, experienced potentially versus it in of trade-off progress and sales the made not of on We're lost. losing you're We've marketing yet. we some terms replacing then talent, is bit the The talent. back talent fully little And talent. bringing

So getting a sales there people those is kind normal time production. a ramp-up of bit to of that up

pretty setup right the is good. now But

we get in in be obviously, continue wildfires year-over-year. with go of expect last the we remarks, Maui to should we've in the and talked year. up better year mentioned, And I half then you comps about of second got my And impact as the We as it the through the to easier year.

Operator

line Our comes the Truist with next from Scholes Securities. question of Patrick

Charles Scholes

Want was of I a a remarks, up comment in loss what this loan the concern, thought bit prepared provision. to the on follow quick

charge. Doug Maybe needing improve, [ that interpret about am about to it I little if that. you can means see ], another doesn't out, you correct? to talked would have You more I to performance bit assume flesh take improve, a talk that

John Geller

Sure. When of Yes. you next said the and the impact But really of start would time, we would customers. be right, timing quarter, obviously, and year impacting give took like comments, the of were in play CPI delinquencies, inflation, of too. see I'll some improvement, we some we how defaults, that the kind we expectation some the to the the last three that, defaults higher of to as we'd we took from four was and some third what coming an were seeing the higher reserve add the quarters, Jason can out. at higher estimate things over thought then those the the

delinquencies in news were and more we good course well, delinquencies than the sequentially quarter, we April were of So the improvement. even here, saw year first the last improved higher saw quarter was, some over those the they through

delinquencies, about delinquency to the X experiencing, your answer are to I had where still more loss trends. the improvement reserves need to guess, still came but delinquencies some Patrick, trajectory, your from get We the quarter that So if to would at we be in never next point, to more more good. good feel take. we we see were down potentially our But trends here what if normalized loan or over yes, back we're

Charles Scholes

still you'd on in John, easy view, comparison in year. is necessarily questions for proverbial the follow-up struggling sets Maui of up where be last you in an to to some wouldn't easy Or Maui. then horrible priors you think Starting And think as you Okay. August. lapping be a August, year-over-year in comparison? beginning you that year-over-year do do refer it your going

John Geller

sales levels get for I down, because production those be yes, shut simply, we're year-over-year of right? obviously, we will Well, force normalized now, running time, lot salespeople. back. it we an comparison our hitting more to salespeople easier a as a Hopefully, mentioned percent for got XX-plus of of right replaced. We're be August, We've occupancies, were most newer period as right,

trajectory do August absolute we're forward we where last yes, just on did at year now. than much should an we And basis, so of the given better right

Charles Scholes

Okay. regulations around then question last on mover Maui, needle Or York hotel City That helped legacy your But in does sense. New increased you probably that yourselves? really about again, a And certainly, is I properties take a a saw on some the that? regulations nonevent? get should be Could just like some initial was there John, Airbnb, be industry. make mover this a you really needle potential news for for can folks, this have

John Geller

we -- what to the how decision-making short-term the, really the referring exactly governor of it I positively impact outcome or to to around this don't But be us mayors think, is each have rentals. you're potentially where might the island could what some the gives think yet is power I kind signed that and know negatively. legislation of or greater

watching we're obviously So it.

the going sure at this decide near eye We'll But So of legislation, it. it what on to be part the make I understand don't we're of impact days actually Hopefully, to anything. actually mayors will us will but keep exactly necessarily one, right? point, potentially what's that do, it impact in we early term, us. could an kind see in how the

Operator

comes with the Chris Our Bank. Deutsche from of next question line Woronka

Chris Woronka

Thailand. you're you be development mentioned to new so doing John, the going in

of exists. part think already I it's JW you that complex said the

Because you to transactional to states. things opportunities pick do are seeing international? up see little think whether existing bit of curious, more so And hotels, sites or on looking I forward, we're domestic in a I'm the starting activity

an going forward. whether curious I'm opportunity it's be So to going

John Geller

more where we've question, got at I'd had Chris. development, the locations. always more Great still resort Yes. here in there. yes, opportunity Brand-new Pacific, answer over Asia short opportunities, some looking U.S. getting both in right, just opportunities The but done resorts given We've well. is say, in as more construction we're

can amenities the you leverage of in back. us got co-located ones So we go in-house in a location those the location. the we've more deals little both expect would the And time, know, work yes, co-located across actually our I to is development by But the some forward. as well At the where hotel. same leverage and coming we It's facility. bit do units potentially locations just as here

circumstances, will be opportunities but little a out some it facts now. there are there good and So bit right

Chris Woronka

how the which And new what Okay. The direction, Good portfolio, to would your forward? hear. follow-up different as is or on or a current but at -- I'm curious about any finance all? that propensity of loans payment you're on down of loan originations of think on that the is kind seeing affect going you that in day changing

Jason Marino

Yes, Chris, is this Jason.

but X first-time quarter, owners of behavior. is points, were QX much We in of -- propensity sorry, couple XX% of haven't buyers down bit seasonally day our the mix little QX lowest a quarter sort buyers the given too changes quarter. seen XX% Propensity -- just existing in too a this many in was always

well. goes mix So that that really just sometimes nothing But with different. else as

Operator

from Our line Katz with Jefferies. next question of comes the David

David Katz

of how to John, and toward sort we pieces up ways yours what showing like back more pricing. to season that's is Hearing for of seems comment a different sure Could and go or earnings you make and basis right. on get a in just that. pricing of what made elaborate you bit and the through maybe wanted bits sort behavior that consumers' about passing it

John Geller

if the were you as a last had down in And even we our quarter. back would Yes, go quarter. year, slightly sure. to I VPGs strong you first [indiscernible] saw, adjusted first argue Yes,

that's went little better So we a And got the pretty a right? as a VPGs. are comp normalization a headlines David, bit it then where stabilized, of tough economy of as say most for more for the of things, the third and overall the is was we last while see the kind broader year, in the good. we at macro, so did VPGs. I of little bit see day, still part, through it the quarter fourth description lack And end we would

than As loan higher we've the seen we've talked portfolio, about, no right? on costs. different --

you businesses, some stress in think it when There's I consumer. on level other see some at right? the

I I in vacations, think good said is see prioritizing also as wallet news, people their the of spend, terms prepared my they're and right? remarks in experiences

we're that's And what seeing.

going us, positive on a as up so last the People are are people for the strong were on dynamic spending into year, and summer, we're they're -- and books the that's getting Our and right, up bit, are vacation, where spend a as they vacation. they kind a is, business disposable that And want money. about, always to and spend how income to shifted talked their of bit and in we've the people post-COVID, of want have people on to their the kind of get right?

So us. that's for a good tailwind

David Katz

and we're be change in this right, the Could Understood. And changing And on wanted one triple not guide, I make about, we apologies, the but just we EBITDA. totally that. but just understand embedded guidance. clear more, that's clicking to the the EPS sort of if sure depreciation

John Geller

timing lives in online changed versus estimated -- were level, Sure, of a depreciation newer of high the At estimates of when David. useful just our assets. going we guidance some assets some terms

means. just So the what of fine-tuning the guidance versus it's a bit. It's of we some just a the not cash that the from beginning at any impact estimated flow year by of depreciation timing a

Operator

with line comes question Bank the Kelley from of Shaun Our next of America.

Shaun Kelley

just the loan minute have to follow for here. kind trying expectation commentary provision embedded a of guys just I'm that And the you more to go the just loss want or commentary. the I to -- back

an question, the But a the was answer after would it was expectation on it kind you percentage look like got way last think that some continuing there increase it that increase to little bit the basis, was I obviously, we we former year. kind the issues of packaged through a in And the to with So normalize year looks actually last of as consumer. at sequentially. just it's

have? the sort behavior, level stay impact my of that -- of that you Or were rate, imply? you question of and of of what is today? if So sort run what embedding normalization current were at would are we to And what an kind or just embedding big would how current

Jason Marino

Shaun. Yes,

when at that going to So -- environment ultimately were and for take knew what defaults to last first the we system. delinquencies the of we in, it looked then the we your year question, and QX as look time we some to forward was kind run through of those

it's we're as So today, continuing we seeing and thought. that

I going loan what guidance higher to and we seeing. in was the So year-over-year we provided when in that's we're the February, QX, loss think here that indicated be

So to as we future really, in kind look impact delinquencies you of and what hard could be. defaults, give as estimating forward the terms an it's of any estimate to

mentioned, As been here, the here into that's John I first do to April. of and on we and too, we've kind mentioned as seeing what quarter improve the end need of the those over call, delinquencies

So.

John Geller

So the defaults, have Shaun, the future. the talk only other the because a about into in that models therefore, run goes to we right, of more work that if thing I'd defaults, and you on did your add way there, static using predict pools the I rate, higher you're terms think, normalized --

loss right, higher, run rate XXX, going terms loan could and forward. So in loan about points higher, loss. year for more of normalized XXX basis our talked this we be

that loans. of the embedded does new of terms into So kind future in get

about higher at that we've loans to what to our provide because defaults than the slightly margin embedded overall going new rate is to that's higher in a are need and experienced. we continue done we've So historically of talked we've development for

Shaun Kelley

sort be that off you to just to that of points today. then, it basis above percentage. XXX embedded what's in little back to bit kind would liquidity John, normalized of of as So obviously We're you reset XXX outlook a the see level

-- at like look think it's ballpark of the year-on-year, about it we in if to Is am think basis that XXX it? kind closer I to of how I points.

Jason Marino

some quarter first the remember, of before year increased was last And of we right. that's started activity. this delinquency seeing Yes,

last year. So rest was than lower year the of QX the

So first that's than why full kind the the worse for the looked year-over-year quarter year. of guidance

Shaun Kelley

Yes.

Jason. just margins follow-up the And my I takes sort Okay. and that, be as development puts would then rental it. you between follow and outlined of

it a have going hadn't that the be the caught year on I with some of and issue if of higher that support that be to pay sold to thought you're yet. you side going bit I was rental inventory a into So correctly, to that because I cost that going the was you're mean, then to HOA coming having fees headwind to

between. obviously, including net I for on where some of this you you're profit? But But Perhaps the misunderstood that. out that do of today? pool to an some utilize and think able year, of how now, that those kind Because QX does about rental aggregate move basis dollars rental

you of think then year. And ballpark kind a just I that items? said points for hundred development, line those Is basis last below X year for the the couple of right

John Geller

Sure. Yes.

yes, side, expect in kind about a development and hundred for guidance talked year margin we down we year-over-year. the the of development margin, full be to basis of the original couple for the points this year, our On

revenue some higher a impacts that sales reserves, costs. and that's of and your and loss is margin higher marketing loan deduct Some right, from

sales, packages, charging slightly of cost, you used and higher the the preview. of allocate preview keys a unsold fees in lot the are charging you higher we preview over on more to the as and Yes, packages but marketing rental also more maintenance inventory, a there's and that do cost are because income, getting

development margin So bit rental that which mentioned impact just for on Yes, little is million $X earlier, of a bit. the so It's improving I a just good X.X%, That's the feeling geography, up, year occupancy our shaping call about, a right? X% an for profits. your as as Z the and I year we're up, year-over-year, about rentals, it, was given was full quarter. talked first better last or

when the cost And talked XX% fixed coming about, So you about getting a our the great team about rentals job into of there. is rentals think bit year. we've is a overall, also as doing

So first for quarter, got that's really profitability, us in drive did we to we the right? up, and what better occupancies

the average fairly were we flat rate able to year-over-year. And keep

So last looking be but rentals year maybe maybe could our a bit year bit a or better. hopeful early the we're we're where setup for Still better. is days, that at little

how good off goes, quarter. So here the to we see but year a start got the we'll in first

Operator

Our comes of next with question from Ryan the Lambert JPMorgan. line

Ryan Lambert

if development of the new little some seeing a terms spend the correct property. on progress just on puts the And at input of a your bit takes of that's wrong, with Congrats I'm the side you're like, and least you're timing some with costs? more wondering at And or with to in inventory. me of higher demand seeing Waikiki this year anything guidance I'm and on if changes, it looked function if me,

Jason Marino

there this really net Ryan, income Jason. is add Yes, back is the or seeing What from you're EBITDA. adjusted

versus think really little to going initial continue cost, lower it's we -- So we've product and expectations. bit that's our had a

on really the really by side. than necessarily little had It's add we anticipated. product bit not and cost it's a the So impacted back spending on originally lower

Ryan Lambert

kind of rental inventory, for of year be just you're is for the it expectations some lot seeing you Okay. -- better? XXXX with that are look in year. a following would of on XXXX? sounds Great. some a comments, into continuation up that trends next more And this Or When additional incrementally positive your the

John Geller

will give additional and Some by stay. people at us I to think, for used online rental all 'XX, I that, properties those on Waikiki other early coming right? obviously of given that, in Yes, that. keys, where be your point, terms a availability working a little create of will it's but all other will that through But guess, question. owners It's great depending

we the is we also fees year, maintenance big unsold inventory through think every on this the go as keeping given which focus way of to cost year year, like that on every I our rentals, increases more So to RevPAC have. will the know maintenance help and levels, year we'll your back historical fee get more driving

keys, able will, rate bode to if of we some yes, we're 'XX some that drive should continue with as go but online, inventory new occupancy on some you more -- So to the coming potentially into and well. if

Operator

Our Scholes of Truist next Patrick Securities. with the comes line from question

Charles Scholes

Just a follow-up question. Hello?

John Geller

You up little go ahead, are bit, a Patrick. breaking but

Charles Scholes

Okay. me you okay? hear Can

John Geller

Yes.

Charles Scholes

those been bit Yes, had of to you, I a summer. great. been safely have an issue the follow last the Westin customer? just put to say that is BEYOND point? the I wanted John, on little And this going guess, -- were up sales believe rest the customer legacy challenges here. has how I program How Can sort at hiccups that with with

John Geller

sure. Yes,

what As we saw in saw the us. quarter of improved behind getting product. transitions confidence transition are we the significantly exchange product, sell, site speed, quarter in on system the in and last a the recall, the last call, year, yes, the in talked abound new the It opportunities. in sell about that you impact saw third second if The actually more quarter, was getting kind really off in selling second we up to because the the around VPGs we teams better selling just of all the different marketing was at sales

the that Vistana fact Westin systems, bound. and a more legacy about are talked about getting product, Sheraton, using They're But and the and the the it. actually people right? There's the now that in using program we also in benefits we talked of familiarity enrolled with

those over back were come of we really launched two And things bounce. VPGs before we've of where we last those well. continue the balance to go a So seen kind year to

call, going said any forward. expect impact I like behind So last we don't us,

Charles Scholes

that, dates. the to year, last related then abound just next X trust? have are new Or question follow-up Do to then had trust Last you of And Do part And that year club Is here. be be Westin into go or projects, announced Good. it Okay. separate? the system? a you Savannah. opening those will the Charleston those following? going and

John Geller

into As of the inventory we've talked right? Club the feeding about, new trust. into go Vacation all Trust, kind will Those trust Marriott now U.S. into that

of Savanna's and create got we've in I date in those think will From an the opening both then 'XX. Charleston trust. So 'XX points perspective,

Charles Scholes

new the center Waikiki this Vacations still the scheduled Okay. And back Resort, year of half correctly, the previously, in did Marriott open correct? to in sales I is that hear

John Geller

our great in October. just it Waikiki was to teams coming properties visiting and already got there see in I out along beginning reservations will tour Hawaii, the We I up. taking started new in open

on So we're there. track

Operator

question is Ben Securities. of Chaiken Mizuho Our follow-up with a the line next from

Benjamin Chaiken

the I remarks management the in be through I you should business prepared you correctly. if profit think said the heard constant year,

Or like Just that VO management management profit click referring consolidated within you was was double that P&L and the to the to that. X? of are like on X. plus Are kind plus kind of to you profit exchange referring

Just clarify to which.

Jason Marino

That a ownership business. on was the vacation comment management probably

Benjamin Chaiken

VO, The correct? plus within X business management

Jason Marino

Yes.

Benjamin Chaiken

Great. And today guess dig to you've of into gap would think XX% closes Maui. The between that and XX% what I back then going XX% historically? had previous one to the the do kind the and experiencing occupancy. that love you're answers, you of the back XX%

the that are function And of but ramping? X a like part personnel just all kind point, and the just onboard, then you on not do kind place? belabor side, still Or to of process. to sales this Is learning and to about bodies know trying more in a have of you hire the little

Jason Marino

it, Ben, XX%, we Yes, call on were Maui. occupancy, XX% just the around, in

of off. a points So couple just

to about I think still properties, real to gap Maui, is just take continuing the several just the come that's talking the around was and go like great there, years it things quite is going to John to and is people closes what back. devastation and how that.

sales XX% from do fast comes will was back repeat gets back, your question but how the you it XX% it second can tell. to think then and exit second And XX% -- the part? about time So we

Benjamin Chaiken

like in side, Yes. you do on ramping? the and you're everyone sounds personnel was, Or And now still it have you personnel? -- source to want and the a my they're there's question still do place? saying that learning have you sales hires Like you sales ramp. all trying was are just just I

John Geller

Yes.

to bit and We've down the to of We still because For on ramp. a to the a we got side flow teams continue continue ramp little little need level have yes. as tour occupancies we're that get place. the sales more tours in bit,

will. of to right but aren't we're we still spot in XXX%, good demand now, a back if So kind to handling the for relative tours you

So we'll through tours and come continue that to occupancy as manage back.

Operator

the and concludes question-and-answer that turn to Mr. floor session. Ladies you. any back comments. final Geller our I'll gentlemen, for Thank

John Geller

call joining you, today. our Thank for everyone,

about very you in buyer As year grew feel sales has We tours tell, the And inbound ran Maui, occupancy the of a international year. the a and started. we the pipeline can packages, travelers the the the first-time XX% X%. Contract on good we of up to and feel way books I with months about balance quarter. U.S. X%, summer excluding points, hope few returning good by grew the reservations XXX,XXX for

you behalf to hope continued the of see to and owners, want our Thank you On your company around thank members in for world, I all on soon. associates, and vacation of customers interest our you.

Operator

concludes Thank conference. you. This today's

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

Marriott Vacations Worldwide (VAC) 7 May 242024 Q1 Earnings call transcript