Travel + Leisure (TNL) 4th Annual Morgan Stanley Travel & Leisure Conference summary

Strategic priorities and business positioning

• Focus on consistent top-line growth in the mid to upper single digits, with compounding EBITDA and EPS over the next three to five years.

• Commitment to core brands while expanding with new brands to broaden the sales funnel and drive new lead opportunities.

• Emphasis on maintaining owner satisfaction, as existing owners generate the majority of annual sales.

• Strategic capital allocation balancing reinvestment in business, share buybacks, and maintaining healthy margins.

• Resort optimization and technology investments aimed at operational efficiency and customer experience.

Financial performance and capital allocation

• Q1 saw revenue up 3%, gross VOI sales up 7%, EBITDA up 11%, and EPS up 31%.

• Dividend increased by 7% and share buybacks up 25% in Q1, supported by a $750 million board authorization.

• Free cash flow conversion targeted at roughly 50% of EBITDA, with a move toward an asset-light model.

• Leverage at 3.2x in Q1, with a goal to finish the year at or below 3x.

• Resort Optimization Initiative removed 17 resorts, expected to contribute $15–$25 million incremental EBITDA.

Market differentiation and consumer trends

• 65–70% of sales come from existing owners, reflecting strong brand loyalty and perceived value.

• Owner demographics improving: average income near $120,000, average FICO above 740, and younger new owners.

• Expansion into new brands targets diverse vacation styles and broadens the customer base.

• Technology and AI investments focus on frictionless booking and personalized experiences.

• VPG growth is natural, driven by quality consumers and operational investments, not discounting.