Travel + Leisure (TNL) Barclays 10th Annual Eat, Sleep, Play, Shop Conference summary

Business overview and revenue streams

• Operations consist of vacation ownership (70% of EBITDA) and travel membership (30% of EBITDA).

• Vacation ownership revenue comes from sales/marketing, financing, and property management.

• RCI exchange is the largest part of travel membership, offering access to 4,000 destinations for 3.5 million members.

• Travel membership generates revenue from annual and transaction fees, with 33% margins.

Consumer trends and macro environment

• Consumer confidence remained strong throughout 2024, with high volume per guest (VPG) metrics.

• Uncertainty from the election has dissipated, further boosting consumer sentiment heading into 2025.

• No significant labor or tariff impacts expected due to inventory levels and current immigration policies.

• Interest rate policy is a key watch area for 2025, but higher rates are not passed to consumers to maintain value.

Timeshare metrics and performance

• Tour flow saw double-digit growth early in 2024, slowing in the second half as expected.

• VPG exceeded expectations, consistently at the high end of guidance, with high incremental margins.

• Slight portfolio deterioration in early 2024 led to higher provisions, but trends improved in Q3.

• Focus for 2025 is on sustaining tour flow growth and maintaining a healthy new owner mix.