Travel + Leisure (TNL) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Strategic priorities and growth

• Focus remains on core business execution, leveraging direct marketing and expanding the addressable market through new brand launches such as Sports Illustrated, Margaritaville, Accor, and Eddie Bauer.

• Brand expansion is driven by aligning vacation experiences with consumer lifestyles, targeting macro trends like sports and outdoor travel.

• New brands are expected to bring incremental total addressable market (TAM) without diluting existing offerings, applying proven business models to new audiences.

• Operational discipline is emphasized, prioritizing excellence in current brands before adding more, with a focus on learning and refining through 2025 and 2026.

• Growth algorithm is designed to stack incremental gains from each successful brand addition, avoiding cannibalization.

Customer experience and technology

• Significant capital is being reallocated to enhance the customer experience, including digital transformation from booking to post-sale servicing.

• Launches of the Club Wyndham and Walmart apps, along with digital marketing and AI-driven customer service, are improving engagement and satisfaction.

• The digital journey is ongoing, with continuous learning to maximize owner utilization and streamline processes.

• Data-driven marketing has shifted from face-to-face to digital channels, enabling personalized offers and itinerary planning.

• AI tools like the Voya agent are enhancing customer service and booking efficiency.

Financial discipline and portfolio management

• Minimum FICO score for new customers was raised from 600 to 640 post-COVID, improving loan performance and reducing delinquencies and defaults.

• Focus is shifting from rigid FICO thresholds to more sophisticated data-driven customer selection.

• Loan loss provision is forecasted at 21% for the year, with expectations to trend down to high teens as the environment normalizes.

• Seven out of eight customers have fully paid off their loans, with high retention rates among owners.

• Inventory management includes removing underperforming properties, reducing carry costs, and improving the overall system for consumers.