Travel + Leisure (TNL) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 were $993 million, up year-over-year, driven by higher Vacation Ownership sales and property management fees, partially offset by lower Travel and Membership segment revenues.

• Adjusted EBITDA for Q3 2024 was $242 million, with a 24.4% margin, and adjusted diluted EPS was $1.57.

• Net income attributable to shareholders was $97 million, down from $110 million in Q3 2023, primarily due to increased expenses and higher loan loss provisions.

• Vacation ownership business showed solid momentum, with VPG above $3,000 and new owner tours up 9% year-over-year.

• Accor Vacation Club acquisition expanded the international portfolio, with integration ahead of schedule and contributing to adjusted EBITDA.

Financial highlights

• Q3 2024 net revenues: $993 million; adjusted EBITDA: $242 million; adjusted net income: $110 million; adjusted diluted EPS: $1.57.

• Gross VOI sales were $606 million, up 1.3% year-over-year; tours increased over 4%, with new owner tours up 9%.

• Adjusted free cash flow for Q3 was $154 million; net cash provided by operating activities for nine months was $366 million.

• Vacation ownership revenues increased 2% year-over-year to $825 million; Travel and Membership revenues declined 3% to $168 million.

• Dividends paid were $35 million in Q3 and $108 million for the first nine months of 2024.

Outlook and guidance

• Q4 2024 adjusted EBITDA guidance is $240–$260 million; full-year guidance reaffirmed at $915–$935 million.

• Q4 gross VOI sales expected between $550 million and $600 million; VPG guidance of $2,900 to $3,000.

• Travel and Membership Q4 adjusted EBITDA expected at $45–$50 million.

• Interest rate headwinds expected to flatten and become a tailwind by late 2025; management expects continued strong leisure travel demand.

• Loan loss provisions are expected to remain elevated due to increased delinquencies in loans with FICO scores below 700.