Travel + Leisure Co.'s Q4 2024 Earnings Call: A Tale of Integration and Growth

As an avid traveler and investor, I've always been fascinated by the dynamics of the vacation ownership and membership travel industry. Recently, I had the opportunity to analyze Travel + Leisure Co.'s (NYSE: TNL) Q4 2024 earnings call, and I must say, the company's strategic moves and impressive financial performance have left me eager to share my insights with you.



Travel + Leisure Co. reported strong financial results for the fourth quarter and full-year 2024, with net income of $119 million (diluted EPS of $1.72) on net revenue of $971 million. Adjusted EBITDA reached $252 million, and the company repurchased $70 million of common stock during the quarter. For the full year, net income was $411 million (diluted EPS of $5.82) on net revenue of $3.9 billion, with Adjusted EBITDA of $929 million and $235 million in common stock repurchases.

One of the key drivers behind Travel + Leisure Co.'s impressive performance was the successful integration of Accor Vacation Club. The acquisition contributed significantly to the company's revenue growth and Adjusted EBITDA. In the fourth quarter, Vacation Ownership revenue increased by 5% to $813 million, with net vacation ownership interest (VOI) sales up by 11% year-over-year. Gross VOI sales grew by 10%, driven by a 7% increase in vacation ownership sales volume per guest (VPG) and a 2% increase in tours. This strong performance translated into a 7% increase in Adjusted EBITDA for the Vacation Ownership segment.



For the full year, Vacation Ownership revenue grew by 4% to $3,171 million, with Adjusted EBITDA increasing by 5% to $764 million. The integration of Accor Vacation Club played a significant role in this growth, as the company was able to leverage its new assets to drive sales and improve overall performance.

Looking ahead to 2025, Travel + Leisure Co. expects continued profitable growth in its expanding vacation ownership business. The company's President and CEO, Michael D. Brown, stated that the company expects to see continued profitable growth in its vacation ownership business, which is the cornerstone of its investment strategy. The company's outlook for 2025 includes an expected range of $955 million to $985 million for full-year Adjusted EBITDA and $195 million to $205 million for first-quarter Adjusted EBITDA. The company also plans to recommend increasing its first-quarter 2025 dividend to $0.56 per share for approval by the Board of Directors.

In conclusion, Travel + Leisure Co.'s Q4 2024 earnings call revealed a company that has successfully navigated the integration of Accor Vacation Club and is poised for continued growth in 2025. With a strong focus on growing earnings and free cash flow, the company has demonstrated its commitment to benefiting shareholders and maintaining a competitive edge in the vacation ownership and membership travel industry. As an investor, I am confident that Travel + Leisure Co. will continue to deliver impressive results and create value for its stakeholders.