Travel + Leisure’s first quarter saw stable demand from its core vacation ownership customers, which management credited as the primary driver of performance. CEO Michael Brown highlighted that volume per guest remained above $3,000, and existing owners—most with long tenures and fully paid memberships—continued to prioritize travel despite broader economic uncertainty. Brown noted, “Our owners showed continued demand for vacation ownership in the first quarter,” pointing to strong booking trends and resilient usage patterns. Management also called out technology enhancements, such as increased adoption of the Club Wyndham app, as supporting higher owner satisfaction and improved booking conversion rates.
Is now the time to buy TNL? Find out in our full research report (it’s free).
Travel + Leisure (TNL) Q1 CY2025 Highlights:
- Revenue: $934 million vs analyst estimates of $929.8 million (2% year-on-year growth, in line)
- Adjusted EPS: $1.11 vs analyst expectations of $1.13 (1.5% miss)
- Adjusted EBITDA: $202 million vs analyst estimates of $200.1 million (21.6% margin, 0.9% beat)
- EBITDA guidance for the full year is $970 million at the midpoint, in line with analyst expectations
- Operating Margin: 16.7%, in line with the same quarter last year
- Tours Conducted: 153,000, down 2,000 year on year
- Market Capitalization: $3.27 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Travel + Leisure’s Q1 Earnings Call
- David Katz (Jefferies) asked about April trends and the sustainability of core business strength. CEO Michael Brown reported consistent owner demand and strong Easter performance, while CFO Mike Hug noted improved collections but maintained a cautious stance on loan provisions.
- Patrick Scholes (Truist Securities) inquired about summer rental trends and the mix of new versus existing owner sales. Brown said summer demand is solid and the new owner mix has normalized to historical ranges, with higher close rates among existing owners.
- Dany Asad (Bank of America) questioned the ability to offset travel and membership weakness and higher loan provisions. Hug explained that strong vacation ownership performance and cost discipline help cover shortfalls, with flexibility to adjust as needed during the year.
- Lizzie Dove (Goldman Sachs Asset Management) asked about exposure to international travel slowdowns and potential changes to capital allocation. Brown stated that 90% of business is U.S.-based with minimal international impact, while Hug affirmed commitment to current dividend and buyback policies.
- Ben Chaiken (Mizuho Securities) probed the exchange transaction decline and timing for Sports Illustrated property sales. Brown confirmed that industry consolidation is the main factor and said a Sports Illustrated trust conversion is planned soon, enabling sales to start this year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of digital adoption among WorldMark and Club Wyndham owners, (2) stabilization or further declines in exchange segment transactions amidst industry consolidation, and (3) the impact of new brand launches—such as Margaritaville and Sports Illustrated—on owner mix and tour flow. Continued progress on loan portfolio management and maintaining high owner satisfaction will also be important signposts for future performance.
Travel + Leisure currently trades at $49.21, up from $42.64 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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