Travel + Leisure (TNL) 24 Jul 242024 Q2 Earnings call transcript

Hello, and welcome to the Travel + Leisure Second Quarter 2024 Earnings Conference Call and webcast. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Jill Greer, Vice President, Investor Relations. Please go ahead, Jill.

Thanks, Kevin. Good morning to everyone and thanks for dialing in.

are Mike our Officer. Hug, morning Executive and this and Officer; our us Michael President Brown, Chief Joining Chief Financial will the and of longer overview quarter, our greater provide results and the the Michael our outlook year. sheet, and for detail our on term of will Mike, financial strategy, balance then rest provide growth an

call Following our questions. prepared remarks, up we'll for open the

only materially discussions and from begin, the as undertake factors are in like release. indicated our statements to in results to today to our will we'd obligation And cause that Actual or forward-looking could include we discussed forward-looking Before publicly could results earnings effective the you actual press update of differ today. We that differ those statements. in the statements, filings revise SEC statements. forward-looking remind and these today are no our made

You our can call of earnings today's reconciliation the release financial Relations in discussed Investor non-GAAP measures find a available website. on in

Finally, specifically stated. With to all unless call pleased turn to prior I'm over the of the the comparisons same Michael that, year, Brown. period today to are

high quarter morning, of healthy which to you and for second everyone us showed end range. This with adjusted Revenues million Good $XXX million morning, free our the released our top-line $XXX to today. growth, cash strong at margins we X% and joining flow. thank results, grew of EBITDA guidance

full tours against business. We up are our in demand well into all ownership with model Tours We increase which for solid, XX%. business guidance. remains see our our new priorities XX%, to have product of for decision EBITDA momentum a and resilient owner were year vacation our our up executing key good the and value-driven year factored

which higher other In Thread partnership tours, channels. Thread quarter, new than our XX% Blue VPG, per the about generation. source is Blue lead than new XX% important with owner guest, with or came a more of produced Our of volume an Hotels Wyndham owner

our active addition, and investments of tours. locations in owner providing over and over yielding fast-growing marketing this XXX,XXX channels is packages, year, new up are With incremental new this In pipeline an source good results. XXX%

sales owner source are of New an future revenue. important

Through visit over Fiji, purchase. we get offers to incremental our with staying value the is value new by they to because an As allowing each for owners network, Moab This product guests experience for the future resort owners owners the we've offer buy X and product. On at for to what tremendous our flexibility resorts owners experience; to away week we product of XX by Arches initial and us. From credit vacation with our in great recent our a high to Austin a can customer on National their teams. love our X days in X.Xx in beautiful customize and with music to beach take Park vacations tremendous today's flexibility, a dollars. our reported breadth that consistent time our field our seen marks out points-based of surveys, operations most every

range In most matters spacious on giving them. our and kitchens with a addition, to owners areas, come to spend what their a of resorts equipped vacation fully optimize living means amenities,

and this also consistency, place with resorts work-from-anywhere owners the of owners that space on The high was above of our is mix. the We increase more seeing The stay which evident in continue. end especially new are and seeing considering expectations. is play. flexibility our added of performance And XX% we to our strong VPG in value length work utility environment are of premium $X,XXX, expect our strong VPG owner VPG as to

of second executing remainder is tour number delinquencies business well half and year indications growth pressures As are more value-focused or our by of our we of the momentum $XX the and for our year. all team our Mike our tour durability seeing other full the guidance the of signs growth continue increasing nights for VPG companies, a that fact year. expect the at growth. X% our with owner The year, the to year our business a on full are details perspective, some for VPG and the provides appeals on Similar growth projection for resiliency long-term a guidance model initiatives. shows market in solid and model. with to that we midpoint. From double-digit are strong the up portfolio. give a remainder we with loan That have we result, a elevated pointing The increased for foundation of our product will our to

variety Our Accor the The business. consumers. multi-brand Shell. consistent industry expand and a of the ownership sales driving brands and to in travel options, intend Sports strategy broader is share and vacation our is path in of a geographic our the broad Margaritaville of meeting forward VOI footprint WorldMark, going in will a by augment growth range the Wyndham, platforms vacation ownership Club unique Illustrated With to and needs we

accretive year-to-date making progress Accor on track our an business than and that hit full we The Accor in is $X good already Club Accor goal. million are delivered been adjusted has with international performing We integration. to the to are growth has Vacation more year EBITDA well well.

low a we in strong. up in still XX% move international Tuscaloosa. small XX% regard the toward Through of Illustrated are growth quarter, of results, is tour to EBITDA is first performance with project continuing adjusted in resorts, relatively has to VPG flow over launch the it While up been our in the part single-digits. With Sports second up the and our

excited finalize in and stages our what Illustrated we're identify the for growth early and options entitlements launch Tuscaloosa, early additional design resorts on sales. working Sports allow and in but is And will currently for us the actively obtain We're break working beyond. focus which while locations. XXXX are to zoning means future year, the next also to We for necessary to primary ground our to to

cash Turning This Membership to margins and solid flows. and produces our Travel business. segment

in driving focus has existing higher-margin customers. area on Club this primarily with Vacation been our transactions, Our

long-term more evidenced progress Mike? returns. To per a apart the the I'll their on up, X% great us to + Travel we team is increase for cost higher my the dedication call now, well Their turn with transaction Our discipline, in the that and over success. And sets walk in to providing for produces detail. the positions focus our which owners. experience in want and for quarter us to Mike determination through quarter, saw entire here I in wrap to revenue combined thanks extend Leisure

to million. we quarter midpoint all were second up Thanks, solid adjusted a up results $XXX Revenues or Overall, Michael. higher. had EBITDA with at with of X% guidance X%,

adjusted $X.XX $XXX XX.X% in ability per our maintain share. income million EBITDA growing revenue. Our net margins mid-XXs the shows adjusted or to We of margin while had

of XX% to driven had EPS headwinds net earnings growth And higher growth our adjusted this a of segment of Our quarter reminder, variable was $X both from year-over-year we and results. benefits repurchases. million interest by regard compensation. With and as share rates

driver at EBITDA. the with increased guidance business, of range. a of increase For adjusted significant gross the million segment's $XXX the sales vacation this high of XX% in the VOI X% end revenues And ownership

provision loan an quarter we're which FICOs in continued down our delinquency up below XX% portfolio we in growth. XX. primarily second tour associated XXX, levels June are loss see well of with pleased mix believe with seeing, mentioned, As to for Michael we're the owner sets did the We of our increase due and which growth, original that us new to especially as VPG

in on EBITDA On and revenue higher in flat the margins. decline as both slight Travel club and Membership offsetting side, driving adjusted is revenue transaction a exchange the per we higher maintained and in transactions decline

segment. quarter, provision adjusted to are addition million to This $XX and and the be $XXX Travel EBITDA headwinds interest for compensation For for $XX we and million third forecasting includes the higher the year-over-year variable $XX to impact. million $XXX in in million to overall million Membership

in interest variable diminish the the expect third quarter impact compensation will and peak in fourth the quarter. We and

to provision range year, both million, building the to we $XXX the the million rate. we're For adjusted our momentum EBITDA in are and business reflecting increasing incremental guidance $XXX full the

returned second ended The and rate interest week, quarter rate EBITDA with seasonality, our our to X.X% the decline advance over the million and a conversion of during rate. Earlier cash to $XXX of in flow We slightly cash the $XXX quarter of the neighborhood million leverage. our through at our adjusted to full the the to Turning and be year, to expect closed rate X.Xx cash we and X.Xx below With for XX% advance securing free to of a $XX shareholders our normal generated securitization. and this in capital balance increase quarter. we of March free are third flow. shareholder-focused share Under and sheet approach year-end. We year transaction allocation, core leverage continue dividends both improvements at the rate ABS flow adjusted XX%. the in buybacks to million we our expect quarter

owners. With repurchases we on the delivering results a additional better authorization. I'll million + half in authorization great in first questions? and up After quarter, Kevin, $XXX can share $XX that, comments no and close for of second have last of an As for is entire Travel repurchase million the in Michael's our our the the echoing Leisure great I you the for our approved There meeting. mentioned under million team Board open in please our call, shareholders thanking remaining $XXX year. team industry call in at Directors May by their

from Our Instructions] Woronka [Operator Deutsche question from first coming Chris Bank. is today

FICO we mentioned vintage, I discussion lower guess that maybe you appreciate start the So lower right? of I the older kind score. the what provision, can with And about of

original? is, that that you little and quarter. to in offsets do into the or higher as that in the last So guidance? account business And talking on in something the are look we something forward think take QX? than your elsewhere kind I of Is range that normalize expect question that the XX% there that saw moves were you is we a

Mike This is Hug.

the our about relates do expectation. original As to higher full it to it be we bps provision, than XXX the for year, expect

you to half in that in of the are noted, through. guidance. the offsetting that, first had compared is are upper As half we first business up us pushed we in our the there performance Basically, year the things allowed guidance our what the other to take which

So yes, Travel on margin look that at in business, and of you higher higher-margin the you still we side quarter, at the when the Membership when things, the XX% look other generated provision. transactions the VPG, despite

little business XXX from bps So up where that continue the but to provision parts sub-XXX ago. year relates moving very it's was it a it well. And perform other down bit, to is as of FICO, the the original a

continue we XXX, FICO, moved the FICO pleased see we've coming to marking up as to XXX with in So made. for so originations we change at new that standards very average that for that

able We feeling bands, some think been well at pressure look are I you FICO on to when it manage the but overall lower business. we've

And question taking post-COVID business deleted you made there. to the now the then really of a you added they wanted and partners. guess, were with mix were rest about contributing for been the probably lot kind some and marketing or is a And And I satisfied beyond? channel maybe Michael, Michael. year it's the And now? ask kind since about kind outlook cycling you changes right of are channels of looks of X got years what of to are them follow-up for how land shape. How I your like your the, recently of

think and over X-prong the the about marketing which approach. for partnership More via approach of with I non-affinity performance most our the And -- I've marketing thought the I one credit space. unique teams. diversified of especially first in the strongest Thread mix the half spoken highlights of Wyndham business tour the the our strong lot marketing and clearly that underlying the year specifically, this underlying was performance. Owners, Hotels story, the a the to and channel our is business field, a years I Well, of our in Blue

really the channels position which a we marketing that here, in marketing of that I our and up than have the in silver but a post-COVID relationships, leg we're lot a Thread grown it continued wins, which great marketing a lot on in our regional grown environment, partnerships successful not fourth number of were of packages are a the our those As pipeline in to work lot as state back of in we've to where have teams add that each potential. XXXX little markets. invest would a opportunity of Blue our growth package And spoke we and is started for We've being that We we be to doing, X to to saw a that pipeline. marketing a XXX%. fourth channels. And commit a to our those in channels, mentioned about we is and channel package added future of XXXX-XXXX Blue Thread tours like in the feeding committed as to business. XXXX-XXXX was similar bullet,

next Scholes from from Patrick Your today coming Securities. question is Truth

more, or the consumer Michael, of you've of say, sort hear the lay the I'd latest little landscape. or weakness or your bit, now we lower positive sort consumer. little of X like the middle the of I'd latest of I like your state vacation we least should bit And to to at a on the so a your hear mix on one there. throw thoughts been guess, in And end the thoughts the ownership of bullish to on of just companies.

which environment. per of first consumer public half direction no points single owner demand. We we demanding a year is our are QX commentary of speaks consumer which half points to raise in even positive day. you're related travel the entire of to, It to but and it sales point our were for our It's vacations. to where hear to in end we or business, what comments our than business guidance was could basis it months which XX% consumer the deliver through across volume great what Mike we resort $XXX maybe forward absorb, prospective that me, translates that forward to second those day-to-day. this lot And hearing every have that's that comments environment. our bookings, as change To are mid-quarter fundamentally, underlying right our it our on drove is think is owner $XXX consumers us the or leisure higher provision, the our our at last and in leisure be above mid-quarter statements that worse last high say, remains I of a bookings consistently about the and guidance, less in say a shows program. the not fact of to than you're elements months remains and it X very the My full owner remained the we VPG performance, And macro I'd our year XXX arrivals, And a basis said, strong, room about, at more year-on-year uniquely at VPG. And XXXX. business. for to mid-quarter even the I at we year less state I look But they the I environment, the have seeing a that a look was desire we we for puts ownership than that dramatic to shift. hearing my of more positive XXX strength guest. would year, increases in that's biggest positive. That's mix And delinquencies see ago. it's the new see point the which across was X the than look look spoke positivity which ago points yes, on great our We marketing X you consumer the a macro nights,

commentary be where the remainder that see for on we So of the consumer would my and it the updated year.

I in sort loss rate on I and most the securitization. One the some consumer. of thought on D you am the lower about you for down, How little That you’re coupon provision customers. a lower-end D coupon bit. and coupon question the about can understand talking comments me about went up thinking saw thing why help actually do a Maybe a loan get of whereas implies securitization to rate. I the right Mike, then, weakness the that We just the was color the some way? which recent down, of related And interesting end on little the that your more light Okay. a went went

mentioned at what got overall, transaction, right, rate down moving in look I than so as when performance from Well, very up comments, But we're the we I think advanced the you in moving that on execution. better our my XX%, to rate happy execution market, to X.X% great with. interest X.X%

going on based lot driven the As tranches, a the of by of far each be individual demand that it's as for rates tranche. to the

then higher and is tranche, go And go rates tranche a have So tighten target one to we'll with rate when than we we market, oversubscribed there. if the pricing. to another ability put the out out level by

So look the get is purchaser you -- I notes one. rate on think that it's to the at just going of each the

out You a the flexibility able you you're look marking tighten when of the and oversubscription. tranches at then gives there certain to level based demand to out there on in rates be transaction that

coming next from Jefferies. David today Our Instructions] [Operator is Katz from question

provision and clear. I want with to discussion dispense sure make the I'm just

the way Is that Does ramps to its think of prior around think talked And conclude is correct? down about get arc we that question your and us sub-XXX it? be should that more commentary, about that of XX% somewhere portfolio. XX%. the think about next thinking something in about Mike, impact a is, lead being was into those, I you the is I as XX% s guidance to that of we fair sort now The year?

Well, a couple of things.

the in new third little First owner that an of trend XX%. in through far the fourth bit in bps a will of at lower around all, things resulting is go based on the you not mix that. the year quarter, quarter, XXX and in unusual It when which provision higher bit kind as right as like little you're and be a

portfolio and feel it the the the to obviously, have right, their impacts consumers than As is I relates XXXX, how in what say and they would really more the economy, pockets. anything income

So on it really the what happens what looks it's when we think over and origination next at and next like, XXX. to FICOs averaging think those our the the new continued lower the economy. But consumer to several provision depend opinion, my and originations I coming about going on but once the relates by a do to as replaced should make the continue year focus in portfolio as better new get again off anything roll months XXX,

what But what level of as think happens. far million about see is about billion we'll $X overall, So X%, talking the I on higher so we're about as $XX delinquencies a portfolio.

in gets in it while of of X% measured like the deterioration in percent mentioned manage a I about we the that, to revenues, the take we response, as I it absorbing that I our think can you look terms when a still what bp not provision. a think like anything well we'll or when it. XXX earlier massive increase And think you my that, it's it while increase. slight the up provision portfolio And it's do at So obviously, are as to in managing guidance ability

to probably a of wanted turning growth just see How is benefit that do about talk envision we on. Accor size opportunity engine I some a could over just growthy of commentary And you time? more or sort is -- and elements, and Accor of something the right? up depth from quickly little into follow the of

that over presence restart that our at the our is to than the at the first opportunity which then have dormant our you keep looking of and in less we And the term transition mind business on and near geographically XX% we're XX more the EBITDA. hospitality represents Asia-Pacific in and based. in as look been it see in total growth they're to region, nature way Asia-Pacific and is had than business capitalize a of Well, when opportunity, companies look that first international expand next to months, region The the their anything.

are primarily the has whereas international, follows branded their North today think recognize most growth. presence the it regulated primarily that how business I to But branded North have America really and geographically, is of really best rest the been So the market, the do is you companies And in of the establish and brands ultimately America. their this space to are timeshare gone. that arc able the where have

is to So core, international I a hospitality than the in look branded you're more companies. simply, smaller North going a guess we America opportunity said which what get at with opportunity,

Your today from is next Barclays. coming Brandt from Montour question

hoping So the X But shift last just have making levels. that now right, net on the XXXX, mix the made toward versus maybe provision a decided back 'XX, those level-set it, longer you you loan years. loss call to then, business, loans versus you term, from quality is 'XX over the the was could the you're higher quality presumably I higher

account from So for residual I that's I'm not maybe Also, I in But different. lower just -- Is stuff maybe lower at are, do argue guess, that clarify. same Is a the the you how era. that, But 'XX, bridge? provision. third-party for we That what -- had some much other or that that on could think that worse you about band? should just you why going sure what's yes, it are you're fact? place.

Yes.

and of most growing payments Keep asking lower in we table start I mind, that's think portfolio band lower quicker. want to the in pressure. definitely because for April too, 'XX, was seen one the So at basically start it is the down we

XXX you bps so, probably well. a to And have provision, going finance XXX if higher more that's naturally, you're as to

lower So there's at portfolio. get of rate. I performance growing can percent dynamics at it of And that think because different payments that the one big revenues, impact is things quicker we do to want today, portfolio the look that's of just when I think probably down of of the a the lot you besides provision a

asset to fees, out supporting point every other me every you loan, refurbished. a about of which lot It's heard and years manage is a great guys be is reserves, before would for our maintenance include unlike right? I for thing this goal HOA resorts talked day. X have unit other get X asset to We got classes, The and the the that every basically we we've

and provision So in in have defaults even going we than and default. do more in that's their no and cases someone in an the no asset did great because where take those though because pay managing fees sell I'd We ability go and back love to there to to we're today years we price day, shape, put every X we're place. we it ago of increases they

our think can is with So expectations, slightly business it and have demonstrated compared still we've elevated but also, run a to XX%. I margins very over XX-plus provisions we time percent that the in at healthy

out honest, the and purchase less a well great flow the be and just as asset future for a I And the million So me, to asset $XX because We a manage inventory overall I in back I'm cash portfolio. mentioned, back, works pretty billion just it and great terms taking business. it's same if go reselling in on $X get of it. back

I'm little a question the the sounded helpful because consistent have That's think bit on time guys I with struggling explanation. the second a line, just, on pretty sounded provision. the topic a into -- And you quarter little I same is you the

macro of happened sort us. related rate, really toward that to deteriorated the the of there helpful And why you end? -- sounds front for about be you so the might that, towards think talk something exit the could it And sort or that sort the on quarter. it if why curious I'm And just of or of there if like eroded was it end it

Yes.

started not I did think and is, a cases, both again, what we at and that delinquency in we And QX we're year-end we compared the seen, seeing in and year higher as then provision in see historically, the rate usually the QX down moves rate in down QX. in which have historically again, in obviously, as results go QX, delinquency need. much we just to that

lower-income we throughout when to gets back just, the again, as it I feeling. as down quarter, And as mentioned, is you you the think rate move didn't think expected. once look I So sequentially I consumers much the

higher more FICO. little the a instance, in pressure end. think, delinquencies at those And are see being we I seeing level than that's higher sub-XXX primarily what the the of when we're an

provision level deterioration where future throughout for the the a defaults is it and have does. the once deterioration, that of you was So our way provide that's calculation slight works And obviously, you to expected quarter. see in the essence

Your Asad question next of Bank from from Dany America. is coming

that. I'll side Mike, take of flip the

you when quality are those the XXX are add we your What that loss them, let's the loan for coming owners, ones call newer kind up -- the owners? -- provisions higher incremental originations of So are marking that in.

Yes, I answer. is that back payment. don't for an the it's the And easy reason Unfortunately, a gets to question. great have down it

lower If you make your have lot someone $XX,XXX be in that somebody that walks is puts than $XX,XXX down, down. transaction, put a to they a that going and only they on provision $X,XXX

range. were So in that of XX% I think when we projecting you that look at the provision below and we were kind running

our we put or down. whether each whether as originations as X% particular come purchase, what average, far expected loan new in. On it's it's is once for whether that's down a XX% upgrade new they think different I again, or an

little It's were So up to a I think on under, bit. of be kind XX%. expecting moved average, we

once back move where so, keep the down we would I some expect that at to future provision would down at they're term, that And payments at below point assuming in XX%. longer today

And then more help if just the of But really color little a you on the could you pieces of us like kind good that. gave with a guide. moving bit

is in you help Is understand the us for Where bucket that and that now it we're terms like Can assuming tours, QX. provisions loss in running QX, since of like Membership. maybe loan we pricing, through what's And and offset you the and higher QX QX So QX. that? in from? Travel beat coming flow better to

tour of our Michael. not And beginning business. We confident And it's it's VPG guidance growth XX%, lot to Really, on said we're of year, around core XX%. the it's moved we more. at our by more flow up our if be tranche going a the would Dany, $XX. our be least that at

the consumer using the team offset, where the So with the the income delivering the But there also increased product and at is fundamentally variable us comp. and is because overcome is of provision it's as and think enough, help really on the a interest tours combined we of Not gets look million provision. And approximately reminder it's only overcoming to increased out when year VPG those we're this back a on it. good oddly combination well loves as $XX headwind the you to consumer X. just results everyone straight as

our with in is said core resilient the X there's, we're is out the will the think business environment I well an inflationary last years. over laying So increased highlights purchases. value-driven as guidance we a continues show where the performance economy when that that business booming perform to This

overcoming core a slightly are that issues So businesses higher the up provision. in coming

is Your Zaffino Oppenheimer. Ian next from from question coming

Would new existing be owner to new the owner the you mix I tour owners know or give us guys versus growth tour owner mix existing tour rate? versus just or tour new us rate. able the you gave maybe the growth

Yes.

if answering just tell give the is Ian, So stats. -- And let question. you can me you some me this

you're with new reason the get was the lower mix owner that our is of XX% than new going tours. mix is our mix. a roughly total owner new sales lower differential mix tour new tour on Our And obviously The VPGs owners, VPG to XX%.

mix for And is so the of and full year. our our first owner tour both for new tours, XX% overall, about half total the

there's EBITDA the EBITDA, do side were bounced? year else their year-over-year beginning cost I guess, the you But we're flat. maybe to left that Are quarter. down thinking of to side. Okay. looking third into I Is obviously at And on on maybe anything flat? that we then do can at nothing Or of kind guess keep really there T&M on

it's whether our you midpoint look let's second off our at QX. were looking a that, business. Travel or the we at VO And and Membership Well, the improve results. guidance in the We're to When business range. just the were bit we quarter, always start of

feel we're the in confident to our second efforts, ability So especially to this looking with quite of half year. transaction do our the we in grow that. travel our on clubs, And

still the to headwind, be although On encouraged business, increase in propensity the by exchange RPT. we're the continues a

get the EBITDA flat, in all million as And look on on XXXX, top-line VO to and between of Keeping them well that not back of the X% at is the we'll business, for as to in line the growth difference to flat like X variables So bottom multiple modest mind if through there's, growth. $X a XXXX. cost.

back every And flat points, effort year to is year. not million. So this our get if $X.X this percentage get, some growth to modest that

is Scholes Patrick from from coming Next today Truist Securities. question

number to a a charge A take questions saw loss year we provision. Mike, related competitor follow-up here. loan last of

do take that trends these you Given risk the the you last of talk a opinion, here, about to months you've create in I'd special seen that think have your in might to like elevated that. couple an uptick charge? you

March in for there's for charge special our that it as a going belief Normally the a come not Thanks of question, COVID to on through event, come special No. example, any Patrick. relates And have to part to through, the XXXX. level a Yes. charge delinquencies. it's specific of have to we're when elevated due we

unusual the portfolio onetime and guidance highly So basically, seeing reflected charge some would our we're what's in a event. is the large the and provision at expect way

I also the spreads question, due year and last the think the year, roughly to million Next on a securitizations. this headwind $XX tightening

details might these priced tracking year, see Would and last the of to would interest your of the X where point small opposed Or rates neutral tailwind? say securitizations last trends sort sort years? continue, this it headwind at in X be Given you as a actually next within. you a

Yes.

of first current on in the projections. we the out the then I in just and interest based end XXXX rate maybe tailwind a slight as think get towards year, of we what of headwind flattening become a year year, very would next the kind very, expect half

full in few would curves the a say not for year, the dollars coming a year next like NKP a then move And forecast significant again, maybe impact, 'XX. million with assuming So and rates continue to I headwind. once tailwind

and just quickly your about Let's talk VPGs guidance.

VPG. did You on better

more new that? You above? color customer price, took it of you buyer? sales a close higher is better And on Is that give the a existing combination a little little seeing Is the with? buyer just it just the the bit success up. or guidance were what Was that talk or better rates me – --

out some to again points there. put just Well, data

XXX year, XX% it is the owner than half new able to basis points For of which the maintain, first first year we've mix. half. for And last higher the been was

a much point the VPGs. We've expect you still Blue owner fact the VPGs. which you VPG. your rates. our seen at great line because in plus would expect it's that, talk important, non-affinity data our owner XX/XX able holding in XX% the And stronger for you to decline continued VPGs, that's new about VPG. with on in our is when hold on So Thread, strength a strength consumer. Primarily, on we've that tours, is And continued growth the degradation strength We've close of very been seen up in

while new So VPGs very rate. getting owner holding your a out non-affinity close of Almost of Thread is that's strength sign. Blue line all on the positive owner of

rates. ability some to ability it to to perform, team's on on to really, perform continue get But You continue our down comes close price. to our

last And then just X questions you, Michael. for

announce to being about, locations talked of that sports last Hawaii. additional that's half on some that some for on Is as then, I seeing trends give second year. by, as in additional track far I And this color you're demand you illustrated could think, lastly, still to it us expect the you some quarter You in announce think, me. if what And able locations?

Hawaii to our bit a Keeping is Island, anomalies in answer we presence the of is the from Oahu on one the our Yes haven't mind, second demand. question little standpoint, most Kauai. the and the is in Big any first on and seen,

which We closer a is very resort Kehe. to small Maui, have in

I say we're of from nothing the think traffic, barometer Hawaii have. but what we're don't unusual best would I we So seeing

up are we're good market, what of total the is owner that nights. and on of all market. room But we're which the question, a barometer on not Maui, is we islands again, year-on-year underlying sort For I'm your presuming

the end the I'd session. floor our or for to over closing question-and-answer comments. reached turn like back further We any of

everyone you for in to Thank today. dialing again thanks and

Hug, shows for cash demonstrates top-line generations. guidance and executing well our the We top-tier definitely also industry, Most look who the which Chief quarter. call. great year-to-date team shareholders. deliver work forward last ability consumer on performance that, to before October company remains and I'd With key briefly and Financial increase our The recognize free that in to best And in see the a year speaking everyone, strong. Mike the to is against the members our celebrated his hang for And like the all with our importantly, product you, of for and we you our last demand our Officer, Our are again for thank our business to results to call. we team growth, years. resilient healthy our value-driven XX over XX service we focused on model margins have thank next priorities full-year one and the years just up, our and strong delivering owners you have on

Thank teleconference you. today's That and conclude webcast. does

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