Marriott Vacations Worldwide (VAC) 4 May 232023 Q1 Earnings call transcript

Greetings and welcome to the Marriott Vacations Worldwide First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Investor Marriott President Worldwide. Vice Goldner, Relations Vacations for Neal Thank you.

You begin. may

by the and call. Worldwide today Executive and Vice Melissa, Officer. Terry you, Chief and Marriott Executive I Geller, Officer, Chief welcome joined President conference Thank our earnings to Vacations Tony President XXXX first am Financial and John quarter

subject and I need historical many securities and those as considered are that by These facts implied which our under laws. comments SEC federal our risks materially in expressed our results could to of remind to statements in described cause comments. or are from forward-looking uncertainties to everyone not today numerous statements filings, are differ future

this the we the when release that only to in be as made issued and statements information. will well will as we press non-GAAP Throughout are comments unfold. call financial actual events not effective night, Forward-looking references on make updated call, last as our

to of well You remarks as can as our reconciliation Relations schedules a our release, in website find measures Investor non-GAAP page in to press ir.mbwc.com. the of our attached our at referred financial

With to now my call the to Geller. it's turn John that over pleasure

for Thanks, everyone, morning and thank our and call. Neal, quarter first earnings you good joining

made vacations year-to-date with destinations. it's this contract March, our travel our list occupancy quarter. year that sales first in prioritizing consumers rates the with numbers beach growth are headlines which at of Looking results, Break Spring and we clear record-breaking travel, saw in topping during preferred the

leisure intentions book been clear a a time believe uptrend. is have XX% over good and on year over of to on recently spend addition, Americans, surveyed, travel a $XXX,XXX In earning leisure to now travel

our our had been earlier number associates this experiences who road for and unforgettable owners, responsible of meet vacation year and for the have Since resorts the delivering members with a on many our guests. to becoming are CEO I've visiting chance of

reasons the are time caring trusted time of a back to visit coming excellent us just service few we destinations, brands, see and unique and culture vacationers Our again.

overall the year. environment, highly and occupancies want the markets in guests the best our Looking with from forward, industry. continue to brands locations this in a owners, and vacation expect desirable upscale we want strong spacious economic they trust we accommodations Consumers in brands of sought-after have some the despite members and they the do uncertainty in to most of

Now, to for golf going in ski our great beach moving XX% momentum results. Pacific with quarter. high resort all Marriott XXXX XX than continued quarter, was year's while Vacations XXXX. was recovery than our in enter points markets more we and occupancy kept we last on demand, a first year Occupancy generally higher the first and as with the its Asia

With marketing by we occupancies, on year-over-year these tours package basis. a pipeline a our grew of strong teams, work and robust the tour XX%

than XX% basis to roughly for VPG the by strong sales expected, compared the our sequentially buyers due above it products up more prior last to of XX% ownership first-time sales in demand but quarter declined contract prior As pre-pandemic increased X% vacation strength and the XXX and We year-over-year grew the of levels. first represented quarter, year's the contract from illustrating first XX% year. remains quarter, this our year, points

launched we Abound by with Marriott owners resonate Vacations, continues and buyers. which first-time last year, to

have Westin program the across Abound us and is products Vacation reminder, tour drive access systems and a these three owners Marriott allows seamless the helping branded flow. to As Club of resort Sheraton our

Club. of stays availability. Resorts rebrand we continue to the progress owner to Vacation make we near-term legacy of will take year, able for that Later Hyatt Resorts. Welk resort March, our great Vacation integrating Ownership In advantage legacy Welk benefit the new discounted we all launched In business, a as provides this Hyatt those

vacation more stays. launch to add the BEYOND exchange and tours also options, hotel allowing will program, for as we cruises, owners We

segment, our to starting to we strong very from remained see are year. Exchange higher we and Management inventory the utilization & last accounts Third-Party added Moving transaction activity

lagging and deposits sold revenue profit year, inventory Americas, with $X which we down VRI year-over-year was excluding declined million. last last However, April

while impacted first see as Finally, quarter did quarter inventory results, negatively we lower improve inventory availability the progressed. our

a In and prioritize by share EBITDA year-over-year combination summary, economy, us and return dividends. repurchases broader shareholders concerns about to $XXX a enabling grow despite continue million inflation on basis adjusted and consumers the X% to vacations, to through of

forward, trajectory I business the and opportunities ahead remain of our Looking us. excited the lie for about that

over to it Tony. turn I'll that, With

way results, the the segment. liquidity, happy I'm Ownership balance our Starting with of sheet our Today, going year. I'm outlook. and to John. XXXX review Thanks Vacation our strength we started with the quarter also our first and

As difficult quarter a compared with to due towards demand travel year improved mentioned sequentially. and running resort declined last strong guidance, basis. grew XX% consumer a the to first on global remaining comp for nearly in we previous Consistent with occupancies John our VPG leisure but by XX%, year-over-year

overall a The year. was increase in for a year-over-year result sales the start contract XX% strong

ending with tour vacation the pipeline also over and their vacation current total in of ownership We packages these including quarter high our pipeline the year. for than more customers package booked for first already growing XXX,XXX have grew XX% a

the to million. basis prior driven year year-over-year development Adjusted points to margin inventory was favorable in development sales Adjusted XX profit This XX% compared costs. XX%. profit by and growth to contract increased the increased $XXX

X%, million offset in hotel rental cleaning inventory was compared million unsold more as well last As per our and prior explorer June, Porto Revenue higher Vallarta year. the was that as expected to key costs the increased declined sold excluding by $X usage. business Western to than $XX profit increased but available

$X financing parts offset million our on Ownership Vacation stickier rates in sales increased partially as borrowing securitizations. business, In profit financing of higher by the our were and newer increases contract propensity

Profit management fees declined of higher million revenue. were from our the $X offset timing management business resort as dues club by

increased strong more remained XX%. than in segment Vacation in a the Ownership first million margin $XXX our to XX% As at result, very quarter EBITDA and adjusted

to to deposits. our as revenue exchange gateway third-party management and result business, excluding inventory a revenue lower VRI reduced declined of Americas X% Moving primarily related

$X $XX well a million operating XX% million, of higher year the strong quarter. prior due to decrease was revenue margin for the and the as costs EBITDA remained Adjusted benefit wage at as and lower from

expense offset expected, program increased million corporate implementing product costs as mix development expense. Finally, lower year-over-year as new G&A and partially bonus vacation $X related initiatives to were our by

increased first XX% $XXX line leisure-focused total a of and with strength year's X% company higher business last last was As model. than EBITDA and result our to demonstrating EBITDA quarter adjusted margin the year, adjusted million, in

$X.X times approximately balance including $XXX available liquidity for We in the of times targeted three the to $XXX of of the debt $X our quarter our quarter, year-end, debt environment. $XXX expectations revolver. of with at million within of gross in cash, in million X.X we positioned range sheet. rate Moving elevated at remain ended stood under by to net to interest billion end outstanding today's well receivable corporate roughly and line adjusted range million eligible our notes with be and billion X.X our with to EBITDA With leverage capacity the ratio targeted securitization,

no fixed With X.X% interest our corporate an of at XXXX. effectively XX% corporate average debt and of maturities until debt rate

million lower note related of average billion issuing our receivable rate B $X.X than gross of was of ended April, retained. We securitization our $XX with weighted structured was we basis to blended debt non-recourse timeshare X.X%, notes interest the an year securitized of quarter notes The $XXX last with the overall In than million XXX our XX% the and rate including more we of receivables. also the Class at points a securitization. first transaction rate advance completed interest

a sales to Finally, higher revenue sales of reserve propensity. and financing due percent contract increased largely as year-over-year reportability

notes portfolio the delinquencies broader and to excluding Wealth continues to concerns environment, up economic of strength levels about borrowers. However, defaults XX with perform basis our receivable legacy pre-pandemic reflecting points our despite the only compared well

We to quarter, of in dividends. million shareholders and common repurchasing stock also returned $XX million $XX in million the paying $XXX first

XXXX Moving guidance. our to on

only billion X% in contract continue this to to to we EBITDA night's tour to XX% in not having growth compared growth release, still second we VPG the quarter, as to Despite comparison first saw growth guidance in X% few strong VPG the a we you though $XXX as for expect year for points sales and affirmed earnings decline robust difficult quarter. last million our remain and year-over-year As target last to another saw XXXX year $X full year. the adjusted

our low this optimize digital to and to to to historical compared continue per levels. year We we relatively cost lower product marketing expect tour, remain technology costs drive

our unsold preview As we expect Ownership year-over-year due a to Rental decline year. around increased profit key is in to XX% and this to expected in quarter higher margin on Vacation development our fees usage maintenance the second segment be inventory. result,

is timing more for and due full the explorer of it the XX% year comparison. to expected However, easier increase an still costs to second half than

be profit costs. the to alignment higher for expect offset more We million up financing year's expected than last increased propensity higher sales benefit borrowing contract financing are and as $XX year slightly to excluding

interval we're from we exchange roughly year. In have less transactions levels we year. to of expect for segment, getaway improve members at resort inventory Ownership utilization we at with to this our last still the to our profit and while we expect X% exchange Though also deposited begun this high continue deposits for into Vacation business receive We the up management inventory exchange below be inventory and the were year. management time experience lower third-party to

our EBITDA slightly be now As management expect adjusted result, third-party in and down flat a this exchange we to year. to segment

which to sell quarter flow. inventory, coming cash ended with of million to the expect We in we roughly Moving excess the $XXX years.

also sales we'll establish opportunities this can new new a center resorts add We manner. in look do capital-efficient we look will and for to where to a

cash million. remains between to expecting free and $XXX adjusted for unchanged Our million generate $XXX guidance the flow year

strategic continue flow or free growth use We look to for acquisitions. to our organic cash

year returning compelling them returning absence to the throughout free expect we of flow the on it summary, $XXX contract nearly year. sales shareholders. million of to XX% and and the we shareholders. use to growing the best remain In cash strong strong first started excess XX% by quarter remains In note acquisitions, were in a Occupancies our

Finally, to well. customers the is resonate integration and by legacy into Abound Hyatt Vacations progressing Marriott with continues the Wealth business of

always, interest Worldwide. Marriott Vacations we appreciate in your As

be we'll Melissa? answer your to that, With questions. happy

Securities. Please Scholes Truist question. with the you. Instructions] comes proceed your of first Thank [Operator Patrick Our from question with line

everyone. Thank Great. morning, you. Good

Good morning.

morning. Good

Tony, just for a question you.

Year-over-year your some One quarter First quite vacation up us I'll ownership sales and on color that? down. ownership think the vacation cost of your actually another us products question. I significantly have that Can off surprised went then on give thing And here. you all. despite products

whole did and new inventory a is We those of that year. the off sitting into of especially Sure. worth obligations load Vacation The that's COVID, we that we of inventory part on weren't be were going cost that adding coming trust million inventory the our to that ownership we products now, by bunch we to Yes. each mix. driven Right and had the complete that excess talk $XXX about. of sheet existing balance of

in have comes But market it, of actually. repurchased a we replacement at, amount pretty We've that let's inventory low cost call did and significant cost. below

So previous lot. with the loads in vacation drives it a really of down lethal more of lot a that of inventory some cost products the

been And stay that years reacquired so low we of next that get expect over through taking. we all we've as couple fairly the the to inventory

quarter-over-quarter. share Okay. Thank Tony. just of forward? thoughts had just trans high-level one repurchases sort that to for of was one I then another going that final The on after you question. that on down question read volume into and you. And Anything then And

then last folks versus travel just to kind you summer. expectations touch sort And so summer for if be on would usual lastly, of

set? in all that's how trending Just shaping and you denim how up Thank general, think that's you.

And to wouldn't a that I get lot strategy any to acquisitions we a use return that's what internally million volume we're share of anything we allocation into Again, you've by we're the now. times strategic pass shareholders. to plan going our sticking past do capital and Yes, read that repurchases. heard to

of outflow us. benefit cash had and at of and cash dispositions other had of we lot for some decent or some cash generated uses amount actually through a the year, we inventory a Last

a actually to EBITDA had robust pretty we above conversion last year So, that adjusted free cash adjusted was flow XX%.

the in year think This it's to going back I mid-XXs.

come then was as would back we to that years obligation the said up. the few in down normalize So it next back mid-XXs

that much really So as to just other returning at. in as strategy, those allocation strategies following shareholders of allocation can we we're light capital look our capital we

And you to what nothing So, to understand summer? wanted seeing really read we're into then in there.

Yes.

like of summer of of vacation look and of types bag take to it products, reported we resort house into rest soft of tracking demand it for kind for the be extremely Caribbean give -- it's traditional Certainly at Just occupancy us morning thoughts whereas looking hotel you. sort summer plans? ownership we lines really about other notably of domestic the fitting -- some this you the for high-level a summer. good do the if looks at year. look as Royal How vacations, at we cruise different sort sort look travel types of Thank see that strong results sort of vacation mixed

Patrick. Yeah as summer. bookings we are ever forward a from historical been they've All strong as as basis the look our into right

Pacific points but I XX occupancy trends fairly first number to on for us resorts, in to about. It's of we uptick in expect year up Asia talked first Asia the the quarter continue. Pacific where you're I at and in a in seeing about internationally think we're quarter some terms as our is occupancy low last those

think I some little you've but has the got is pound, levels. recovering to ways those get US, the with more a go still coming bit to back travel Hawaii And international into of a to

So about the summer. good we feel

I for strong very us. all the channels of look think forward-looking kind

you. Good Thank Okay. hear. to

you. Thank

Deutsche comes line Our of question Chris question. your Bank. the Please proceed with Woronka with next from

good Hey, morning, guys.

Good morning.

Morning.

base? sales first just question in kind towards guess I drill whatever or down Coast your into the not that is any metric indicate Is West anything of East of data the general Coast seen So -- And the any can you or But you And performance delineation customer difference Valley some at kind there be would contract geography? that kind pressure of in maybe talking we're a in trends right whether have US? you tech if about the asking Silicon the of the stuff. specifically Bank of out versus would see all with in there. you

first the quarter not for strong. very Chris Yes. really

side talked Flex be we've can Westin first our transitions that for on say making, bumpy the this right things whether in the past and we've Marriott been where about the program new to contract or is underperformed the the of quarter to and Abound notwithstanding growth the sales product. we've transition from at sales Some right the us started in the it's And old in we transition sell product start Sheraton really times.

So we see it that. more in

new models to and your Hyatt Welk you're existing thing right side business owners the and have the all leadership product buyers Same you comfortable because on are the big get aligning compensation educate that. them who on

with any were if So we've sales contract seen of some transitions softness, self-inflicted around it's and like I actually call right? that said XX% them those opportunity, up that's

as California. see going our into out April, get the some did on But you not we got those -- need back through get where it we've finger to as softness of we desert you to to it. in I'd We in you look bit can a question as your put always little that if they forward, exactly get as Going we're bumpiness. go be. say you to said

right? Hawaii terms wasn't there but a wasn't some so our across -- So of you -- in were West, there all the just -- pockets Like it West, the bit little talked in performance. it

nothing the basis et on yes to across perform But Caribbean as very in East Florida well relative pervasive well cetera. continued as a

not right we're that So things nothing bigger things within are said our concerning. macroeconomic. I like through But control working are our

bit be to say trying would a today also guys are the and Yeah. if versus it. because talked then know guess anything rates higher of what's first-time kind John. of XXXX higher it's buyers. finance and finance. they is to of at question, Yeah. Understood. of explain higher look little on little get follow-up those And But getting a first-time we are further about a buyers at given I driving you're is Just Thanks to that more that -- or up for And mix finance prices buyers them maybe I also expensive And as the to there better a to detail, propensity are color some you first-time that higher are levels? that finance? more opting

you just the the think we did at XX higher. did we one was it lending if about the financing you if look I basis average XX, year versus Well last think offer rate, we while our our Chris, Yes. way points securitization

is in about financing, consumer help to talked we've As terms the we ease just really for the provide buying. of that's

So we market rate rates on you what the moved the broader in will. you've our a basis seen interest haven't relative same as if

seeing have it slightly and more buyers, a you're owners out historically, So bit lot buy they than there. right, excess you're mix did obviously that coming of could of of some first-time -- we we propensity some excess -- And are out cash. there's COVID more. first-time little as a about don't buyers as with have of the talked just higher more but because much be Maybe that's buying buyers cash

So financing. I'm to they're changed standards or is anything if opting of convenience I the But we that has were aware quarter for we first We Tony haven't seen last but trends. -- year. know clearly underwriting not don't different any add in than done the different our anything haven't any doing the of

raised hit that this right down higher up. it our taking point, we it's QX absolutely last versus year in about rates when Chris. you're financing them you basis probably economic than previous up see point-for-point, of going mean were in year. while mark QX interest take now. the points. lockstep did year. not point -- propensity We the we're with Yeah, much environment at didn't I financing broader go for rates dropping We XX% they're XX% on not cost We're rates right when more talked don't maybe the We've and probably the XX John John environment.

in were back if we're you And not where back XXXX. in we XXs. we're to that lower look pre-COVID, However,

So we be that trending hope to level. back towards

guys. helpful. Very Okay. Thanks

Chris. Thanks,

Thank you.

proceed Montour question. Our comes from of with Please Brandt your next question Barclays. with the line

everybody. I all appreciate the Thanks Thanks. color.

So us the could John, a of year. I was hoping give tours this color you on cadence little bit maybe more

bit the a advance little pipeline well lens you owners tours shorter Just up. for plan new through build repeat that and time to more of in or owner lead have and guys

you year. margins? relation good going orders the and setup throughout you talk how visibility sort pretty VPGs how on think guys think in I are So new guys to for about manage optimal in layer just optimal you to And that of have

A you the the which going components: about package expect we key their lot last go, are of to look the Brandt. talked as those our Yeah, lead a a to Yeah, where want think all-time vacation be because out packages to And of time the that's take are balance can they and packages come to higher people tours I there right? so getting that is of terms year, where in our some So those at than hit to for that's Yeah. it we've right? package one year, the is got year. going be prepaid through of occupancies hi, continue strong for that high. are pipeline we drive you So to tour. highs, balance

to those same to on we a continue on build and to time, the tour customers get package get and try pipeline continue sales at flow. and we the drive So the vacation try and but

saw to and later owner because we with program, tour stuff history. can year that that's or want we And and as owners earlier your call quarter more same we be the side versus so your understand come penetration you come a Abound things our visibility don't of with Hyatt year about the much going launching higher lot the on we've but and options year in to first talked about either program new new what much of Beyond talk last some Hyatt usually to then we're the program. point to want as the It's thing. this later -- in we that what owner they the this Abound have And vacation with with and drive got

flow. always trying maximize tour to we're So

is all flow continue drive we our that to sometimes digital your manage tour those drive and some VPG And right? great of this are and So stores, marketing because our right balance the in as higher where you costs marketing the our opening a at growth up channels, you drive tour costs. first continue time per is quarter. to the saw balance sales getting down of cost the to your some You and on same marketing

product be talked significant And as we margin, get to XX%, to XX% continue about, forward. development we Tony to going last our to But us if the costs similar low that some right? drive is get grown fixed that sales that and of the year that on costs third component and very got is around total expect going tours, variable what which you on that's our we haven't will higher costs much the our goal. VPGs in costs can more down marketing but and leverage So revenues

much. so Thanks

Thank you.

question proceed next of question. from line of Please comes with Shaun America. Bank Our with Kelley the your

Hi, everyone. for question. you good my Thank morning, taking

the about Just to exchange ask wanted and third-party management business. specifically I

either I or you about the inventory in quarter maybe And to wondering throughout could through that? comment the that seeing think What improve a progressed. expect do made a continue you on you quarter drove little next was elaborate I that just the remarks bit. if And as prepared -- year?

people things. that to making to things Sure, do go Interval exchanges the terms want A to members cruise. we cruise of do on or would things There's yeah. in hopefully say of can -- their a offers for couple inventory with

Patrick cruises. the demand talked think I earlier about for

can exchange cruise inventory. that us they So a for their gives week

put in we of It's So we've members our doing developers them deposits. been different to and both that call talking of the some more run to also with drive that it. promotions

coming owner owner When don't usage, timing as higher They of we've trends higher like historical the have the on and deposits out you many you usage of owner usage, seen, COVID get right? side. we've some of -- seen exchange

things. back doing help other to be to going normalization. People more forward. think So will going we get do There'll that's exchanges some

activity, for trying So promote some to obviously, or combination exchange also activity. two the And, opportunity that us. inventory, do if more that member of then provides transaction a this some can of more which really provides the we it's but exchange of

Thanks seeing So piece And to alluded of things of to any normal things back or in usage second then reverting just, that at -- be are a there? cost Excellent. normalization I alternative a right? to lot. are the this, seeing would you you utilization kind the that follow-up owner you of pricing given are perspective just from in behavioral business, all, terms still just humming rates guess really out

Yeah. higher probably No, owner still owners right I would getting down pre-COVID. bit. out from to our I think come resorts. bit the coming we it was back than -- it's usage a COVID is what of But right saw a with going probably little say we little

time on will be would back continue it in again home vacation ownership into about two will resort, I see once or we people I it think typically or or our program. maybe that after they're Marriott -- normalize sense going tell. do exchange business, to the Explorer XX% my mean, their get the to exchange. out past try and our minus on So and year plus for side

that means resorts, of the right? of some we'll here a to vacation ownership as I back think vacation get taking So forward. And go normalization we that outside the system so they're

much. very you Thank

you. Thank

Katz David from your question. the Our with with proceed Please of next Jefferies. line comes question

having just looming it or question, talked and pretty Good us we'd to the looming portion like just for it however and today? season we've staying little seen you've good good so you very guidance calling have my taking numbers Look or it -- to mostly of given far? are And how question. itself. of you you shut and Thanks see yet a Hi. characterize good time amount on through everyone. where that is what slowdown recession also. about the this has like still that same whatever more earnings curious, at But morning, a or about I'm thought define it focused of

now XX It feels pushed Yeah, It like has months getting David. Hey, mean recession been looming for looming. years. right I -- Yeah. out. this keeps

it Now to where to How soft go? is that. a is it going deep Is be going it going all landing, hard to landing be?

we out. We're always to trends. drives we it's do knowing, what exactly make So, be going decision. at, be that to what look looking need to looking adjustments. our going We're Not is at management

of think So, over in a our probably say think guided I you not going of we grow recession but grow as variety, me you've don't long, business, kind before, if heard at garden right? I here, I too deep not it fast We normal to think look we've a as the their different even, crisis the they're the out in continue on of back XX% to parts go people side, we've talked remain to you high. financial exchange the like about, will VO Resort timeshare, own the business on side, financial coming going the very vacation. crisis. We're occupancies

own people So, they want to use.

we're times, the on the We it adjust month-to-month done up what that's have in about levers, kind as offer. like We've -- things. And past, depending cetera. then you sales, sales talked we we we've -- we contract we can the seeing VO, sales this promotions as drive I do et about on side, on at to the do different of think think got

this like bit through So, maneuver the type is it, not I haven't probably But XX yet. said, had not I about recession, we with know we've some deeper of next if feels talking really of and I think think it's what like for years don't long it been market we'll garden-variety it, softness, now, I a expecting. recession, little but

like I a we'll fine really our working don't way feel be and recession, So but -- through it. want

would a to And bookings forward that, I add good. little are actually looking

how until our low going door we unemployment. liquidity. where look And cash Home So we prices don't still have at the company have right out now. look a you are, our at still -- are commitments inventory we for don't customer, prepared and well when you stands, decent. XXXX. decent We We repayments lot for lot cash a debt have of purchases, have of and

beyond does So, positioned some sort may I forward, mild think we're have of pretty decent John if happen. that mentioned, levers recession going the

-- would is can is, you on I booking how that window if long And follow that referenced? you say Understood. the tail that Tony, up,

to right we a occupancy, we that on a of say, We now. those the were the it, like on by the and a probably months, it now a look many where books, the the and renters or months. versus we year XX all end outside at through previews. months Probably owner of decent before you XX start we do look where at But how right bit next even and within do when the do it. looking six are by year, and we at months, ago, take take little pretty bookings we metrics have look six

great occupancy sales it's are that into XX% the from or our we we inventory we're at stand whether when get And resorts. penetration resorts previews running owners. have been or whether as we on-site, full, our putting our into owners you get We've know, rates interesting, of great

having So not is thing sales. occupy, we a for bad them our

all So, forward-looking metrics. we're good on looking those pretty

Appreciate it all. Thanks very much.

you. Thank

question next Credit Chaiken your Please Our proceed comes Suisse. Ben line from with question. the with of

my Thanks Hi, taking questions. for good morning.

or Just two me. for quick one a

think dynamic, kind be of Tony to asking of but context down if mistaken. a my guide the kind on or a the of setting be rentals rentals. in in XXXX, I this of is or going for the guess year is which do here, swinging be year, to comp this parts? kind recovery. I moving to how kind more I'm question of On from about pretty And the XQ, year out of I'm XQ, creates smooth one, like not not XQ year-over-year. it? this XH strong things was is we a comp should is, think issue, I think First down mentioned, believe is full I question up like XX%,

Yes. dynamic. a No, comp it is exactly,

higher exchange that to easier an of if gives rents. perspective year occupancy an and year, comp last points, the year, extended second COVID in we half driving usage that's -- from here the drive that, overhang, yes, been of owners just when us were higher So half you with had our and owner the those that in it the owner will, were COVID their all so second all had without driving point longer right,

yes, little XXXX with is about I COVID would -- a but it year bit driven smoother the I'm question, so, be happened to XXXX overall. what And basis, really should yes, a by points on it thinking last your

helpful. the business. just missed That's then, in -- Understood. sorry I'm this VO I And if

were even think, VPG -- you number last I increase. thought strong? would John, that that sequentially still think, your process XQ the Is I call the is pretty expecting, which after

saw Well, this sequential. first we for quarter, the

comp. to be second, think, the going I'm versus be will I For the tough again more flattish in year, quarter obviously last We're to quarter. second looking the the it down first given --

get for -- we couple the second then, of for the year points good year-over-year. maybe of So down overall be the feel comps year, and as VPG easier but through full half still a overall we we'll

outlook year full the So hasn't changed.

Yes.

X,XXX and I last I You and QX X,XXX a QX QX. a what at think X,XXX And saw. year, course, to think, and QX we downward in saw to very it rounded then, going year. range closer went and versus This strong in year, X,XXX stay lot it's of tighter last

of But pretty sequentially this huge up quarter-to-quarter, in And there bit to expect bit up. in but little it and came to in we not -- seasonality would moves. we down a make little it go strong year, a QX,

different quick levels in I bit VPG then, was tough because but expected? thinking, way? and than And levers, Got VPG or guess, both in last pretty little into, in one you. did smooth. I'm it that weaker be a did little were asking about volume and and a or sometimes, be VPG where but stronger XQ come of little tough, Meaning was core mix going they're just combination one you know I tours. the this can any may one surprise And

No.

to in close they I came our expectations. pretty think

coming to to we contract tours happened. into X% VPG we year, and down guided the sales order the get it through growth to little to going in bit. I to drive what means that think little be you're expect X% a in a exactly more that's have That

increase with that from mentioned from going in not happen perspective. every expected. That's Now, perspective in tour the comments was quarter-over-quarter, But tourists comp XX% that may QX, what a pretty an had was that -- why we in we much line that, hey, year-over-year quarter forward. easier

Thanks. you. Got

you. Thank

question-and-answer the Mr. turn concludes that and back Geller to floor Ladies our session. final I'll any comments. for gentlemen,

call joining today. Melissa, our and everyone, thank for you, Thanks,

was As grew to the of In quarter, quarter exception. occupancy no always sales our XX% want on segment for vacation by environment go XX% nearly contract and we've said, VPG the people first vacation the we ownership regardless ran held and XX% pre-pandemic above levels.

package more our roughly to intervals, segment, pipeline while our X% and prior our basis despite exchange by XXX million EBITDA compared remain the this basis third-party First-time returning and sales. the grew and $XXX in to lower support In adjusted prior sales to management from year deposits, year-over-year future margins of our quarter inventory grew a we and shareholders. we quarter, buyers on tour XX% up strong utilization than points the represented contract year,

Looking obviously prioritizing have travel and good and spending strong. our are over business. domestic categories other both consumers travel for ahead, intentions on for remained That's booking international

the and of and I company behalf of interest world soon. in vacation customers for you. on hope our all to On thank your associates, members you our around Thank to owners, see continued want you

concludes you. today's call. This Thank conference

may at lines this your participation. Thank disconnect for time. you You your