Travel + Leisure (TNL) Soars 5.4%

Travel + Leisure Co., formerly known as Wyndham Destinations, released its annual report today. The company operates in two segments: Vacation Ownership and Travel and Membership. The company reported increased gross VOI sales, including sales to new owners, volume per guest, and tours since the peak of COVID-19. However, there was a modest softening of close rates during 2023, although they remain above pre-pandemic levels. The company also experienced an overall improvement in delinquencies due to changes made to consumer credit quality marketing criteria during the pandemic.

In terms of financial regulations, the company is monitoring the impact of the Inflation Reduction Act and the OECD's Pillar Two rules, which may increase taxes in applicable jurisdictions or change the way the business operates. Additionally, Travel + Leisure Co. acquired the Playbook365 business for $13 million and entered into an agreement to acquire the rights to the vacation ownership business of Sports Hospitality Ventures, LLC, a hotel and resorts licensee for the Sports Illustrated brand.

The Vacation Ownership segment measures operating performance using key operating statistics such as gross VOI sales, tours, and volume per guest, while the Travel and Membership segment derives a majority of its revenues from membership dues and fees for facilitating members' trading of their timeshare intervals. The company also records property management service revenues for its Vacation Ownership segment and RCI Elite Rewards revenues for its Travel and Membership segment gross as a principal.

In terms of financial reporting, Travel + Leisure Co. uses Adjusted EBITDA to assess the performance of its reportable segments, excluding certain items such as stock-based compensation costs, separation and restructuring costs, and gains and losses on sale/disposition of business. As a result of these announcements, the company's shares have moved 5.4% on the market, and are now trading at a price of $43.59. For more information, read the company's full 10-K submission here.

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