Travel + Leisure Co.

What they do

The company runs two segments: Vacation Ownership, which develops, markets and sells vacation ownership interests (VOIs) to individual consumers, provides consumer financing, and manages resort properties; and Travel and Membership, which operates vacation exchange, travel technology platforms, travel memberships, and direct-to-consumer rentals. Vacation Ownership brands include Club Wyndham, WorldMark, Margaritaville Vacation Club, Sports Illustrated Resorts, Eddie Bauer Adventure Club, and Accor Vacation Club, with 797,000 owner families and more than 280 resort locations. Travel and Membership includes RCI, an exchange company with 3.3 million members and 3,600 affiliated resorts, plus Travel + Leisure GO and travel club offerings. In 2025, 88% of revenue was derived in the U.S. and 12% internationally.

Revenue drivers

• Vacation Ownership — Sells VOIs to individual consumers and provides consumer financing and property management at resorts; generated $907 million of Q2 2026 revenue and $247 million of Adjusted EBITDA.
• Travel and Membership - Exchange — RCI exchange network with 3.3 million members and 3,600 affiliated resorts; exchange transaction revenue fell in Q2 2026 due to a 12% decline in revenue per transaction.
• Travel and Membership - Travel Club — Offers travel products to closed user groups through Travel + Leisure GO and B2B private-label solutions; higher mix of these transactions carries lower margins.
• Fee-for-service and consumer financing — In 2025, 40% of revenues came from fee-for-service streams and 11% from consumer financing, with 46% from VOI sales and 3% from other ancillary revenue.

Recent performance

For Q2 2026, net revenue was $1.06 billion, net income was $109 million, and diluted EPS was $1.72. Adjusted EBITDA was $269 million and adjusted diluted EPS was $1.88, up 8% and 14% year-over-year respectively. Gross VOI sales were $693 million, up 6%, and VPG was $3,318, up 2%. Vacation Ownership revenue rose 6% to $907 million with Adjusted EBITDA of $247 million, while Travel and Membership revenue fell 5% to $157 million and Adjusted EBITDA fell 11% to $49 million. The company returned $125 million to shareholders in the quarter through $37 million of dividends and $88 million of share repurchases.

Strategy

Management is pursuing a multi-brand expansion strategy for the timeshare business and growth of travel clubs within the exchange businesses. In Q2 2026 the company closed on the acquisition of Yes& Vacations and entered a definitive agreement to acquire Spinnaker Resorts, which together add more than 100,000 owners and expand resort presence. The company cited benefits from its 2025 resort optimization initiative, including lower maintenance fees on unsold VOIs from closed resorts. It also issued $900 million of 6.25% senior secured notes to redeem $650 million of 6.625% secured notes due July 2026 and repay revolver borrowings.

Risks

• Intense timeshare competition — The company competes with lodging, cruises, home rental platforms, and other timeshare operators, some with greater resources, which could pressure fees or prices.
• Travel and Membership revenue decline — Q2 2026 segment revenue fell 5% on lower revenue per exchange transaction and a higher mix of lower-margin travel club transactions.
• Leverage and negative equity — As of June 30, 2026, total liabilities were $7.92 billion against total assets of $6.90 billion, producing shareholder equity of negative $1.02 billion, with long-term debt of $5.71 billion.
• Consumer and economic sensitivity — The company cites risks from inflation, tariffs, higher interest rates, recessionary pressures, and adverse changes in consumer travel patterns.

Outlook

Management raised full-year Adjusted EBITDA guidance to a range of $1,065 million to $1,085 million. It said first-half results reflect revenue growth of 4%, EBITDA growth of 9%, and adjusted EPS growth of 21%, and that the Yes& Vacations and Spinnaker Resorts acquisitions are expected to be immediately accretive. The company also cited leverage reduction of approximately a quarter turn and a 25% increase in share repurchases.