Travel + Leisure (NYSE:TNL) reported higher third-quarter revenue, earnings and cash flow as vacation ownership sales rose and recently acquired businesses contributed to results, prompting the company to narrow its full-year guidance toward the upper end of its prior ranges.
Revenue increased 5% year over year to $1.1 billion, while adjusted EBITDA rose 6% to $283 million. Adjusted net income grew 16%, and adjusted diluted earnings per share increased 23% to $2.21, according to Chief Financial Officer Erik Hoag. EBITDA margin expanded by 20 basis points during the quarter.
For the first nine months of 2026, the company said revenue rose 4%, EBITDA increased 8%, adjusted net income grew 15%, and earnings per share rose 21%.
Vacation ownership sales and consumer trends
The vacation ownership segment generated $953 million in revenue and $250 million in EBITDA. Gross vacation ownership interest, or VOI, sales increased 6% from a year earlier, following 13% growth in the prior-year quarter.
Reported tours increased 7%, supported by growth in new-owner tours and the contribution from acquisitions. New owners accounted for 33% of gross VOI sales, in line with the company’s target mix of roughly one-third new owners and two-thirds existing owners.
Volume per guest was $3,286, down 1% year over year on a reported basis. Hoag said the decline reflected the acquisition of Spinnaker Resorts, which added more tour flow but carried lower volume per guest than the company’s legacy business. On an organic basis, volume per guest rose by a low-single-digit percentage and was within the company’s guidance range.
President and Chief Executive Officer Michael Brown said owner travel behavior remained stable, including booking windows, length of stay and distance traveled to resorts. He said bookings pointed to continued momentum through the holiday season and that the company had not seen changes in consumer trends or competitive talent dynamics through October.
Brown also said the company saw no geographic weakness during the quarter. Its larger Orlando and Las Vegas destinations performed well, while the newly opened Sports Illustrated Resorts location in Nashville generated tour activity immediately after opening, he said.
Acquisitions and multi-brand expansion
Travel + Leisure closed its acquisition of Spinnaker Resorts on Aug. 1, earlier than expected. Spinnaker and Yes& Vacations contributed about $21 million in gross VOI sales and $7 million in EBITDA during the quarter. The company said the acquisitions remain on track to provide $15 million to $20 million of EBITDA accretion in 2026.
The acquired businesses add more than 100,000 owners. The company plans to begin selling Club Wyndham points at selected acquired properties in November, initially testing offerings before expanding more broadly. Brown said Travel + Leisure expects to realize full cost benefits from integrating the acquired companies within the first 12 months.
Management also highlighted progress across its multi-brand strategy. Margaritaville Vacation Club is on pace to generate more than $175 million in gross VOI sales this year, while Accor Vacation Club is approaching $50 million in annual gross VOI sales in its third year of operation.
Eddie Bauer Adventure Club announced a second resort in the Texas Hill Country outside Austin, which is scheduled to open by next summer. Sports Illustrated Resorts opened its Nashville property, and Brown said the brand was nearing its first $1 million sales month. The company has announced four Sports Illustrated Resorts and recently expanded its partnership with Wyndham Hotels & Resorts to pursue traditional hotel and mixed-use destinations.
Brown said the newer brands are intended to broaden the company’s marketing reach and support long-term new-owner growth rather than alter its existing financial growth algorithm. Travel + Leisure expects new brands to represent about 10% of total sales this year.
Credit, membership costs and capital allocation
Credit performance improved during the quarter. The loan-loss provision rate declined about 150 basis points from a year earlier, aided by a lower percentage of sales financed. Weighted-average FICO scores on new originations remained above 740, while average down payments approached the mid-20% range.
Hoag said delinquency and default results exceeded the company’s expectations, leading Travel + Leisure to lower its full-year loan-loss provision outlook to closer to 20%, from approximately 21%. Early-stage delinquencies were stable at 5.1% from the second quarter to the third quarter.
The Travel and Membership segment recorded $150 million in revenue and $51 million in EBITDA. Management said the segment continues to face a mix shift from higher-margin exchange activity toward travel clubs, as industry consolidation leads more owners to remain within their existing clubs. The company implemented a cost program in the segment during the third quarter that affected roughly 300 employees and is expected to produce approximately $16 million in annualized savings, mostly in 2027.
Travel + Leisure ended the quarter with net leverage of 3.3 times and more than $900 million in available liquidity. It completed its third asset-backed securitization transaction of the year after quarter-end, bringing total 2026 ABS issuance to $925 million at a 98% advance rate.
Through the first three quarters, the company returned $364 million to shareholders through dividends and share repurchases and deployed about $350 million toward acquisitions. Share repurchases rose 18% year over year, and the dividend was increased 7%.
Outlook raised toward high end
The company narrowed its full-year outlook toward the high end of its previous guidance. Travel + Leisure now expects:
- Gross VOI sales of $2.625 billion to $2.675 billion.
- Volume per guest of $3,325 to $3,375.
- Adjusted EBITDA of $1.07 billion to $1.085 billion.
- An adjusted tax rate of approximately 28%.
- Free-cash-flow conversion of roughly half of EBITDA.
- Low-20% earnings-per-share growth.
Looking toward 2027, Hoag said the company’s long-term framework of 6% to 8% gross VOI sales growth and mid-single-digit EBITDA growth remained intact. He cited full-year acquisition contributions, potential further credit improvement and general and administrative efficiencies as tailwinds, partly offset by higher ABS funding costs and continued investment in newer brands.
About Travel + Leisure (NYSE:TNL)
Travel + Leisure Co (NYSE:TNL) is a hospitality and leisure travel company that operates vacation ownership, exchange, and membership businesses. The company provides travelers with access to resort accommodations, vacation experiences, travel services, and related lifestyle offerings through a portfolio of consumer brands.
Its vacation ownership business includes brands such as Club Wyndham, WorldMark by Wyndham, and Margaritaville Vacation Club, offering members interests in vacation properties and access to resort destinations.
