Travel + Leisure Co releases full-year financials for 2024

Vacation ownership and membership travel company Travel + Leisure Co released its fourth quarter and full-year 2024 financial results for the period ended 31st December.

The report was released on Wednesday, 19th February.

Among the key highlights for Q4-2024 are that Travel + Leisure earned a net income of $119 million (diluted EPS of $1.72) on net revenue of $971 million, and registered an adjusted EBITDA of $252 million, as well as an adjusted diluted EPS of $1.72.

The company likewise repurchased $70 million of common stock during the fourth quarter.

Overall performance for 2024

In 2024, Travel + Leisure Co earned a total net income of $411 million (with a diluted EPS of $5.82) on net revenue of $3.9 billion.

The company also reported an adjusted EBITDA of $929 million, along with an adjusted diluted EPS of $5.75.

Net cash provided by operating activities was at $464 million as of year’s end, while adjusted free cash flow was pegged at $446 million.

A great year

According to president and chief executive Michael D Brown, 2024 was a tremendous year for Travel + Leisure Co as it showed an exemplary performance by delivering strong top and bottom-line growth.

The company actively executed its multi-brand strategy during the year, as seen by its acquisition of Accor Vacation Club.

Brown added: “Our strong financial performance was driven by adjusted EBITDA and vacation ownership sales volume per guest (VPG) at the top end, or above, our initial guidance, as consumers continued to prioritize their vacations with us.”

Performance per segment

Vacation ownership

Vacation ownership revenue increased by five percent to $813 million in the fourth quarter of 2024 compared to the same period in the prior year. 

Net vacation ownership interest (VOI) sales increased 11 percent year over year despite a higher provision rate. 

Gross VOI sales increased 10 percent driven by a seven percent increase in VPG and a two percent increase in tours.

Fourth quarter adjusted EBITDA was $222 million compared to $208 million in the prior year period, due to revenue growth and lower costs of VOIs sold.

Travel and membership

Revenue for the travel and membership sector fell by one percent to $157 million in the fourth quarter of 2024 compared to the same period in the prior year. 

This was driven by a four percent decrease in subscription revenue offset by a one percent increase in transaction revenue due to strong Travel Clubs performance with a nine percent increase in transactions and a six percent increase in revenue per transaction.

Fourth quarter adjusted EBITDA for the segment was $52 million, flat to the prior year period.

Current outlook for 2025

For this year, Travel + Leisure Co expects its full-year adjusted EBITDA expected to range from $955 million to $985 million.

On the other hand, it forecasts that its first quarter 2025 adjusted EBITDA may range between $195 million and $205 million.

It should also be noted at this point that top management will recommend increasing the first quarter 2025 dividend to $0.56 per share, subject to the approval of the Board of Directors.

Brown said of this: “Looking ahead to 2025, we expect to see continued profitable growth in our expanding vacation ownership business, which is the cornerstone of our investment strategy: a focus on growing earnings and free cash flow to benefit our shareholders.”