Travel & Leisure Raises Annual Profit Guidance on Ownership Growth
The vacation ownership company raised its full-year adjusted EBITDA forecast to as high as $1.085 billion.
Travel & Leisure (TNL), the vacation ownership provider, reported second-quarter net revenue of $1.06 billion, a 4% increase from $1.02 billion in the prior-year period.
The results reflected a divergence between the company's core ownership business and its membership services. While the Vacation Ownership segment grew, the Travel and Membership arm faced headwinds in transaction pricing.
Adjusted EBITDA rose 8% year-over-year to $269 million. This growth followed an 11% increase in the first quarter, where the company recorded $225 million in adjusted EBITDA. The adjusted EBITDA margin expanded to 25.3%, up from 24.6% in the second quarter of 2024.
Growth was concentrated in the Vacation Ownership segment, where revenue increased 6% to $907 million and adjusted EBITDA expanded 13% to $247 million. Gross VOI sales rose 6% to $693 million, supported by a 1% increase in tours and a 2% rise in volume per guest to $3,318.
Conversely, the Travel and Membership segment saw revenue decline 5% to $157 million, with adjusted EBITDA falling 11% to $49 million. A 12% decrease in revenue per transaction drove the decline, though a 6% increase in transaction volume provided a partial offset.
Travel & Leisure raised its full-year 2026 adjusted EBITDA guidance to a range of $1.065 billion to $1.085 billion, up from the previous forecast of $1.030 billion to $1.055 billion.
The company incurred $6 million in inventory write-downs and impairments related to its Resort Optimization Initiative. This figure was lower than the $210 million impairment recorded in the fourth quarter of 2025.
Travel & Leisure announced two new acquisitions that added more than 100,000 owners. The company also increased share repurchases by 25% in the first half of 2026 compared to the same period last year.