Travel + Leisure Vacation Ownership Sales Rise 6% to $720 Million
Key Facts
Travel + Leisure raised the low end of its 2026 adjusted earnings before interest, taxes, depreciation and amortization outlook following results that showed growth in vacation ownership sales in the third quarter. The company said gross vacation ownership interest sales rose 6% year over year to $720 million. Tour volume increased 7%, while sales volume per guest fell 1% to $3,286. The company attributed the decline in this metric to the mix of recent acquisitions. In July, it had raised its annual adjusted earnings guidance range to between $1.065 billion and $1.085 billion, before raising the low end again in its October update.
The sector’s results reflect a mix of higher activity and lower returns per guest, as tours increased alongside a decline in individual sales volume. The company said the acquisition mix weighed on this metric, and it closed the acquisitions of Yes& Vacations and Spinnaker Resorts during the third quarter. In the travel and membership segment, transaction revenue fell $17 million from the same quarter a year earlier. The company said the decline was mainly linked to a larger base of club-affiliated exchange members, who tend to conduct fewer transactions. This highlights the divergence between performance in vacation ownership and transaction revenue pressures in the other business.
First-half results provided context for earnings and vacation ownership sales growth during the year. Adjusted earnings before interest, taxes, depreciation and amortization reached $494 million in the first half of 2026, compared with $452 million in the same period of 2025. Gross vacation ownership interest sales rose 7% to $1.243 billion, versus $1.166 billion in the first half of 2025. Chief Executive Michael Brown said travel demand remained healthy and that its strength was reflected in earnings and cash flow growth. He added that year-to-date adjusted revenue rose 4%, adjusted earnings before interest, taxes, depreciation and amortization increased 8%, and adjusted earnings per share advanced 21%.
But reported cash flows for the first nine months declined from the same period a year earlier. Net cash provided by operating activities totaled $388 million through September 30, 2026, compared with $516 million in the nine months ended on the same date in 2025. Adjusted free cash flow was $254 million, versus $326 million a year earlier. On the balance sheet, outstanding corporate debt stood at $4.0 billion on September 30. Leverage for covenant purposes was 3.3 times, as the third-quarter acquisitions added Yes& Vacations and Spinnaker Resorts to the company.
The increase in the guidance floor followed an earlier revision in July, when the company set its full-year adjusted earnings range at $1.065 billion to $1.085 billion after its second-quarter results. In its October update, it raised the low end of that range without changing the high end in its previous guidance. In the market, the company’s shares closed at $65.62 on October 26, 2026. Management is scheduled to recommend that the board approve a fourth-quarter dividend of $0.60 per share in November. Approval of the proposed dividend remains with the board.