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1. Company Snapshot

1.a. Company Description

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and products in the United States and internationally.The company operates in two segments, Vacation Ownership; and Travel and Membership.The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers; provides consumer financing in connection with the sale of VOIs; and provides property management services at resorts.


The Travel and Membership segment operates various businesses, including three vacation exchange brands, a home exchange network, travel technology platforms, travel memberships, and direct-to-consumer rentals.As of January 26, 2022, it had approximately 245 vacation ownership resorts.It also offers private-label travel booking technology solutions.


The company was formerly known as Wyndham Destinations, Inc.and changed its name to Travel + Leisure Co. in February 2021.Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

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1.b. Last Insights on TNL

Travel + Leisure Co.'s recent performance was driven by strong Q3 2025 earnings, with net income of $111 million and adjusted diluted earnings per share of $1.80. The company's vacation ownership revenue grew 6% year-over-year to $876 million. A $500 million senior secured notes offering was launched to redeem outstanding notes and repay borrowings. The company's board declared a regular cash dividend of $0.56 per share. IFP Advisors Inc raised its holdings in the company by 9.5%.

1.c. Company Highlights

2. Travel + Leisure's Q3 2025 Earnings: A Strong Performance

Travel + Leisure delivered a robust Q3 2025, with revenue reaching $1.044 billion, a 5% year-over-year increase, and adjusted EBITDA of $266 million, up 10%. The company's adjusted EBITDA margin expanded to 25%, driven by operating leverage and efficiency gains. Earnings per share (EPS) came in at $1.8, beating estimates of $1.72. The Vacation Ownership segment, the core growth engine, saw revenue grow 6% to $876 million, while adjusted EBITDA increased 14% to $231 million.

Publication Date: Oct -26

📋 Highlights
  • Strong Q3 Financial Performance:: Revenue reached $1.044 billion (+5% YoY), adjusted EBITDA hit $266 million (+10% YoY), with EBITDA margin expanding to 25%.
  • Vacation Ownership Growth:: Revenue grew 6% to $876 million, adjusted EBITDA rose 14% to $231 million, driven by 10% higher VPG ($3,304) and $682 million in gross VOI sales.
  • Shareholder Returns & Guidance:: $106 million returned ($36M dividends, $70M buybacks); full-year EBITDA guidance raised to $975M midpoint, VOI sales guidance increased to $2.45–2.50 billion.
  • Liquidity & Free Cash Flow:: Generated $500M free cash flow YTD; $1.1 billion liquidity ($240M cash, $815M revolver) supports strategic growth and operational flexibility.
  • Brand Expansion & Strategic Progress:: Launched Sports Illustrated Resort in Chicago and Eddie Bauer Adventure Club; new brands expected to contribute $200M+ in revenue each, with Nashville SI opening in late Q1 2026.

Segment Performance

The Vacation Ownership segment's gross VOI sales accelerated to $682 million, supported by 2% tour flow growth and VPG of $3,304, up 10%. The company's consumer finance portfolio remains stable, with delinquencies and defaults showing no signs of deterioration. The loan loss provision rate is expected to settle back into the upper teens in the long term, with the fourth-quarter provision trending downward.

Strategic Priorities

The company is focused on three strategic priorities: expanding its brand portfolio, elevating the owner and guest experience, and driving operational discipline and scale. It has made progress on these priorities, including the announcement of a new Sports Illustrated Resort in Chicago and the launch of the Eddie Bauer Adventure Club. New brands like Sports Illustrated, Eddie Bauer, and Margaritaville are expected to contribute, with each potentially worth $200 million in top-line revenue.

Cash Flow and Liquidity

The company generated $500 million in free cash flow in the first nine months of the year and expects to generate approximately $500 million for the full year. Its liquidity position remains strong, with $1.1 billion in liquidity, including $240 million in cash and $815 million available on its revolver. The company's free cash flow yield is around 19.1%, indicating a healthy cash generation capability.

Valuation

With a P/E Ratio of 10.48 and an EV/EBITDA of 8.74, the company's valuation appears reasonable. The market seems to have priced in a moderate growth rate, with analysts estimating next year's revenue growth at 4.5%. The company's return on invested capital (ROIC) is around 19.84%, indicating a strong ability to generate returns on its investments.

3. NewsRoom

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Travel + Leisure Co. (TNL) Travel + Leisure Co. Presents at Barclays 11th Annual Eat, Sleep, Play, Shop Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Travel + Leisure Co. (TNL) Travel + Leisure Co. Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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TNL Mediagene Hosts 2025 Becoming Aces Awards and Launches "Rising Star in Digital Impact" with 91APP Foundation to Advance Youth Innovation and Sustainable Impact

Dec -02

Source: prnewswire.com

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Geoffrey Richards Sells 62,525 Shares of Travel + Leisure (NYSE:TNL) Stock

Dec -01

Source: defenseworld.net

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Brokerages Set Travel + Leisure Co. (NYSE:TNL) Price Target at $70.18

Nov -26

Source: defenseworld.net

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Travel + Leisure Co. to Present at the Morgan Stanley Global Consumer & Retail Conference and the Barclays Eat, Sleep, Play, Shop Conference

Nov -25

Source: businesswire.com

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TNL Mediagene Launches INSAIDA, New Video News Program Offering Deeper Analysis of Business and Society in Japan

Nov -25

Source: prnewswire.com

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TNL Mediagene Announces GIZMART's Debut Project Keychron Nape Pro Hits ¥100 million in GMV in 12 Hours, Validating New Digital Media-Commerce Strategy

Nov -24

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.56%)

6. Segments

Vacation Ownership

Expected Growth: 4.5%

Travel + Leisure Co.'s Vacation Ownership segment growth of 4.5% is driven by increasing demand for luxury vacation experiences, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, loyalty programs, and personalized services has enhanced customer engagement, leading to increased sales and revenue growth.

Travel and Membership

Expected Growth: 4.8%

Travel + Leisure Co.'s 4.8% growth in Travel and Membership is driven by increasing consumer spending on experiences, rising demand for luxury travel, and strategic partnerships expanding offerings. Additionally, the company's subscription-based model and loyalty programs foster retention and upselling, while investments in digital platforms enhance user experience and drive engagement.

Corporate and Other

Expected Growth: 3.2%

The 3.2% growth in Corporate and Other segment of Travel + Leisure Co. is driven by increased demand for travel services, expansion of loyalty programs, and strategic partnerships. Additionally, the company's focus on digital transformation and cost savings initiatives have contributed to the growth.

7. Detailed Products

Wyndham Destinations

A network of resorts and vacation clubs offering a range of accommodation options

RCI (Resort Condominiums International)

A timeshare exchange program allowing members to swap vacation time

Panorama

A travel technology platform providing booking and management solutions

Travel + Leisure Group Subscription Box

A curated box of travel-inspired products and experiences

Travel + Leisure GO

A travel booking platform offering exclusive deals and discounts

Wyndham Vacation Clubs

A points-based vacation ownership program

WorldMark by Wyndham

A vacation ownership program offering access to a network of resorts

8. Travel + Leisure Co.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Travel + Leisure Co. faces moderate threat from substitutes, as customers have alternative options for travel and leisure activities, but the company's strong brand recognition and loyalty programs help to mitigate this threat.

Bargaining Power Of Customers

Travel + Leisure Co. faces high bargaining power from customers, as they have many options for travel and leisure activities, and can easily switch to competitors if they are not satisfied with the company's offerings.

Bargaining Power Of Suppliers

Travel + Leisure Co. has a low bargaining power from suppliers, as it has a strong negotiating position due to its large scale and diversified business model.

Threat Of New Entrants

Travel + Leisure Co. faces a moderate threat from new entrants, as the industry has high barriers to entry, but new technologies and business models can still disrupt the market.

Intensity Of Rivalry

Travel + Leisure Co. operates in a highly competitive industry, with many established players and new entrants vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 120.99%
Debt Cost 5.43%
Equity Weight -20.99%
Equity Cost 12.14%
WACC 4.02%
Leverage -576.36%

11. Quality Control: Travel + Leisure Co. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dillard's

A-Score: 6.9/10

Value: 5.1

Growth: 6.9

Quality: 7.1

Yield: 8.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Travel + Leisure

A-Score: 6.6/10

Value: 8.0

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
H&R Block

A-Score: 5.8/10

Value: 5.6

Growth: 6.1

Quality: 5.5

Yield: 7.0

Momentum: 1.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Expedia

A-Score: 5.3/10

Value: 4.2

Growth: 6.6

Quality: 6.9

Yield: 0.0

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Tripadvisor

A-Score: 4.0/10

Value: 5.2

Growth: 4.2

Quality: 5.7

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.53$

Current Price

68.53$

Potential

-0.00%

Expected Cash-Flows