Travel + Leisure Co. Reports $73 Million Net Income in Q1 2025, Up from $66 Million Last Year

Travel + Leisure Co. reported a net income of $73 million for the first quarter of 2025, an increase from $66 million in the same period last year. The company's comprehensive income rose to $85 million, compared to $51 million in the prior year, driven by favorable foreign currency translation adjustments. Total revenues for the quarter reached $934 million, reflecting an increase of $18 million from $916 million in the first quarter of 2024. This growth was primarily attributed to a $30 million rise in the Vacation Ownership segment, which saw increased vacation ownership interest sales and property management fees, despite a slight decrease in tours.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Operating expenses increased by $12 million, largely due to higher property management costs and general administrative expenses. Interest expenses decreased by $7 million, benefiting from a lower average outstanding debt balance and reduced interest rates on variable corporate borrowings. The effective tax rate for the quarter was 28.0%, slightly down from 28.5% in the prior year, influenced by changes in state taxes and the introduction of global minimum tax rules under the OECD's Pillar Two initiative.

Strategically, Travel + Leisure Co. completed a business acquisition for $3 million during the quarter, enhancing its Vacation Ownership segment. The company also continued to focus on its share repurchase program, buying back 1.3 million shares at a cost of $70 million. As of March 31, 2025, the company had $373 million remaining under its $7 billion share repurchase authorization. The company’s employee headcount was reduced by approximately 300 as part of a restructuring plan aimed at enhancing operational efficiency.

Operationally, the Vacation Ownership segment reported gross vacation ownership interest sales of $512 million, up from $490 million in the previous year, despite a decrease in tours. The Travel and Membership segment, however, saw a decline in revenues, primarily due to lower transaction volumes and a shift in member demographics. The company reported a total of 3.36 million exchange members, a decrease from 3.49 million in the prior year, reflecting the impacts of industry consolidation.

Looking ahead, Travel + Leisure Co. remains cautiously optimistic about its growth prospects, citing continued demand for leisure travel and the potential for increased sales in its Vacation Ownership segment. However, the company acknowledges the ongoing challenges posed by inflation, high interest rates, and potential economic downturns, which could affect consumer behavior and overall business performance. The company plans to maintain its focus on operational efficiency and strategic investments to navigate these uncertainties.