Travel + Leisure Co.

Hello and welcome to the Travel and Leisure second quarter 2024 earnings conference call and webcast. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. We ask you please ask one question and one follow-up. You may be placed into question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Jill Greer, Vice President, Investor Relations. Please go ahead, Jill.

Thanks, Kevin. Good morning to everyone, and thanks for dialing in. Joining us this morning are Michael Brown, our President and Chief Executive Officer, and Mike Hugg, our Chief Financial Officer. Michael will provide an overview of our financial results and our longer-term growth strategy, and Mike will then provide greater detail on the quarter, our balance sheet, and outlets for the rest of the year. Following our prepared remarks, we'll open the call up for questions. Before we begin, we'd like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise these statements, and the factors that could cause actual results to differ are discussed in our SEC filings and in our earnings press release. You can find a reconciliation of non-GAAP financial measures discussed in today's call, the earnings release available on our investor relations website. Finally, all comparisons today are to the same period of the prior year unless specifically stated. With that, I'm pleased to turn the call over to Michael Brown.

Good morning, and thank you to everyone for joining us today. This morning, we released our second quarter results, which showed top-line growth, healthy margins, and strong free cash flow. Revenues grew 4% to $985 million, with adjusted EBITDA of $244 million at the high end of our guidance range. We have a resilient and value-driven business model, are executing well against our key priorities for the year, and demand for our product remains solid, all of which factored into our decision to increase our full-year EBITDA guidance. We see good momentum in our vacation ownership business. Tours were up 13%, with new owner tours up 22%. Our Blue Thread partnership with Wyndham Hotels is an important source of lead generation. In the quarter, Blue Thread produced about 10% of our new owner tours, which came with a volume per guest, or VPG, more than 20% higher than other new owner channels. In addition, our investments in new marketing locations and channels are yielding good results. With over 100,000 active packages, this pipeline is up over 140% this year, providing an incremental and fast-growing source of new owner tours. New owner sales are an important source of future revenue, as we've seen over time that new owners buy an incremental 2.6 times their initial purchase. This is because owners love our product. On our most recent customer surveys, nine out of 10 guests staying at our resorts reported a great experience with high marks for flexibility, value, and consistent experience. A credit to our field operations teams. Through our points-based product and the breadth of our resort network, we offer tremendous flexibility for our owners to customize each and every vacation they take with us. From a weekend getaway for music in Austin to four days of Moab to visit the Arches National Park to a week on the beach in beautiful Fiji, our product offers tremendous value by allowing owners to buy future vacations with today's dollars. In addition, our resorts come with spacious living areas, fully equipped kitchens, and and a range of amenities, giving owners a means to optimize their vacation spend on what matters most to them. We are also seeing length of stay increase in this work-from-anywhere environment, as owners are seeing the added utility of our resorts with more space to work and play. The premium that owners place on consistency, value, and flexibility is evident in our VPG of $3,051, which is especially strong considering our 37% new owner mix. The VPG was above the high end of our expectations, and we expect strong VPG performance to continue. As a result, we have increased our VPG guidance for the year by $50 at the midpoint. From our perspective, all indications are pointing to a strong second half, with owner nights up 6% for the remainder of the year, and we continue to expect double-digit tour growth for the full year. The momentum with tour growth and VPG are signs that our product appeals in a value-focused market, and our team is executing well on our growth initiatives. Similar to a number of other companies, we are seeing some pressures with our loan portfolio. Mike will give more details on our projection of elevated delinquencies for the remainder of the year. The fact that we are increasing our full-year guidance shows the durability and resiliency of our business model. That business model provides a solid foundation for long-term growth. Our multi-brand strategy is unique in the industry and is the path to driving consistent growth going forward in our vacation ownership business. The Accor and Sports Illustrated brands will augment the VOI sales platforms of Club Wyndham, Worldmark, Margaritaville, and Shell. With a broad geographic footprint, and a variety of ownership options, we intend to expand our share by meeting the vacation travel needs of a broader range of consumers. We are making good progress with the Accor Vacation Club integration. Accor has delivered more than a million dollars in adjusted EBITDA year-to-date, and we are well on track to hit our full-year goal. The Accor growth has been accretive to an international business that is already performing well. While it is still a relatively small part of our results, the growth in performance in international has been strong. Through the second quarter, adjusted EBIT is up 33%, with tour flow up over 50% and BPG up in the low single digits. With regard to Sports Illustrated Resorts, we are continuing to move toward the launch of our first project in Tuscaloosa. We are currently working to finalize the design and to obtain the necessary zoning and entitlements to break ground early next year, which will allow us to launch sales. And while our primary focus is on Tuscaloosa, we're also actively working to identify additional options for future locations. We're in the early stages, but excited for what Sports Illustrated Resorts means for our growth in 2026 and beyond. Turning to our travel and membership business, this segment produces solid margins in cash flows. Our focus in this area has been on driving higher margin transactions, primarily with our existing Vacation Club customers. Our progress here is evidenced in the 4% increase in revenue per transaction that we saw in the quarter, which combined with cost discipline produces higher returns. To wrap up, I want to extend my thanks to the entire Travel and Leisure team for their focus on providing a great experience for our owners. Their dedication and determination sets us apart and positions us well for long-term success. And now I'll turn the call over to Mike to walk through the quarter in more detail. Mike.