v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company has two reportable segments: Vacation Ownership and Travel and Membership. In identifying its reportable segments the Company analyzed the components of each segment, the nature of the segments’ products and services, and
prescribed quantitative thresholds. Based on this analysis the Company aggregates two geographical operating segments within the Vacation Ownership reportable segment and two operating segments within the Travel and Membership reportable segment.
The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs, and provides property management services at resorts. This segment is wholly comprised of the Vacation Ownership business line. The Travel and Membership segment operates a variety of travel businesses, including vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment is comprised of the Exchange and Travel Club business lines.
The financial results of these reportable segments are regularly reviewed by the Company’s Chief Executive Officer (“CEO”) to evaluate performance and allocate resources. Since the Company’s CEO makes key operating and resource allocation decisions, the CEO is considered the Company’s chief operating decision maker (“CODM”).
Adjusted EBITDA is the profitability measure utilized by the CODM to assess the performance of the reportable segments through comparisons to budgets, forecasts, prior periods, and trends. This analysis is used to make certain decisions regarding the allocation of capital and personnel to the segments.
Adjusted EBITDA is defined by the Company as net income from continuing operations before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes. Adjusted EBITDA also excludes stock-based compensation costs, separation and restructuring costs, legacy items, transaction and integration costs associated with mergers, acquisitions, and divestitures, asset impairments/recoveries and inventory write-downs associated with the Company’s resort optimization initiative, gains and losses on sale/disposition of business, and items that meet the conditions of unusual and/or infrequent. Legacy items include the resolution of and adjustments to certain contingent assets and liabilities related to acquisitions of continuing businesses and dispositions, including the separation of Wyndham Hotels & Resorts, Inc. (“Wyndham Hotels”) and ABG, and the sale of the vacation rentals businesses. Integration costs represent certain non-recurring costs directly incurred to integrate mergers and/or acquisitions into the existing business. The Company excludes these costs as they do not reflect recurring operating expenses. The Company believes that Adjusted EBITDA is a useful measure of performance for its segments which, when considered with GAAP measures, gives a more complete understanding of its operating performance. The Company’s presentation of Adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
The following tables present the Company’s segment information (in millions):
Three Months Ended March 31, 2026
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$798 
(a)
$163 $961 
Intersegment revenues— 2 2 
798 165 963 
Reconciliation of revenues
Elimination of intersegment revenues(2)
Total consolidated revenues$961 
Less:
Property management expense173 — 
(b)
Marketing
108 
(c)
9 
Commissions100 — 
(b)
General and administrative (d)
62 23 
Sales administration58 — 
(b)
Consumer financing interest33 — 
(b)
Licensing fees24 — 
(b)
Developer obligations (e)
18 — 
(b)
Cost of sales16 
(f)
47 
Fee-for-Service expenses
7 — 
(b)
Contact center— 
(b)
17 
Resort services— 
(b)
8 
Other segment items (g)
8 2 
Reportable segment Adjusted EBITDA
$191 $59 $250 
Other Adjusted EBITDA
(25)
Adjusted EBITDA$225 
Three Months Ended March 31, 2026
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$225 
Inventory write-downs and asset impairments, net (h)
(19)
Stock-based compensation(13)
Other (i)
(5)
Restructuring
2 
Legacy items4 
Depreciation and amortization(32)
Interest income
2 
Interest expense(56)
Income before income taxes108 
Provision for income taxes(29)
Net income attributable to Travel + Leisure Co. shareholders$79 
(a)Includes $100 million provision for loan losses, net.
(b)Expense category not regularly provided to the CODM for this segment.
(c)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(d)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(e)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(f)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income. Excludes $19 million of inventory write-downs and impairments which are not included in the determination of Adjusted EBITDA.
(g)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income and asset sales.
(h)Includes $19 million of inventory write-downs and impairments related to the Company’s resort optimization initiative included in Cost of vacation ownership interests on the Condensed Consolidated Statements of Income.
(i)Includes $5 million of resort closure and employee related costs associated with the resort optimization initiative included within Operating expense on the Condensed Consolidated Statements of Income.
Three Months Ended March 31, 2025
Net revenuesVacation OwnershipTravel and MembershipTotal
Revenues from external customers$755 
(a)
$178 $933 
Intersegment revenues— 2 2 
755 180 935 
Reconciliation of revenues
Other revenues (b)
1 
Elimination of intersegment revenues(2)
Total consolidated revenues$934 
Less:
Property management expense173 — 
(c)
Marketing
93 
(d)
11 
Commissions89 — 
(c)
General and administrative (e)
58 22 
Sales administration52 — 
(c)
Developer obligations (f)
37 — 
(c)
Consumer financing interest34 — 
(c)
Cost of sales23 
(g)
51 
Licensing fees21 — 
(c)
Fee-for-Service expenses
10 — 
(c)
Contact center— 
(c)
18 
Resort services— 
(c)
8 
Other segment items (h)
6 2 
Reportable segment Adjusted EBITDA
$159 $68 $227 
Other Adjusted EBITDA
(25)
Adjusted EBITDA$202 
Three Months Ended March 31, 2025
Reconciliation of Adjusted EBITDATotal
Adjusted EBITDA$202 
Stock-based compensation(14)
Legacy items(1)
Depreciation and amortization(30)
Interest income
1 
Interest expense(57)
Income before income taxes101 
Provision for income taxes(28)
Net income attributable to Travel + Leisure Co. shareholders$73 
(a)Includes $91 million provision for loan losses, net.
(b)Represents revenue recognized at the Company's Corporate and other segment for managing an insurance program on behalf of homeowners associations.
(c)Expense category not regularly provided to the CODM for this segment.
(d)Excludes licensing fees which are reported within Marketing on the Condensed Consolidated Statements of Income, as it is separately disclosed.
(e)Excludes stock-based compensation and legacy items which are not included in the determination of Adjusted EBITDA.
(f)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(g)Represents Cost of vacation ownership interests on the Condensed Consolidated Statements of Income, excluding less than $1 million of inventory impairments which are not included in the determination of Adjusted EBITDA.
(h)Includes expenses for VOI travel packages, VOI incentives, and professional fees reported within Operating expenses, and other non-operating income/expense items included in the determination of Adjusted EBITDA such as dividend income, business insurance proceeds, and asset sales.
Three Months Ended
March 31,
Capital Expenditures20262025
Vacation Ownership$11 $12 
Travel and Membership3 4 
Total reportable segments14 16 
Corporate and other5 5 
Total Company$19 $21 
Segment Assets (a)
March 31,
2026		December 31, 2025
Vacation Ownership$5,107 $5,022 
Travel and Membership1,317 1,334 
Total reportable segments6,424 6,356 
Corporate and other416 404 
Total Company$6,840 $6,760 
(a)Excludes investment in consolidated subsidiaries.