Travel & Leisure Co.TNL
Travel & Leisure Co. Segments Disclosure
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 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.
During the fourth quarter of 2025, the Company updated its definition of Adjusted EBITDA to exclude inventory write-downs associated with the Company’s resort optimization initiative. This initiative resulted in inventory write-downs related to agreements to supply replacement inventory to vacation ownership clubs impacted by this initiative. These charges are included within Cost of vacation ownership interests on the Consolidated Statements of Income. For additional detail on the resort optimization initiative see Note 25—Restructuring.
As a result of this change, Adjusted EBITDA is now 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 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):
| Year Ended December 31, 2025 | |||||||||||||||||
| Net revenues | Vacation Ownership | Travel and Membership | Total | ||||||||||||||
| Revenues from external customers | $ | 3,361 | (a) | $ | 658 | $ | 4,019 | ||||||||||
| Intersegment revenues | — | 4 | 4 | ||||||||||||||
| 3,361 | 662 | 4,023 | |||||||||||||||
| Reconciliation of revenues | |||||||||||||||||
Other revenues (b) | 2 | ||||||||||||||||
| Elimination of intersegment revenues | (4) | ||||||||||||||||
| Total consolidated revenues | $ | 4,021 | |||||||||||||||
| Less: | |||||||||||||||||
| Property management expense | 683 | — | (c) | ||||||||||||||
Marketing | 440 | (d) | 42 | ||||||||||||||
| Commissions | 427 | — | (c) | ||||||||||||||
General and administrative (e) | 244 | 92 | |||||||||||||||
| Sales administration | 218 | — | (c) | ||||||||||||||
| Consumer financing interest | 135 | — | (c) | ||||||||||||||
Developer obligations (f) | 111 | — | (c) | ||||||||||||||
| Licensing fees | 103 | — | (c) | ||||||||||||||
| Cost of sales | 58 | (g) | 193 | ||||||||||||||
Fee-for-Service expenses | 48 | — | (c) | ||||||||||||||
| Contact center | — | (c) | 71 | ||||||||||||||
| Resort services | — | (c) | 30 | ||||||||||||||
Other segment items (h) | 33 | 6 | |||||||||||||||
Reportable segment Adjusted EBITDA | $ | 861 | $ | 228 | $ | 1,089 | |||||||||||
| Other Adjusted EBITDA | (99) | ||||||||||||||||
| Adjusted EBITDA | $ | 990 | |||||||||||||||
| Reconciliation of Adjusted EBITDA | Total | ||||
| Adjusted EBITDA | $ | 990 | |||
Inventory write-downs and asset impairments, net (i) | (226) | ||||
| Stock-based compensation | (57) | ||||
Restructuring | (19) | ||||
Other (j) | (3) | ||||
| Acquisition and divestiture related costs | (1) | ||||
| Depreciation and amortization | (124) | ||||
Interest income | 9 | ||||
| Interest expense | (232) | ||||
| Income before income taxes | 337 | ||||
| Provision for income taxes | (107) | ||||
| Net income attributable to Travel + Leisure Co. shareholders | $ | 230 | |||
(a)Includes $484 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 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 Consolidated Statements of Income, excluding $216 million of inventory write-downs and 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.
(i)Includes $216 million of inventory write-downs and impairments related to the Company’s resort optimization initiative included in Cost of vacation ownership interests on the Consolidated Statements of Income.
(j)Includes $5 million of employee costs associated with the Company’s resort optimization initiative included within Operating expense on the Consolidated Statements of Income, and $2 million of other items that meet the conditions of unusual and/or infrequent, partially offset by a $4 million gain on sale of a corporate building owned by the Travel and Membership segment, which was previously held-for-sale.
| Year Ended December 31, 2024 | |||||||||||||||||
| Net revenues | Vacation Ownership | Travel and Membership | Total | ||||||||||||||
| Revenues from external customers | $ | 3,171 | (a) | $ | 691 | $ | 3,862 | ||||||||||
| Intersegment revenues | — | 4 | 4 | ||||||||||||||
| 3,171 | 695 | 3,866 | |||||||||||||||
| Reconciliation of revenues | |||||||||||||||||
Other revenues (b) | 2 | ||||||||||||||||
| Elimination of intersegment revenues | (4) | ||||||||||||||||
| Total consolidated revenues | $ | 3,864 | |||||||||||||||
| Less: | |||||||||||||||||
| Property management expense | 643 | — | (c) | ||||||||||||||
Marketing | 411 | (d) | 45 | ||||||||||||||
| Commissions | 406 | — | (c) | ||||||||||||||
General and administrative (e) | 231 | 100 | |||||||||||||||
| Sales administration | 194 | — | (c) | ||||||||||||||
Consumer financing interest | 136 | — | (c) | ||||||||||||||
Developer obligations (f) | 129 | — | (c) | ||||||||||||||
| Licensing fees | 94 | — | (c) | ||||||||||||||
| Cost of sales | 92 | (g) | 186 | ||||||||||||||
| Fee-for-Service expenses | 43 | — | (c) | ||||||||||||||
| Contact center | — | (c) | 77 | ||||||||||||||
| Resort services | — | (c) | 33 | ||||||||||||||
Other segment items (h) | 28 | 3 | |||||||||||||||
Reportable segment Adjusted EBITDA | $ | 764 | $ | 251 | $ | 1,015 | |||||||||||
| Elimination of intersegment Adjusted EBITDA | 32 | ||||||||||||||||
| Other Adjusted EBITDA | (118) | ||||||||||||||||
| Adjusted EBITDA | $ | 929 | |||||||||||||||
| Reconciliation of Adjusted EBITDA | Total | ||||
| Adjusted EBITDA | $ | 929 | |||
| Stock-based compensation | (40) | ||||
Restructuring (i) | (16) | ||||
| Legacy items | (11) | ||||
| Asset impairments, net | (3) | ||||
| Acquisition and divestiture related deal costs | (2) | ||||
| Fair value change in contingent consideration | 7 | ||||
| Integration costs | (1) | ||||
| Depreciation and amortization | (115) | ||||
Interest income | 14 | ||||
| Interest expense | (249) | ||||
| Income before income taxes | 513 | ||||
| Provision for income taxes | (135) | ||||
| Net income from continuing operations | 378 | ||||
| Gain on disposal of discontinued business, net of income taxes | 33 | ||||
| Net income attributable to Travel + Leisure Co. shareholders | $ | 411 | |||
(a)Includes $432 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 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 Consolidated Statements of Income.
(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.
(i)Includes $1 million of stock-based compensation expense associated with the 2022 restructuring plans.
| Year Ended December 31, 2023 | |||||||||||||||||
| Net revenues | Vacation Ownership | Travel and Membership | Total | ||||||||||||||
| Revenues from external customers | $ | 3,041 | (a) | $ | 704 | $ | 3,745 | ||||||||||
| Intersegment revenues | — | 7 | 7 | ||||||||||||||
| 3,041 | 711 | 3,752 | |||||||||||||||
| Reconciliation of revenues | |||||||||||||||||
Other revenues (b) | 5 | ||||||||||||||||
| Elimination of intersegment revenues | (7) | ||||||||||||||||
| Total consolidated revenues | $ | 3,750 | |||||||||||||||
| Less: | |||||||||||||||||
| Property management expense | 607 | — | (c) | ||||||||||||||
Marketing | 360 | (d) | 58 | ||||||||||||||
| Commissions | 358 | — | (c) | ||||||||||||||
General and administrative (e) | 232 | 105 | |||||||||||||||
| Sales administration | 179 | — | (c) | ||||||||||||||
Cost of sales | 132 | (f) | 180 | ||||||||||||||
Developer obligations (g) | 129 | — | (c) | ||||||||||||||
Consumer financing interest | 112 | — | (c) | ||||||||||||||
| Licensing fees | 89 | — | (c) | ||||||||||||||
Fee-for-Service expenses | 81 | — | (c) | ||||||||||||||
| Contact center | — | (c) | 79 | ||||||||||||||
| Resort services | — | (c) | 38 | ||||||||||||||
Other segment items (h) | 33 | 4 | |||||||||||||||
Reportable segment Adjusted EBITDA | $ | 729 | $ | 247 | $ | 976 | |||||||||||
Elimination of intersegment Adjusted EBITDA | (1) | ||||||||||||||||
| Other Adjusted EBITDA | (67) | ||||||||||||||||
| Adjusted EBITDA | $ | 908 | |||||||||||||||
| Reconciliation of Adjusted EBITDA | Total | ||||
| Adjusted EBITDA | $ | 908 | |||
| Stock-based compensation | (36) | ||||
Restructuring (i) | (26) | ||||
| Legacy items | (8) | ||||
| Loss on sale of business | (2) | ||||
Inventory write-downs and asset impairments, net (j) | (1) | ||||
| Depreciation and amortization | (112) | ||||
Interest income | 13 | ||||
| Interest expense | (251) | ||||
| Income before income taxes | 485 | ||||
| Provision for income taxes | (94) | ||||
| Net income from continuing operations | 391 | ||||
| Gain on disposal of discontinued business, net of income taxes | 5 | ||||
| Net income attributable to Travel + Leisure Co. shareholders | $ | 396 | |||
(a)Includes $348 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 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 Cost of vacation ownership interests on the Consolidated Statements of Income, excluding $1 million of inventory impairments which are not included in the determination of Adjusted EBITDA.
(g)Represents maintenance fees incurred by the Company for unsold VOIs, net of monetization.
(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.
(i)Includes $2 million of stock-based compensation expense associated with the 2023 restructuring plans.
(j)Includes $1 million of inventory impairments reported within Cost of vacation ownership interests on the Consolidated Statements of Income.
The following tables present the Company’s segment asset information (in millions):
| As of December 31, | |||||||||||
Segment Assets (a) | 2025 | 2024 | |||||||||
| Vacation Ownership | $ | 5,022 | $ | 5,112 | |||||||
| Travel and Membership | 1,334 | 1,325 | |||||||||
| Total reportable segments | 6,356 | 6,437 | |||||||||
| Corporate and other | 404 | 298 | |||||||||
| Total Company | $ | 6,760 | $ | 6,735 | |||||||
(a)Excludes investment in consolidated subsidiaries.
| Year Ended December 31, | |||||||||||||||||
| Capital Expenditures | 2025 | 2024 | 2023 | ||||||||||||||
| Vacation Ownership | $ | 54 | $ | 54 | $ | 47 | |||||||||||
| Travel and Membership | 17 | 19 | 22 | ||||||||||||||
| Total reportable segments | 71 | 73 | 69 | ||||||||||||||
| Corporate and other | 46 | 8 | 5 | ||||||||||||||
| Total Company | $ | 117 | $ | 81 | $ | 74 | |||||||||||
The geographic segment information provided below is classified based on the geographic location of the Company’s subsidiaries (in millions):
| Net Revenues | Net Long-lived Assets | ||||||||||||||||||||||||||||
| Year Ended December 31, | As of December 31, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | |||||||||||||||||||||||||
| United States | $ | 3,545 | $ | 3,404 | $ | 3,320 | $ | 1,439 | $ | 1,508 | |||||||||||||||||||
| All other countries | 476 | 460 | 430 | 265 | 258 | ||||||||||||||||||||||||
| Total | $ | 4,021 | $ | 3,864 | $ | 3,750 | $ | 1,704 | $ | 1,766 | |||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.