Q3 2024 Marriott Vacations Worldwide Corp Earnings Call Transcript
Key Points
- Marriott Vacations Worldwide Corp (VAC) reported a 5% increase in contract sales in the vacation ownership segment compared to last year.
- Occupancy rates are running above 90%, indicating strong demand and recovery post-Maui wildfires.
- The company has successfully implemented the Bound by Marriott Vacation program, enhancing ease of booking and expanding choices for owners.
- Marriott Vacations Worldwide Corp (VAC) has added nearly 1,600 first-time buyers this year, with a significant portion expected to purchase additional points.
- The company is making strategic investments in technology and talent to personalize and simplify the guest experience, positioning for future growth.
- The macroeconomic environment remains dynamic, with pressures from rising interest rates and higher inflation impacting operations.
- Adjusted EBITDA in the exchange and third-party management segment declined by $7 million year over year.
- Sales and marketing expenses have increased year over year, impacting overall profitability.
- The company faced a loss of selling days due to Hurricane Milton, costing approximately $8 million in contract sales.
- Higher financing interest expenses are expected to continue impacting margins over the next few years.
(technical difficulty) Is our focus on enhancing the customer experience and growing the top and bottom lines. Technology is a key enabler. And the reality is that with most of our businesses, 40 years old, we need to ensure that our infrastructure and digital tools keep pace and support our ability to capitalize on the appeal of our iconic brands. While we still have work to do, we've made good progress over the past five years.
While the macroeconomic environment remains dynamic. We believe many of the major headwinds that have impacted our performance are behind us 15 months after the devastating Maui wildfires, all of our resorts are open. Our sales team is appropriately staffed, occupancy is running above 90% and I'm confident that our business there will fully recover within a few years, if not sooner.
Similarly, we've had to navigate through the pressures of interest of rising interest rates and higher inflation. Despite that, we are proud to have kept maintenance fee increases for our
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