Hospitality company Travel + Leisure (NYSE:TNL) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 2% year on year to $934 million. Its non-GAAP profit of $1.11 per share was 1.5% below analysts’ consensus estimates.

Is now the time to buy Travel + Leisure? Find out in our full research report.

Travel + Leisure (TNL) Q1 CY2025 Highlights:

• Revenue: $934 million vs analyst estimates of $930 million (2% year-on-year growth, in line)

• Adjusted EPS: $1.11 vs analyst expectations of $1.13 (1.5% miss)

• Adjusted EBITDA: $202 million vs analyst estimates of $200.1 million (21.6% margin, 0.9% beat)

• EBITDA guidance for the full year is $970 million at the midpoint, in line with analyst expectations

• Operating Margin: 16.7%, in line with the same quarter last year

• Free Cash Flow Margin: 10.7%, up from 3.3% in the same quarter last year

• Tours Conducted: 153,000, down 2,000 year on year

• Market Capitalization: $2.84 billion

Company Overview

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Travel and Vacation Providers

Airlines, hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

Sales Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Travel + Leisure’s 1.1% annualized revenue growth over the last five years was weak. This fell short of our benchmarks and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Travel + Leisure’s annualized revenue growth of 3.3% over the last two years is above its five-year trend, but we were still disappointed by the results.

Travel + Leisure also discloses its number of tours conducted, which reached 153,000 in the latest quarter. Over the last two years, Travel + Leisure’s tours conducted averaged 10.3% year-on-year growth. Because this number is higher than its revenue growth during the same period, we can see the company’s monetization has fallen.