Consumer Financing and Interest Rates
Q: Has your outlook for consumer financing changed with interest rates?
A: Interest rates have risen about 50 basis points since March, but the impact on this year's EBITDA is minimal as remaining ABS transactions will only have a partial-year effect. " We expect the interest headwind to become a tailwind over the next 18 to 24 months, though it may not happen as early as previously thought. " Our corporate debt exposure to variable rates is about 30%, resulting in approximately $3 million in additional interest expense, which is not significant. " The portfolio provision for the quarter was 17.4%, and while delinquencies may rise in Q2 and Q3 due to growth and a higher 37% new owner mix, we're confident the full-year provision will remain below 19%. " Importantly, our average FICO score for new originations reached a record 742 in Q1. "

New Owner Growth Sustainability
Q: How sustainable is your impressive new owner growth?
A: The 28% year-on-year growth in new owner tours is sustainable. " We've opened over 30 new marketing locations in 2023, now benefiting from their full-year impact. " Increased investment in our marketing package pipeline is starting to bear fruit. " Partnerships like those with Sports Illustrated and Accor add incremental databases, providing more leads and tours. " This growth is a result of strategic execution over the last 36 months. "

Share Repurchases and Capital Allocation
Q: How should we think about share repurchases going forward?
A: In Q1, we spent $25 million on share repurchases, impacted by the $46 million acquisition of Accor. " Our total capital allocation for the quarter was in the low $70 million range, aligning with last year's quarterly average of $77 million. " We plan to request an additional $500 million in share repurchase authorization at the upcoming Board meeting, providing ample capacity for increased repurchases this year. "

M&A Opportunities
Q: Are you seeing more M&A opportunities now?
A: The M&A landscape remains consistent. " The industry has consolidated significantly over the past decade, with over 80% of sales from branded hospitality companies. " We're committed to our organic strategy but continue to evaluate opportunities as they arise, exemplified by our recent partnership with Sports Illustrated and acquisition of Accor. "

Credit Quality and Portfolio Performance
Q: How is your consumer finance portfolio performing by FICO band?
A: The portfolio is performing as expected, with more pressure on the lower end of FICO bands. " Our focus on improving credit quality post-COVID is paying off, with the average FICO score reaching 742, the highest ever. " The provision for the quarter was 17.4%, and we remain confident in keeping the full-year provision below 19%. "

Impact of New Owner Mix on Margins
Q: How does new owner mix affect your margins this year?
A: Despite increasing new owner sales to 37%, our margins are flat year-over-year. " We're covering the impact of a higher new owner mix through other areas of the business. " The main challenges to margins are the $17 million variable compensation headwind and $30 million in additional interest expense. "

Allegiant Air Partnership
Q: Can you elaborate on the Allegiant Air partnership?
A: Allegiant Air has 15 million loyalty members and serves 125 destinations, many overlapping with our locations. " The partnership will focus on cross-promotional marketing, combining air and stay packages. " While it's early to quantify its impact, we expect it to enhance our package pipeline and marketing efforts over time. "

Sports Illustrated Expansion Plans
Q: Will you announce more Sports Illustrated deals before sales start?
A: Yes, we anticipate announcing additional locations before sales begin in Alabama next year. " The pipeline for Sports Illustrated resorts is robust, including university towns and other locations. " The economics are expected to align with our Club Wyndham model, matching inventory spend with sales production. "

Leisure Travel Demand vs. Hotel RevPAR
Q: How does your optimism compare with hotel RevPAR trends?
A: We don't correlate our results directly with any hotel brand's performance. " Our average FICO score of 742 signifies strong customer quality. " Most owners have fully paid for their ownership, ensuring they continue to travel. " Leisure travel remains strong, especially in key markets like Las Vegas, which accounts for 12% of our exposure. "

Accor Vacation Club Opportunities
Q: Is there a chance to upgrade Accor's existing owners?
A: Accor Vacation Club operates independently; upgrades will keep members within Accor. " There's significant potential as the existing 20,000 owner base hasn't been actively marketed to in recent years due to regional restrictions. " We're reactivating and growing this side of the business, presenting opportunities for both upgrades and new owner sales. "

Sales Centers and Consumer Behavior
Q: Any insights on your strongest sales centers and consumer trends?
A: Our booking window is at 120 days, typical of strong leisure periods. " Drive-to destinations, which peaked at 90–95% during the pandemic, are back to the low 70%, indicating normal consumer behavior. " Top destinations include Orlando, Myrtle Beach, Tennessee, and Daytona Beach. " Nothing unusual stands out, reaffirming that leisure travel is robust. "

New Owner Close Rates
Q: How have new owner close rates evolved recently?
A: Close rates for owners and Blue Thread have remained consistent. " Open market new owner close rates have slightly declined, attributed more to scaling up—adding 28% more new owner tours year-on-year—than to consumer issues. " We view the slight decline as a result of increased scale rather than changes in consumer behavior. "

B2B Business Progress
Q: Update on signing companies for the B2B business?
A: We've focused on deepening relationships with existing B2B partners rather than adding many new ones. " This strategy has led to 10% transaction growth year-over-year when excluding a large customer lost in Q1 last year. " We're confident in achieving high single-digit growth in travel club transactions in 2024 through increased conversion within our current ecosystem. "