Travel+Leisure Posts Strong Q2 Revenue Beat Amid Mixed Earnings

Travel + Leisure Co. (TNL) reported second-quarter revenue of $1.02 billion, slightly exceeding expectations, driven by strong Vacation Ownership Interest sales and higher tour volume and flow, though adjusted earnings per share of $1.65 just missed consensus estimates. The company is expanding its multi-brand strategy with new projects including Margaritaville Vacation Club in Orlando, Sports Illustrated Resorts in Nashville, and Asia-based Accor Vacation Club in Indonesia, highlighting its efforts to diversify and strengthen its vacation ownership portfolio. Despite solid revenue growth of 3.4% year-over-year and a 14.7% share price increase since the start of 2025, Travel + Leisure's long-term annualized revenue growth of 5.6% over five years is considered sluggish within the consumer discretionary sector, with recent two-year revenue growth slowing to 3.4%. The company conducted 197,000 tours in the latest quarter, showing an 8.8% year-on-year increase, suggesting rising engagement despite modest revenue growth. Analyst consensus rates Travel + Leisure as an "Outperform" with an average one-year price target around $60.83, implying modest upside, though GuruFocus estimates indicate a potential slight downside from current prices. Meanwhile, Travelzoo (TZOO) also exceeded Q2 revenue expectations with $23.9 million reported and a Non-GAAP operating profit of $2.4 million; it maintains an "Outperform" consensus recommendation with significant projected upside based on average analyst price targets, signaling positive sentiment for travel-related companies overall.