Day: July 26, 2024

ORLANDO, Florida — Michael Brown said the data points in a very optimistic direction for the vacation ownership business and his company, Travel + Leisure Co. Owner nights are tracking up 6% year-over-year and there’s an expectation of double-digit growth in tours (sales presentations) for all of 2024, especially for new customers.

The Orlando-based company, which made a high-profile acquisition earlier this year with its $48.4
million purchase of Accor Vacation Club, had a modest earnings beat for the second quarter (according to C. Patrick Scholes of Truist Securities) with a net income of $129 million, net revenue of $985 million and adjusted EBITDA of
$244 million.

Brown told Hotel Investment Today that he was especially excited about higher-than-projected volume per guest (VPG) numbers. “We’re optimistic because our business is running very well and, in most cases, above our expectations,” he said. “We have different data points that show how the consumer is performing and those would say the second half of this year is going to be good.”

We’re optimistic because our business is running very well and, in most cases, above our expectations. We have different data points that show how the consumer is performing and those would say the second half of this year is going to be good.

Michael Brown

Scholes said Travel + Leisure’s earnings were a “respectable and fairly straightforward quarter” but with one big difference. “Unlike the prior quarter, the modest earnings beat resulted in the full-year guide being raised by the amount of the earnings beat, whereas the full-year guide was left unchanged last quarter following a small earnings beat,” he said. “We see the beat
and raise driven by somewhat higher than expected VPGs.”

Brown said the VPG numbers of $3,050 is well above where the number was pre-COVID and where it was expected to settle post-COVID. He also said the company’s financial portfolio (loans for timeshares) has come down a bit, which is weighing down its stock price.

The VPG numbers have grown higher for a few reasons. Brown said the company decided last year to elevate its marketing standard and raise the minimum FICO score to 40 points higher than in 2018-19. That has given Travel + Leisure a customer of a higher
financial quality, which creates other benefits. Brown said people are also staying longer at their resorts because of remote work.

“What you tend to get is a better-performing loan, and that, combined with an economy that still continues to do very well because people aren’t going to give up on vacations as we learned over the last five years,” he said. “What’s really driving that
is the fact that I think the consumer base has been elevated… We’re really seeing a positive move in our demographic as well as our economic status of our consumer.”

Brown said the 22% increase in new customer tours is especially important. “That new owner tour flow is super important to the longevity of the business, and this year, we’re way ahead of where we thought we’d be at the halfway mark of the year.”  

Hotel Investment Today also asked Brown about the integration of Accor Vacation Club, the status of its Sports Illustrated Resort and Margaritaville verticals and overall trends in vacation ownership.

Hotel
Investment Today (HIT): Can you give an update on the integration of your Accor
Vacation Club properties?

Michael Brown: It is going exceptionally smoothly. From the partnership with Accor to the actual restarting of the business, opening sales galleries and speaking to the owners about the new opportunities, this creates the restarting of the top-line revenue
component of the business, which eventually creates profit.

We know the baseline is there. We’ve gone through a full quarter, and we’ve seen a good integration. They’re immaterial to our overall P&L but above where we expected them to be. And now we can start focusing on those growth initiatives of incremental
sales locations and incremental projects that will provide more optionality for owners…

We’ll be thinking about expanding our sales locations this quarter and starting to look at opportunities to add incremental units to Accor Vacation Club. (Brown noted that this would be through organic growth in the Asia Pacific and Middle East regions.)

HIT:
What’s the latest on Sports Illustrated Resorts?

Brown: We did Tuscaloosa first, and our investment there was very early in the process to secure the land… As a first resort, we’ve spent a lot of time getting the right programming.

Over two-thirds of consumers today are either Gen X, millennials or Gen Z… which greatly dispels the idea that this is a product for your grandfather or grandmother.

Michael Brown

The Michigan project (in Ann Arbor) that was originally scheduled ran into some zoning issues. I’m probably a bit more cautious about talking about development, but I am very confident in saying we have a very robust pipeline at a number of universities.
I would expect multiple announcements as we head into the second half of this year, and we’re really excited about growing the brand in college towns and, candidly, in non-college towns as well.

HIT:
What’s the latest on Margaritaville’s development?

Brown: When I joined the company, we had two resorts. We’re up to, I believe, six at the moment and continue to look at incremental locations that are right for Margaritaville. For me, when I say Margaritaville, I think “toes in the sand and a drink
in your hand” type of places, and when you think about where our development pipeline is going to be… It’s going to be in destinations like that. We’re not by any stretch done with that brand and where we think it can be very.

HIT: What
are the latest trends in vacation ownership?

Brown: Over two-thirds of consumers today are either Gen X, millennials or Gen Z… which greatly dispels the idea that this is a product for your grandfather or grandmother. You just need to look at the average age continuing to move down. The fact
is that the industry is really consolidated around brands, and over 80% of the sales are to branded consumers or by branded hospitality.  

The balance sheet and reputation have completely made a 180-[degree turn] from the time [before the Great Recession] when it was individual developments selling an individual resort that was real estate based without a balance sheet, without a loyalty
program, and without a system to allow consumers to enjoy an entire brand as opposed to a single location. 

One of our biggest missions as we look forward is to continue communicating that it’s a branded industry committed to consumer protection. It’s a fundamentally transformed space.

A low-cost airline is on the move with new routes and flight deals.

Avelo Airlines, based in Houston, recently announced a major expansion with its first international destinations of Montego Bay, Jamaica, and Cancun, Mexico.

In celebration of the new routes, the airline is offering “very low, one-way fares” from $52 while availability lasts. The airline also announced an expansion with 16 additional new domestic routes including to Daytona Beach, Orlando-Lakeland, and other markets.

The new international routes will operate from Hartford, Connecticut’s Bradley International Airport (BDL), where Avelo will operate service to Cancun, starting  November 20, and Montego Bay, Jamaica, starting November 16, every Wednesday and Saturday. 

“Avelo’s purpose is to Inspire Travel and the addition of 18 new routes and our first two international destinations will make getting where our Customers want to go easier than ever,” Avelo Airlines Founder and CEO Andrew Levy shared in a statement to Travel + Leisure. “Couple this with our industry-leading reliability and it’s no surprise over five million people have chosen to fly Avelo.” 

Tickets for the new routes are available on Avelo’s website. 

Avelo operates some flight routes from smaller, regional airports that are near a major city. For example, instead of operating from Orlando International Airport in Florida, the airline operates from Lakeland, FL, which is one hour southwest of Orlando International Airport, but still provides an accessible option for families looking to visit Orlando’s theme parks such as Walt Disney World, Universal Orlando Resort, or SeaWorld. 

From the airline’s hub in Orlando-Lakeland, FL, the airline will add bi-weekly service to Boston-Manchester, Charlotte-Concord, Philadelphia-Wilmington, and San Juan, Puerto Rico. The airline will also expand routes from its Hartford hub, where Avelo will add bi-weekly service to Charlotte-Concord, Daytona Beach, Houston (Hobby), Orlando-Lakeland, and Wilmington, North Carolina.

For those not familiar, Avelo Airlines is a relatively new low-cost airline that was founded in 2021. The airline operates a fleet of 16 Boeing 737-700 and Boeing 737-800. Avelo frequently touts their on-time performance, and low cancellation rate, which is currently the best in the industry as ranked by the US Department of Transportation, and data firm Anuvu, respectively. 

If you’re looking to reduce stress, you might want to consider taking a camping trip. A survey of campers by Campspot found that 93 percent of campers felt more relaxed after a camping trip versus another kind of vacation.

Campspot has fittingly put together a list of the calmest camping spots in America, weighing factors like campground density (that is, how many campgrounds are in the area, not how crowded they are!), the ratings of campgrounds, the price of campgrounds, campground amenities and proximity to water and dark sky parks. Crunching all that data, the best place for a calming “camp-cation” is Ashland, New Hampshire.

Located about 90 minutes north of Boston, Ashland is the gateway to New Hampshire’s Lake Region, with a small downtown for provisions and 12 campgrounds (available via Campspot) within 25 miles. The immediate area is known for its various hiking trails and the Little Squam Lake and Squam Lake, where you’ll find the Squam Lakes Natural Science Center, which offers wildlife cruises on the lake. White Mountain National Forest, home to Mt. Washington, the tallest mountain in the Northeast, is just a 30-minute drive from Ashland, and it’s a perfect spot for stargazing.

Need some more camping inspiration? Check out the top 10 destinations from Campspot’s ranking below.

1. Ashland, New Hampshire
2. Auburn, Maine
3. Grand Rapids, Michigan
4. Rehoboth Beach, Delaware
5. Knoxville, Tennessee
6. Port Aransas, Texas
7. New Braunfels, Texas
8. Wisconsin Dells, Wisconsin
9. Lake George, New York
10. Navarre, Florida

As part of the research, Campspot also looked into what makes campers feel relaxed. The most important element is fresh air, followed by natural water features and a clear view of the night sky. Interestingly, Campspot reports that “91 percent of campers wanted access to the internet of some kind,” with one in three campers saying “internet access at a campground is a contributing factor to a feeling of relaxation.” 

Well, there’s always airplane mode if you want to pretend to be off the grid!

It’s been whispered about for months, but now it’s official. After more than 50 years, Southwest Airlines is doing away with one of its signature policies — open seating. 

While the airline has not announced when the new assigned seating process will roll out, it confirmed the news in a press release shared on Thursday that in addition to assigning seats, premium seating with extra legroom will be introduced.

Premium seating options are one of the most significant sources of revenue for Southwest’s competitors, and critics of the airline’s financial performance argued it needed to evolve given the softness of domestic air prices. Roughly a third of seats on planes will have the premium, extra-legroom setup, the airline said.

Plus, Southwest noted in the release that “80 percent of Southwest customers, and 86 percent of potential customers, prefer an assigned seat,” admitting that, “when a customer elects to stop flying with Southwest and chooses a competitor, open seating is cited as the number one reason for the change.”

In addition to a shift in its seating policy, it was also announced Thursday that it is introducing red-eye flights for the first time, which will launch in February.

Booking is now available on the following overnight routes: Las Vegas to Baltimore and Orlando, Los Angeles to Baltimore and Nashville, and Phoenix to Baltimore. Southwest mentioned it will be adding more of these routes in the coming year.

The major update comes months the airline’s Chief Commercial Officer Ryan Green confirmed that overnight flights were in the carrier’s future.

“We have the aircraft, it’s a great way to use an asset that you already have and use it more productively which means more hours in the day,” Jordan said in March. “So, we will be doing red-eyes.”

While weather-related travel delays are typically saved for the winter, the summer’s record-high heat is sparking potential disruptions around the country on Amtrak.

“High temperatures during warmer summer months can impact Amtrak operations. Extreme heat can cause rail, bridge and overhead wires to expand,” Amtrak shared in an advisory this week. “As a precautionary approach, Amtrak may enact heat restrictions which require locomotive engineers to operate trains at lower speeds and can result in possible delays.”

As delays occur the rail line’s accounts for its specific routes, including the Northeast Regional Line, posts announcements on X as to what travelers need to know.

In addition to social media posts, the train service also advises passengers to subscribe to its Delay Alerts when booking train travel, as it will be the fastest way to know if a train is impacted by heat, or other delays.

Amtrak’s website and mobile app will also keep customers informed of a train’s status and timing. When notifying passengers, Amtrak will share that the train is delayed due to “heat-related speed restrictions”. 

“Extreme temperature variations pose challenges to steel railroad tracks. As climate change brings higher temperatures to various regions,” the Association of American Railroads shared. The industry association says that there is investment in new technology for rail lines that could help prevent future slowdowns from the heat and sun. 

Train travel is on the rise, with over 28 million passengers taking a trip on Amtrak in 2023, which is a 24 percent increase versus 2022. Amtrak recommends booking tickets as early as possible to get the lowest prices, and passengers can book up to 11 months in advance. 

Everyone’s on the hunt for the next hidden gem. And according to Tripadvisor reviewers, the next big thing is hiding in the Pacific Northwest. 

In July, Places to Travel dropped its new study that aimed to uncover all the coolest hidden gems that are gaining traction around the United States. To find them, the team analyzed TripAdvisor’s “hidden gems” lists in every state to compile more than 2,700 U.S. destinations. Then, it narrowed destinations to those with 100 to 1,000 reviews and a rating of at least four stars. It cross-referenced this list with search volume data using the Google Keyword Planner to uncover which places had the highest number of average Google searches per month. The team added the caveat that while “some locations may be known, especially to locals, the hidden gems on this list relate more to less-visited tourist spots.” 

After looking at all the information, the team named Crater Lake in Oregon the most popular hidden gem destination of the summer, with an average of over 182,100 monthly searches on Google. It added that Crater Lake also has more than 500 Tripadvisor reviews and a 5-star rating. 

“The scenic blue lake is in the state’s southwestern region and was formed approximately 7,700 years ago,” the findings noted. “Globally, the lake is the tenth deepest in the world and claims the top for depth in the U.S. There is plenty to do around the lake, including hikes, fishing, and even skiing.” 

Following closely behind Crater Lake is another water-centric stop, Havasu Falls in Arizona, which took second place thanks to its more than 147,800 monthly searches and 4.5 average star rating on Tripadvisor. As the team added, 429 out of 539 reviews rate the destination as “excellent.” 

Joining these spots at the top of the list is Roosevelt Island in New York City in third with 199,500 monthly searches, followed by California’s Pinnacles National Park in fourth with 92,200 average monthly searches, and Morton Arboretum in Illinois rounding out the top five with 88,000 monthly searches. Detroit’s Eastern Market comes in sixth, followed by Discovery Park in Seattle, Descanso Gardens in California, Fall Creek Falls in Tennessee, and Cuyahoga Valley National Park in Ohio at the No. 10 spot, proving there are hidden gems sprinkled all over the nation just waiting for to explore. 

I love using points and miles to travel the world. Not only does it allow me to see the world more often, but I can stay in luxury hotels and take business-class flights for a small out-of-pocket cost.

My mom turned 70 in June, and I wanted to do something special for her. She’d only been to Europe once and had never flown business class, so the answer was obvious: I needed to plan a mother-daughter trip to Europe.

Using points and miles, I was able to book business-class flights to and from Europe, three nights in London, and four nights in Paris. Earning enough points for a trip like this takes a bit of organization and planning, but it’s worth it. Here’s how I did it.

Booking Flights to Europe With Airline Miles

Many travelers dream of flying in business class, and using airline miles is a fantastic way to make that a reality. It can take a bit of knowledge (and luck) to find reasonably priced award tickets in business class, but if you don’t mind flying in economy or premium economy, it’s much easier to snag good options.

United Polaris Business Class to London

For this trip, I planned to fly into London. I considered a few options, including booking Air France through Virgin Atlantic (both are part of the SkyTeam alliance) from New York’s John F. Kennedy International Airport (JFK) to London Heathrow (LHR) for 75,000 points plus $210 in taxes and fees. This wasn’t a bad choice, but I also found availability on American Airlines from JFK to LHR for 72,000 AAdvantage miles and only $5.60 in taxes and fees, so I opted for the latter.

However, I kept my eyes open for better deals just in case (American Airlines allows you to cancel award flights without penalty).

I set up an alert on a tool called Seats.aero for business-class flights with low taxes on the two dates I could fly. A couple of weeks later, I got an alert for United Polaris business-class flights from Newark Liberty International Airport (EWR) to LHR available through Air Canada for just 60,000 Aeroplan points plus $56. (Air Canada and United are both members of the Star Alliance, so you can book flights on one airline with miles from the other.)

Even better, I was able to add the segment from my home airport, John Glenn Columbus International Airport (CMH) to EWR for no extra charge. I immediately transferred points from American Express Membership Rewards to Air Canada (these points transfer at a 1:1 ratio) to book.

One key to booking great flights like this is having transferable points, like American Express Membership Rewards or Chase Ultimate Rewards. I use credit cards to earn points for these programs, which allows me to access their hotel or airline partners at any time. This strategy offers much more flexibility than focusing on just earning miles for a specific airline program.

Air France Business Class From Paris

After three nights in London, we planned to take the Eurostar to Paris, so I needed to book flights home from there. Flights between the U.S. and Europe were available for as low as 50,000 points in business class through Air France-KLM Flying Blue, so that’s where I looked first.

I found a flight from Paris Charles de Gaulle Airport (CDG) to JFK for 50,000 Flying Blue miles plus $381 in taxes and fees. For this redemption, I transferred points from American Express Membership Rewards to Flying Blue at a 1:1 ratio. I like using Flying Blue because it’s easy to get points (all of the major transferable points currencies partner with this program).

Since this award flight only took me to JFK, I needed a flight from there back to my home airport in Columbus. 

I booked first-class tickets on Delta Air Lines for 27,500 Delta SkyMiles plus $5.60 in taxes and fees each. That’s actually a lot of points for a one-way domestic flight, but the cash rates were high, too, so I still got good value from my miles.

I opted for first class instead of economy for two main reasons. First, since I don’t have Delta elite status or a Delta credit card, I wouldn’t get a good boarding group flying in economy, which means overhead bin space could run out before I got on the plane. Second, the first-class price was just 9,500 miles more than the economy ticket. Considering I had about 160,000 Delta miles sitting in my account, this seemed like a good time to spend them.

On top of that, I thought my mom would enjoy a more comfortable seat after a long trip from Paris.

Booking Hotels in Europe With Points

I love booking luxury hotels with points, and my favorite program is World of Hyatt. Over the years, I’ve gotten excellent value from my Hyatt points at fantastic hotels, including Miraval Arizona, Park Hyatt Paris-Vendôme, Andaz Amsterdam Prinsengracht, Hyatt Ziva Cap Cana, Andaz Costa Rica Resort at Peninsula Papagayo, and Park Hyatt Zurich, among others.

I currently have top-tier Hyatt Globalist status, which includes benefits like a room upgrade (when available) and free breakfast. Because of that, I only considered Hyatt hotels for this trip.

The cash cost of my seven nights in Europe would have been $3,845.44 had I not used Hyatt points. While that’s actually pretty reasonable, I paid $0 out of pocket.

Andaz London Liverpool Street

I love the Andaz brand, so when I saw availability at Andaz London Liverpool Street, I booked it immediately. I paid 79,000 Hyatt points for three nights (the cash cost would have been $1,524.36). There are no taxes or fees when booking Hyatt hotels with points, so I didn’t have any out-of-pocket costs.

Those with Globalist status like me are able to take advantage of early check-in, late checkout, a room upgrade at check-in (if available), and free breakfast. Even better, I was able to apply a Hyatt suite upgrade award, which means I could confirm a suite ahead of time. To be able to apply one of these suite upgrade awards, which can be earned as Milestone Rewards in the World of Hyatt program, a standard suite needs to be available.

I earn Hyatt points in a few ways. First, I have the World of Hyatt credit card, which earns four points per dollar on Hyatt purchases and two points per dollar in categories like dining, local transit, and gym memberships. However, I get most of my Hyatt points by transferring them over at a 1:1 ratio from Chase Ultimate Rewards. Between credit card welcome bonuses and strategic spending on Chase credit cards, like the Chase Sapphire Reserve, I earn hundreds of thousands of points each year.

Hôtel du Louvre

I visited Paris a few months ago and stayed at the Park Hyatt Paris-Vendôme. And while I enjoyed my stay, I wanted to try something different this time. I chose Hôtel du Louvre, part of The Unbound Collection by Hyatt because of its excellent location right next to the famed museum.

I paid 120,000 Hyatt points for four nights (the cash cost would have been $2,321.08). Hyatt Globalists can enjoy a free daily breakfast at both hotels. This is the most valuable benefit of Globalist status, in my opinion, as it can save hundreds of dollars on a trip like this.

Tips for Booking Trips With Points and Miles

Booking flights and hotels with points and miles is a huge topic, with several approaches and intricacies (yes, you’ll probably make mistakes along the way, but that’s OK). I’ve been using points to travel for almost a decade and have picked up quite a few bits of wisdom over the years. Here’s my best advice if you’d like to book a trip like this to Europe, or anywhere in the world, using points and miles.

• Focus on earning transferable points. There are many programs, but the most important ones are American Express Membership Rewards, Chase Ultimate Rewards, Capital One miles, and Citi ThankYou points. 
• Be flexible. Traditionally, you decide where and when you want to travel first and then search for flights and hotels. While that’s still possible when using points and miles, you’ll often find better deals if you reverse this order. Find the award availability first and plan your trip around that. It can be a fun way to discover a destination or hotel you hadn’t previously considered.
• When searching for flights you can book with miles, you’ll find more availability for economy and premium economy tickets than business-class or first-class fares. This is especially true when booking multiple tickets.
• When looking for award flights, search for routes from larger hub airports. While you’ll sometimes find availability from your home airport (like I did for my flights to London), more often than not, you’ll need to book your award flight to/from a major airport and then book a separate flight to/from your home airport (as was the case for my flight from Paris).

Over the years, I’ve learned that you need some flexibility to get the best deals, and it’s essential to understand how you like to travel. Knowing what’s important to you helps you make good decisions at redemption time. (Ask yourself whether you want to splurge on business-class flights or save your points and book a cheap economy ticket, for example.) I’m partial to spending my points on luxury travel, so it was awesome to put together this trip to Europe for my mom’s birthday.