Greetings, and welcome to the Travel + Leisure third quarter 2024 earnings call. This time, all participants will be in listen-only mode. A question-and-answer session will follow the formal presentation. If anybody today should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce Jill Greer on Investor Relations. Ms. Greer, you may now begin. Thanks, Rob. Good morning to everyone, and thanks for joining our third quarter call. With us this morning are Michael Brown, our President and Chief Executive Officer, and Mike Hug, our Chief Financial Officer. Michael will provide an overview of our financial results and our longer-term growth strategy, and Mike will then provide greater detail on the quarter, our balance sheet, and the outlook for the rest of the year. Following our prepared remarks, we'll open the call up for questions. We ask the analysts to keep to one question and a brief follow-up. Before we begin, we'd like to remind you that our discussions today will include forward-looking statements. Actual results could differ materially from those indicated in the forward-looking statements, and the forward-looking statements made today are effective only as of today. We undertake no obligation to publicly update or revise those statements. The factors that could cause actual results to differ are discussed in our SEC filings and in our earnings press release. You can find a reconciliation of non-GAAP financial measures discussed on today's call in the earnings press release available on our investor relations website. Finally, all comparisons today are to the same period of the prior year, unless specifically stated. With that, I'm pleased to turn the call over to Michael. Good morning, and thank you for joining us today for our Q3 earnings report. Before I share our results for the quarter, I'd like to recognize our associates for all their efforts through Hurricanes Helene and Milton and the wildfires in California. Safety is our top priority, and I want to personally extend my thanks to our associates for their professionalism and dedication in taking care of our owners and each other during these devastating events. Our third quarter results show that we are executing against our key priorities for the year and that demand for our products remains solid. We produced strong volume per guest, a healthy 24.4% adjusted EBITDA margin, and over $150 million of adjusted free cash flow. Our adjusted EBITDA of $242 million was above the midpoint of our guidance range. We see good momentum in our vacation ownership business, and we're especially pleased with our VPG performance, which remains consistently above $3,000, even during our peak new owner mix quarters. VPG was at the high end of our expectations, with especially strong performance from existing owners, further evidence that customers continue to value their ownership. We are nearly 30% above 2019 VPG levels, reflecting the premium owners place on the consistency, value, and flexibility of our product. It is also a reflection of the increased FICO standards that we established in 2020. Our average FICO on originations has increased from 725 to 742 over the past four years, and the portion of our portfolio that is under 640 FICO has decreased in the same time frame. One of our priorities has been to grow our new owner mix to the mid-30s. New owner sales drive long-term benefit and provide a consistent source of future revenue potential. In the short term, however, a higher new owner mix puts pressure on VPGs. Having achieved a new owner mix above 35% in each quarter this year, we expect the mix pressure to be minimal going forward as we maintain our new owner mix in the mid to high 30s. New owners drive future gross VOI sales through upgrades of their initial purchase and typically spend an additional 2.6 times their purchase amount. This is in addition to revenues from financing, property management, and exchange fees. With an embedded revenue potential of over 19 billion over the next decade, our work to drive a higher new owner base gives us continued confidence in our long-term model. The momentum with VPG is a sign that our team is executing well on our growth initiatives and that our product appeals to our target market. Over the past several years, we have seen a number of trends in our owner base that bode well for future growth. First, the average age of our owners is now in their mid-50s, as an increasing amount of sales are to Gen X, Millennials, and younger generations. This age has been steadily decreasing as our average new owner age is close to 50 years old. Second, our disciplined approach to tour generation has improved the underlying credit quality in our loan portfolio. We believe our combination of average origination FICO and sub -600 portfolio loans is the best in the industry. Finally, travel continues to be an integral part of the experience economy. While our top destinations are in Florida, we're also seeing growth in parks and other family-friendly locations like Washington, D.C., the Pacific Northwest, and the Smoky Mountains. Looking ahead, our vacation ownership business has a solid foundation for long-term growth. Our multi-brand strategy is unique in the industry and is the path to driving consistent growth going forward in the vacation ownership business. With a broad geographic footprint and a variety of ownership options, we expect to expand our share by meeting the vacation travel needs of a wide range of consumers.... We have been very pleased with the progress on the Accor Vacation Club integration, which has allowed us to achieve our initial targets ahead of schedule. We have four sales sites reopened and fully staffed, with more sites expected by the end of the year. Accor has delivered more than $3 million in Adjusted EBITDA year to date, and we expect Accor growth will accelerate next year. Turning to Travel and Membership, as you know, this part of our business is in the midst of a transformation. As the vacation ownership industry is consolidated and the points-based product has become more standard, we have seen pressure on exchange volumes. During the quarter, we took another step forward in our transformation with necessary steps to resize our footprint. Across the industry, developers are now fewer in number, but larger in size. Going forward, we believe we can serve them with higher quality and better efficiency through a more targeted approach. Our focus on higher margin transactions is playing out, and we were pleased with the quarter's EBITDA, which was just above the high end of our guidance range. To summarize, the business is performing well, and our teams continue to raise the bar on execution. We have already begun setting our plans for 2025. We expect the momentum in our vacation ownership business to continue, having achieved our targeted new owner mix, the ramping up of Accor sales, and easing of interest rate headwinds. We also expect further progress on our Travel and Membership transformation to allow that segment to stabilize. Longer term, we expect Sports Illustrated, interest rates, and our new owner pipeline to provide catalysts for our growth in 2026 and beyond. And now, I'll turn the call over to Mike to walk through the quarter in more detail. Mike? Thanks, Michael. Overall, we had a solid third quarter, driven by strong VPG performance. That VPG, combined with our disciplined cost management, offset most of the $14 million headwind from higher interest rates and variable compensation. As a result, our adjusted EBITDA declined slightly year over year to $242 million. Importantly, our 24.4% adjusted EBITDA margin shows the resiliency of our business to overcome headwinds and consistently produce margins in the mid-20s. We had adjusted net income of $110 million, or $1.57 per share. Our adjusted EPS growth reflects the benefits of our consistent capital allocation strategy, which sees us regularly in the market repurchasing shares. With regard to the segment results, for the vacation ownership business, revenues increased 2% with gross VOI sales of $606 million. We maintained good tour growth, with tours up over 4% and new owner tours up 9%. While higher year over year, the growth was modestly off our expectations. The shortfall primarily came in new owner tours in Las Vegas, consistent with broader gaming industry weakness noted in that market over the summer. We expect tour growth to accelerate sequentially in the fourth quarter. In the quarter, our Blue Thread partnership with Wyndham Hotels produced 8% of our new owner tours, which came with a VPG more than 20% higher than other new owner channels. Our package pipeline, along with our partnerships with Allegiant and Live Nation, are still in the early stages, but should provide more channels to drive future tour growth. The financial strength of our consumer remains solid, and trends in our loan portfolio are stable. Importantly, as we progressed through the quarter, we didn't see anything in those trends that would cause us to change our guidance. The sequential increase in the provision between the second and third quarters was in line with normal seasonality and consistent with our expectation that the provision will be around 20% for the full year. On the Travel and Membership side, our Adjusted EBITDA for the quarter was flat on a 3% decline in revenue. As Michael laid out earlier, we believe the steps we're taking in this segment to improve our revenue per transaction, at the same time, streamline our cost structure, are putting a strong foundation in place to continue to generate high margins and cash flows. For the fourth quarter, we are forecasting Adjusted EBITDA overall to be $240-$260 million. This guidance is in line with the full year guidance that we gave on our last call and higher than our expectations at the start of the year. For the Travel and Membership segment, we expect Adjusted EBITDA to be $45 million-$50 million for the fourth quarter. Turning to the balance sheet and cash flow, last week, we closed our third ABS transaction of the year, securing $325 million at a rate of 5.2% and a 98% advance rate. The interest rate and advance rate are both improvements over our July securitization and are the best levels we've seen in over two years. The fact that we have been able to consistently access the ABS markets through a variety of economic conditions is a reflection of the market's confidence in the resiliency of our business. With the improved rates that we are achieving with our ABS transactions, we expect the interest rate headwinds to flatten in the coming quarters and to turn to a tailwind as we exit 2025, providing benefits to both EBITDA and free cash flow. We ended the quarter with just under 3.4 times leverage, and we expect to be at that level at the end of the year. We generated $154 million of adjusted free cash flow in the quarter and continue to expect our adjusted EBITDA to free cash flow conversion for the full year to be in the neighborhood of 50%. Longer term, we see a path to moving that conversion percentage higher through lower cash interest and reduction in the inventory levels held on our balance sheet. We have a proven track record of being very shareholder-focused with our capital allocation. During the quarter, we returned $105 million to our shareholders through dividends and share buybacks. With $70 million of repurchases in the quarter, we bought back 2.25% of the outstanding shares in the company, consistent with our average annual rate of about 10%. I'll close by thanking the entire Travel + Leisure team for the work so far this year in delivering great results for our shareholders and our owners. With that, Rob, could you please open up the call for questions? Sure. Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove yourself from the queue. For participants that are using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Thank you. And our first question is from the line of Ian Zaffino with Oppenheimer. Please proceed with your questions. Hi, great. Thank you very much. Good, good quarter. Thanks, Ian. Can you guys maybe touch upon what you're seeing on, you know, the lower-end consumer or anything you're seeing there? I know you kind of have been focused on, you know, taking up FICO scores. I guess we haven't really seen the recession or anything like that. You know, what are you now taking on FICO scores as far as, like, is there a chance to maybe lower them again to, you know, grow, grow volumes? Or, you know, are you kind of sitting here still, you know, with higher FICO scores and, and maybe any other comments there? Thanks. Yeah, sure. Thanks for the question, Ian. So as far as the, the lower-end consumer, that's really, as we talked about last quarter, where we're seeing most of the pressure in the portfolio. I don't expect that on the new owner side, we'll adjust our FICO, in the near term. We're very happy with the credit quality we're generating. We're, you know, when we look at how the portfolio performed, it performed how we expected in the quarter. Delinquencies, they usually get worse from, Q2 to Q3, did move, in that direction unfavorably, but not as unfavorably as they usually do. So that's why we feel the, you know, portfolio has kind of stabilized, if you will, as far as, you know, how it's moving. We're, we're happy with that trend. So very happy with the quality we're generating. On the owner side, that's really where we had the opportunity. Keep in mind, FICO is a pretty blunt instrument, right? I mean, there's a lot of things that determine how people pay. So for example, if we had an owner who has a 630 FICO, has been paying for eight years and reduced their loan balance from $15,000 down to $2,000, never missed a payment on their loans or the dues, using the product, then you might think about, because you have other data, you know, go ahead and market to that owner, but we're comfortable with that owner because they're on auto pay and things like that. So that's what we're trying to do, is use more data, other than just FICO, where we had that data primarily on the owner side, to drive incremental tour flow. But, you know, pretty happy with how the portfolio performed. Obviously, the ABS transaction was another great execution with the best terms we've gotten in over two years. So overall, the business is solid. VPG is another indicator of the consumer. You know, we're at the high end of our range for the quarter, so, consumer seems pretty steady, watching the low-end like we always are, and because of that, especially on the new owner side, I don't see us moving below that 640. Okay, thanks. And then if you maybe could, maybe focus on some M&A. Is there, you know, what are you kind of seeing out there? What's your appetite? I know you've been a little bit more active recently, but anything else out there or anything else that you're seeing that you'd be interested in? And then, you know, finally, I guess there was no real hurricane kind of call out by you guys, so seems like it's business as usual with Milton and Helene. Thanks. I think our commentary on M&A is consistent with what our commentary has always been, which is, we're always focused on our capital return. Our dividend is the base of that capital return. We evaluate the M&A landscape. We've consistently done that over the past few years. Obviously, the industry's consolidated, and we found unique opportunities through Accor, the acquisition of Travel and Leisure. Not necessarily maybe what everyone would always think these are the limited number of M&A opportunities out there. We'll continue to evaluate, and in the absence of that, we'll do what we've done the last two quarters, which is return about $70 million of capital in the form of share buybacks. With another $30 million in dividend in the quarter as well. Yeah. So total, right, we're in that $100 million range as far as capital allocation, return to shareholders. And then, Ian, you had a second part to that question. Can you just repeat that, please? Yeah, the- Oh, the hurricanes. We didn't really hear a whole lot with the hurricanes, so. Yeah. So as I mentioned in our remarks, that both the hurricanes came up the West Coast of Florida, where, you know, our Clearwater resort, even today, although it, it's finally reopened, has still, you know, Tampa and Clearwater has sustained a tremendous amount of damage. Helene moved up and modestly affected our Atlanta property, but our two properties in North Carolina took weeks. One's reopened and one has not. So we didn't call it out, but it's definitely Helene really affected from south to north, up into North Carolina, whereas Milton affected west to east, coming across Central Florida and briefly shutting our sales galleries and our resorts, and then even affecting our Daytona property. You know, not that it affected the operations in California, but you know, the wildfires were within six miles of one of our resorts there. So it was a tough September and October. We hope it's over, but no, the results we mentioned did not call out the hurricanes or the wildfires as far as adjustments to the numbers, but they did affect the bottom line results. I would point out that the reason the resorts were closed were not because of significant damage to the resorts, primarily due to the infrastructure, right? When you think of North Carolina, some of the rural areas where we've got a couple of older resorts, those resorts are in good shape. It's just that the infrastructure there is a little challenged, and then the same thing over on the West Coast with St. Pete and Tampa. So our resorts came through it in fairly good shape from a damage standpoint. So the closures are primarily, in most cases, just due to what's going on with the infrastructure in those markets. Okay. You know, just one more. I wanted to just stay on this real second, and then I'll let someone else hop on. Sorry. And then was there any impact on, like, tour volumes or anything like that? Because a lot of airports were closed there. And I guess if there was a financial impact, can you kind of call out maybe what it was? Yeah. There were definitely tour impacts because we closed resorts, and with owners not arriving, it affected arrivals and tour impact. And I would say volume, approximately about $5 million of volume that it cost us, so some EBITDA, some volume. But again, we felt, given the limited nature of the financial impact, we didn't wanna call that out or need to call it out. Right. I mean, right, still hit the midpoint, a little bit above the midpoint of the quarter, holding the full year. So great quarter by the business, and would also point out, you know, the other fact that we've always talked about is diversity of our locations. Gives us protection when something like this happens, right? Being able to not have a single market or just really just one market that's over 10% allows us, when we do have a slight disruption in one of our markets, Florida, if you will, we're able to, you know, basically make it up through other operations in the business. So I think it's just once again a proof point as to the resiliency of the business and the value we get from having diverse sales locations. Yeah, and Ian, Milton came in October, and Helene was in September. Okay, great. Thank you so much. Really appreciate it. Thanks, Ian. Thank you. The next question is from the line of Joe Greff with J.P. Morgan. Please proceed with your questions. Good morning, everybody. Two relatively quick ones on vacation ownership. Anywhere in the, I guess, the sub-700 FICO score band spectrum, are you doing anything in terms of implementing any higher down payments? And then, my second question is, you mentioned earlier that in the three Q new owner tours or tours in Las Vegas were weaker. Can you talk about what you're seeing or what you anticipate here in the fourth Q? Sure. Thanks, Joe. This is Mike Brown. Yeah, we saw, I think like everyone saw in Q3, gaming was a little weaker in Las Vegas, and we saw that come through in our new owner tour flow. As Mike Hug mentioned in his remarks, he mentioned that we expect a re-acceleration of tour growth in Q4. So I think as we finish the year out and look backwards, it feels like throughout this year, all the questions, every one of the quarterly calls has been: Where's the weakness in the consumer? I think when we look back at the end of this year, we're gonna turn back around and say, our VPG was above our expectation. Our tour growth was right around 10%, which is what we said at the beginning of the year. Our new owner tour growth was above 15%, which is what we said at the beginning of the year, and we've raised our guidance, and our portfolio was increased by 100 basis points on our last call. So although the poking and prodding around the strength of the consumer has been consistent this year, when you look at our full year, we're pretty confident that you're gonna be able to say the consumer performed at or above our expectation for 2024, and we've put ourselves in a really good position to open 2025. I think as it relates to the portfolio and down payments in Q4, Mike, you wanna just touch on that? Yeah. It's a great question, Joe, and you're spot on. We will be looking potentially for higher down payment levels at the sales table to provide us protection kind of on the portfolio risk, if you will. But overall, you know, I don't know that we're gonna say, "Hey, it's gotta be just below 700 FICO." We'll probably look for higher down payments across the board. But the portfolio, as I mentioned, is kind of right in line where we expected. Default levels are a little elevated, but didn't get any worse in the quarter. So pretty happy with the way the portfolio performed. I touched on the ABS transaction, so overall, you know, happy with the way the consumer, whether it's VPG or whether it was portfolio, performed through the quarter and, third quarter, and we will look for a little bit higher down payments potentially in Q4 from some customers. Great. Thank you. Thanks, Joe. Our next questions are from the line of Chris Woronka with Deutsche Bank. Please proceed with your questions. Hey, good morning, guys. So I was hoping we could first maybe drill down on the close rates a little bit, right? And I know that those would naturally kind of be lower as you intentionally kind of focused on more of a higher new owner mix. But I'm curious, you know, when a new would-be first-timer comes in, takes the tour, doesn't buy, is there any, you know, feedback you're collecting or research you're doing? What are the, you know, top few reasons they're giving? Is it cost or something else? And has that, you know, in your view, changed much in the past few quarters? Few years? Let's just touch on that, as the year has progressed, we haven't seen much modulation in our close rates between owners and new owners. You know, they go up and down every quarter a little bit, but there's nothing that's really stood out to us as it relates to close rates. And especially given how our VPG has held up, it's really a reflection of consistent close rates throughout this year. What I would say as far as consumer feedback is, our close rates were higher about two years ago as we came out of COVID, and as hotel rates really rose, the value that we've always presented that is inherent in owning a timeshare was as apparent as it's ever been. As we've moved further away from COVID and close rates have come back to where they have sort of consistently stayed, but noticeably above pre-COVID, it's really an affordability and value equation that we see in the consumer, and what they're evaluating today, again, with higher close rates than we had pre-COVID, is that more space, really good value, and high flexibility in their ownership, and the way that we like to really measure that is retention, and seven out of eight of our owners have fully paid off their timeshare loan, and we have a 98% retention rate on those consumers, so it's a bit expanded explanation, but it really comes... There needs to be value, flexibility, and affordability at the sales table, and that's what's led to our increased close rate since pre-COVID, along with the stronger consumer, FICO-wise. Okay. Yeah, appreciate all the perspectives, Michael. And then as a follow-up, and this is really more of a multi-year question, doesn't relate to, you know, Q3, Q4, 2024, 2025. As we think about inventory over time, and really just wanna ask, is the mix of kind of your, you know, your inventory recapture or repurchase, do you expect that to kind of remain stable or move up over time? And maybe just remind us of, you know, where you see yourselves on inventory spend, again, kind of on an average, you kn ow, say, three to five year basis looking forward. Thanks. Yeah. Chris, this is Mike Hug. As it relates to the inventory, we do expect the recapture to be pretty consistent. Our total inventory spend on an annual basis is around $100 million, $50-$60 million of that is, you know, buybacks from owners, HOAs off the resale market. The other, you know, $40 million is roughly for our international business. When we look at our domestic business, which is 90% of the business, that's, we've got enough inventory for the next four years for that business. We've talked about that just as far as how the inventory built up through COVID and things like that. So in a good spot as it relates to the inventory on the balance sheet for the current business. What you will see is as we continue to further develop SI, you will see that inventory spend go up a little bit over the next couple of years, potentially. But obviously, that comes with incremental revenues as we start to ramp up the SI marketing channels and things like that. But for the core business we have today, $100 million of inventory spend, about half is recapture, the other half is for the international business, which normally carries about six to nine months of inventory. Okay, very helpful. Thanks, guys. Sure. Thank you. Our next questions are from the line of David Katz with Jefferies. Please proceed with your questions. Hi. Morning, everybody. Thanks for taking my question. You know, I know there was some discussion about the most recent Hurricane, but I wanted to just get your thoughts in a bigger, broader way, because it does seem as though we're having, you know, major weather events, you know, on a regular basis, right? So the sort of recurring, non-recurring events seem to be a thing. How do you think about that? How do you think about working that into your marketing approach? And, you know, how do you deal with that on a customer level? You know, there's no profound evidence, but, you know, do you see any signs of evidence, you know, anywhere in the model for the weather impacting people's decision to buy and travel, et cetera? Well, it's a great question, and you know, it comes back to something we've spoken about over quarters and years, which is diversity of our geography makes a big, big difference. You know, the path of Hurricanes usually catches, no matter where it comes, our resorts. And that's not just in the U.S., but in the Asia Pacific region. But having diversity and a lack of over-reliance on a particular market really mutes the impact of what an individual disaster can create. We've seen over past years that when the path isn't right, it's meaningful to a quarter. And look, it wasn't material to this quarter, but it did have an impact. But again, I think it comes back to our diversity of resort locations around the world, that people have other options. And obviously, we look to re-accommodate them whenever there's arrival challenges. We still want them to be able to get to another location, enjoy their vacation. I think a real benefit that we offer as well is that coming back to the value equation is the cost of vacation ownership ongoing is very important to all owners, and especially with our Florida Resorts, insurance is a very important component of that in maintaining affordable maintenance fees on an annual basis. And our finance team and our risk management team has done a world-class job in having great insurance rates that we can pass along to our HOAs to keep their vacations affordable and still keep going to great locations in Florida and the Caribbean that are impacted by Hurricanes. So it's a combination of diversity and, you know, having buying power with insurance companies to keep running costs down. Perfect. And as my follow-up, I just wanted to talk about something we almost never do, which is the sales force. You know, what are you sort of seeing, doing and, you know, applying within your sales forces, getting the execution that, you know, you've been having, right? There are other areas in the industry where execution has been kind of a point of discussion. You know, is there sort of any, you know, leadership changes or, you know, any management changes or anything, you know, we can talk about there that sort of highlights the strong execution? And that's it for me. Thanks. Yeah. So, well, let's proactively dispel a question that is inherent in that is, the tools that the team have as far as price discounts or things of that nature to drive performance. We haven't deployed any of those. Our team has sold with prices. Even through COVID, we didn't discount pricing. So it really comes down to the talent and quality of our sales force, starting with their leadership. The leadership team is incredibly solid, consistent, dynamic in the sense that they don't get dealt month in and month out with a set of variables. They're changing every month, depending on the company's needs, depending on the consumer needs, yet they continue to perform. Because, again, the leadership is dynamic and very quick to react to what's going on in the marketplace, and the sales team obviously follows the leadership in that direction. What I would say is that part of the move to the quality of the consumer, that we've moved upmarket, and I think it shouldn't be lost on people that our FICOs have gone from 725 to 742. That means a tighter sales force that sees more tours and with volume per guest over approximately 30% pre-COVID, the sales force as well can be more efficient in their earning by having tours that are generating a higher VPG. So it starts with great leadership. It starts with the right culture of being reactive to the environment, but it ends with, I think, a strategy that rewards our best salespeople, rewards a sales organization that gets people on vacation and satisfied at higher levels. And I would say the sales satisfaction scores have increased tremendously over the last five years, which is a credit, not only to their ability to sell, but to also create a positive sales environment when someone takes a tour, whether they buy or don't buy. Understood. Thanks very much. Nice quarter. Thanks, David. Thanks for asking the question. That's. You're right, we don't talk about it enough, but without a great marketing and sales force, this business doesn't run. Yep. Okay. Our next questions are from the line of Ben Chaiken with Mizuho Securities. Please proceed with your questions. Hey, good morning. Thanks for taking my questions. There was a conversation around inventory earlier on the call, and I believe you were suggesting working that down to more appropriate levels, which makes sense and frankly, is common in the entire industry, I believe. This may not be specific to TNL, but do we need to start thinking about slight increases in cost of VOI as the mix of newly developed inventory becomes a larger portion of the mix versus where we stand today? Like, would you agree with that? And then are there any offsets you would consider? Again, we're kind of talking like long term, big picture. Thanks. Yeah. No, it, it's a great question, Ben. So for the core business that we have today, as I mentioned, right, four years of inventory on the balance sheet, so I would say a pretty long time before we have pressure on, cost of sales related to the core business we have today being, you know, the Club Wyndham product. Most of the inventory that we have today was procured or priced pre-COVID, so even though we did have some just-in-time transactions that got delivered in 2021 and 2022 and 2023, those prices were all pre-COVID prices. So that's the other reason that, you know, in the near term, wouldn't see a significant, pressure on cost of sales. When the outside starts to develop and come on over the next several years, we could see some cost of sales pressure there on that product. But keep in mind, that's, you know, when you're when you're doing $2 billion plus in VOI sales, as that ramps up, it's not a huge impact on the cost of sales. And when you think about, you know, when you get two, three, four years down the road, the tailwinds we have, we would expect over longer term, that provision to come back down to below 19%. We're already seeing, you know, clear signs that the interest rate, ... environment is going to become a tailwind in 2026. So like we always do, and then like you pointed out, we, you know, look at the overall business and try to manage all aspects of the business, whether it's our sales and marketing costs, whether it's our interest rates, whether it's our G&A, to try to make sure that we keep those margins into 23%-24%, which is what we've demonstrated our ability to do. And like I said, longer term, when we do get to higher inventory costs several years down the road, do feel we'll have some tailwinds to offset that and keep those margins in the 22%-23% range. Got it. Very helpful. And then kind of switching gears a little bit, can we talk about the progress you're making on Accor? We'll be curious where we stand and how you're thinking about the trajectory and opportunity of this business. I believe the path is to leverage the brand internationally, but just curious, any color here? Thanks. Yep, you're absolutely correct. It is, it's reopened in the Asia Pacific region. I was just visiting our resorts in Australia two weeks ago. Fantastic locations, great experiences, and our opportunity is absolutely to grow that internationally in both the South Pacific and in Asia, and we plan to do that. We're extremely pleased with the integration of Accor. You know, the first step is always create the synergies in the organization. That was accomplished in basically the first four months. And then the more important element is the revenue synergies, and those have already started to occur as we've reopened four sales galleries with plans to open more. We put a very modest target out there for the first nine months of this year, and we achieved it in the first six months. You know, it's small dollars, but it's indicative of how quickly the team has integrated and how well we've been able to really bring that brand on and now look to what's more important, which is growth, not only in sales, but in resorts for 2025. So very pleased with the progress of the first six months there. Just to sneak one more in there, is that, when you think about the longer term growth, is that kind of a newly developed inventory for that brand? And then, is there any way to open the Accor customers up to the broader TNL, or are those kind of like separate? So, to answer the second first is they're separate operations. That's the nature of running multi-brands, is you need to maintain separate operations for Accor and what other brands you have. As it relates to future development, Mike mentioned that our international operation really runs a pretty tight just-in-time operation. They have somewhere between six to nine months of inventory. So future development will be more than likely a combination of conversions and new build. But that team does a great job in the region of finding, you know, some incredible properties, and keeping that just-in-time model working really well. Thank you. Appreciate it. Our next question is from the line of Brandt Montour with Barclays. Please proceed with your questions. Hi, good morning, everybody. Thanks for taking my question, so I know we talked about the third quarter. I want to circle back on just one aspect of the third quarter. The gross VOI sales came in below the guidance you guys gave, and I think that, you know, the numbers you just said for hurricane volume impact wouldn't have bridged the total gap, so is there? It was Las Vegas, the rest of it. I mean, it seems like Las Vegas for you guys isn't that big of a market, so I'm just trying to bridge the gap for that one metric, if you could just help us with that. Las Vegas is one of our biggest markets beyond Florida. Florida is our biggest, and Las Vegas is second. And the leading cause of our gap was Las Vegas. And, you know, it's pretty well noted that their summer was weak and given that it was new owner tours to us, lines up pretty closely. There were a few other shortfalls. Yes, hurricane was in there, but wasn't, didn't bridge the gap. There were just some other small misses in our individual regions. Nothing that is repeatable or of concern. That's why, as Mike pointed out, we expect a reacceleration of tour growth in Q4, not a trend that will continue. I think when you really just pull back, though, and look at our Q3, tour growth was modestly below our expectation, but as you sort of come back and look at the full year again, we were very strong in the first two quarters of this year and maintained a 10%, you know, right around 10% tour growth for the year, and we put VPG guidance out, and as I mentioned on an earlier answer, when you look back on this full year, we will achieve our full year tour number, and our VPG is gonna be above what we said at the beginning of the year, so you know, definitely within our range. We think the 2024 numbers are gonna, despite all the volatility and concern around recessions and consumer weakness and all that, we, in hindsight, strongly believe we're gonna be able to turn around and say we delivered at the expectations we laid out at the beginning of the year, if not higher. But yeah, Q3 were just a bit off and primarily led by a market that more macro-wise suffered, and then had a few other small impacts in regions that none of which are material enough to call out. Got it. That's super helpful. And then, just a follow-up, broader question for you, Mike. You know, I know we're not talking about we can't give 2025 guidance at this point, but just talking about or thinking about the consumer and what you're seeing, you know, 2024 was the year of sort of normalization. We saw it across a number of different travel and leisure markets. When you think about next year, obviously, we're waiting on the election and things can evolve from here, but where do you think the consumer is gonna - how the consumer is gonna feel about travel in 2025? Well, yeah, you're right. It's a little early to say. What I would... I would flip that question around to, how do I feel about our business going into 2025? Because, my perspective on this year is that, and in, in the last two years, is that we've had a super hot market in 2022, and we've had a very choppy market in the middle of the year as far as uncertainty. And in both of those scenarios, we've consistently been able to deliver, vacations for people and owner occupancies remain high. So when we go into 2025, I, I do think the consumer, demand for our product will remain strong. Our underlying business model relies on bigger accommodation, a branded product with amenities, and high flexibility, and none of that changes for next year. You know, in a downturn, people might drive to our destinations more if the economy avoids a recession, which seems more and more the commentary. I don't have commentary on macroeconomic events, but if that's the case, then we're very well positioned. I think the two fundamental focus areas we have for next year is, number one, our core business of VO and travel and membership. Everything in those areas, I think we have our hands very steadily on the wheel. We're not overcommitted on inventory. You just heard that answer, and our interest rate headwinds have finally subsided, and you know, it looks like we'll be neutral to positive next year on interest rate movements. Then we have laid the seeds but are not overly reliant on two new businesses, the Accor Vacation Club and Sports Illustrated, which will start to pay dividends in 2026. So I think, you know, we're set up for a good 2025, no matter what the macro gives us, by having a solid core business and beginning to experiment with two new businesses. And the other thing I'll point out, when you think about our two biggest markets being Las Vegas and Central Florida, Universal announced that they're gonna open their Epic Universe in May of 2025. So, you know, that just reinforces the strength of the Central Florida market for next summer as people come to, you know, experience that great new resort. And then we talked about the softness in Las Vegas, but we all know that, you know, Las Vegas can move up and down, but it very seldom stays down for a long time. So, you know, if Vegas comes back a little bit, you know, our two biggest markets are in good shape. So, you know, when we think about where people travel to and where our markets are at, those are two that represent the biggest piece of our business, and especially with Epic Resorts opening, you know, that gives us a lot of confidence for Orlando. Great. Thanks, everybody. Thank you. Our final question is from the line of Patrick Scholes with Truist Securities. Please go ahead with your question. Hi, guys. Good morning. Mike, can you give us an update on Sports Illustrated? I'm curious, you know, where you stand sort of with your longer term expectations and vision for that? Correct me if I'm wrong, I think in the past, you've talked, you know, seeing that eventually $300-$500 million dollar business. You know, and if so, you know, what would be the timeframe on that? And again, I could be incorrect on those numbers. Thank you. Yes. So thanks for the question, Patrick. What we've talked about when we talk about the, the new brands that, you know, we're gonna be executing against is over time, those, to your point, become an, you know, a $300-$400 million business over the longer term. If you kind of look at, you know, what we were able to do with the Wyndham Blue Thread brand and the Blue Thread, kind of grew that, you know, $25 million a year, to get that up to, you know, currently over $100 million. So I think that, you know, when that business starts, we would expect to, you know, start in that. And of course, it's gonna depend on, you know, what time of the year we start sales, but I think that would be the cadence is, you know, 25-30 million a year, maybe a little more, but growing that over time to a $300 million a year business. So that's kind of how we think the math works, whether it's, you know, that brand or any other additional brands we might bring on over time. Okay, thank you. Sure. Thank you. Thanks, Patrick. Thank you. We've reached the end of our question and answer session. I'll hand the floor back to Mike Brown for closing remarks. Thank you. Our performance year to date shows that the business is performing well and that our team continues to set the bar for execution. We're getting ready to roll out a number of technology enhancements in the coming months to improve our owner experience and make it easier for them to enjoy a great vacation. We're producing solid financial results and cash flows and are delivering on our commitments to shareholders. So thanks again to everyone for joining us today, and we look forward to speaking to you throughout the quarter at conferences and on our fourth quarter call in February. Have a good day, everyone. This will conclude today's conference. You may disconnect your lines at this time. We thank you for your participation.