Financial Data and Key Metrics Changes - The company generated over $1 billion in revenue, $250 million in adjusted EBITDA, and $1.65 in adjusted earnings per share, all showing year-over-year increases [6][19] - Adjusted EBITDA grew 2% year-over-year, translating to a 4% adjusted EBITDA growth for the first half of the year [19] - The average FICO score of new originations is 746, reflecting a more than 20-point increase since the company updated its credit quality standards [10] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw revenue grow 6% to $853 million, driven by a 3% increase in tours and a VPG of $3,251, which is up 7% from last year [20] - The Travel and Membership segment's revenue was $166 million for the quarter, down 6% year-over-year, with adjusted EBITDA declining 11% to $55 million [22] Market Data and Key Metrics Changes - Demand remains strong across the core timeshare business, with tour growth improving sequentially from the first quarter and 3% compared to 2024 [7] - The company serves more than 800,000 owner families with an average tenure of 17 years, indicating a stable customer base [9] Company Strategy and Development Direction - The company is focused on growing its core vacation ownership business while leveraging data and technology to enhance customer experience [13] - New brand expansions include a new sales location in Nashville and the launch of the Accor Vacation Club in Asia, indicating a strategy of geographic expansion [14][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the health of consumers, with spending on leisure travel expected to grow mid-single digits per year over the next five years [7] - The company anticipates continued strength in the vacation ownership business, which is expected to cover any weakness in the travel and membership segment [26] Other Important Information - The company returned $107 million of adjusted free cash flow to shareholders during the quarter, with $37 million through dividends and $70 million in share repurchases [23] - The liquidity position remains strong, ending the quarter with over $800 million, including $212 million in cash and cash equivalents [25] Q&A Session Summary Question: Visibility in the Travel and Membership segment - Management acknowledged challenges in the travel membership segment due to industry consolidation and unanticipated impacts from M&A activity, but emphasized proactive measures to address these issues [31][32] Question: Average transaction size and financing - Management noted that the increase in average transaction size is due to measured price increases and greater owner engagement, with no significant change in the propensity to finance [35][38] Question: Delinquency trends and provisions - Delinquencies moderated through the second quarter and into July, with a full-year provision of 21% expected, and management is confident in the portfolio's strength [46][47] Question: Consumer health and income stratification - Management indicated that higher household incomes correlate with better performance and lower delinquencies, while new owner performance remains strong despite economic uncertainties [56][58] Question: International opportunities with Accor - Management expressed optimism about the international market potential but emphasized that the U.S. market remains the primary focus, with expectations for similar profitability margins internationally [74][78] Question: New projects and brand launches - Management highlighted the strategic importance of new brands like Margaritaville and Sports Illustrated, which are expected to contribute significantly to sales growth [90][91]

Group 1 - The most popular travel option during the Dragon Boat Festival this year is the "48-hour refresh" micro-vacation, reflecting a shift in consumer preferences towards short, efficient getaways [2] - The tourism market saw a 23.8% year-on-year increase in cultural and tourism revenue, indicating a growing consumer desire to escape the pressures of work while avoiding exhausting travel experiences [3] - A viral incident involving a price hike of dumplings in a popular ancient town highlights consumer resistance to inflated prices, paralleling changes in the SLG gaming sector where players seek transparent and fair experiences [6] Group 2 - Families are increasingly favoring a "time-sharing vacation" model, balancing group activities with personal exploration, which mirrors the collaborative gameplay in "Three Kingdoms: Strategy of the World" [8] - The gaming industry is providing solutions for the holiday economy by eliminating the stress of ticket purchasing and hotel pricing, allowing players to control their own experiences [10] - The "Dragon Boat Racing" feature in the game exemplifies a low-effort, high-strategy approach, reflecting the essence of the holiday economy by offering stimulation while preserving relaxation [11]