Wyndham Destinations Reports Summer Sales Increase

Wyndham Destinations reported gross sales totaling at $168 million for July and August as customers took summer vacations.
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Wyndham Destinations'  (WYND) - Get Report vacation-rental business recovered in July and August on the back of improved consumer sentiment for summer vacations, the company said on Monday.

The Orlando company reported gross sales of vacation ownership interests - timeshare sales - were $168 million. The figures were $73 million in July and $95 million in August.

Sales improved sequentially in August from July. Compared with a year earlier they were down 57% in August and 69% in July.

Volume per guest rose 30% in July and August from a year earlier. This metric is calculated by dividing gross vacation ownership interest sales by the number of people who participate in a sales tour, the company said.

The vacation club company said occupancy at open resorts was 59% in July and 58% in August. 

For Labor Day weekend, Sept. 5 through 7, average occupancy was 77%.

Revenue per member declined 29% and 20% in July and August, respectively. 

"As we said in July, we're continuing to see the green shoots of the recovery with continued steady growth in [volume per guest] as resort occupancy started to rebound while our owners began to enjoy their summer vacations," Chief Executive Michael Brown said.

"While many resorts in Hawaii and California have yet to reopen, we're able to reaffirm key business metrics that demonstrate the resiliency of our business," Brown added.

As of Aug. 26, 84% of Wyndham Destinations’ resorts and 76% of its sales operations were open. 

The time-share company expects volume growth to increase by more than 30% for the rest of 2020.

Brown had said in July at the Goldman Sachs Travel and Leisure Conference that Wyndham Destinations expected visits from drive-to destinations would be a key part of its business coming out of the recession.

Brown expected these visits to rise from 72% of all arrivals to above 90% as social distancing remains the norm. 

Shares of Wyndham Destinations at last check were 5.7% higher at $33.