The vacation business is recovering, and that’s expected to continue in the fourth quarter, Marriott Vacations Worldwide (MVW) reported Monday (Nov. 8) when announcing third quarter 2021 financial results.
“Occupancies at our resorts this quarter were very strong despite the Delta variant, and contract sales were within 3% of 2019 levels, driving 25% sequential growth in Adjusted EBITDA and exceeding 2019 for the first time since the pandemic began,” MVW CEO Stephen P. Weisz said in a press release. “First-time buyers represented more than 30% of contract sales in the third quarter, which is important for the long-term health of the system. The fourth quarter has started well with October contract sales above 2019 levels, and reservations on the books for the first half of next year are already strong.”
Compared to the prior year, Vacation Ownership revenues excluding cost reimbursements increased 123% in the third quarter and Exchange & Third-Party Management revenues excluding cost reimbursements increased 12%, MVW reported.
The “Great Reopening” Has Created A Tailwind
The “great reopening” has created a tailwind to revenue and user growth for other companies as well. Uber, for example, said trips to the airport are up double-digit percentage points and active driver count is up 65% through 2021 to date, while Airbnb just had its “best quarter ever.”
These results come on the heels of a report in September that Marriott International, a separate entity from MVW, said it was engaged in a “fight for talent” as it struggled to fill a 10,000-person staff shortage at its U.S. hotels amid a resurgence in bookings.
Marriott International is the world’s largest hotel company, and at the time its CEO Tony Capuano said the challenge was “particularly acute” in states like Florida, which bounced back quickly due to rising demand for resort vacations.