With the worst of the pandemic behind us, travel and hospitality businesses are experiencing a surge in demand. This is well reflected in recent management comments and advice from leading tourism and hospitality companies, such as Marriott Vacations (NYSE: VAC).
ACC’s contract sales and adjusted EBITDA exceeded pre-pandemic levels. Additionally, VPG (volume per guest) remained strong, improving year over year and sequentially in the first quarter of 2022.
While the improving operating environment bodes well for VAC, fears of a slowing economy and concerns about consumer spending are adding to the uncertainty. Moreover, it makes it difficult to form an investment opinion.
So, to dispel that uncertainty, let’s use the new website traffic filter from TipRanks. This tool tracks consumer behavior and its changes, helping to assess its impact on a company’s finances and stock price.
Website traffic for Marriott Vacations
TipRanks’ website traffic analyzer suggests that demand for ACC remains strong despite inflation. According to the tool, visits to marriottvacationsworldwide.com increased 356.32% year-over-year in May 2022. Additionally, year-to-date, website traffic has increased by 140.84% compared to the period last year.
Additionally, month-over-month traffic to the VAC website increased 7.47% in May compared to April. Also, compared to the first quarter, website traffic has increased by 70.43% in the second quarter so far, which is encouraging.
Website traffic trends suggest Marriott could deliver stellar financial results in the second quarter, which could improve its performance for the full year. This is validated by the company’s recent increase in forecasts.
Speaking at his Investor Day, VAC CEO Stephen P. Weisz said, “We continue to see very high owner occupancy at our resorts, enabling us to generate strong growth in visits and sales. contracts in the second quarter of 2022.”
Strong demand and continued strength for VPGs led management to increase its full-year contract sales forecast by $100 million for 2022.
Additionally, Weisz noted, “Inflation has further strengthened our value proposition compared to hotels with smaller accommodations, and we have continued to see strong occupancy in our portfolio, which has allowed us to increase our adjusted average daily rental rates well above our previous. historical averages.
As recession fears continue to play spoilsport, robust website traffic and upbeat comments from management suggest ACC is likely to deliver strong financial results in the second quarter, which is expected to be released on July 27.
It’s worth mentioning that VAC stock has a strong buy consensus rating on TipRanks, based on six buy recommendations. Additionally, Marriott Vacations’ average price target of $183.92 implies an upside potential of 52.85%.