Designing Vacation Clubs and Timeshares for Today's Buyers
By Bill Caswell Principal, Hospitality Practice Leader, North Highland | November 24, 2019
Timeshares and vacation clubs are working to determine what their next product sets should be in order to attract younger buyers. The industry as a whole has consistently increased its revenues over the past decade, according to data from the ARDA International Foundation (AIF), the industry' trade association, but many believe this has been done on the backs of existing owners. There is still a generational disconnect between the product, the marketing and sales processes, and today's younger buyers.
The problem for operators is that many are using decades-old acquisition and sales models to reach today's generation. Millennials, who are now the largest generation in the workforce and beginning to accumulate more wealth and buying power, have different expectations than previous buyers. Having come of age during the Great Recession and seen firsthand how many in their parents' generation overextended themselves financially, they are less willing to make big financial or ownership commitments.
Of course, not all millennials fit this profile, but a sizable portion of them have downsized their appetite for traditional investments compared to their parents' generation. Cars, homes, timeshares and vacation clubs are optional, replaced by ridesharing, renting and Airbnb. Personalization, flexibility and freedom are top priorities.
If you pitch a traditional timeshare product to this type of person, closing the deal is a longshot.
These generational shifts are not lost on timeshare and vacation club companies, which are recognizing the need to change and are in various stages of that evolution.
Timeshares Versus Vacation Clubs