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Who are the Leaders in Timeshare Sales?
6/04/2014
Vacation Ownership World (VOW) - a digital magazine that acts as a forum for the trends and issues of the vacation ownership industry - has come out with its latest review and forecast of the state of vacation ownership sales. According to VOW, vacation ownership sales, timeshare and fractional sales combined, expanded 7% in 2013 over 2012. Combined with a 10% rise in 2012 over 2011, it’s the largest back-to-back sales growth period since the economy began its decline in 2008. Timeshare sales rose 11%...the largest jump since 2006 and 2007.
Last Year’s Top Developers Remain in the Lead
Changes and adjustments (noted in VOW’s 2012 review), are still being used by the leading developers who remain successful in an economy that is improving but still struggling. Some of the ways developers maintained success are:
- Having access to sufficient capital
- Using only the sales and marketing programs that have proven to be most efficient
- Sustaining a ratio of new owner sales to existing owner sales
- Recognizing that consumers are purchasing in smaller transactions (samplers, junior suites, biennials, triennials, etc.) and using social media to make vital owner contacts and building relationships
- Using timeshare as a cash generator…some developers collect over 50% of the value of a sales contract up front. Ownerships allow developers to access inventory as needed versus carrying the cost of excess inventory on their books.
- Improving cash flow and increased profitability by using sophisticated models to predict a prospect’s ability to pay
The Leaders in Timeshare Sales
The developers who had $5 million or more in 2013 sales include:
1. Wyndham Vacation Ownership
Wyndham Vacation Ownership (WVO) topped the list of the 2013 Sales Leaders with $1.9 billion in sales. WVO is one of those companies that stuck to their plan. Experiencing a banner year in 2012, WVO president and CEO Franz Hanning said that 2013 was a replay of 2012, "Once again our numbers were excellent, once again sales, tours, VPG, net income, EBITDA (earnings before interest, depreciation taxes and amortization) and WAAM (fee-for-service business model) sales and commissions were all up." Top on WVO’s strategy list…generate cash flow.
2. Hilton Grand Vacations
Coming in at #2 on VOW’s list was Hilton Grand Vacations with a record $830 million in timeshare sales. Much of the success was attributed to an increase in club membership to more than 200,000 and moving capital efficient sales from 17% in 2012 to 45% in 2013. Commenting on this, Hilton’s president of global sales Mark Wang stated, "We did this by welcoming more visitors to our sales centers allowing us to continue our strategy of adding first time buyers to our club." Mr. Wang attributed another part of HGV’s success to the company’s adherence to hiring and retaining qualified and dedicated employees, and their commitment to making an engaging work environment.
Rounding out the Top 10 in Timeshare Sales (in millions)
3. Marriott World - $679
4. Diamond Resorts International and Bluegreen Resorts each with - $465
5. Starwood Vacation Ownership - $326
6. Silverleaf - $244
7. Holiday Inn Club Vacations - $229
8. Villa Group - $116
9. Club Melia - $109
10. Welk Resorts - $105
