Showing posts with label hospitality industry. Show all posts
Showing posts with label hospitality industry. Show all posts

A Look Back at Timeshare 2015

12/30/2015 Unknown
The SVO-Interval merger was one of 2015's top
timeshare stories!
It's that time of year when we look back on all that has happened in timeshare. Thankfully, most of the news has been positive with good growth in the industry. Timeshare continues to evolve to meet the demands of technology and travel trends. We've worked hard to keep and gain owner/member loyalty through employee engagement, and we've done studies to guide us in all areas from sales to service. Here are five 2015 events meaningful to our industry: 


1. Mergers, Acquisitions, Spin Offs

Many of the top timeshare companies have been involved in consolidating this year, but Starwood surprised us with both a spin off and a merger. Starwood announced in June that they would spin off Starwood Vacation Ownership (SVO) and its 22 timeshare resorts into a stand-alone public company. The big spin off was official on October 28 when SVO was acquired by Interval Leisure Group. Five transferring properties were part of the transaction including Westins in Los Cabos, Cancun and Puerto Vallarta and Sheratons in Kauai and Steamboat Springs. 

Starwood continued to surprise us when in November, after rumors of a merger with Hyatt and possible bids from Chinese companies, they announced they were merging with Marriott. The $12.2 billion Marriott Starwood merger creates the world’s largest hotel company. 


2. Exciting New Technology for the Hospitality Industry

New technologies are being tested and many are already in operation in the hospitality industry. Innovators using "Living Labs", high-tech rooms that act as incubators for tech entrepreneurs to study future hospitality technology, are already changing the way we experience travel. Check-in made easy with your phone app or Apple watch, facial recognition software instead of a key card, wireless charging, ultra-high definition TVs, and more are just some of the ways technology is changing our lives.  The innovations may be driven by the tech-savvy millennials, but everyone benefits as customers of all ages look for ways to save time, increase comfort and experience new and exciting ways to vacation.


3. Developing Customer Loyalty

Making and keeping owners and members was top on everyone's list in 2015. According to a Gallop Study there is a strong correlation between highly engaged employees and customer loyalty. "Employees who are passionate about their job, often go above and beyond their responsibilities for the greater good of the company" said Karen Case, Vice President of Human Resources at Wyndham Vacation Ownership, a speaker at this year's ARDA Southeast Regional Meeting. Case also specified that employee engagement starts with leaders that are engaged. Engaged leadership = engaged employees = engaged owners and members.


4. Study Shows Vacation Ownership Leads

Studies done by industry leaders abound, but this year's first-of-its kind study on behalf of the National Timeshare Owners Association (NTOA) is unique. NOTA enlisted Intuition Brand Marketing to track, analyze and segment 500,000 online social conversations about timeshare, vacation ownership, and travel clubs. The use of SPSS predictive analytics software for statistical analysis of the relevant findings of the study, helped NTOA to make the following predictions for the future growth of the industry:

Key factors driving industry growth in global vacation ownership

  • Rising number of high net worth individuals and employed population
  • Demand for leisure and recreation
  • Increasing internet penetration
  • Improving global economic conditions
  • Increasing international tourism in the US

Noteworthy trends/developments in the industry

  • Enhanced buyer’s protection
  • Shifting profitability from hotel stays to timeshare buying
  • Growing popularity of eco-friendly timeshare resorts
  • Fast-paced recovery of respective industry in developed markets after recession

5. Travel Trends

American spending and buying is undergoing a profound change according to recent studies of consumerism in the U.S. Where a person travels is no longer a reflection of status, but a reflection of the person's values.  Travelers look for ways to connect with people and cultures, and often hope to make a contribution to society while traveling.
  • Multigenerational travel: Multigenerational travel is booming. Americans look at family travel as a way to strengthen the connection with those they care for, as well as an opportunity to celebrate and remember life’s special events. Timeshare is perfectly set-up for multigenerational travel as resorts typically have accommodations, facilities and activities set up to encourage the family connection.
  • Authentic travel: Authentic or experiential travel are terms currently used to describe an emerging trend in travel. Travelers want to get in touch with the local experience. They want a unique and authentic interaction with the people and culture that often includes volunteer or philanthropic visits.

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Hospitality Industry Weathers China Currency Devaluation

8/26/2015 Unknown
Recent stock reports show minor down trending in the hospitality industry in the weeks following China's currency devaluation when compared to industries such as commodities, oil companies, and those industries involved with foreign currency and marketing products to China.


A Look at a Few Major Hospitality Groups

We looked at a few of the major publically traded timeshare companies to get an idea of how their stocks are trending, comparing today's rate to one month ago. Today (August 24) the S&P 500 was down 3.94 percent compared to the Friday before.

August 24 July 24

Starwood         70.53            81.89

Wyndham  74.75 83.06

Hilton 23.88 27.90

Bluegreen/BBX Capital   15.77 15.86


Though the industry is experiencing some of the effects of the overall economic conditions, it's typical of other mainstream businesses and much less than those companies more directly involved with China.  

The China Effect

To give you a little idea about how China's devaluation of their currency affects us all we consulted Investopedia.com, "A country's economy and is currency is impacted by the flow of funds between countries. The more money leaving a country, the weaker the country's economy and currency. Countries like China who predominantly export physical goods or services continually bring money into their countries. This money can be reinvested to stimulate the financial markets within the country." China has historically kept tight control of its currency with favorable exchange rates boosting exports and manufacturing over time, and forcing the U.S. government put up with China's artificially lowered rates.

Industry in a Good Position

The hospitality industry is in a good position to weather this current affront from China. Our industry has grown exponentially over the past few years as the economy improved. But also largely due to nature of the industry. We offer joy, fun, comfort, relaxation and entertainment. We offer the ability to experience other countries and other people, and the ability to adventure away from our everyday lives. What other industry can claim to do all that? 


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Growth Seen in Resort Development

10/24/2013 Anonymous

As the Economy Goes So Goes the Hospitality Industry 

There is good news for the timeshare industry, which was hard hit during the recession when travelers postponed vacations and held back on new purchases.  Recently there are indications that companies are showing they can compete, thrive, and do better.

Industry leaders are seeing a recovery in the resort industry. According to a report from Jones Lang LaSalle, 'the resort sector accounts for 18.4 percent of total investment transaction volume this year in the hospitality sector." The report goes on to say that "the increase is due to $2.46 billion of transactions through year-to-date August 2013, the highest volume in the segment since 2007, and more than triple that of 2012."

The Jones Lang LaSalle report also states, "even though the resort market is taking off, not all assets are ready for the flight." "During the downturn, resorts held off on renovations. Now owners may be able to add amenities and create a more differentiated product. Companies who are able to go to market in the next three years with a renovated product and capitalize on the on the upswing with added value, may attract more investors."

FARROW Commercial Construction, a hospitality construction company in Santa Rosa, California understands the upswing in the industry. The nationwide company reports revenues up 300% over last year at the half-way mark.

John Farrow, President and CEO of FARROW says, "We are growing again. After the few soft years where not many were breaking down our door to get either refurbishments or ground-up construction done, we are very happy to report that the tide has changed and we are once more on the move." Farrow attributes his company's growth surge to competitive pricing, faster timelines and strong communication.

Another turn-around happened recently when construction resumed in Las Vegas.  Construction started up on a Wyndham Worldwide project, a 281 unit timeshare called The Desert Blue.  Work on the project had halted four years ago.

Breckenridge Grand Vacations has broken ground on a very high end, luxury 75-unit timeshare called the Grand Colorado Resort. According to Rob Millisor, an owner/developer of the company, “The Grand Colorado will be the pinnacle resort within this community. With only 75 residences, it will become the most exclusive fractional/timeshare resort to own." The company is also showing its industry optimism by looking to hire new sales representatives. “We have more qualified prospects than we can currently handle," says Dave Stroeve, Vice President of Sales and Marketing.

Cautious Optimism?

Though there are definite signs of upswing in the hospitality industry, should we remain cautiously optimistic?  We see how certain events can affect the industry. The current government shutdown has caused the closure of many top tourist attractions and, in turn, caused consumers to cancel travel plans. The industry needs to be prepared and anticipate future events that could potentially impact timeshare growth.


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