Feature : Timeshare
still be affluent 40- and 50-somethings looking for a way to return to a favorite spot each year . However , operators looking to capture more business have to look beyond statistical averages to find their individual target market ( s ), and Nusbaum cautions operators not to think in generations . “ A Baby Boomer traveling with a 3-year-old looks a lot like a Millennial traveling with a 3-year-old in terms of timeshare ,” he says .
For companies such as Marriott Vacation Club , that means learning to cater to different groups for different locations and different seasons . “ Some of our locations are mostly retirees at one time of year , and mostly families during others ,” says Ed Kinney , vice president , corporate affairs and communications , Marriott Vacation Club , Orlando , Florida . “ Others are mostly one or the other year-round . We have to accommodate them all .”
Fredricks adds Welk Resorts targets affluent consumers from 25 to 75 years old with facilities that work for adults traveling with or without children .
“ From a demographic perspective , it really varies by location and the underlying demographics of the visitors to those locations ,” says Greg Spencer , COO , Timbers Resorts , Carbondale , Colorado . “ Our approach is to target the multi-generational travel-focused buyer . In some markets it may be the parents in their 60s buying a property for use by their kids and grandkids , and in other markets it might be the 45- to 55-year-old ‘ kids ’ purchasing so their children can vacation with their grandparents from time to time .”
Trying to draw in potential owners — whether for timeshare or fractional ownership — has become a lot more like attracting hotel guests , at least for operators affiliated with brands . Customer relationship management techniques have become foundational .
Kinney , who estimates around half
One of Hilton Grand Vacation Club ’ s most recent openings is the Hokulani Waikiki in Honolulu .
of Marriott ’ s timeshare business comes from guests in the Marriott database , says target marketing is key to keeping costs down and maximizing effectiveness . “ We can look at a guest ’ s data and see not only if they tend to frequent golf resorts , but if they bought golf clubs the last time they were at one , so we can target the timeshare offer to that ,” he says .
Even for brands , though , sometimes the existing customer base doesn ’ t generate the necessary numbers . Wyndham Vacation Ownership uses affiliations with Margaritaville , SeaWorld , Outrigger Resorts and Caesars Entertainment to draw in guests from outside Wyndham , according to Mike Hug , CFO , Wyndham Vacation Ownership , Orlando , Florida .
Options menu The demographic spread is matched by increasingly diverse guest expectations . The points system ( now in use at about two-thirds of timeshare properties , according to ARDA ) is a big step in that direction , whether it ’ s exchanging time
at one timeshare property for another , or for a cruise or motorcycle rental . Some operators argue the points system doesn ’ t go far enough .
Shorter terms are a hot-button issue for some industry experts . “ The biggest trends are the moves to shorter-term products , such as the 3- to 5-year or 10- to 15-year timeshares ,” says Oliver Green , managing director , Dial An Exchange Europe , Skipton , North Yorkshire , England . “ People have moved away from the 100-year or in-perpetuity model . It just doesn ’ t suit today ’ s consumers . They want instant access to things and to be able to move on in five or so years , as their lifestyle changes .”
Short-term products encourage new and younger travelers to try them , particularly those with a limited budget , according to Michael Brown , COO , Hilton Grand Vacations , Orlando , Florida . “ They just have to have all the facilities that the modern traveler requires , including Wi-Fi , iPod docking stations , kids clubs , spas , etc .” Green says .
44 HOTELS May 2014 www . hotelsmag . com