NEW YORK––More than 90 percent of vacation ownership professionals expect that consumer interest in the timeshare market will be stronger or on par with the past year, according to Capital One’s seventh annual survey of vacation ownership professionals who attended the American Resort Development Association (ARDA) World 2018 conference in Las Vegas, Nevada.
“Though vacation ownership professionals generally expressed optimism in the market this year, only 38 percent of respondents expect consumer interest to increase in the coming year in comparison to 50 percent who expected the same for 2017,” said Tom Meyerer, Managing Director, Capital One. “This outlook may reflect the industry’s keen awareness of growing competition in the hospitality market and the need to attract a new generation of travelers to vacation ownership.”
Nearly two-thirds of respondents (63 percent) believe home-sharing services will generate the most consumer interest in the coming year, in line with the 66 percent of respondents who thought the same in 2017. Thirty percent of respondents also thought competition from home-sharing services would be the greatest challenge for the vacation ownership industry in 2018, followed by the need to attract millennial consumers (22 percent) and the shift to digital sales and marketing channels (18 percent).
“Vacationers, including the new generation of owners, continue to want unique and customized vacation experiences, to spend time with all of their loved ones and to create memories that last a lifetime. Timeshare provides all of this plus an impressive value proposition. Our industry is committed to providing incredible vacation experiences delivered seamlessly well into the future,” said Howard Nusbaum president and CEO of ARDA.
Understanding that millennials value experiences and access to technology, vacation ownership professionals believe that experiential tours and excursions (39 percent) and WiFi and other technology amenities (25 percent) would be most likely attract this generation to vacation ownership.
“We continue to see a dynamic environment across the broader industry, and we look forward to working with our clients so that they can bring a wide array of vacation options to consumers,” Meyerer said. “Our team is well positioned to work with companies to reach their short- and long-term business goals through flexible financing options.”
Year over year, respondents continue to cite working capital (26 percent) as the most important financing or financial product for their organizations in the year ahead. Respondents also noted construction/development loans (17 percent), receivables (17 percent) and inventory (17 percent) will be important in 2018.