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One of the prospects for the development of the timeshare industry lies in expanding the participation of hotel groups, which is significant today and has serious growth trends.

Hotel groups have almost initially joined the timeshare system as they are the main champions of creating a loyalty system. Timeshare from the point of view of loyalty is its most extreme form, since the purchase of long-term ownership of a vacation within the system of a specific resort or within a group of resorts is actually a vote with a tourist's dollar for a specific hotel complex and for the brand as a whole.

The first participants in the timeshare system almost from the first years of its appearance were the two largest competitors of the hotel business, Marriott and Hilton.

 

One of the legends of the history of the origin of timeshare attributes the appearance of the first timeshare resort on Hawaiian Maui to the Hilton group (Hilton Hale Kaanapali)

Standing at the origins, in fact, hotel groups really developed only in the 80-90s.

When timeshare marketing became more complex due to regulation and high competition, it was time for hotel brands to take advantage of the excellent reputation and results they had built over the years in loyalty programs. Hotel groups' marketing programs allowed them to monetize the loyalty of their regular vacationers by inviting them to attend a presentation and buy a timeshare, which guaranteed a vacation at a resort of their favorite brand. While other marketing companies spent thousands on generating leads through insurance companies, banks, and including expensive offers and gifts to entice them to the presentation, hotel groups simply paid attention to their regular visitors.

This made it possible to increase the number of sales, build additional timeshare complexes.

At the same time, the hotel brands themselves set a high standard both in the field of marketing and sales, which have traditionally been the subject of serious criticism, and in the field of service to timeshare owners. In order to compete with hotel brands, other timeshare resorts and independent sellers had to reconsider and restructure their attitude towards clients from predatory to obliging. Such activity incurs more expenses. Weak, unprofessional companies were eliminated. Strong professional, client-oriented players remained. This helped to cleanse the timeshare market in the USA in the late 90s and set a high bar for timeshare in other regions (Europe, Latin America, Southeast Asia).

 

The fundamental difference between buying a timeshare from large hotel brands is their reputation. They are subject to strict regulations of the hotel business. Also, hotel brands can provide, in addition to rest within their timeshare group, visits to other hotels not included in the timeshare system, belonging to the group on special terms. Thus, owning a timeshare, which is part of a hotel group of a well-known brand, guarantees a vacation of the chosen level in the same resorts of the hotel group, a high level. Also, owning a timeshare that is part of a well-known hotel brand allows you to stay at discounted rates at hotels of this brand that are not timeshare, both for business and for weekend trips.

 

At the same time, having such loyal tourists to the brand as those who have invested a large sum in purchasing a timeshare within this brand allows you to increase occupancy in the low season or completely empty rooms and apartments. There is nothing easier than sending out a mailing with special offers to timeshare owners. These are mutually beneficial conditions for both timeshare owners and for resort and brand owners.

 

The attractiveness of the timeshare concept for well-known brands is growing every year. In the last decade alone, such well-known brands as Melia, Four Seasons, Ona Hotels, Circle, Hard Rock Hotels have entered the timeshare market.

 

Despite the undeniable advantage of hotel brands in the timeshare industry, timeshare brands in their pure form are no less effective, entering the hospitality market with offers to sell their room stock in the traditional way. Karma Group, Diamond Resorts International, Anantara Vacation Club, Divi Resorts, Royal Resorts are leading international groups of timeshare resorts that have built their own brand and, although they are not as famous as hotel brands, developing brand recognition does not cost them such expenses.

 

Let's ask ourselves whether there is a place in the world of timeshare for individual resorts, independent marketing companies and small groups. Yes, there is, provided that they provide high-quality services for the sale and provision of vacations to buyers and owners of timeshare. To expand their services, small groups sometimes unite with each other, provide additional recreational and other services.

These are the prospects for the development of timeshare – high-quality provision of services is the key to successful competition and development.

Published in Good to Know

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