Timeshare operators like Marriott Vacation Club, Club Wyndham, Hilton Grand Vacations, Disney Vacation Club, Diamond Resorts, The Hyatt Residence Club, and The Ritz Carlton Club target new customers by deploying sales professionals to pitch visitors at any of their properties. Since the pandemic restricted travel for a while, most of these companies turned to paid social media advertising.
TIMESHARE USERS - DEMOGRAPHICS
Age
- People who buy or use timeshares are typically Gen Xers or baby boomers.
- Reform Timeshare pointed out that at least 30% of timeshare owners and users are over 65, with the average timeshare owner being 55 and older.
- A slightly more recent report by Hotelier magazine claimed that the target demographic for timeshares is those who are between ages 40 to 50.
- However, the vacation industry is now seeing a rise of timeshare interest among millennials.
- Marital Status & Family
- These individuals tend to be married with kids. According to the American Resort Development Association, 64% of timeshare owners are married.
- Timeshare users or owners tend to have two or more kids, with some having as many as four kids.
- Income Level
- On average, users of timeshare have an annual household income of $75,000 to $150,000.
- Based on the 2018 United States Shared Vacation Ownership Consolidated Owners Report, the majority of timeshare users or owners have an annual household income of $75,000 to $100,000.
- Those with an annual household income of $50,000 to $74,999 also make up a significant share of timeshare owners.
Race & Ethnicity
TIMESHARE USERS - PSYCHOGRAPHICS
Travel Habits
- Almost 70% of timeshare owners in the US are White, while 18% are African American, and 10% are Asian American.
- Only 7% of timeshare owners are Hispanic, while 3% are American Indian, and 2% are Middle Eastern.
- Educational Level
- Roughly 60% of timeshare owners and users have an undergraduate or postgraduate degree.
- About 25% of these individuals have attended some college.
TIMESHARE USERS - PSYCHOGRAPHICS
Travel Habits
- Timeshare owners/users tend to be devout vacationers. They take significantly more vacations than people who do not own timeshares.
- On average, timeshare owners take up to three vacations per year, compared to non-timeshare owners who take less than two.
- When buying a timeshare resort, up to 48% of timeshare owners mentioned that WiFi matters the most to them, while 46% stated that restaurants matter the most.
Travel Hobbies/Interests
- Timeshare users enjoy the beach. According to the ARDA, beach resorts (34%) are most common among these individuals.
- These individuals are interested in unique immersive activities like a cooking class, when they travel.
- They find experiential and cultural activities such as local markets interesting.
Opinions about Timeshare
- At least 80% of timeshare owners are satisfied with their experience and would recommend timeshare ownership, while 71% found their buying experience good.
- However, a study by UCF found the opposite as up to 85% of timeshare owners surveyed mentioned that they regret their purchase. In a 2018 study, some timeshare owners reported feeling pressured by aggressive timeshare sales professionals.
- These individuals also mentioned that they were misled by "questionable marketing materials and promises, and often had serious problems communicating with timeshare operators."
- A lot of timeshare owners have expressed difficulties getting out of their timeshare contracts if they decided they no longer wanted the responsibility or even stopped traveling. Some have said it is almost impossible to get out of their contracts.
TRENDS IN THE TIMESHARE MARKET
Sales Volume & Rental Revenue
Sales Volume & Rental Revenue
- Over the past few years, the sales volume in the US timeshare industry has increased.
- In 2016, the US timeshare industry had a sales volume of $9.2 billion. It slightly rose to $9.6 billion in 2017. By 2018, it increased to a whopping $10.2 billion and in 2019, it was $10.5 billion.
- Rental revenue also increased by 20% from 2016 to 2017. In 2016, it was $1.9 billion, while in 2017, it was $2.3 billion. · By 2018, rental revenue in the US timeshare industry rose to $2.4 billion.
- A New Generation of Timeshare Owners
- There has been an increase in the number of millennial timeshare owners within the past few years.
- Timeshare companies are reportedly targeting this cohort because they are spontaneous and spend more time and money on their vacations than other generations.
- Millennials also want to tour new places that are eco-friendly and sustainable for their families for the long term; timeshares offer this "sustainability by giving them the opportunity to have a steady vacationing option without purchasing an entire vacation home and many resorts are offering timeshares that are striving for eco-friendliness in their operations as well."
- A 2018 study by ARDA International Foundation (AIF) found that 51% of millennial timeshare owners claim they plan on spending more money on vacation, compared to 44% of younger Gen X owners, 28% of older Gen X owners, and 26% of baby boomer timeshare owners.
- In the same study, 60% of millennial timeshare owners reported that they would spend more time on their vacation, compared to 48% of younger Gen X owners, 11% of older Gen X owners, and 21% of baby boomers.
- Currently, more than half of millennials say they have vacationed in a timeshare, with almost 80% stating that they enjoyed the experience and 25% mentioning that they liked it enough to consider buying one.
HOW THE PANDEMIC HAS AFFECTED THE TIMESHARE MARKET
Timeshare Companies Laying Off Employees
Timeshare Companies Laying Off Employees
- Several timeshare companies have had to lay off a significant share of their employees due to unforeseen business circumstances resulting from the unprecedented effects of the COVID-19 pandemic.
- In general, the US leisure and hospitality sector currently has a 28.9% unemployment rate as millions of Americans working in hotels have lost their jobs.
- Wyndham Destinations has laid off almost 80% of its global employees since the beginning of the pandemic. Of its 9,000 employees, 7,000, most of whom are sales professionals, have been let go.
- Bluegreen Vacations, another large timeshare operator, has laid off and furloughed some of its employees as well. Most employees who have not been laid off have had their hours reduced.
- Timeshare Owners Trying to Cancel Contracts
- In light of the COVID-19 pandemic, a flood of timeshare owners have tried to cancel their contracts, due to internal factors like health and financial hardships, as well as, external factors like travel bans.
- Timeshare developers are not providing immediate relief to these individuals by allowing them back out of their contract.
- Instead, these companies are stifling the ability of timeshare owners to cancel their contracts and amping up their advertising.
- Westgate Resorts, for example, offered to use coronavirus relief money "from the federal government to give short-term jobs to travel bloggers to write stories promoting the company's resorts."
- In its earnings call, Wyndham Destinations mentioned that it will focus more on owner sales amid COVID-19. News reports claim that this means the company will push "upgrades on existing members."
Negative Outlook
- Due to the economic effects of the pandemic, Fitch Ratings recently predicted a negative outlook in the US timeshare industry.
- According to the platform, the industry is expected to see a weaker asset performance within the next few months. T
- The "decline of travel and tourism has resulted in a significant reduction in occupancy rates across the entire lodging sector and developers may be forced to shutter more timeshare resorts as a result."
- Occupancy rates in the industry are expected to reach historic lows, which could lead to timeshare owner dissatisfaction and increasing levels of loan defaults among timeshare owners.
- Some timeshare operators are looking at offering consumer assistance programs for borrowers who are struggling to make payments, such as "extensions or modifications of contracts on the back-end of their loan or lease."
Promising Travel Behaviors
- In a survey released in May 2020, 24% of timeshare owners said that they plan to take their next timeshare vacation six months after the coronavirus ends, while 21% mentioned that they would be taking their next timeshare vacation before the end of 2020.
- Up to 20% indicated that their next timeshare vacation would be three months after the pandemic ends, with 19% saying that this decision would be dependent on what their timeshare company allows.
- Only 11% reported planning their next timeshare vacation within the next month of the pandemic ending.
Marriott Vacation Club ·
- Based on the pictures on its website and its social media pages, it appears Marriott Vacation Club targets couples and families headed by older millennials (aged 30 and above), Gen Xers, and younger baby boomers (less than 65).
- It recently expanded its timeshare properties in large cities like New York and San Diego to target millennials.
- Prior to the pandemic, much of Marriott's marketing for its timeshare offering was done by sales professionals who pursued leads. On LinkedIn, there are currently more than 1,500 sales professionals working for Marriott Vacation Club.
- However, the company has always maintained a strong online and social media presence. On Facebook alone, it has almost 150,000 followers. On Instagram, a platform that some hospitality brands struggle with, it has amassed over 71,000 followers, while on Twitter, it has roughly 11,200 followers.
- Across these platforms, the company regularly posts pictures and videos of its resorts, as well as any promotions it has. Its recent social media posts have been geared toward its health precautions and cleaning protocols amid COVID-19.
- While Marriott has done several TV, video, and paid social media ads, these ads have been for its other products or brands, no TV or paid social media ads were found for its timeshare offerings.
- Of note, the company has done a few TV commercials about its Bonvoy loyalty program. It mentions on its website that timeshare owners can also leverage this program. However, its TV ads about Bonvoy are not specifically targeted at timeshare owners, they are focused on consumers in general.
- Mariott Vacation Club also does digital banner ads. In February 2020, it had several banner ads, which had messaging such as "Find Your Fun" and "Find Your Home Away From Home." These ads had a call-to-action for "Book Now."
- In 2018, it targeted potential consumers in digital banner ads by offering 90% to 93% off on vacations in Palm Beach Shores, Florida and Newport, California.
Club Wyndham
- Club Wyndham has hundreds of sales offices and thousands of sales professionals who go after leads through email campaigns and strike up conversations with visitors at its hotels about its timeshare offerings. Its target audience is couples and families of all ages.
- Since the pandemic began, the company has laid off more than half of its sales professionals and now focuses more on social media marketing. It also does advertising in print and online publications.
- Club Wyndham is active on Facebook, Twitter, Instagram, YouTube, and LinkedIn. Across these platforms, its posts are different, which indicates that it targets different audiences.
- On Instagram, for example, in addition to filtered pictures of families and couples enjoying its timeshare locations, it does live videos and often posts infographics about how it is handling the pandemic. It also maintains a blue and orange theme on this platform.
- On the other hand, its posts on Facebook and Twitter are slightly different as they feature more videos and less infographics. It frequently posts videos on YouTube showing what it is like to be a Club Wyndham owner.
- Club Wyndham does paid ads on Facebook and Instagram. It currently runs over 20 paid ads across these platforms. In an ad it started running on August 18, 2020, it featured a couple with the tagline "Treat your Future Self." The messaging in the ad was "Use your points –– and treat your future self to an adventure (or two!). Head for the hills this holiday season. Or snag your dream resort to kickstart the new year." The ad provided a link to its website and had a call-to-action for "Book Now."
- In another ad it started running across Facebook and Instagram, on August 14, 2020, its messaging was "Your resorts are open – and Vacation Ready for fun. ��Book a trip and travel beyond your living room for new adventures now."
- Another marketing approach that Club Wyndham leverages is partnerships with athletes. In April 2020, it featured Brandt Snedeker, a professional golfer, offering golf tips for Club Wyndham owners on Instagram. · In May 2020, Club Wyndham partnered with Bubba Wallace, a profession race car driver. Wallace chatted with Club Wyndham timeshare owners and answered questions that people had for him.
- Lately, the timeshare operator has also doing virtual events to attract consumers. On May 29, 2020, it encouraged its social media followers to join a virtual wine tasting & happy hour with Markham Vineyard, while adding that "Club Wyndham owners will receive 30% off their first package and 1-cent shipping when they join the Markham Wine Club."
Hilton Grand Vacations
- Hilton Grand Vacations incorporates a proactive and controlled marketing approach. Prior to the pandemic, it leveraged trade shows and had sales professionals that pursued potential clients. These sales professionals promoted the purchase of timeshare to consumers who were already on vacation at any of its properties.
- It also offered travel related incentives like three nights in Vegas for $199, to motivate consumers to tour. When prospects accept offers like this, they agree to spend one on one time with one of Hilton Grand Vacations' sales professionals. These professionals then pitched the company's timeshare offerings.
- Hilton Grand Vacations mentioned in a recent investor relations call that it relies on the reputation of the Hilton brand as one of the world's most trusted and valuable brands, from a marketing perspective.
- The company targets consumers between ages 25 to 74 with an annual household income of more than $75,000. However, it has recently been specifically targeting millennials who are aging.
- Hilton Grand Vacations is active on social media as well, specifically Twitter, Facebook, and Instagram. Its posts across these platforms are pictures of its properties or current timeshare owners in front of its properties.
- It also does paid ads on social media. Hilton Grand Vacations currently runs three ads on Facebook, Messenger, and Instagram. In an ad that started running on August 19, 2020, it introduced the Quin Central Park by Hilton Club and provided a link for viewers to see the property.
- On August 24, 2020, Hilton Grand Vacations ran a video ad on Facebook, Messenger, and Instagram. The messaging in the ad was "A warm welcome, exceptional experiences and sweating the small stuff- let us show you what we do best. #TravelConfidently." The ad also had a call-to-action section, "Book Now."
Disney Vacation Club
- Like other timeshare operators, Disney Vacation Club has sales associates that approach or reach out to guests at any of Disney's properties. These associates encourage them to attend a sales presentation about its timeshare offerings. Its target audience includes parents and couples.
- Disney Vacation Club leverages out-of-home ads like billboards around Disney World and other properties owned by Disney. It also utilizes Google pay-per-click ads.
- Disney Vacation Club is currently active on Facebook and Instagram. On these platforms, it has over a million followers and showcases its community and favorite member moments.
- It currently runs over 30 paid ads on Facebook, Messenger, and Instagram. An ad it started running on August 24, 2020, features a family with the messaging "When you have a Disney Vacation Club “home” in the middle of the magic, there’s room for a lifetime of memories"
- Another ad that kicked off on August 12, 2020, is headlined "magic is wishes come true." The ad features a mother with her daughter. The messaging of this ad is "Magic is making dreams a reality! See how you can save $5,000 or more with one of our best offers on Membership. Terms apply."
- When people click on any of Disney Vacation Club's paid social media ads, they are directed to a landing page that urges them to sign up. One thing the company does to further encourage people to sign up is that it re targets people who bounce off any of its ads with an ad that uses a different benefit angle.
Diamond Resorts
- Diamond Resorts has sales professionals who learn and "deliver branded and scripted sales pitch" to guests at its properties. It targets millennials and Gen Xers through its ads. I
- It also partners with celebrities, including country music artists like Lauren Aliana, Dan + Shay, Cole Swindell, and Lee Brice; golfers like Brian Gay; and baseball players such as Reggie Jackson. It organizes events so that its members can meet these celebrities.
- Prior to the pandemic, it also partnered with influencers like Ben Higgins. These influencers appeared at its events and were interviewed by its CEO in a series called Moments with Diamond. Snippets of these events have been shared on YouTube and its other social media platforms.
- Diamond Resorts is active on Twitter, Facebook, Instagram, and YouTube. Amid the COVID-19 outbreak, it has been organizing a lot of virtual events, including live concerts in a series it calls #DiamondLive. On August 27, it organized a live concert with Josh Turner, a well-known country music artist.
- On May 5, it set up a virtual live event with Brittany Lincicome, a LPGA Tour Champion. Its followers were given an opportunity to ask her questions. · Diamond Resorts has featured over 20 other music artists and golfers in its #DiamondLive series since April 2020.
- The timeshare operator also does paid social media ads on Facebook, Instagram, and Messenger. Its ads across these platforms are about avoiding "fraudulent timeshare exit companies."
The Hyatt Residence Club
- The Hyatt Residence Club currently has over six sales centers. The majority of its marketing have been through sales professionals who approach visitors - mainly couples and families - at any of its hotels.
- the company is fairly active on social media: Facebook and Instagram, it only reposts pictures shared by guests or members at its resorts. It does not do any paid social media ads or partner with social media influencers.
- The Hyatt Residence Club performs advertising in print and online publications, specifically for any discounts or offers it has. Prior to the pandemic, it advertised its Ka'anapali beach resort, one of its timeshares for five nights at $1,495.
- It does digital banner ads as well. It ran an ad from 2018 to 2019 of the Hyatt Residence Club, Sarasota Siesta Key Beach. The ad was headlined "Beachfront Bliss" and its call-to-action was "Book Now."
The Ritz Carlton Club
- The Ritz Carlton Club targets business executives, families, and leisure travelers who are high income earners. It does not have its own social media accounts, neither does it do paid social media ads. Instead, it relies on its reputation as a luxury brand.
- The Ritz Carlton Club mainly uses its website and publications to advertise its timeshare offerings. Its website displays fascinating photos of its timeshare locations. Its Lake Tahoe location, for example, is described as a "picturesque mid-mountain retreat at the Highlands at Northstar [which] is an all-season sanctuary amid snow capped peaks and serene lakes."
- For each of its timeshare locations, The Ritz Carlton Club has a "learn more" call to action, where viewers are offered more information on its services and amenities at each location. People interested in being members (timeshare owners) can "Request Information" by completing a form with their email, address, and phone number.
- Since Ritz Carlton is owned by Marriott, its website discusses Marriott Vacation Club Resorts as well. It also has sales professionals who approach hotel visitors about its timeshare offerings. These visitors are offered marketing kits like brochures about its timeshare offerings. ·
- In 2018, Ritz-Carlton introduced a campaign called "The Stay." The campaign leveraged short films, most of which were animated to explore the "infinite possibilities offered by a stay at The Ritz-Carlton."