Ninety-four percent of vacation ownership professionals expect consumer interest in 2017 to be stronger or on par with the past year, as the industry sharpens its focus on attracting millennials, according to Capital One’s sixth annual Vacation Ownership industry survey. Capital One surveyed professionals across the vacation ownership industry at the American Resort Development Association (ARDA) World 2017 conference in New Orleans, La.
Survey respondents expressed broad optimism, with nearly half (49 percent) anticipating stronger performance this year than in 2016. However, the outlook of those surveyed in 2016 was even more enthusiastic—74 percent expected an improved market over the prior year.
Forty-one percent of respondents cited attracting millennial consumers as the biggest challenge facing the industry in the coming year, followed by competition from home-sharing services such as Airbnb (26 percent), and rising sales and marketing costs (9 percent). Two-thirds say that home-sharing services will generate the most consumer interest in the coming year, followed by travel club memberships (18 percent) and vacation ownership resorts (9 percent).
The findings also showed that vacation ownership professionals are continuing to rethink their offerings to attract millennial consumers. Nearly 60 percent of respondents believe technology amenities and flexible, affordable developments will be most likely to entice millennials to consider vacation ownership.
“The hospitality landscape is clearly changing with the rise of home-sharing services and changing priorities in what consumers are for looking for in a vacation,” said Jim Casey, Senior Vice President and Managing Director of Capital One’s Vacation Ownership Lending Group. “While consumer sentiment in the vacation ownership market remains strong, the industry is evolving to appeal to a new generation. Our vacation ownership financing team is extremely well positioned to help companies reach their short- and long-term business goals through different financing options and to remain competitive in this changing market.”
For the third year in a row, respondents expected working capital loans to be the most important type of financing for their business in the next year (40 percent). Twenty-three percent of those surveyed identified receivables as their top requirement, and 20 percent cited construction and development loans.
In addition, respondents cited competitive pricing (49 percent) as the most important consideration when switching banks or expanding their banking relationship. This was followed by having a dedicated treasury relationship manager (20 percent) and the availability of mobile banking solutions (19 percent).
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $241.2 billion in deposits and $348.5 billion in total assets as of March 31, 2017. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.