Vacation Ownership Professionals Forecast Steady Consumer Interest
NEW YORK – (June 27, 2018) – 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.
Note to Editors
Capital One conducted the Vacation Ownership survey on May 8-9, 2018 at the ARDA World Conference in Las Vegas, Nevada. The survey gauged the sentiment of the hospitality and vacation ownership landscape in the next 12 months. Percentages are based on 113 responses. Capital One’s Vacation Ownership Lending Group provides receivables, inventory and working capital loan facilities to vacation ownership operators primarily across the United States.
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 $250.8 billion in deposits and $362.9 billion in total assets as of March 31, 2018. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to 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.
