Stiff competition and weather woes: How to overcome these challenges via digital empowerment
Several of the vacation ownership giants reported higher third quarter sales, despite hurricanes in some of the most popular destinations in the world. For example, Miami-based giant, ILG, reported 10 percent higher consolidated contract sales and Hilton Grand Vacations reported its “financing revenues were $38 million in the third quarter of 2017, an increase of 11.8 percent compared to the same period in 2016” just a year after its IPO and during one of the most tumultuous hurricane seasons on record.
Despite this good news, insiders have expressed some qualms about the industry’s continued growth, largely due to a highly competitive environment. However, growth among new owners is at 46 percent, a change that bodes well, since the industry had been relying quite a bit on growth from existing owners via upgrading to “dream destination” contracts or purchasing more than one timeshare among family members. And the millennial market is booming, with many of these young families approaching vacation ownership as a new, hip way to be able to travel in style while staying on a budget.
With competition and weather woes competing for consumers’ (and investors’) perceptions, there are two keys ways to differentiate your vacation ownership offering in the markets among them: Better origination processes and the ability to create revenue from post-signature contract use via securitization. What’s more, there is only one way to do both, “in one fell swoop” as it were: Digital Transaction Management.
Savvy, Connected Consumers
Many vacation ownership consumers expect a seamless, digital, mobile experience when interacting with their vacation ownership providers, both at origination and during the relationship. Once a salesperson is sitting across a prospect at a conference table in Vegas, Bali, Hawaii or Hilton Head, they’d better be armed with a seamless experience. Millennials are the most targeted and talked about segment in our industry these days, many of whom are coming up to their prime earning years and embarking on their first vacation ownership opportunity. Digital signature and contract handling during the sale will go a long way among this cohort; they trust people who they perceive to have trustworthy technology.
Suppose your company requires enhanced liquidity for the 2018-2019 timeframe; many VO companies do. Part of this trend is being able to bid on properties that you may want to include in your offerings at the moment they come on the market. And part of it is that these small to midsize firms, in the flurry of buying and selling activity, are becoming aware of their ability to gain security and enhance revenue through securitization. VO companies who possess a seamless, end-to-end process that includes digital eVaulting, with all of the attendant regulatory and compliance “boxes” checked, will be more attractive to investors.
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