An Architects View on the Sharing Economy and Diminishing Appeal of Timeshares
OBMI Chairman and Architect, Tim Peck, recently shared his insights on the sharing economy and the diminishing appeal of timeshares with the International Society of Hospitality Consultants (ISHC) and Hotel News Resource.
What does the sharing economy have that timeshare doesn’t? Insights from ISHC members revolve around two common themes: flexibility and unique experiences.
ISHC’s Tim Peck, Chairman of OBM International Limited commented, “The sharing economy allows far more flexibility in being able to have your home away from home.”
“Why would a consumer want to lock into a particular exchange system when everything is easily available on Airbnb or VRBO?” added David Berins, ISHC, Owner of Berins & Co., LLC.
ISHC’s Christopher Henry, Co-Founder & CEO, Majestic Hospitality Group believes, “It has less to do with the sharing economy and more to do with changing demographics. While the model is still popular with baby boomers, the concept struggles to sell with millennials. This younger group prefers to spend their money on unique and authentic experiences while also not being tied down to commitments. Timeshares provide the exact opposite of this mindset.”
Hayden Pace, ISHC, CEO of Stokes Wagner, ALC agreed “Timeshares are being rendered obsolete by the availability of experience-driven local accommodations.”
31% of ISHC members surveyed believe the sharing economy is not diminishing the appeal of timeshare. Dan Larkin, ISHC, Partner, Bryan Cave maintained, “Branded timeshare offers features the sharing economy does not.”
With Marriott Vacations recent acquisition of Interval Leisure Group to unify the Marriott and Starwood timeshare brands, this move may prove to bolster the strength of vacation ownership.
ISHC’s Flo Lugli, Founder & Principal, NavesinkAdvisory Group, LLC weighed in on how she thinks timeshare can evolve to stay relevant, “Timeshare's value proposition now is more around points and pre-paying for great vacations rather than buying a specific unit in a specific location. To the extent that the exchange businesses can continue to support the exchange of points across multiple locations/resorts, then many will continue to see value.”
It seems ISHC’s Robin Hunden, President, Hunden Strategic Partners, Inc. prediction may be coming true with Marriott now experimenting with homesharing, “The rental home business is expanding in ways that will be hard to replicate unless the brands or management companies begin acquiring the management contracts for multiple homes in destination markets.”
Read original in Hotel News Resource.