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What Next-Gen Wants

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What Next-Gen Wants 

By: Simon Jaworski and Lance Henik of Leger 

You are never going to be able to design one ideal timeshare that meets the needs of everyone. However, with the help of the ARDA International Foundation (AIF) and utilizing the insights garnered from its recent Next Generation research, you might be able to move a little closer to this goal. With this research, it has been found that four core factors account for more than half of all decisions made among both Millennials and Generation X’ers when it comes to purchasing a timeshare property. Let’s take a look at these factors.

Factor #1: Commitment/Cost Balance.  

The most important features, accounting for one-third of all decisions, are related to commitment. Both current timeshare owners and non-owners alike mentioned that the “length of contract” (the number of years they were willing to use the property) and the “interest rate” (a long term financial cost commitment implication) attached to this purchase were the two most significant factors.

In spite of the importance of the length
of contract and interest rate, there are, of course, two core cost factors for purchasing a timeshare that cannot be overlooked. When these traditional barriers to entry, the “overall price” and “annual fees,” are added into the equation, these four features collectively account for the majority of a potential timeshare owner’s decision-making process.

Factor #2: Sleeping Capacity.  

After the key financial aspects, the size of the lodging is also an important factor, with “sleeping capacity” as a key feature. This has increased relevancy and appeal with the younger age groups, specifically Millennials, who want to vacation with larger groups of friends—more so than any of the previous generations of vacationers.

Factor #3: Exchange.  

Next on the list of priorities is exchange. The positive impression and need for a product that allows both options for an internal and external exchange is definitely held in greater need by older Gen X’ers, especially when compared to Millennials who may not be fully aware of the benefits of exchanging their timeshare (a clear educational opportunity!).

Factor #4: Exit Strategies.  

Although a hot topic within timeshare right now, “Exit Strategy” showed slightly lower importance when compared to the exchange feature. The discussion of this topic is not only relevant but it also has merit— particularly to potential new entrants, as non-owners are definitely more intrigued by the potential for a buy-back option. If positioned correctly, the option to buy back a timeshare could lead to an extra layer of security that potential buyers often crave before signing any legal documents.

So, what key conclusions can we draw from this study? Non-owners tend to be more sensitive to price than owners, flexibility is key in the sales process, and those who sell timeshare should strongly consider a wide product portfolio. Read more about this study in the May/June 2016 issue of Developments magazine  

Believe that time share developers must keep in mind (1) off-season occupancy, and (2) introverts and develop sleeping capacity in such a way that sub-division is feasible.
Posted by: Sherry Nipas-Hart( Visit ) at 6/4/2016 3:49 AM

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