The Strategies Independent Resorts Are Taking to Meet the Needs of Current and Future Owners

Insights for this month’s article are provided by Steve Krohn, President and Chief Operating Officer, The Resorts Companies, Inc. and Travis Bary, Co-President, Capitol Vacations.

Question: “What strategies have helped independent resorts meet the needs of current and future owners?”

Steve Krohn, President and Chief Operating Officer, The Resorts Companies, Inc., knows the important role that independent timeshare resorts continue to play in the success of the overall timeshare industry and the overall vacation experience perception. In order to stay successful, however, Steve says these resorts have to stay updated on current travel trends and address ongoing needs and challenges, starting with the following opportunities:

• Understand the Changing Landscape: Thirty years ago, hotel brands entered the timeshare market and offered owners consistent standards and a sense of familiarity as they visited various locations within the brand network – a valuable proposition in the pre-internet era of vacation planning. Then, the emergence of platforms like Airbnb and VRBO ten years ago offered guests spacious and unique accommodations but lacked the high service standards now expected. And, while online booking is done seamlessly, everything after that comes at an unnecessary level of friction – service calls, check out, access to local attractions, etc. Now, travelers demand top-tier quality, exceptional service, unique experiences, and reasonable pricing.
• Focus on Improvement: Independent resorts should start with prioritizing regular refurbishments and high rating scores without imposing special assessments on owners. Meeting guest service levels now requires investing in guest-facing technology to make all aspects of the vacation experience easy and consistent, allowing for pre-arrival ticket purchases, dinner reservations, and seamless interaction with the timeshare association. Guests benefit from early check-in availability texts, service call requests, online check-out options, and even housekeeping tipping via an app, while always retaining the option to speak directly and promptly with staff for personalized assistance.
• Utilize Partnerships to Enhance Experiences: Once on property, owners want a variety of high-quality, on-site activities as well as regional experiences. Steve says resorts can provide this and enhance the guest experience simultaneously by collaborating closely with local attractions and businesses and facilitating transportation to these activities. These partnerships extend beyond visible amenities, emphasizing high standards across all interactions with regional partners.

Independent resorts – whether in timeshare industry, the ski industry, or oceanfront destinations – have the potential to offer unparalleled opportunities for unique experiences and exceptional service. Achieving this requires ongoing focus, flexibility, adaptability, and a commitment to invest in technologies and practices that enhance guest satisfaction and eliminate potential sources of dissatisfaction.

Independent resorts like Massanutten Resort are already meeting these expectations by providing diverse accommodation styles and price points across its expansive 6,000-acre property. By managing all aspects of operations, including amenities, dining, retail, and hospitality services, the resort ensures a cohesive and outstanding guest experience throughout owners’ and guests’ stays.

Travis Bary, Co-President, Capitol Vacations, shares several key points that independent resorts should consider in this changing landscape.

• Ensuring Association Revenues – As in life in general, money alone does not solve all problems for independent resorts. However, with proper leadership and planning from the combination of the management company, the board of directors, and site personnel money can solve the significant portion of any issues the resort and its owners may have.
  
  This requires the three groups above to take the long view from a planning perspective. Consistently reviewing and improving their five- and ten-year plans for refurbishments, replacement and improvements all while managing rising costs of goods, employees, and ever-higher traveler expectations
  
  The strategy for ensuring improvement starts with focusing on the Association’s overall needs and priorities before satisfying a minor faction of the owner base.
  
  Then, establish and regularly update detailed five- and ten-year plans and communicate the needs of the Resort and expected costs to the owner base often.
• Replacing Delinquent Owners – Independent resorts face an issue that branded resorts do not. At independent resorts, the original developer has turned over the association to an independent board of directors and in most cases ceased to be involved. This means that the resort no longer benefits from the services, resources, and capital the developer originally offered. 
  
  A critical primary resource was the robust sales and marketing function that allowed the original developer to sell the resort’s inventory and monetize his/her investment.
  
  There is a consistent natural decline in the number of paying members or current intervals at an independent resort. There are several factors here: age of the owners, individual financial issues, health, and more. 
  
  Without the sales and marketing function that replaces the owners that fallout, the decline puts the burden of operating the resort, while costs rise, on a smaller % of the owners driving the individual cost of ownership ever higher.
  
  The strategy for replacing delinquent owners is critical for an independent resort includes having a robust sales function that improves the resort’s collection percentage. Marketing costs for new clients and overall sales costs are higher than ever, driving nearly all the non-branded sales and marketing companies out of the space.
  
  Rental is not a substitution for new owners. While rental offers some revenue to the resort, it should be used to supplement the effort to find new owners, not replace it.
  
  It’s important for these resorts to find a reputable sales agent with the financial resources to meet the needs of the resort.
• Improving the Guest Experience – As Steve mentioned, today’s traveler expects more – more experiences, more options, more connectivity, more choices, more amenities, etc.
  
  For resorts to remain relevant to today’s traveler, much less tomorrow’s traveler, they need to continue to improve their offering. 
  
  Some of these additions are market specific, but include things like bandwidth, electronics, activities, and amenities. 
  
  This improvement will also be the key to attracting new customers from today’s generation or to ensuring that children want to assume their parent’s ownership someday.