Erik Cavarra believes fractional ownership will grow in the 2013 season.
Bold predictions for the fractional ownership industry were revealed by panellists on the Ultimate Q & A session at Fractional Summit USA, a conference organized by Fractional Life founder Piers Brown and his team.
Industry commentators and visionaries including Gregg Anderson, global vice president, The Registry Collection, and American Resort Development Association (ARDA) president Howard Nusbaum delivered their verdict on how fractional ownership will transition and evolve in coming years.
Saving on future vacation costs is one of the main reasons behind buying fractional versus full ownership or continual nightly rental costs, and simply makes much more sense for families who are travelling on a regular basis.
The vacation ownership industry in the US has witnessed decline in overall sales from 2007 – 2010. However, within the last year the industry has returned to a growth trajectory.
Here are the panel’s top 10 forecasts for fractional ownership:
- More hybrid models of ownership in the form of a “vacation currency” to keep up with changing times
- Nightly valuations and bookings, rather than weekly bookings, resulting in increased flexibility for the buyer
- Increased emphasis on quality rather than cost — fractional buyers want to do things better rather than cheaper
- More targeted marketing to affinity groups rather than a generic financially qualified buyer
- Increased emphasis on health and wellness at resorts — yoga, pilates, spas etc
- Smaller fraction sizes
- Short-term and finite ownership period products with a guaranteed exit strategy
- More on-resort technology to keep up with the modern consumer
- Increase in user-friendly environmental technology to appeal to green buyers
- Developers will increasingly listen to what consumers want rather than trying to predict what they want
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