Timeshares in the ARDA imagined future - Experiences

[jp10558]

So, I'd been thinking about various sales ideas ARDA is pushing recently, that it seems like big names like Wyndham and HGV agree with given some of the advertising. Specifically that the younger Millennials and Gen Z are more into "experiences" than Gen X and Boomers were - at least in terms of vacation. But this of course only holds up to the most superficial ad copy sort of read. What even is a "vacation" that isn't an "experience"? It seems more reasonable to read this as "different experiences" than some new thing. It's theorized on TUG that a big reason some of the resorts Wyndham is closing is because they don't provide what "Gen Z" wants as an experience.

Now I'm not Gen Z, but I am newish to timesharing - I went to my first one in 2023. I just saw today something on TUG today that sparked a thought - that a lot of activities and events at TS pre COVID haven't come back. I never experienced those pre 2020 activities. I can say MOST activities, to the extent I've seen any at the majority of resorts I've been to, are lackluster at best. What if that's a big part of the last couple years surveys panning the resorts that aren't in "external activity heaven" like Las Vegas or Orlando? That there are no longer the experiences that there once was, not that Gen Z is massively different in vacation preferences than Boomers were at the same age.

On top of that it seems to me that TS in pushing non TS uses of points kinda are saying - "why do we exist?" in this "new world" they seem to imagine. Being a more convoluted and expensive online travel agency or ticketmaster kinda service doesn't seem like a great sales pitch to me. OTOH, we do see "resort destinations" in other countries, and some that come close in the US. I don't know about budget for these things, but it does seem to me many resorts are reasonably equipped to have many activities - they just ... don't. Yes, they'd need some employees to run them, but it could well add reasons to go to a resort, as well as potentially add interest in day passes / day use.

I also kinda wondered if anyone thought - hey, if college sports locations are a new market, what about health / wellness / mediation? Many people go to a mediation retreat once a year or more - and often they would go back to the same one - it's to my understanding not something that needs new locations all the time.

Anyway, random spit-balling aside - to the extent we think experiences are a future HGV etc want to sell - maybe they should cultivate them at the resorts they have?

 

[WaikikiFirst]

Specifically that the younger Millennials and Gen Z are more into "experiences" than Gen X and Boomers were

I sure don't have sufficient serious data to write a thesis, but I'd say "the younger Millennials and Gen Z are more into "INFLUENCERS" than Gen X and Boomers were, which makes them ripe for being told what experiences they should have on a vacation.

Many people go to a mediation retreat

meditation? Many of the people who go to such a retreat would tell you they are anti-corporate. Read up on some ... like Esalen on Big Sur. Go visit Esalen. Look around. Tell me the clientele can't wait to buy a name-brand TS.

 

[chapjim]

Way too philosophical for me!

 

[dioxide45]

The problem with timeshares is the target market is shrinking. I don't think the people that buy timeshares today are buying them for different reasons as those in the past. The same goes for travel in general. As people get older, their travel patterns change. People may not want the same "adventure" and "experiences" in their 50s that they wanted in their 30s and even 40s. Travel patterns shift as people age. So the people in their 30s today may still be a good target market for the timeshare industry when they get into their 50s and 60s. The problem is the boomer generation getting replaced by the Gen Z and Millennials. While Millennials may outnumber boomers now, over time will they be as big of a market segment as boomers were?

 

[AwayWeGo]

All we ever wanted from timeshare ownership was affordable spacious & luxurious vacation accommodations. And that's exactly what we got once we discovered (a) that the same thing the timeshare companies sell for big bux can be bought resale for peanuts, & (b) that old retired folks like us with flexible travel schedules can score luxury timeshare reservations at Motel 6 & Super 8 rates via bargain outlets like RCI Last Call & Bonus Weeks, etc., and even through Armed Forces Vacation Club.

Is this a great country or what ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[jabberwocky]

I’m writing this as a younger Gen X (borderline Millenial) with four Gen Z kids. I’ve been timesharing for nearly 30 years (initially with my parents in the 1990’s and as a TS owner since 2011).

I’ve observed a shift in the “activities vibe” at some of the resorts in the past five years, but I don’t think it’s because of the activities not keeping up, rather I’d say the way in which people engage with each other has changed. Gen Z for better or worse now lives through their “devices” and sees this as a perfectly normal way to interact.

Think about how many people you see these days who are glued to their phones while sitting around the pool. I’d argue the activities at many of the resorts are built for real-life interactions - not the digital world. In many ways I suspect that for prior generations the memories were created and shared with those you were traveling with. Contrast this with the way in which Gen Z tends to create memories by taking the selfie to share the experience with their friends. I don’t mean this to be derogatory at all - it’s just a way that technology has changed how we live.

Add in the fact that millennials are now in the prime TS buying years (I suspect late 30’s is probably the average “first time” purchase), but many have delayed a lot of those “life events” like home buying, marriage and kids which make TS a good value. When Gen Z gets to that age bracket it’s probably going to be even a harder sell to engage them with the TS world.

 

[travelhacker]

I'm a Millennial and work with a ton of Gen Z (80% of the company). The traditional timeshare products seem like they would be a very hard sell to most of my coworkers. I'm not saying that ARDA is wrong about Gen Z wanting "experiences", but I'm not sure how that fits into a timeshare product.

There's a few reasons for that:

1) None of them has kids and most don't plan on ever having kids.

Once we had our third kid, the number of nice resorts that can sleep our family without needing a second room really dwindled (and it's super spendy to do so). Timeshares are a great option for family vacations.

2) They plan "Epic" vacations that they've been wanting to do for years (Japan for 3 weeks, Europe for several weeks).

A weeklong stay in Hilton Head (or Florida) really doesn't register as a consideration.

3) While I shake my head at many of the ways they spend their money (DoorDash, Ubereats, etc), I do think they are as a whole more fiscally responsible than my co-workers when I was first starting out in my career. All prioritize saving for retirement, saving for a down payment, and at least outwardly talk about avoiding any type of credit card debt. I can't see any of my coworkers think that buying a timeshare would be a good idea before purchasing a house. The idea would be laughable to them.

In a nutshell, they are at least several years "behind" where my peers are with many milestones (getting married, purchasing a house, first child, etc).

IMO, timeshares were able to differentiate themselves from hotel products precisely because of the family factor. It's why I'm willing to "prepay" for my vacations -- there just aren't that many hotel options where I can stay with my family that provide the level of comfort that timeshare stays offer. It's awesome that AirBNB and VRBO exist, but for me Timeshares provide better value and the quality is much more consistent (plus I like a resort experience A LOT more).

Timeshares are amazing for families with many kids as well as multi-generational vacations.

I think more than anything ARDA will have to deal with the demographics of what is going on in the US. The birth rate is declining fast. The number of families needing the extra space provided by a timeshare is declining and declining quickly.

The "City" or former "Pulse" timeshares could be interesting (and while they don't hold a lot of appeal to me currently, I think I'd have a lot of fun traveling as an empty nester to those locations). The issue that I have with those destinations is when converting the maintenance fees to what an equivalent cash stay would cost just doesn't seem to add up.

I'd like to see them create some of those "Pulse" type properties in international destinations. They could hold a lot of appeal to Gen Zers, as well as millennials who are getting closer to being empty nesters. I'm sure the regulations in European countries are tricky as they've forged on with the "City Collection" ideas in Charleston, and Savannah rather than locations that would be more appealing to younger generations.

 

[dioxide45]

The thing is, most boomers and gen x weren't buying timeshares in their 20s and 30s. I don't see why it would be any different for Gen X and Millennials in the same age range.