WM stats from 12/31 BOD meeting: Median credits owned 12k; Avg credits owned 20k; 199,359 WM owners; occupancy 76%

[mountainboy]

Saw some stats someone kindly shared at WM FB group from 12/31 BOD meeting:
Median credits owned 12k
Avg credits owned 20k (avg higher, as skewed by mega-owners/mega-renters)
199,359 WM owners
occupancy 76%
Cost to WM per Turn $185.15 vs budget 181.71 (so HK $ may increase a bit over time)....
Interesting tidbits...
Just FYI!
TY!

 

[CO skier]

Median credits owned 12k
Avg credits owned 20k (avg higher, as skewed by mega-owners/mega-renters)

Someone does not understand statistics and the meaning/implications of the "median" and "average" values.

As a simplistic example:

25% of the ownership owns 6,000 credits, 25% of the ownership owns 12,000 credits, 25% of the ownership owns 30,000 credits, 25% of the ownership owns 40,000 credits. Not a megarenter in the entire ownership, yet the median ownership value is 12,000 credits and the average ownership value is 22,000 credits.

There are large credit accounts (I recently sold an 85,000 credit account and am not a megarenter) and megarenters, too, of course. The point is that the statistics do not support any insight to whether there are many or few megarenters, and certainly not a claim of "avg higher, as skewed by mega-owners/mega-renters."

 

[Eric B]

Someone does not understand statistics and the meaning/implications of the "median" and "average" values.

As a simplistic example:

25% of the ownership owns 6,000 credits, 25% of the ownership owns 12,000 credits, 25% of the ownership owns 30,000 credits, 25% of the ownership owns 40,000 credits. Not a megarenter in the entire ownership, yet the median ownership value is 12,000 credits and the average ownership value is 22,000 credits.

There are large credit accounts (I recently sold an 85,000 credit account and am not a megarenter) and megarenters, too, of course. The point is that the statistics do not support any insight to whether there are many or few megarenters, and certainly not a claim of "avg higher, as skewed by mega-owners/mega-renters."

Well, OP did include mega-owners as well as mega-renters in those that skew things….

It’s probably a matter of perspective in any case. I would guess that the original stats were with respect to account sizes rather than number of credits owned. That’s the pertinent set of numbers because they treat accounts separately. They could fairly easily track number of credits owned but it would be messy - for example, DW is on one account of mine but not another.

Fundamental issue could be that this is third hand news.

 

[geist1223]

The number of Owners in Worldmark had been declining for about the last 20 years. They have lost about 80K or 90K owners. But the average Account size has been going up. We own 97K Credits . A mixture of Developer Credits and Resell Credits.

 

[mountainboy]

Someone does not understand statistics and the meaning/implications of the "median" and "average" values.

I do (as clearly stated in my post).
Here is another related factoid which illustrates this 'average' vs 'median' value difference.
TY

 

[mountainboy]

Similarly difference between 'average' & 'median' account sizes.
TY

 

[mountainboy]

The number of Owners in Worldmark had been declining for about the last 20 years. They have lost about 80K or 90K owners.

Yup...
Wish HGVC had bought WM rather than Wyndham....
TY!

 

[jp10558]

The number of Owners in Worldmark had been declining for about the last 20 years. They have lost about 80K or 90K owners. But the average Account size has been going up. We own 97K Credits . A mixture of Developer Credits and Resell Credits.

I wonder if this is good or bad - on the one hand they're presumably spending less on collecting MFs as less transactions and less scale of people to deal with. Plus presumably they're now more with people for whom the system works better if they're getting larger ownerships.

On the other hand, if you're right, going from ~300k to ~200k is not great, if the trend continues they've got real pressures I would think to change the business or run out of enough customers to be viable in IDK ~30 years? Granted, that's a lot of runway... but everything I've been seeing seems like headwinds for timeshares.

 

[CO skier]

I do (as clearly stated in my post).
Here is another related factoid which illustrates this 'average' vs 'median' value difference.
TY

View attachment 122529

The largest WorldMark account I have ever seen advertised is 110,000 credits.

VIP Founders level is 85,000 credits.

It is the huge cohort of "everyday" owners in the 30,000 - 60,000 credits range plus the VIP members who skew the average. A histogram would make this clear, but we do not get that level of detail.

 

[bizaro86]

I wonder if this is good or bad - on the one hand they're presumably spending less on collecting MFs as less transactions and less scale of people to deal with. Plus presumably they're now more with people for whom the system works better if they're getting larger ownerships.

On the other hand, if you're right, going from ~300k to ~200k is not great, if the trend continues they've got real pressures I would think to change the business or run out of enough customers to be viable in IDK ~30 years? Granted, that's a lot of runway... but everything I've been seeing seems like headwinds for timeshares.

The MF per credit is lower on the larger accounts though (because each account pays the base fee only once). I can't imagine the cost of servicing an account is more than the >$200 per year base fee, so larger accounts are probably slightly dilutive to the club from a maintenance fee perspective.

 

[mountainboy]

Yes, we see plenty of large WM accounts being given away for free (including many in 90k or 97k credit ranges from Henri, at FB WM sites or at many resale sites like TSN).
TY