24 Sep 2024
SINGAPORE (24 SEPTEMBER, 2024) – Travel + Leisure Co., the world's largest membership and leisure travel company, says Asia is ripe for major growth in vacation ownership, as people increasingly seek a luxury lifestyle without the full financial commitment of buying a holiday home. Asia is undergoing a transformative shift in how consumers approach ownership, fuelled by a relentless desire to travel, a trend towards valuing experiences over possessions, and the changing priorities of Gen Z and Millennials, who are looking for new ways to spend their time and money amidst a world of rising living costs.
“Vacation ownership provides a flexible, cost-effective way to enjoy a luxury lifestyle by sharing high-value assets in the same way that fractional ownership has already revolutionised ownership of assets like cars, yachts, private jets and art,” says Barry Robinson, President and Managing Director, International Operations at Travel + Leisure Co, the world leader in vacation ownership. “We have redesigned our vacation ownership model to suit new preferences, especially for Asian consumers, with shorter terms, flexi-levy arrangements, and a residual value model, where members share in the net proceeds of the properties when they are sold at the end of the Club term.”
This model, Robinson says, has resulted in Club Wyndham Asia – the vacation club developed by Travel + Leisure Co. in Asia – more than doubling its member base in the past year. Now, 60% of the club's members are Gen Z or Millennials, a stark contrast to just a year ago when this demographic accounted for only 53% of members.
A Market Ready for Growth
Vacation ownership already has a significant membership base in the United States and Australia, but Asia's rising levels of affluence, coupled with the demand for shared ownership, presents a significant growth opportunity.
"As more Asian consumers look for ways to enjoy luxury experiences, vacation ownership offers them flexibility, financial prudence, and a sense of community that aligns with their values," says Robinson. “People want to feel special when they travel, and we take care to treat our members like VIPs when they stay with us. Best of all, vacation ownership allows you to future-proof your holidays against inflation, because the number of points you need to a book your stay remains the same for the life of the Club.”
Another advantage of vacation ownership that appeals to the Asian market is the ability to stay in villas, apartments, and suites that can accommodate the whole family or a group of friends, rather than in a standard hotel room. Members can access more than 4,000 resorts globally through the world's largest exchange company, RCI, and tens of thousands of properties through the Wyndham Hotels & Resorts portfolio.
Travel + Leisure Co. is targeting key markets including China, Japan, Indonesia, Singapore, and Thailand, with its headquarters in Singapore, where demand for affordable luxury travel is high. With the support of legislation that ensures consumer protection, the company believes vacation ownership will continue to thrive in Asia.
As President of industry body, the Asia Pacific Resort Development Organisation (APRDO), Robinson and Travel + Leisure Co. have worked extensively with government to ensure quality legislation that protects consumers and offers transparency and flexibility to make vacation ownership even more attractive.
A Generational Shift Towards Experiences Over Possessions
For Gen Z and Millennials, owning material belongings is becoming less important than acquiring unique, life-enriching experiences. Travel + Leisure Co. believes that vacation ownership, which allows travellers to own their holidays through shared ownership, is the perfect response to this rising trend. Instead of buying and maintaining an entire holiday home, members can purchase points that give them flexibility to choose their destination, accommodation type, and time of stay, with consistent service and amenities across a range of premium resorts.
Vacation ownership is not only about flexibility, but also about sustainability. The points-based systems of Travel + Leisure Co. offer members the ability to travel to different destinations, with the consistency of top-tier resorts and amenities, while minimising wasteful underutilisation of holiday homes. Resorts are maintained and used regularly, ensuring they don't sit idle and depreciate over time.
A Bright Future for Vacation Ownership in Asia
A Business Research Insights paper found the global vacation ownership industry is expected to grow at a compound annual growth rate (CAGR) of 7.6% through 2031, reaching $36 billion in sales. As the market continues to evolve, vacation ownership stands out as the new frontier in Asia's shared economy, offering a compelling blend of luxury, flexibility, and sustainable living.
About Travel + Leisure Co.
As the world's leading membership and leisure travel company, Travel + Leisure Co. (NYSE:TNL) transformed the way families vacation with the introduction of the most dynamic points-based vacation ownership program at Club Wyndham, and the first vacation exchange network, RCI. The company delivers more than six million vacations each year at 245+ timeshare resorts worldwide, through tailored travel and membership products, and via Travel + Leisure GO - the signature subscription travel club inspired by the pages of Travel + Leisure magazine. With hospitality and responsible tourism at the heart of all we do, our 19,000+ dedicated associates bring out the best in people and places around the globe. We put the world on vacation. Learn more at travelandleisureco.com.
Media contacts:
Gaynor Reid – PR Consultant
+65 9108 3577
Michael Parsons – Travel + Leisure Co. Senior Vice President, Marketing & Communications Asia Pacific
+65 8608 8092
