Travel + Leisure Co., the world’s largest membership and leisure travel company, is eyeing significant growth opportunities in Asia through the rise of fractional ownership. This innovative model allows consumers to enjoy luxury vacation experiences without the full financial burden of owning a holiday home. With the increasing desire for travel and luxury experiences among Asian consumers, particularly Gen Z and Millennials, Travel + Leisure Co. is poised to capitalize on this trend.
The Rise of Fractional Ownership
Fractional ownership is transforming the way people approach luxury assets. Instead of purchasing a holiday home outright, consumers can now share ownership, making it more affordable and flexible. This model has already revolutionized the ownership of high-value assets like cars, yachts, and private jets. Travel + Leisure Co. has adapted this concept to vacation ownership, offering shorter terms, flexible arrangements, and a residual value model. This approach has resonated particularly well with younger generations, who prioritize experiences over possessions.
The success of Club Wyndham Asia, a vacation club developed by Travel + Leisure Co., is a testament to this trend. The club has more than doubled its member base in the past year, with 60% of its members now being Gen Z or Millennials. This demographic shift highlights the growing appeal of fractional ownership among younger consumers, who are looking for cost-effective ways to enjoy luxury lifestyles.
A Market Ready for Growth
Asia’s rising affluence and demand for shared ownership present a significant growth opportunity for Travel + Leisure Co. Vacation ownership already has a substantial membership base in the United States and Australia, but Asia is now ripe for expansion. As more Asian consumers seek luxury experiences, vacation ownership offers them flexibility, financial prudence, and a sense of community that aligns with their values.
Barry Robinson, President and Managing Director of International Operations at Travel + Leisure Co., emphasizes the importance of treating members like VIPs. Vacation ownership allows members to future-proof their holidays against inflation, as the number of points needed to book stays remains constant. This stability, combined with the ability to stay in spacious villas, apartments, and suites, makes vacation ownership an attractive option for families and groups of friends.
Future Prospects and Innovations
Travel + Leisure Co. is continuously innovating to meet the evolving preferences of Asian consumers. The company has redesigned its vacation ownership model to include shorter terms and flexible arrangements, catering to the needs of a younger, more dynamic market. The residual value model, where members share in the net proceeds of properties when sold, adds an extra layer of financial security and appeal.
The company’s strategic expansion in Asia is supported by its acquisition of Accor Vacation Club, which will further strengthen its presence in the region. This acquisition allows Travel + Leisure Co. to leverage Accor’s extensive network and brand recognition, providing a solid foundation for future growth. By offering curated and unique travel experiences, Travel + Leisure Co. aims to become the partner of choice for luxury vacation ownership in Asia.