Travel + Leisure’s CEO, Michael D. Brown, revealed his strategic plan for the company’s growth in an exclusive interview with Skift.
With a clear focus on upscale travel market expansion, geographic diversification, and harnessing the power of live tourism, the company aims to revolutionize its timeshare and vacation ownership business model.
On the financial front, the company has been courting high-credit score customers, aligning with current luxury travel trends. This not only yields higher transaction values but also strengthens the company’s consumer finance portfolio, providing attractive loan opportunities.
“By having each staff member generate more revenue per consumer on average, you can focus more on your higher performing associates,” Brown said.
New Travel Destinations and Sports Tourism Development
The Travel + Leisure market strategy includes a strong focus on international markets. Brown expressed intentions to increase the company’s exposure in the Asia Pacific region and Mexico, marking these as key new travel destinations in 2024, which they view as largely untapped markets.
Moreover, the company has identified sports tourism growth as a significant trend and plans to leverage it. Initiatives like the launch of the Sports Illustrated-branded resort and collaborations with Live Nation signify the company’s move towards offering unique experiences to its vacation ownership customers.
The rebranding of the company from Wyndham Destinations to Travel + Leisure Co. has also given it a neutral image, facilitating partnerships without potential conflicts, as observed with the recent Accor deal.
Premium Vacation Ownership and Timeshare Investment Trends
The company’s twin-pillar growth strategy comprises timeshare sales and a membership business, which aim to generate rich upfront sales, and steady cash flow, respectively.
Brown was clear about the business model’s value proposition, stating, “Think of an owner in Orlando who bought in for 2016 prices…They’re getting a two-bedroom condo in Orlando for, say, $1,000 to $1,400, which is a maintenance fee, while their friend across the street is paying $600 a night for a 250-square-foot hotel room to be in the same destination with similar amenities.”
In the travel industry, these ambitious plans provide a unique blueprint for the future of timeshares and vacation ownership. The company’s emphasis on upscale markets, international expansion, and live tourism trends certainly suggests exciting times ahead.
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