Stock Stories Marriott Vacations Worldwide (VAC) - A Look Inside The Timeshare Industry
Sep 23, 2020
Dive into the intriguing world of timeshares with a look at Marriott Vacations Worldwide. Discover the history behind its spin-off and the strategic acquisition of ILG. Learn what makes timeshare sales presentations tick, from high-pressure tactics to psychological incentives. Explore how the timeshare model generates cash flow and the financial dynamics shaping the company. Finally, ponder its future as it grapples with attracting younger generations and the sustainability of its business model.
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Origins And Strategic Acquisition
- Marriott Vacations spun out of Marriott and was the first big hospitality brand in timeshares, later adopting a points system in 2010.
- The 2018 ILG acquisition expanded inventory, brands, and owners, reshaping scale and offerings.
What Timeshares Actually Are
- A timeshare lets customers prepay for the right to stay at properties at set times instead of buying per-trip hotel nights.
- Products differ: timeshare estates give property share ownership, while licenses grant only usage rights.
Memories Of Aggressive Sales Presentations
- Alex recounts childhood timeshare visits with arcade playrooms used to distract kids while parents attended long sales presentations.
- He notes presentations often last two to three hours and use sophisticated psychological sales techniques.