
By Craig M. Nash
Chairman, President, and CEO
Interval Leisure Group
As
I write this, the debate around the office is whether we’ve officially
ended the decade, or we have to wait until 2011 to close that
door. We’ve had this discussion before — remember Y2K? A little
more than 10 years ago, we were wondering if the lights would
go out after the clock struck midnight on 31 December 1999.
As
we all know, the lights remained on and, not only did our technology
not fail us, it continued to accelerate at warp speed, propelling
us unimaginable distances. Although there’s no denying that it’s
been a turbulent 10 years, let’s not overlook the fact that the
vacation ownership industry celebrates many positives, not the
least of which is access to ever-more sophisticated technology.
That and other factors allowed us to achieve double-digit growth
for most of the decade.
Timesharing:
A Household Word
We’ve
always attributed our strength to our origins: Timesharing was
born during a down market, and our industry has consistently proven
better-equipped to weather economic turbulence than other hospitality
and tourism segments. Even in the most recent downturn, timeshare
occupancy rates continued to outpace hotel occupancies.
During
the ’00s, the public became increasingly familiar with the concept
of timesharing. According to the 2009 National Leisure Travel
MONITOR™ (a U.S.-based study published by Ypartnership/Yankelovich,
Inc.), 91 per cent of leisure travellers were familiar with timesharing
— a rise from 68 per cent in 2000. And 19 per cent of those familiar
with the concept expressed interest in taking a mini-vacation
at a resort and listening to a sales presentation. Sales staff
found they could spend less time educating prospects on the concept
and more time selling the property: further support that timesharing
has become a positive household word.
Interconnected
Information
spreads with amazing speed. Today, a talking cat, a middle-aged
songstress, or a college prankster can become a worldwide sensation
in seconds — until the next YouTube production steals the spotlight.
Just this year, a reported US$22 million in relief funds for Haiti’s
earthquake victims was raised within a week’s time through text-message
donations alone.
How
can this be anything other than evidence of a paradigm shift in
the way we interact? Consumers turn to technology for virtually
everything, from making donations to enjoying entertainment. If
you had told me in 2000 that one day I’d be able to carry 40,000
of my favourite songs in my pocket, I could no sooner have imagined
that than receiving “tweets” from the president of the United
States.
In
the 21st century, high-tech has proven to be not only a high priority
for timesharing, but also an essential component of successful
business operations, customer service, and marketing and sales
programmes.
In
the 1990s, Interval was the first major vacation exchange network
to establish a presence on the Internet. In the new millennium,
the company continued to unveil innovations — from online exchange
to resort recognition systems — to further assist members in making
informed holiday choices. The company also provided Interval Gold
members with online cruise exchange and ShortStay Exchange capabilities,
adding even more Web functionality and travel-planning flexibility.
Now
Interval is preparing to introduce its social network, Interval
Community, in 2010.
It’s
A Smaller World
Technological
strides have resulted in greater connectivity around the world.
As travellers around the globe share experiences, those in the
travel industry, too, spread ideas, gather expertise, and learn
from one another more readily.
During
the past 10 years, developing timeshare markets experienced a
steady warm-up in some areas and a fast boil in others, including
Mexico (particularly in the Mayan Riviera and Cabo San Lucas),
some parts of Eastern Europe, the Middle East, and Asia. Interval
has seen this global expansion first-hand.
Sometimes
it takes a not-so-pleasant experience to jump-start a needed transformation.
And we can look to the economic debacle as a wake-up call. Our
industry became too dependent on financing and lending as a cornerstone
of the business model. With the crippling of the credit market,
we were pressed to re-evaluate and redefine how we operate. We’ve
been challenged to examine our business approaches, to develop
services and products that better meet the needs of our consumers,
and to seek ways to operate more efficiently.
I
don’t know about you, but I’m ready to call it a decade. However,
let’s shine the spotlight on our strengths and our achievements
over the past 10 years. Enlightened by our experience and by the
technological tools now at our command, our industry is poised
to move forward in a positive direction, leaving no doubt that
the lights are on.
This
article first appeared in the April – June 2010 issue of Vacation
Industry Review magazine. © Interval International, Inc. Used
with permission.