Research

The evolution of a simple idea

During the US energy crisis in the 1970s, a slump in holiday real estate sales forced developers to seek new and creative ways of selling their empty properties. A simple concept was born – one which was to have a lasting effect and revolutionise the modern travel and tourism industry forever.

Leisure real estate and shared ownership became a global phenomenon in the travel and tourism industry. Some 30 years later, the industry remains rich in commercial potential, both for established developers and those entering the market.
Product diversification and the introduction of new concepts is set to drive future industry growth.  The industry’s ability to respond to changing consumer lifestyles and vacation preferences has encouraged people to see shared ownership as a viable alternative to traditional holidays. Millions of people worldwide take holidays through Group RCI’s Exchange and Rental divisions.

Now a highly organised and regulated industry, trade organisations and industry founding members, such as Group RCI, work to shape legislation and apply codes of conduct which ensure the protection of customer rights and that expansion is based on sound commercial practice and ethical standards.

Current emphasis within the hospitality industry is concentrated on building brands and customer loyalty, and maximising repeat business – an area in which shared ownership has experienced proven success. Resorts operating shared-ownership schemes are seen to rapidly generate a loyal customer base and secure long-term repeat business. This naturally brings added use of resort facilities and helps to boost resort reservations.

The future is bright

This success is set to continue. The future for the leisure real estate and vacation exchange industry is brighter than ever before, with current patterns for leisure real estate and shared ownership indicating an annual growth of nine per cent over the next 10 years – double that of the projected growth in the travel and tourism industry overall.

Increased credibility and consumer protection laws, a more discerning consumer base, the acceptance of the industry as an integral part of travel and tourism, an ever-expanding choice of accommodation, amenities, locations, pricing, and exchanges have all combined to create a framework for increasing globalisation, growth and a significant return on investment.

Current emphasis within the hospitality industry is concentrated on building brands and customer loyalty while maximising repeat business – an area in which shared ownership can guarantee success. A resort operating a shared ownership scheme will immediately generate a loyal customer base and secure long-term repeat business. These programmes will also maximise the use of resort facilities and help to boost resort reservations - even in shoulder seasons.

 The industry is continually changing and has recently expanded, strengthening alliances in the industry by bringing together leisure real estate developers with successful developing companies. Smaller companies are growing through acquisition and consolidation. There are also an increasing number of hybrid developments combining hotel and shared ownership products at the same resort, as well as an emergence of fractional ownership and Private Residence Clubs.