Vacation Ownership Shifts Toward Experience-Based Loyalty
Hilton Grand Vacations runs about 3,800 experience events annually for 725,000 owners, reflecting a trend toward experiential offerings. Over 75% of vacation ownership buyers are millennials and Gen Z, who prioritize experiences over home ownership. Companies like Marriott and Westgate are also expanding experience platforms to retain customers.
The vacation ownership sector is actively courting a younger demographic, with data indicating that over three-quarters of recent buyers are millennials and Gen Z. This shift is prompting companies to move beyond traditional timeshare models, integrating exclusive events like private concerts and sporting events into their core offerings. Hilton Grand Vacations alone orchestrates thousands of these experiences annually for its substantial owner base.
To maintain relevance, companies are focusing on dynamic programming that evolves with customer feedback. The strategy involves leveraging ownership as a gateway to a wider loyalty ecosystem, allowing owners to convert their investment into hotel points. This approach aims to create a more holistic travel relationship, with competitors like Marriott and Westgate adopting similar experiential platforms to foster deeper customer retention.
This trend could significantly reshape consumer spending priorities, particularly for younger generations who may be choosing travel experiences over traditional asset accumulation like homeownership. If sustained, this could influence broader economic patterns in real estate and leisure. For the travel industry, the focus on exclusive access may raise customer expectations, potentially forcing competitors to invest heavily in unique programming to retain loyalty, thereby altering the competitive landscape.