The CEO of the world’s largest timeshare owner is picking up new customers thanks to out-of-control rental fees
Mar 20, 2023, 10:09am EDT
Travel + Leisure is the world’s largest timeshare owner, with brands like Wyndham Destinations a part of its portfolio of properties. The public company, like many in the travel sector, was decimated by COVID as its market cap was cut in half in a matter of days.
The Orlando-based firm has mostly bounced back, bringing in close to $3.6 billion in revenue last year, a 17% jump from 2021 though still not yet at pre-pandemic levels. CEO Mike Brown spoke with us about why people would rather own than put up with high rental fees, younger generations’ interest in the vacation model, and where he vacations.
Bradley Saacks said:
B: Hey Mike!
Mike Brown said:
M: Good afternoon
Bradley Saacks said:
B: Just to start off, could you send us a selfie of where you are?
Mike Brown said:
In my office overlooking Sea World
Bradley Saacks said:
B: Not a bad view!
Mike Brown said:
M: It’s great to be in leisure travel!
Bradley Saacks said:
B: I saw Travel + Leisure had a strong close to last year, what’s exciting in the timeshare business these days?
Mike Brown said:
M: Not only is leisure travel demand continuing in the first few months of this year, but also our members are seeing tremendous value in ownership compared to rental rates.
Bradley Saacks said:
B: Is there a geography that’s been booming of late? And are millennials getting into the timeshare game now?
Mike Brown said:
M: Last year was a drive-to year, however this year, fly-to and drive-to are both booming — Hawaii, Utah and Tennessee are our hottest locations.
Mike Brown said:
M: Last year we had 42% growth in first time purchasers of which 65% were Gen X and millennials.
Bradley Saacks said:
B: Of those first timers, did you get a sense of why they went the time share route? Fed up with higher costs? We’ve noticed the emphasis on fees from Washington recently (I don’t think I’ve heard a president bring up resort fees in a state of the union address before).
Mike Brown said:
M: Many reasons. Vacations are more enjoyable when your accommodation is bigger. A family of 4 enjoys their vacation with 2 beds versus a 300 sft hotel room.
Mike Brown said:
M: Also, the value you have in your ownership — purchased at prior year prices — up against high rental rates is pulling new owners to our product. High value, bigger space.
Bradley Saacks said:
B: Makes sense to me, one last question before I let you go: Are you an owner of any Travel + Leisure properties?
Mike Brown said:
M: Yes. I am a member at Club Wyndham and I have used it most in our Park City property. My wife and teenage just went there to ski!
Bradley Saacks said:
B: Can’t beat good day on the mountain — thanks for chatting!
