Timeshare Trends Blog

Marriott Vacation Club introduces new vacation ownership program. Marriott Vacation Club, the timeshare brand of Marriott International, recently announced the launch of the points-based Marriott Vacation Club Destinations program in North America and the Caribbean, rather than the once usual week at a designated resort. The points system is designed to accommodate new trends in travel and increase flexibility for timeshare owners, allowing them to book multiple, shorter stays rather than a full week. Current owners of Marriott timeshares will maintain their full rights and privileges, but will also have the option to enroll in the new program.

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Timeshare division of Marriott International has hurt earnings. According to the Orlando Sentinel, Marriott International lost $466 million in the recent quarter on hefty impairment charges from its Orlando-based timeshare business, which declined drastically in the recession as vacationers cut back spending.

Marriott lost $1.31 a share for the period ending September 11 compared with a profit of $94 million or 25 cents a share a year earlier. In the recent quarter, adjusted timeshare contract sales declined 42% to $176 million, compared with $49 million in the prior year quarter.

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Marriott International is cutting back on the high-demand home development business and is cutting prices at some of its fractional ownership resorts. Marriott is also planning to halt its timeshare development in Europe. However, according to a recent Orlando Sentinel story, Marriott officials report that their timeshare business run by Orlando based Marriott Vacation Club International is doing better than its high-end counterpart.

According to Marriott’s president and chief operating officer, Arne Sorenson, the significant decline in demand for luxury residential real estate is reflective of today’s economy. It also reflects the relative strength and deeper market of the traditional timeshare business, which while impacted by the weaker economy has proved to be more resilient.

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Marriott International, the biggest hotel chain in the US, reported a fourth quarter loss $10 million compared against profits of $176 million one year earlier.

According to Arne Sorenson, Marriott’s chief financial officer, “Economic conditions in the U.S. and now around the globe are difficult.” Marriott International’s Orlando based timeshare unit reported an adjusted loss of $2 million, as it has struggled with a weak demand for timeshares and a deteriorating credit market. Timeshare sales have declined 23% from one year earlier.

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