Strategic Imperatives: Navigating the Future of Vacation Ownership

The vacation ownership industry constantly shifts, presenting both complex challenges and significant opportunities for industry leaders. Understanding these dynamics and proactively shaping the future demands a strategic perspective rooted in robust advocacy, technological innovation, and deep market insights. Concord Servicing's Peter Moody recently engaged in an insightful conversation with Jason Gamel, President and CEO of the American Resort Development Association (ARDA), offering a comprehensive outlook on the forces influencing vacation ownership and highlighting how strategic collaboration drives sustained success.

Federal and State Advocacy: Protecting Industry Interests

At the forefront of industry stability, ARDA, with over 55 years dedicated to representing timeshare and vacation ownership, acts as a critical advocate, protecting legislative interests and shaping industry practices. Jason Gamel emphasizes ARDA's core vision as: "Our main mission is to connect people within the industry, to protect the industry from a legislative perspective, and affect how people do business." This legislative focus ensures the industry operates within a predictable and supportive framework, which is crucial for long-term planning.

Navigating the federal and state regulatory environments demands constant vigilance. Jason points out that the current administration can introduce unpredictability, creating uncertainty that businesses inherently dislike. Consequently, a critical federal priority involves safeguarding installment sales tax treatment, a "huge deal" that often necessitates broad coalitions in Washington D.C. to prevent adverse legislative impacts.

This proactive stance extends to the state level, where ARDA's advocacy adapts to unique political climates. In Florida, for instance, the Champlain Towers collapse spurred major reform bills. While these revisions are primarily positive and provide additional clarity and financial flexibility for associations struggling with safety requirements, new stipulations on Community Association Managers also impacted timeshare associations, even though timeshares operate differently from condominiums. This shift required ARDA to introduce its own legislation. Jason illustrates the challenge with a specific example: "We spent countless hours  educating why that doesn't work for timeshare, and why it’s problematic to force things like four in-person meetings a year for a timeshare association board, where board members typically do not live year-round." This tailored advocacy is essential for preserving the industry's operational viability amidst evolving regulations, ensuring that policies support, rather than hinder business.

Jason Gamel, President and CEO of the American Resort Development Association (ARDA)

Technology Innovations: Engaging Today's Vacation Owners

Beyond legislative defense, the industry's sustained growth hinges on effectively adapting to changing consumer expectations and embracing technological advancements. Despite some negative public narratives, the timeshare industry boasts a strong foundation of owner satisfaction, with ARDA's research finding that  "90% of timeshare owners are satisfied with their timeshare experience." This high satisfaction stems from the product's inherent value proposition. Jason highlights that "we vacation for more space, for the flexibility of the product, and the ability to make reservations all around the world, whether it's through exchange or in the resort system that you might know." This inherent appeal, combined with professional management, contributes to timeshare occupancy rates that often exceed traditional hotels.

This strong foundation also allows the industry to capitalize on emerging trends. A significant market developers actively leverage is the escalating demand for experiential travel, where consumers seek unique, memorable experiences beyond standard accommodations. Modern timeshare products respond by offering expanded flexibility, moving beyond the outdated notion of returning to the same resort annually. Jason explains, "Modern products and systems offer maximum flexibility to travel one day or 10 days or 20 days, making the membership experience that much better."

Crucially, technology serves as both the foremost challenge and the most exciting opportunity for the vacation ownership industry. As Jason states, "The biggest challenge, and also the most exciting part moving forward, is technology. Travel today is fundamentally a technology business." As consumers conduct most aspects of their lives via smartphones, the expectation for seamless digital interaction extends to vacation ownership. This is particularly vital for engaging younger demographics, as Millennials and Gen Z now constitute 57% of all timeshare owners and two-thirds of new purchasers. Jason describes this critical expectation: "If they're looking at how to pay their maintenance fee, or how to pay their loan statement, or how to check on something—the expectation should be the same as it would be with a car loan. The same way they would look at a bank account. Go on their phone, click on the app, and see everything there." This digital imperative drives innovation and strategic partnerships, as larger companies increasingly seek to acquire nimble, ready-made technological solutions rather than developing them internally.

Data, Insights, and Strategic Collaboration: Fueling Industry Growth

In an industry driven by so many evolving pieces, data-driven insights and strategic partnerships are indispensable for informed decision-making and sustained advancement. Concord Servicing's new representation on the ARDA board signifies a pivotal collaboration, enhancing industry efficiencies through its unique contributions. Jason outlines Concord's key contributions, noting that its extensive engagement with ARDA members offers critical intelligence. He explains, "It's a critical area that tells us about the health of our industry. You observe trends within ownership bases and companies that act like a doctor's report, providing a pulse of the industry." This granular data empowers ARDA to better inform and educate its constituents.

Beyond domestic insights, Jason emphasizes that Concord brings invaluable international expertise. He highlights the company’s substantial operations in Mexico, the Caribbean, and beyond, areas vital to ARDA and its members given that a majority of product purchasers in these regions originate from the United States. Concord's deep understanding of these cross-border dynamics proves essential for strategic market development. Furthermore, our contribution provides crucial thought leadership in this industry, drawing insights from its broad reach, touching over 1.5 million consumers annually and serving over 500,000 installment loan holders across North America. This broad perspective, gathered from various levels of engagement within the industry, has significantly enriched high-level board discussions.

This commitment to collaboration extends to ARDA's global relationships, maintaining a robust partnership with Amdetur, the Mexican Association of Tourism Developers. This strategic alliance aims for future joint research to precisely size vacation ownership markets and facilitate the sharing of best practices across borders. For industry leaders seeking to deepen strategic intelligence and expand their networks, ARDA hosts key events, including a legislative policy forum in Washington D.C., offering direct engagement with senators and congressional members. These interactions are invaluable for informing policy and establishing critical industry contacts.

The ongoing dialogue and strategic alignment between organizations like ARDA and key industry players like Concord Servicing underscore a proactive, informed approach to navigating the future of vacation ownership. For executives steering their businesses, understanding these legislative shifts, embracing technological and experiential innovation, and leveraging data-driven insights are not merely beneficial—they are strategic imperatives for sustained growth, enhanced resilience, and competitive advantage in a dynamic market. The future belongs to those who actively shape it through informed strategy and collaborative action.