Message of the Month

April 2017

Ripple effects of timeshare growth

This is a time when the vacation ownership industry is looking to grow in measured steps, with participation from committed players who have a long term vision in mind. The All India Resort Development Association (AIRDA) has pinned its hopes on growth that is sure and steady - with its target segments really experiencing the benefits of timeshare memberships.

So how is vacation ownership development positioned in the country? How will the timeshare concept enhance the scope for further hospitality development?

Though vacation ownership has been growing at an encouraging CAGR rate over the last three years, we find that the concept of timeshare still needs to be explained to our prospect groups. These are people with the income surplus to consider a timeshare investment – with the convenience of an EMI plan.

India has the potential to embark on an exciting growth journey, with a visibly increasing number of vacationing platforms under the timeshare umbrella. Timeshare gives the industry the benefit of a business model that actually encourages long term relationships with customers.

The market for timeshare products is huge, provided you work within the framework of the organized market – with ethical products and a commitment to growing the industry. While domestic traffic is adopting a lifestyle that supports the timeshare model, customized leisure travel options in India are limited. We need to develop more circuits across the country and ensure fairness in transaction with consumer-friendly policies.

We also need to set up resorts in locations off the beaten track - hills, beaches, wildlife zones, plantations and even health circuits. Over the last two years I have also seen timeshare models being applied at pilgrim spots as well. And looking at tourism as the big picture, we can see three to four key products emerging - namely, traditional timeshare, condominium hotels, traditional fractional and private residence clubs.

And this is where I would like to bring in the role AIRDA plays in promoting leisure real-estate development via the timeshare route.

AIRDA was set up in 1998, with an aim to achieve self-regulation in timeshare and vacation ownership. The association initiated and achieved classification guidelines from the Ministry of Tourism for resorts affiliated with us, which enables and ensures quality standards. The main objective here is to place the segment of domestic leisure tourism as a national priority.

For developers, our broad aim would be to promote knowledge about timeshare (or vacation ownership) to a growing circle of investors. It is also important to recognize that timeshare makes a direct contribution to the leisure segment - the benefits of which are enjoyed by the travel sector.

AIRDA currently represents a growing partnership of members who are committed to resort development. Our doors are also open to exchange companies and other stakeholders who can participate in the growth of vacation ownership and subscribe to AIRDA's code of ethics and customer interface guidelines.

Looking at growth and consolidation we need a larger pool of members venturing into resort development with a firm long-term commitment. Further, to identify the scope of the sector, we have undertaken an industry survey for vacation ownership – attempted for the first time in India.

This growing industry needs to grow, through a process of consolidation - where AIRDA will play the role of enabler, facilitator and industry partner.

Together, we can.