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Wyndham Destinations elaborates on new strategy

Vacation ownership and exchange company Wyndham Destinations has embarked on a five-year, US$1 billion investment focused on new resort developments and renovations, brand and marketing projects, customer relationship management and digital experience enhancements.

Among the bigger announcements this week from the company that became independent from Wyndham hotels last year is new brand identities for its flagship timeshare clubs, Club Wyndham and WorldMark by Wyndham.

Reports suggest Wyndham Destinations will spend as much as US$25 million on modernizing sales centers and US$10 million on new customer relations tools.

HOTELS followed up with Chief Brand Officer for Wyndham Destinations Noah Brodsky to learn more about the strategy behind the program.

HOTELS: What is the biggest expected challenge for the five-year plan?

Noah Brodsky: We know we’re facing some outdated perceptions of our industry that we’ll need to address so we can break down barriers that exist among some consumers. We are taking a simple and transparent approach to address that. Our goal is to eliminate the friction that exists and get straight to the benefit of the product, which has a nearly 90% satisfaction rate among our owners.

Club Wyndham Austin Presidential Suite
Club Wyndham Austin Presidential Suite

H: Can you offer a few details about what will come in the next phase of this program?

NB: We’re renovating existing resorts with the modern design elements, furniture and amenities that make our resorts feel like home – but better, and incorporating our powerful brands into those destinations. The Club Wyndham and WorldMark by Wyndham timeshare brands are being re-launched with an exciting, modern look and feel that brings the essence of being an owner to life.

We opened a new urban resort this year in Portland, Oregon, and will open a resort in downtown Nashville later this year. We are also expanding resorts in other favorite destinations including Orlando and Scottsdale, and building a new resort in the heart of Utah’s national parks corridor, which is set to open in 2020.

The website and other digital aspects mentioned before are also rolling out.

H: How long will it take to realize ROI?

NB: We’re already beginning to see the ROI of the strategy since our spin-off from Wyndham Hotels & Resorts almost one year ago, making Wyndham Destinations the largest vacation ownership and exchange company. Our company’s business model enables Wyndham Destinations to invest in profitable growth areas while delivering consistent cash generation, allowing the company to return nearly US$500 million to shareholders in the form of dividends and share repurchases since the company was established in June 2018. Our team delivered solid results in the first quarter.

Strong volume per guest combined with cost efficiencies led to a 60 basis point margin improvement year-over-year and adjusted EBITDA growth of 4%. We have increased our EPS outlook and are on track to deliver against our strategic goals and key performance indicators in 2019.

H: Is Wyndham Destinations investing in the real estate of the new urban properties? If not, can you explain the model?

NB: We work with developers to build resorts based on the specifications we know will best suit our customer’s needs and wants. We then purchase the inventory to satisfy owner demand. This method allows us to be efficient with our cash flow and continue to deliver great experiences for our owners.

H: Can you outline the investment in new technology both at corporate and property levels?

NB: We are enhancing the online experience to make it simpler for owners and future owners to plan and book their dream vacations, and reimagining our sales process to make the sales centers more open and to let people feel like they’re on vacation. We are also opening new stand-alone sales centers in locations like San Antonio, Portland and Nashville.

H: Can you elaborate on the digital experience enhancements?

NB: We are leapfrogging the timeshare industry with our digital transformation efforts – allowing our owners to dream, plan, book and share their vacations online and on the go. The goal is to make it easier for people to book online, and to provide owners more access to last minute deals to get more value for their points. We’re also providing more transparency by making more dynamic content available online so people can understand the benefits of timeshare.

We’ll also be the first of the branded timeshare companies in the industry to allow people to book mini vacations and timeshare tours online.

H: Are you trying to dismiss the word ‘timeshare’ as part of this new strategy?

NB: We are not trying to dismiss the word timeshare, we are redefining it. We know it’s been a pop culture punchline in the past, but the timeshare of today has evolved to suit the needs of modern travelers. We’re proud to be the largest company in the industry with the opportunity to put 880,000 owners on vacation. We want people to hear “timeshare” and think “great vacations.”

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