What Timeshare Can Teach About Experience-Led Loyalty

Source

Skift: What Timeshare Can Teach About Experience-Led Loyalty

What It Says

At the Skift Global Forum, Jason Gamel (President and CEO of ARDA) and Gordon Gurnik (Senior Executive VP and COO of Hilton Grand Vacations) discussed how the vacation ownership sector has evolved from rigid, same-week timeshares into a flexible, experience-driven model.

Key data points and insights from the discussion include:

Demographic Shift: Over 75% of new vacation ownership buyers are Millennials and Gen Z, who view these purchases as investments in their travel futures.
Scale of Experiential Programs: Hilton Grand Vacations (HGV) manages approximately 720,000 members and hosts 3,800 events annually through its HGV Ultimate Access platform.
High Engagement: Over 137,000 members attended an HGV Ultimate Access event last year, with 94% of members reporting that these curated experiences add tangible value to their membership.
The Power of "Nuance": Rather than offering simple tickets, successful programs focus on exclusive access, such as private viewing suites at Formula 1 in Las Vegas or meet-and-greets with rising musicians.

Why It Matters

As the short-term rental (STR) industry matures, operators face rising customer acquisition costs and a highly competitive landscape. Traditional loyalty programs built solely on points or discounts are losing their edge. The timeshare industry's successful pivot to experiential loyalty demonstrates how to capture younger demographics (Millennials and Gen Z) by offering exclusive, non-replicable local experiences. For STR platforms and hospitality brands, this shift highlights the need to move from transactional stays to long-term, relationship-based customer retention.

Useful Signals

Demographic Target: Millennial and Gen Z travelers now make up the vast majority of vacation ownership buyers, proving they are willing to commit financially to long-term travel brands if the experience is flexible.
Quality Over Quantity: HGV's strategy emphasizes that curated, high-touch events (like meeting a baseball player in a private suite) drive higher satisfaction than high-volume, generic ticket giveaways.
Continuous Feedback Loops: HGV relies heavily on member surveys to constantly refresh and rotate their event catalog, preventing experiential fatigue.

STR Tech Report Take

For short-term rental operators and property management companies (PMCs), the takeaway is clear: guest loyalty is no longer just about the physical property. STR technology vendors have a massive opportunity to build tools that help PMCs scale curated local experiences.

Whether through automated partnerships with local event providers, integrated guest portals that offer exclusive local access, or feedback loops that track guest interests, technology must bridge the gap between accommodation and experience. PMCs that curate "un-buyable" local experiences—such as private chef dinners, exclusive local tours, or VIP access to regional festivals—will foster the same high-retention loyalty that the vacation ownership sector currently enjoys.

Original Source