Words: Ashley Rigg
Published: 12th January 2010
10 Fractional Ownership Trends for 2010
2009 was supposed to be the year fractional ownership made a big impact on the overseas property industry. Unfortunately, a lack of consumer awareness and
suspect business models hampered sales.
The only real positive news came from
developers up-selling timeshare units with very few actual sales from developments converted from whole ownership.
Will 2010 be any different? We asked Piers Brown, Founder of fractional ownership portal,
FractionaLife.com for his predictions. As ever, please feel free to express your views by making a comment at the end of the article.
1 Traditional timeshare operators will broaden their purchasing options with fractional ownership products
With the well publicized recent success of Seasons Holidays’ 100% sell out of its Forest Hills fractional development in Spain, it will be no surprise to see other vacation ownership operators innovating their product offerings to reap similar rewards into 2010.
2 Boutique fractionals
With Marriott and other high profile fractional real estate brands publicly announcing a general scaling back of fractional developments and the current financial constraints facing developers, we foresee a rise in the launch and sale of smaller, high quality, strongly branded boutique fractional real estate.
3 Increased fractional cross category activity
With consumers demanding more from their potential fractional ownership purchase and marketing directors constantly searching for quality “fractional savvy” leads, we foresee more reciprocal relationships being formed across non-competing fractional categories for joint initiatives and cross sale activity.
For example, we reported earlier in the year on how this is already happening with Ritz Carlton’s recent
link up with Marquis Jets in the USA
4 Whole ownership operators will complement their resort sales with fractional ownership products
We predict another grim year for whole ownership developers in Europe, UAE and USA unless forced to innovate with lower price points and attractive alternative sales offerings including fractional ownership products. We’ve already reported on a number of fractional developers who have already achieved successful sales with a mixed use offering, for example
Oceanico and
Halycon Hills
5 Bespoke fractional real estate agencies
A hot topic, and yet to be professionally delivered into the fractional market outside of the US – will 2010 be the year fractional sales agents start to make their mark? We believe there’s a fair chance.
6 Escapism
While consumers have become accustomed to ‘staycations’ , small indulgences and cooking at home, Mintel predicts they’ll start occasionally breaking free from the “tyranny of value” in 2010. Escapism will resonate both in and outside the homes as consumers splurge on big purchases and new experiences. This can only have a positive effect on the fledgling fractional industry.
7 Green fractionals
The bar will be raised for individuals, companies and Governments, who will have to demonstrate they care for the environment with the introduction of more and more ecologically sustainable practices. Expect more in 2010.
8 Fractional trade networking
With hundreds of millions of consumers now nurturing some form of online profile, the success of many business networking websites like LinkedIn and Xing should come as no surprise. In 2010 we foresee increased pressure on SME individuals tasked with generating more profitable new business relationships initiated in the virtual world.
9 Real Time Reviews, Tracking and Alerting
Whatever fractional product you're selling or launching in 2010, trendwatching.com predicts it will be reviewed ‘en masse’, live 24/7. Tracking and alerting are the new search, and 2010 will see countless new “infolust” services that will help consumers expand their web of control.
10 ‘Collaborative consumption’ - the next consumer trend
Emerging consumer purchasing patterns will abound with start-up companies exploring dynamic and re-engineered business models based around the new market rules and formulae. We will see a major paradigm shift in the consumer's mindset towards “collaborative consumption”, made possible by the ever increasing speed with which they are embracing advances in new technology, communication and social media networks, driven by the cost consciousness and environmental necessity. All will offer value, delivering the same benefits and pleasures of ownership with less associated costs and hassles, whilst reducing the environmental footprint. This ‘sharing economy’ makes even more sense in tough economic conditions, promoting self-fulfilment whilst offering new personal and collective discoveries and experiences.
Hopefully good news for all involved in the fractional ownership industry.
Piers Brown is Founder of Fractional Life.com. Do you agree with his predictions? Have your say by adding a comment below
User Comments
Good article Piers, and catch up again soon! A sober Mr. Crockford sends his best too.
Mark Fiddes,
Millionaire Investments
Slowly people are discovering the sharing possibilities. There is still a reluctance by many people to consider buying a month's ownership in a large development. However we always see strong interest in buying larger shares, 2-5 owners, of more individual properties, particularly those with style and charm in great locations. Although not everyone wants to negotiate the deal themselves, some like the additional control that creating their own private syndicate gives them, and like to assure themselves that their co-owners are "their kind of people"
Sophie Garrett,
yours2share
