By: Hemant Ameria, Principle Consultant, Travel Business, LTIMindtree

As we are considerably into 2022, I believe that we could be witnessing the end of this pandemic. Why, you may ask, or even how? While the pandemic may be really here to stay, experts believe that it could become endemic, translating to the fact that we will have to learn to live with it.

A pandemic of this magnitude leaves a lasting mark. This is seen in how companies do their businesses, like shifting focus from business to the leisure travel segment. By some estimates, 20 to 30% of business/corporate travel, as we knew it before the pandemic, will never return. Also, customers are making decisions about their travel choices based on factors like hygiene, social distancing, etc. Some of these changes will be long- lasting, while others may fade with time. Also, these changes and their impact would vary by economies and societies.

Evidently, one of the worst impacted sectors is travel and tourism. According to the World Travel and Tourism Council:

• The Travel and Tourism sector suffered a loss of almost USD 4.5 trillion to USD 4.7 trillion in 2020
• In 2019, the Travel and Tourism sector contributed 10.4% to global GDP, a share which decreased to 5.5% in 2020 due to ongoing restrictions to mobility
• Domestic visitor spending decreased by 45%, while international visitor spending declined by an unprecedented 69.4%.

Travel has always been about exploring human curiosity, visiting new places, meeting people, building memories, and providing an escape. However, we believe this pandemic will force travelers to reconsider their motives for travel. Some motives would now rank higher than others – like traveling for novelty may be a lesser priority than traveling for an escape, for instance. Along with these, there are two other observable changes brought in by the pandemic, which we believe will positively impact the vacation ownership (timeshare) industry.

The first is   customers prioritizing spending quality time, including space and comfort, with their loved ones. These include properties where rooms are spacious and fully equipped with kitchens and other amenities and have access to beautifully crafted outdoors, with engaging activities for both adults and kids.

The second change pertains to the rise of ‘bleisure’ (business + leisure) travel or ‘digital nomads’ or ‘techno-gypsies’. There is more freedom to take more frequent, longer trips, travel to more locations, and work at the same time. For instance, according to Airbnb , long-term stays of 28 days or more remained their fastest-growing category by trip length, and accounted for 20% of gross nights booked in Q3, 2021, up from 14% in Q3, 2019

Above everything, in the current circumstances, what a customer is looking for is trust in the brand, with a track record of professionally managing properties with unparalleled cleanliness standards. Trust remains the most important currency in lasting relationships.

Conclusion:

Considering the current market situation and the way the pandemic has changed customer behavior, we believe that this puts vacation ownership in a spot. Vacation ownership has become more relevant than ever, and in recent years, vacation ownership companies have been working towards the evolution of the timeshare industry.

Back in the 1970s, when the timeshare industry came into existence, the narrative mainly was to sell timeshare as a form of ownership. Over a period of time, since customer expectations have evolved, the industry has changed too, with aspects like moving from fixed deed to flexible, introduction of subscription clubs, and point-based vacation ownership, with more focus on experience.