Vacation ownership industry commonly known as time-share is being much sought after by middle-class and upper middle-class who are planning to travel more often than in the past, as it gives them the flexibility to travel to different destination, year-on-year with just one package. As a leading player in this industry, Mahindra Group company. Club Mahindra has captured a lion’s share of this industry which is growing at a robust pace. In an interview with Express Ramesh Ramanathan, managing director of Mahindra Holidays & Resort India Ltd, speaks to Rommel Bodrigues about this evolving industry. Excerpts:
Why has the vacation ownership industry not really taken off?
This is not true, this is one of the fastest growing sectors in the tourism industry having registered significant growth in recent decades. The industry has over 40 vacation ownership companies with 80 resorts. You will also be surprised to know that since 1998 the industry has registered a compounded annual growth exceeding 15 percent. Club Mahindra, a leading player, has recorded a CAGR of 57 percent in terms of revenue over the last three fiscals.
In that case why is the concept not widely accepted, and which cities are largely hooked on to vacation ownership?
I don’t agree, however, we can say the concept is nascent in India. With rising salaries more and more domestic tourist are willing to travel across the country. With a vacation ownership they benefit immensity as buyer acquires the right to holiday at a reason for the time you need at a location you desire. Also since vacation ownership resorts are located at many desirable locations around India and the world, you get a multiple choice to travel. In fact, the demand has percolated from the Metros to the Tier 11 cities as well.
What is the vacation ownership industry worth?
The global vacation ownership industry is estimated at over US$9.4 billion. The industry comprises 5,425 resorts in over 95 countries with a total of 6.7 million owners, holding 10.7 million vacation ownership weeks.
How can the concepts be defined in real terms?
Vacation ownership is essentially the ownership and usage of a hospitality asset, which is sold or a predetermined duration or perpetuity. Although there cab be a range of products from different companies, broadly it may include deeded ownership interest in an immovable property, right to use products which allows user to avail accommodation during a specified week, season or time interval for a specified number of years.
Does the inbound traveler also contributed to this industry?
Very much, through affiliate programs we have travelers coming in to Indian resorts and likewise our members can avail facilities anywhere in the world.
What is the Government contribution towards this industry?
The Government has recognized the importance of the hospitality industry and over the past two to three years, has enacted or announced several initiatives to give further impetus to the industry. The Incredible India campaign development and up gradation of airports, with Mumbai, Delhi, Chennai and Bangalore already under renovation, reduction of travel costs by removing domestic and foreign air travel tax are some of the steps government has taken to boost the industry.
How is your company positioned in the sector?
As a leader in the industry we account for nearly 65 percent of the total active members across this industry in India with RCI.
What kind of facilities do you have?
We have a pan-India coverage, with a total of 21 resorts. Our Club Mahindra Holiday resorts include 19 resorts, of which our owned resorts are located at Munnar, Coorg, Goa, Binsar, Manali and Ashtumudi. In addition, our members can choose to access a range of RCI resorts globally.
This article was published in, one leading newspaper of India.
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