From China and Japan to Indonesia and Thailand, Asia remains a focus for expansion. In a recent global collaboration webinar, VOASA spoke to Barry Robinson about the resurgence of the Asia Pacific timeshare market and its transformation into a thriving industry with significant potential.

Barry Robinson is the president of the Asia Pacific Resort Development Organisation (APRDO) and president and managing director of international operations, Wyndham Destinations at Travel + Leisure Co, where he leads the company’s Asian expansion.

Question: WHAT DO YOU BELIEVE ARE THE PREDOMINANT FACTORS CONTRIBUTING TO THE RAPID GROWTH OF TIMESHARE IN THE ASIA PACIFIC REGION?

Asia is a truly diverse market with huge opportunities. If we are encompassing India as part of the Asia population, then it’s around 4.4 billion opportunities out there, so to speak. We are operating specifically in Indonesia, Thailand, Japan, and China. Originally China was put on the back burner and surprisingly, it has taken off above all expectations which is really interesting. I don’t know whether that’s because the government’s indirectly still holding back international travel to create more domestic travel within the market.

The timeshare product is still unique in China, so we took a very different approach. I had a leader out of the luxury goods industry that had no timeshare experience. She used to be with Louis Vuitton, Prada, and some of the other larger luxury brands, and so she put her own spin on how to launch timeshare in China. What we’ve seen from this different marketing approach is successful closing rates and a cancellation rate of 3% – which is somewhat unheard of in our sector – and very little, if any, rescission rates. The Chinese are very tech savvy across all age groups, so about ninety percent of our communication is digital, which is again different to traditional timeshare marketing.

Question: IN LIGHT OF HOW REGULATION IMPACTED AMERICA, EUROPE, AUSTRALIA AND SOUTH AFRICA, WHAT APPROACH HAS APRDO TAKEN TO SELF-REGULATE?

China and most of the other Asian markets are fairly unregulated, but Malaysia and obviously the South Pacific and Australia are heavily regulated. Some of the things that have happened in South Africa, we have gone through in the South Pacific. I think in any industry, there’s always going to be those who want to take advantage, make a quick buck, and you really want to protect your people who are running registered and compliant businesses.

One of APRDO’s key objectives is to work with governments. We have a white paper which implements legislation that is consumer friendly, but also business friendly so that we can have some longevity, some great guardrails and parameters to ensure people are conducting themselves appropriately. It’s ready to be implemented and modified, depending on the markets. Where we’ve had some success recently is in the Middle East, with the Dubai government.

Question: WHICH TIMESHARE MODEL HAS PROVEN MOST SUCCESSFUL?

Predominantly there’s been a shift towards points, especially in the Asia-Pacific area. We’ve developed the points-structured product back to a more club product with additional free club activities. In the early 2000s, you’d be selling the club on the traditional basis of “buy a timeshare because you can stay in a one- or two-bedroom unit rather than staying in a hotel because it’s much better for the family” and so on.

But in the South Pacific market there are a lot of condo hotels, so that value proposition slid away and we’ve had to put more emphasis on the uniqueness of each club property. Creating attractions like the free use of electric cars, bikes and scooters, free in-house movies and free cooking lessons – and all with a strong focus on service – are the ways we’ve tried to bring that club environment back. In some of the older schemes, when an owner was not staying at the property there was a focus on rental so he could make some money. In this market, our focus is on ensuring that everyone maximises their points and credits each year to guarantee their satisfaction and happiness with their membership.

Research has shown us that the demand is for shorter term clubs with more flexibility and no residual value. Our Asia club is a twenty-year club, which has seventeen years left to run. The residual value goes back to the consumer at the end of those seventeen years, so the assets are sold and distributed back to the consumer. The entry price and marketing costs are a lot lower than what we have in our other clubs, and you only pay your levies or maintenance fee if you go on holiday.

Question: THE EASTERN MARKET SIGNIFICANTLY DIFFERS FROM THE WESTERN MARKET IN TERMS OF CULTURE AND LIFESTYLE. HAS THIS DIVERGENCE PLAYED A ROLE IN SHAPING THE STRATEGY?

Balancing cultural nuances while catering to club members from international markets becomes especially challenging. Customers in the South Pacific market want washing machines and dryers, juices and a full range of kitchen equipment, and so on. In Asia, they tend to seek value for money, caring more about high-touch service than “the comforts of home” like kitchens. Although you still need to offer laundry services, the room must be serviced every day and there must be restaurants on site – so there’s definitely a different product mix. Japan presents another unique situation, as some resorts are considerably smaller, and traditional accommodations often feature tatami-style sleeping arrangements rather than Western-style beds.

As we get back to global travel and an influx of visitors from various nationalities, it raises the question of how we will manage language capabilities. Will we rely on iPads at reception desks for translation assistance? And what approach will we take for room service mechanisms? These are important considerations as we prepare for a more diverse clientele

Question: WHAT, IN YOUR OPINION, CONSTITUTES THE GAME-CHANGING FACTOR FOR MAINTAINING MOMENTUM IN THIS MARKET?

Asia is very elitist market with a preference for owning prestigious products that instill pride. So, we need to be able to tap into this market by providing a heightened focus on service and impeccable follow-through is crucial. There also needs to be a distinct value proposition so that when individuals share their experiences with friends, they can proudly assert, “I’m a part of this because of the exceptional service and exclusive benefits, which you can only access as a Club member”.

To fully capture Asia’s golden market opportunity in the long run and sustain momentum, we must build a high degree of trust at all levels across the ecosystem – from family units to government bodies. Balancing the natural impulse to rush to market with a high degree of integrity, a healthy sense of realism and a heartfelt respect for the local communities will help us minimise risk and make the most of this unique moment in time.