As Asia’s luxury travel market continues to expand, fractional ownership is emerging as a game-changer. This innovative model offers a new way for consumers to access high-end vacations without the burden of full ownership. It is set to reshape the way affluent travellers approach holidays, providing a blend of flexibility, affordability, and exclusivity.
The Rise of a New Ownership Model
In a world where experiences are becoming more valuable than possessions, especially for younger generations, the appeal of fractional ownership has skyrocketed. Travel + Leisure Co., the world’s largest membership and leisure travel company, is capitalizing on this shift by expanding its vacation ownership program across Asia.
Barry Robinson, President and Managing Director of International Operations at Travel + Leisure Co. explains, “Vacation ownership provides a flexible, cost-effective way to enjoy a luxury lifestyle by sharing high-value assets. Much like fractional ownership in the worlds of private jets, yachts, and luxury cars, our model allows members to experience the world’s finest resorts without the financial commitment of full ownership.”
Gen Z and Millennials Driving Growth
The company’s innovative approach to vacation ownership has resonated particularly well with younger travellers in Asia. Robinson notes that 60% of the members of Club Wyndham Asia—the region’s vacation club developed by Travel + Leisure Co.—are now from Generation Z and Millennials. This is a marked increase from the 53% this demographic represented just a year ago.
What’s driving this surge? For many younger travellers, owning a second home or holiday property is no longer a priority. Instead, they are looking for more flexible, experience-driven options that allow them to travel more frequently without the hassles of property maintenance or significant financial investment. Vacation ownership perfectly aligns with these values, offering a points-based system that lets members choose where, when, and how they vacation—whether it’s a beachfront villa in Bali, a ski lodge in Japan, or a city apartment in Singapore.
A Transformative Opportunity in Asia
Asia is experiencing a significant rise in affluence and a growing demand for luxury experiences. This has created a fertile market for fractional ownership in the region, especially in key markets like China, Japan, Indonesia, Singapore, and Thailand.
“More and more Asian consumers are looking for ways to enjoy luxury experiences that offer flexibility, financial prudence, and a sense of community that aligns with their values,” says Robinson. He adds that Travel + Leisure Co. is uniquely positioned to meet this demand through its extensive portfolio of resorts and properties and its strong commitment to treating members like VIPs.
The company’s partnership with RCI, the world’s largest vacation exchange company, allows members to access more than 4,000 resorts worldwide, further enhancing the appeal of vacation ownership for travellers who want various luxury options.
Legislative Support and Consumer Protection
One key driver behind the success of vacation ownership in Asia is the legislative framework that ensures consumer protection. As President of the Asia Pacific Resort Development Organisation (APRDO), Robinson has worked closely with regional governments to develop quality legislation that makes vacation ownership transparent and consumer-friendly.
This legislative support has been instrumental in building trust among consumers, many of whom are wary of long-term financial commitments. By offering shorter-term agreements, flexible levies, and a residual value model—where members share in the proceeds when properties are sold at the end of a club term—Travel + Leisure Co. has made vacation ownership an attractive and safe investment.
A Sustainable Approach to Luxury Travel
In addition to flexibility and financial prudence, vacation ownership offers significant sustainability benefits. In a world where environmental consciousness is rising, especially among younger consumers, the ability to reduce the wasteful underutilization of holiday homes is a significant selling point.
“Vacation ownership ensures that properties are maintained and used regularly, preventing them from sitting idle and depreciating,” says Robinson. This sustainability advantage resonates particularly well with Gen Z and Millennials, increasingly prioritizing eco-friendly travel options. By maximizing the use of resources and reducing waste, fractional ownership presents a more sustainable alternative to traditional holiday home ownership.
The Future of Vacation Ownership in Asia
According to a report by Business Research Insights, the global vacation ownership industry is projected to grow at an impressive rate of 7.6% CAGR through 2031, reaching $36 billion in sales. With its rising levels of affluence and increasing desire for flexible luxury experiences, Asia is positioned to be a significant contributor to this growth.
Travel + Leisure Co. is betting on the region, with plans to expand its vacation ownership offerings and tap into the increasing demand for high-end, flexible travel options. “We believe Asia is ripe for significant growth in this sector,” says Robinson. “As more people shift their spending towards experiences, we’re confident that vacation ownership will continue to thrive, offering a unique blend of luxury, sustainability, and financial flexibility.”
Conclusion: A New Era for Luxury Travel in Asia
The rise of fractional ownership in Asia marks a transformative shift in the luxury travel landscape. As consumers increasingly value experiences over possessions, vacation ownership provides an ideal solution, allowing travellers to enjoy the perks of high-end resorts without the financial burden of full ownership.
For companies like Travel + Leisure Co., this presents an unprecedented opportunity for growth. By offering a flexible, sustainable, and financially prudent way to experience luxury, they are poised to redefine how people travel in Asia—and beyond.
Written by: Octavia Koo
