Marriott International is a well-known name in the hospitality industry and is known for its premium services. However, Marriott Vacation Club is a different company that specializes in timeshare vacations. If you are considering investing in Marriott Vacation stock, there are some factors to consider before making a decision.
What is Marriott Vacation Club?
Marriott Vacation Club is a timeshare vacation company that operates in over 100 resorts worldwide. Timeshares are properties that allow multiple owners to share the cost of a vacation home and use it for designated weeks each year. Marriott Vacation Club offers various levels of membership, and members can exchange their weeks with other Marriott locations or trade them through Interval International.
Performance Overview
Marriott Vacation Club (VAC) has had a volatile performance over the past few years. In 2018, VAC shares were trading at around $150 per share, but they fell sharply in the following year due to concerns about declining sales and rising expenses.
However, VAC’s performance has rebounded since then. The stock has been steadily climbing since its low point of around $30 per share during the pandemic-induced market crash in March 2020.
Factors Influencing Performance
One factor that affects VAC’s performance is its sales growth. The company’s revenue comes from selling timeshare interests to new customers and upgrading existing members. In recent years, VAC’s sales growth has been slowing down due to fewer new customers.
Another factor that influences VAC’s stock performance is its expenses. The company has been investing heavily in marketing campaigns and technology upgrades to attract new customers and improve customer experience.
Looking Ahead
Despite some challenges, there are reasons to be optimistic about VAC’s future prospects. The company has been focusing on improving its digital presence and expanding into new markets like Asia-Pacific. Additionally, VAC recently announced plans to launch a new vacation rental platform, Homes & Villas by Marriott International, which could help to diversify its revenue streams.
Conclusion
Investing in Marriott Vacation stock is not without risks, but there are potential rewards for investors who believe in the company’s long-term prospects. As with any investment, it’s important to do your research and consider factors like sales growth and expenses before making a decision. Overall, VAC’s recent performance and strategic initiatives suggest that it could be a good buy for investors who are willing to take on some risk.