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Marriott Vacations Worldwide CEO Stephen Weisz weighs in on the state of the luxury second-home market.
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Expectations -- celebrate their one year and over.
-- a public company by ringing the opening ballot senior stock exchange this morning and the Democrats get a vacation time for a company.
Has seen its stock surge over a 115%.
Joining me now CEO Stephen licensing and it looks like had a good time -- -- -- Dallas morning it was great stocks sucks really performing I mean a 150% gain is is great -- but off.
Very concerned at this point we're getting in this fiscal -- discussions lot of concerns about the US economy are you feeling that right now with your customers well.
In our business there's a fairly tight correlation between consumer confidence in people's propensity to buy a time -- product.
So obviously were concerned about some sort of a long term resolution to.
The issues that are in front of -- softly with the election behind us people be and it'll turn their attention to do something a little but more permanent can get this thing -- Of the things that that the big discussions going on obviously is what happens to those that make 250000 dollars and about I'm assuming if that is your work.
Core audience actually our our demographic is an average -- income north of 150 so will will have a lot of people that are.
Not going to be affected by -- tax increase OK you also you know and when the company.
Even before this penalty that making email a lot of investments during the recession you made a bet on that luxury traveler yes hi traveler did you got its cult and we should say as well as -- -- as.
So are you concern out -- that traveler made.
Finally pull back.
Well the luxury second home market which is really were -- Ritz Carlton fractional product is targeted.
Has still not rebounded so people usually bought our product as an alternative to owning a second home.
So until that market comes back it's going to be a little bit tough in that space where things another surprise me see there was that in North America contract sales jumped about.
13% I was -- your your previous if -- released right numbers.
That actually surprised you're saying about the North America yeah North America in archer in our -- -- product for more or -- space time your product.
Vs the Ritz Carlton which is a multi week products so that's generally were wishing that the bulk of -- They are also expanding in Asia yes what do you -- in Asia.
Well clearly Asia is a very nascent market in terms of timeshare.
Obviously all the statistics about.
The growth of the wealth is in in that part of the world.
All point in the right direction now -- matter of us getting enough places to plant a flag and open themselves office.
Do you think at this point over the next four years frankly what really got -- -- we've -- -- discussions about health care law right I'm curious about is affected her company at all a concern that you may be able to grow and expand your employee base because.
What Obama -- -- Well obamacare -- certainly have some impact on the economics of operating the business.
And we've got to be mindful of that at the same token we also have to make sure that.
Were meeting the needs of our owners and our owners still wanted to see us grow they wanna see is have my more destinations more travel options more vacation options.
So we will grow our workforce proportionate to that but as a new company we're going to be very careful make sure we stay as efficient response of the demographics of the your customer -- and assuming it's it's an older demographic.
Average household income was -- mention 159.
Average -- north of fifty years of Asia professional white collar couple a kids.
College educated.
Okay college educated.
Before like I don't -- -- overall it's a general question about an area yes that was an editor in touch with the CEO we've had a on the show several times aren't sure -- do you do you feel that -- -- -- office positioned for this next year as a kind of donors and potentially rocky territory especially in Europe yeah I think one of the strengths of the company is the diversity of its lodging portfolio and that's got product at all and on the scale.
So sometimes when times get tough people trade down in terms their lodging product we have product to fit that.
And and vice Versa and I think -- very very well positioned from for the very long term Stephen -- I have -- CEO.
-- -- -- asked after the sped up especially for the stocks are gonna keep often -- thank you thank you very mature they care.
