Evaluating the value proposition of developing a vacation ownership resort: the case of Florida and Hawaii

Abstract

Purpose

This paper aims to examine the value proposition of developing a vacation ownership project in Florida and Hawaii by analyzing actual company data.

Design/methodology/approach

The study is based on a net present value model approach that was used for analysis of the company financial data.

Findings

Results suggest that the vacation ownership alternative produces better financial performance than traditional hotel development.

Research limitations/implications

Research is limited to the case of a company in two main destinations.

Practical implications

The paper helps practitioners by presenting a current approach to consider in their understanding and perception of vacation ownership.

Social implications

Research is limited to the case of a company in two main destinations.

Originality/value

This study is one of the few investigations about applying real company data and comparing the main timeshare markets.

Citation

Barreda, A., Murphy, K., Gregory, A. and Singh, D. (2016), "Evaluating the value proposition of developing a vacation ownership resort: the case of Florida and Hawaii", Tourism Review, Vol. 71 No. 3, pp. 165-179. https://doi.org/10.1108/TR-04-2016-0008