About the company
The company is in the business of selling vacation ownership.
Company collects upfront charges from customers for selling vacation for periods of 10-25 years.The same is recognised as income over the period of vacation. Company even provides an installment option for purchase of vacation ownership.
Annual Subscription fees: Apart from this the company also collects annual subscription fees
Apart from that the company also earns income by selling food and beverages in its resorts
Key Performance Indicators:
- The company has been able to grow number of members from 109884 (2010) to 218138 (2017)
- No. of units have grown from 1476 (2010) to 3152 (2017)
3.The company has been able to increase customer as promoter score from 12% (FY 13) to 42% (Dec 16)
My Investment thesis:
- Vacation ownership is a discretionary item and as per capita income of the country is growing its expected to get a higher wallet share.
2.Asset light model as the business involves collecting amounts from customers upfront and then building the resorts
- Resort diversity and international prescence in sweden, finland and spain
- Believe that the company will be able to increase the number of member at 10-12% with 5-6% price hikes from resort income and interest income on installment sales which currently contributes to (22% in 2012) 27% of revenues
- Very high Trade Receivable amount and high provisioning is made on the same as per annual report
- Unsatisfied Customer