Marriott Vacations Worldwide Corporation VAC is expanding its Premier Vacations program to strengthen customer engagement and create a more consistent stream of future sales. Introduced in June, the initiative offers a vacation incentive at the point of sale, with the goal of bringing customers back to VAC properties for additional vacation experiences and sales opportunities.
The program comes at an important time for VAC, which is rebuilding sales momentum through several commercial initiatives. Second-quarter contract sales increased 22% year over year, while VPG climbed 23% to $4,477. Management said early results from Premier Vacations were better than expected and identified the program as a potential catalyst for the second half of 2026.
Premier Vacations is designed to support growth beyond the initial transaction. Management expects customers who use the incentive vacation to return to VAC's existing resorts, creating additional tour opportunities and a pipeline for future sales.
VAC is also expanding other channels, including partnerships with Marriott Bonvoy and World of Hyatt databases, hotel-lobby marketing and partnership marketing. These efforts are intended to broaden its reach among potential vacation-ownership buyers.
The strategy supports VAC's raised 2026 outlook, which calls for 18-20% contract-sales growth and adjusted EBITDA of $805-$830 million.
The key test will be whether Premier Vacations can convert its growing customer pipeline into sustained tour flow and sales growth over the coming quarters.
VAC Faces Competition From HGV and TNL in Vacation Ownership
The key competitors to Marriott Vacations Worldwide in the vacation-ownership market are Hilton Grand Vacations HGV and Travel + Leisure Co. TNL. Hilton Grand Vacations reported $810 million in second-quarter 2026 contract sales, supported by healthy tour growth and expanded HGV Max membership, while its Club platform has more than 720,000 members.
Meanwhile, Travel + Leisure generated $693 million in gross VOI sales in the quarter, up 6% year over year, with VPG rising 2% to $3,318. The company also continues to use marketing channels and owner upgrade opportunities to generate tour flow and sales.
Against this backdrop, VAC’s Premier Vacations initiative is aimed at strengthening its own pipeline by bringing customers back to the resorts and creating additional sales opportunities. VAC is also expanding hotel partnerships and leveraging Marriott Bonvoy and World of Hyatt databases to attract prospective buyers.
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Marriott Vacations Worldwide Corporation (VAC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).