Case Study : Wyndham Asset Affiliation Model

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1. Summary of the Business Wyndham is the one of the largest hospitality corporations in the world and was founded in 1990. In 2006, the company went public and began trading in the New York Stock Exchange with the symbol “WYN”. This company serves both individual consumers and business consumers with a range of various services and commodities. Wyndham’s revenue consists of two major components: More than half of the revenues (63%) are from their “fee-for-service” businesses: Collecting the royalties from the usage of Wyndham’s brand name. Providing property management services to other hotels, rental properties and vacation ownership resorts. Providing vacation exchange and rental services. Providing services under…show more content…
Other service fees. The seasonality of the receiving the franchise and management fees are higher in the second and third quarters due nature of increased traveling needs in the spring and summer months. Compared to the other two business sections, which have profits in other quarters, lodging complements the revenue portfolio with revenues in these two quarters. Lodging business sections generate the highest revenue in the second and third quarters. This provides cash flow to the company during these quarters. Vacation Exchange and Rentals Based on the number of vacation exchange members, Wyndham has the world’s largest vacation exchange network. Moreover, based on the affiliated vacation ownership resorts and the number of vacation rental properties, Wyndham is the largest global marketer of vacation rental properties. The vacation exchange and rentals business is the fee-for-service business section for Wyndham. They provide vacation exchange services, products, and trade their vacation rental properties. Vacation exchange business (RCI) generates revenue from the following channels: Annual membership dues and fees (this provides the majority of their revenue). Fees from the services provided to the members with the affiliated resorts, club servicing and loyalty programs. Vacation rental business (Wyndham Vacation Rentals) generates revenue from: Property booking fees Fees charged for additional services offered to

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