Timeshare Report: Wyndhams Dismal 3rd Quarter Ratings

As vacationers start spending less during recessions, Wyndham Worldwide (NYSE: WYN) also began spending less money and energy towards improving and sustaining their timeshare business; resulting in a negative report for their third quarter profits.

It was announced earlier this year that Wyndham would begin cutting back their marketing efforts by closing sales offices and spending less money on advertising, which resulted in a 35 percent decline in timeshare sales.

In one year, Wyndham’s earnings fell 27 percent from $142 million to $104 million and 80 cents per share to 57 cents per share. However, earnings were reported at 58 cents a share which topped analysts’ predictions by 2 percent.

Wyndham’s decision to cut spending towards their timeshare business has reflected in their revenue report as well. They announced that revenue had declined 17 percent from $1.23 billion down to $1.02 billion. Representatives of Wyndham stated that the weak lodging industry is to blame for the noticeable decrease in revenue.

Wyndham Exchange and Rentals, also known as Group RCI, reported that revenue decreased by 8 percent along with the Wyndham Hotel group which fell 14 percent.

It seems that Wyndham is not the only one showing a decrease in both earning, sales, and revenue, rather the entire lodging industry is struggling to find vacationers who want to spend money during these tough economic times. Potential timeshare buyers are choosing to save their money and cut back on luxury vacations.