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Last Updated : Dec 03, 2015 02:30 PM IST | Source: CNBC-TV18

Membership growth of 50% difficult in H2: Mahindra Holidays

Kavinder Singh, MD and CEO of Mahindra Holidays says the company's average realisation is at Rs 3.5 lakh per member.

Timeshare developer Mahindra Holidays has recently launched new products and propositions to attract new members, says Kavinder Singh, MD and CEO of the company.

In an interview to CNBC-TV18, Singh says there has been an approximate 50 percent growth in member additions in the first half of this fiscal on the back smaller base number and increasing demand for holiday trips, adding, it will be difficult to sustain such a growth rate in the second half .

The company has hiked the membership price by 4 percent in October, he says, adding, Mahindra Holidays’ average realisation is Rs 3.5 lakh per member.

Below is the verbatim transcript of Kavinder Singh's interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.

Sonia: I was looking at the details of your Q2 numbers and the new members that you have added have gone up 50 percent almost in the quarter gone by, are you seeing a lot more traction and does the second half of the year look as good?

A: We have seen 50 percent growth in member additions not only in Q2 but also in Q1. So that is something that we are extremely happy about. It is difficult to say whether the trend will continue but the fact that people are taking more holidays, people are wanting to look at holidays as a lifestyle which is what we offer because we sell memberships and people who become our members can enjoy 25 years of holidays and that is what is appealing to members and that is what is appealing to our new prospects.

Latha: We are also about two-thirds into Q3, are you all continuing with this fantastic runrate of 50 percent?

A: Runrates are a function of the basis. There is some amount of base effect that we enjoyed in Q1 and Q2. Q3 generally is good. It is difficult for me to comment what will end up at but yes the fact that we are confident of our value proposition, the fact that our brand, our investments that we have done in our brand in both in giving experience to our members both at resorts as well as outside of the resorts, we have launched a heart-to-heart programme where we connect with the members outside the resort as well is beginning to give us hope that the trend which is of growth over the same period last year is likely to continue.

Sonia: Any hikes that you will take in future and what is the average realisation per member that you are seeing now?

A: We did take a hike. Sometime in October, we have increased our prices though marginally as you know that we are not in a inflationary environment and therefore we are also conscious of the fact that the hikes have to be prudent so we took about a 4 percent price hike in our membership fees. Our average unit realisation net of everything is hovering at about 3.5 lakhs per member. As you know that we have memberships starting from 2.5 lakhs going all the way upto 17 lakhs for a purple member two bedroom.

Latha: Your realisations this 3.5 lakh, how does it compare with a quarter ago?

A: Realisations are roughly managed at the same level because our product mix four seasons -- blue, white, red and purple--is holding on. Yes, there is a certain amount of deterioration in the mix that we saw so there is a minor change in the average unit realisation but nothing much to talk about.

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First Published on Dec 3, 2015 11:12 am
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