Wealthy people today do not only invest in assets- but in experiences. Experience is becoming more important than ownership. ‘Fractional ownership’ is a shared-ownership structure that allows people to buy only part of a costly item. Today there are many ways to have a fractional lifestyle. One such service, www.bagborroworsteal.com, sells the use of a revolving array of designer handbags and jewelry that can cost thousands to own but $20 to $175 a month to use. Buyavineyard.co.uk sells partial titles to some French vineyards; and several luxury hotel companies, including Ritz-Carlton and the Four Seasons, offer fractional ownership of some properties they own or manage around the world.
Transumers are consumers driven by experiences instead of the 'fixed'. They are those persons driven by entertainment, by discovery, by fighting boredom, who increasingly live a transient lifestyle, freeing themselves from the hassles of permanent ownership and possessions. The fixed is replaced by an obsession with the here and now, an ever-shorter satisfaction span, and a lust to collect as many experiences and stories as possible. The past is, well, over, and the future is uncertain, so all that remains is the present, living for the 'now'.
Why agonizingly wait for years (or even forever) to save up your hard earned cash to purchase the latest boat you've always promised yourself when you can have access, based around fractional ownership. Being part of a fractional boating club is growing in popularity not just because members can get on the water on some truly special boats , but membership gives you the lifestyle and exclusivity usually reserved for the privileged few.
Partnerships in luxury assets are not always smooth sailing. If you are already in a partnership that's been loosely managed, chances are its been a rocky road. Some of the problems heard of include:
- Diverging budgetary preferences
- Competition for planning & management control
- Simplistic and inflexible scheduling agreements
- Differences in willingness to do maintenance
- Poor asset care and use
- Lack of communication between owners
- Improperly managed expenditures
Thus to conclude, you are seeing it in recreational vehicles, soon you’ll also see it in helicopters. Just about every luxury asset you can think of can and will be fractionalized.
3 comments:
As you say, partnerships are not always smooth sailing. If you buy into a fractional scheme, make sure you (and your professional legal advisor) read the contract thoroughly. Be very careful if you are sharing with friends and family - don't assume anything, discuss what you want to happen in all eventualities, and if you can't do this for fear of causing upset, then make your excuses and get out of sharing.
But a well set up fractional ownership arrangement can work wonderfully, either through a managed fractional scheme or as a group of private individuals.
Just make sure you invest some time at the beginning ensuring it is well set up - always have a contract.
There is lots of helpful advice at yours2share.
@sophie
thank you for leaving an insightful comment. it is most appreciated. just like everything else, fractional ownership has its pros & cons.
Transumers are consumers in transition, i.e. travelers, and the many novel and innovative shopping opportunities at airports, train stations and hotels catering to this crowd. It's time to expand the transumers trend/theme to non-travel, as consumers are slowly but certainly mirroring travel behavior in daily life. Transumers are of particular interest for financial services, and would not be captured in typical segment models
On November 22, 2007, the world’s first fractional buyer’s superstore website premiered.
Fractionals are the wave of the future in gaining access to luxury assets. The Fractional Concierge website (http://www.TheFractionalConcierge.com) is the world’s first website that brings together ALL assets sold as fractionals: Real estate, aircraft, sea vessels, automobiles, recreational vehicles, and everything else from handbags and artwork to dogs and organically grown meats. The website gives you detailed information, pricing and photos on hundreds of fractional assets so you can peruse the many different options.
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