This chain promises lodgings wherever the winds may blow you. One of the world's largest hospitality firms, Wyndham Worldwide includes a portfolio of some 7,700 franchised hotels worldwide through its lodging segment, which includes 15 familiar brands, such as Days Inn, Howard Johnson, Ramada, and Super 8. Wyndham also operates a vacation exchange and rentals segment, which has a relationship with some 100,000 vacation exchange and rental properties in about 100 countries. In addition, its Wyndham Vacation Ownership operates vacation ownership resorts in North America, the Caribbean, and the South Pacific. Revenues primarily come from franchise and hotel management fees, membership dues, and timeshare sales.
All of Wyndham's businesses have both domestic and international operations. About 75% of the company's revenues come from outside the US.
The company's timeshare and vacation rentals businesses (which target the leisure market) generate more than 80% of the company's total revenue. Its lodging segment (which targets both business and leisure travelers) accounts for about 20%.
Sales and Marketing
While the hospitality industry targets both business and leisure travelers, most of Wyndham's customers come from the leisure market. Wyndham markets its properties through several marketing channels including direct mail, email, telemarketing, online distribution channels, brochures, magazines, and travel agencies. Additionally, it promotes its offerings to owners of resorts and vacation homes through trade shows.
The company reported $5.28 billion in revenue for fiscal 2014. That was an increase of 5% compared to the prior fiscal period. The company's net income was $529 million in fiscal 2014. That was a spike of about 22% compared to Wyndham's net income in fiscal 2013. Although the company's cash on hand decreased by 2% in fiscal 2014 compared to the prior fiscal period, Wyndham ended the year with a comfortable $529 million in cash.
Wyndham has committed to an organizational realignment initiative at its vacation exchange and rentals business, primarily focused on consolidating existing processes and optimizing its structure partially due to a shift by members to transact online.
Wyndham is strategically focused on two objectives that it believes are essential to its business: increasing system size and strengthening customer value proposition. To increase its system size, the company intends to acquire more properties, add new rooms to existing properties, and spur new construction by developing new and existing properties.