Financial research concept

Vacation Ownership Development Profit Margin

measures development profit as a percentage of sale-of-vacation-ownership-products revenue under the issuer's framework.

By Lee BaileyPublished Sep 26, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 26, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 17 connected conceptsPart of the reviewed Vacation Ownership Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The margin and profit imply about $1.465 billion of product-sales revenue
That denominator is about $297 million below contract sales
This is not a simple gross margin
Part of the Vacation Ownership Economics
See It in Company Research
Continue Research

Vacation Ownership Development Profit Margin measures development profit as a percentage of sale-of-vacation-ownership-products revenue under Marriott Vacations' framework.

Marriott Vacations Worldwide reported 23.0% in 2025.

The margin and profit imply about $1.465 billion of product-sales revenue

Development profit was $337 million.

Dividing $337 million by 23.0% gives approximately $1.465 billion of implied sale-of-products revenue.

That denominator is about $297 million below contract sales

Contract sales were $1.762 billion.

The roughly $297 million difference reinforces that contract sales and the development-margin revenue denominator are not the same operating measure.

Use Vacation Ownership Contract Sales to keep the funnel metric separate.

This is not a simple gross margin

Sales reserves, inventory cost, marketing and sales expense, and sales mix all affect development profit.

The 23.0% figure should not be compared mechanically with a product gross margin from another industry.

Primary source: Marriott Vacations Worldwide 2025 Form 10-K.

Part of the Vacation Ownership Economics

Connect tour flow, volume per guest, contract sales, development profit, recurring resort and exchange services, and consumer-financing credit and securitization economics across a branded vacation ownership platform.

Browse the full operating model in Company Analysis →

Where this concept fits

Tours, VPG, contract sales, and development economicsCurrent relationship
Sales tours are the funnel activity base, VPG combines closing performance and contract value, and contract sales measure gross signed vacation ownership sales. Development profit and margin then reflect product cost, marketing and sales expense, reserve assumptions, and inventory mix.
Vacation Ownership Contract Sales Vacation Ownership Development ProfitVacation Ownership Development Profit MarginCurrent conceptVacation Ownership Sales Tours Vacation Ownership Volume per Guest
Recurring resort and exchange-member economics
Resort management revenue, profit, and margin describe recurring services tied to the ownership base; occupancy mixes owner, preview, and transient use; and active Interval members plus revenue per member describe a separate exchange-network recurring-revenue stream.
Vacation Ownership Active Exchange Members Vacation Ownership Average Exchange Revenue per Member Vacation Ownership Resort Management and Other Services Margin Vacation Ownership Resort Management and Other Services Profit Vacation Ownership Resort Management and Other Services Revenue Vacation Ownership Resort Occupancy
Consumer financing, credit reserves, and securitization
Financing revenue monetizes the receivable base, gross originated notes show financed-sales exposure, the reserve and estimated remaining default rate frame expected credit loss, nonaccrual notes show stressed balances, and securitization proceeds show how receivables are funded and recycled into cash.
Vacation Ownership Average Remaining Default Rate Vacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes Receivable Vacation Ownership Notes Receivable Reserve Vacation Ownership Originated Notes Receivable Vacation Ownership Notes Receivable Securitization Proceeds

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

VACOpen operating-model research →17 of 17 reviewed concepts in Vacation Ownership EconomicsTours, VPG, contract sales, and development economics5 of 5 bridge concepts supportedContinue through this bridge:Vacation Ownership Contract Sales Vacation Ownership Development Profit Vacation Ownership Sales Tours Vacation Ownership Volume per Guest

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Continue Research

Compare public companies

Compare the 23.0% development margin with the implied revenue base and the distinct contract-sales measure.

Continue research

Explore more topics in the Financial Research Encyclopedia.