Outlook for Timeshare/Vacation Ownership

Transcription

1 University of Massachusetts Amherst Amherst Travel and Tourism Research Association: Advancing Tourism Research Globally 2013 Marketing Outlook Forum - Outlook for 2014 Outlook for Timeshare/Vacation Ownership Darla Zanini ARDA Internation Foundation Follow this and additional works at: Zanini, Darla, "Outlook for Timeshare/Vacation Ownership" (2016). Travel and Tourism Research Association: Advancing Tourism Research Globally This Event is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Travel and Tourism Research Association: Advancing Tourism Research Globally by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu.

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3 Darla S. Zanini RRP Executive Vice President

4 What is Timeshare/ Vacation Ownership? Investment in a Lifestyle Benefits and Protections of Real Estate Ownership

5 Timeshare in the US ,551 Timeshare Resorts 189,222 Units Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

6 Households/Intervals Owned Millions Intervals Owned 8.3 million Households 8.2 million Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

7 Historical Sales Volume $10.6 B $6.9 B Billions '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

8 Fee For Service Net Originated Sales (millions) $ $ $ $ $ $ $50.00 $35.27 $ $297.7 $328 $ Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

9 Occupancy 23% Owner/Guest 4% 40% Exchange Renter 14% 19% Marketing Vacant Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

10 Timeshare vs. Hotel Occupancy 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Q Q Q Q Q Q Q Q Q Q Timeshare All Hotel Resort Hotel Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

11 Rental % Rent 77% 85% 82% 86% 74% Nights Rented 8.25 M 8.4 M 7.9 M 10.4 M 9.6 M Avg. Price $170 $153 $156 $162 $163 Total Revenue $1.40 B $1.29 B $1.23 B $1.68 B $1.60 B Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

12 Industry Trends Total Sales (B) $9.7 $6.3 $6.4 $6.5 $6.9 Intervals Sold Sales Price per Interval 482, , , , ,155 $20,152 $20,468 $19,308 $18,897 $18,723 Points Price per Interval $20,399 $22,243 $19,921 $22,732 $24,723 Weeks Price Per Interval $19,836 $18,999 $14,744 $15,113 $13,267 Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

13 Unit Construction Number of Units Units expected to be built ,406 Units expected to be built ,916 Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

14 Resort Construction Total New resorts completed in Associated number of units in New resorts planned in 2014 and beyond 63 Associated number of units in Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

15 Product Offering Points Intervals 38.50% 61.50% 57.70% 56% 56% 42.30% 44% 44% 52.20% 47.80% Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

16 Average Inventory Level YEARS Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

17 Capital Expenditures $359 $316 $289 Millions $70 $97 $219 Total 2011 Capital Expenditures Total 2012 Capital Expenditures 2011 New Inventory 2012 New Inventory 2011 Existing Inventory 2012 Existing Inventory Source: Financial Performance 2013 A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

18 Sales Metrics Tours (in thousands) 542,603 Close rate Average transaction value Rescissions Volume per guest (VPG) Q Q Difference 15.2% $17, % $2, , % $16, % $2, % 6.6% (3.5%) 0.7% 4.1% Source: Quarterly Pulse Survey: A Survey of Timeshare & Vacation Ownership Resort Companies; prepared by Deloitte and Touche for the ARDA International Foundation

19 Upgrade Sales History 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 37.00% 39.50% 33.40% 30.80% 27.80% Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

20 Financed Sales Cash or cash-out within 90 days Cash down payment Financed value 67.7% 51%

21 Consumer Sales Contract Term (in months) % Interest rate 14% 14.1% Down payment (% of contract price) non-upgrade sales 14.9% 19.4% upgrade sales 39% 46.1% Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

22 FICO Scores Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

23 Consumer Portfolio Currency 92.00% 91.50% 91.00% 90.50% 90.00% 89.50% 89.00% 88.50% 88.00% 87.50% Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

24 Gross Defaults 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Source: Financial Performance 2013: A Survey of Timeshare & Vacation Ownership Resort Companies, Produced by Deloitte & Touch for ARDA International Foundation

25 Owner Demographics Gender 2012 Male 47% Female 53% Median Age 51 Own Primary Residence 89% Married/Partnership 74% % with Children Residing at Home 36% College/Technical Graduate 62% Median Household Income (000s) $74.0 Source: 2012 Vacation Ownership Owners Report, produced by The Research Intelligence Group for ARDA International Foundation

26 Product Profile 2012 Years Owned (Median) 8 Product Incidence Week 45% Points 46% Fractional/PRC 22% Multiple contracts 45% Share of properties owned Week 34% Points 45% Fractional/PRC 21% Source: 2012 Vacation Ownership Owners Report, produced by The Research Intelligence Group for ARDA International Foundation

27 Consumer Satisfaction 83% Source: 2012 Vacation Ownership Owners Report, produced by The Research Intelligence Group for ARDA International Foundation

28 Industry Strategic Initiatives Helping the underregulated secondary market Tools for self-managed legacy resorts Introducing technology platforms to serve nextgeneration owners and product

29 Optimistic about the Future Economic Environment Available funding Greater efficiency Controlling marketing costs Societal Environment Demographics Focus on wellness Social Media Shared Focus Opportunities Abound Hospitality Fee-for-Service Cost efficient distribution channels Product opportunities Mixed Use

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