Recent Study Shows Robust Growth In Timeshare Industry

TAI_Staff · #1 (**permalink**) November 15th, 2007, 12:18 PM

I've posted several recent reports that indicate how well the timeshare industry is doing financially and ARDA has just released an article which again supports the robust financial performance of the multibillion dollar vacation ownership industry. I have quoted a few selections of the article/study below.

Quote:

Each year, PwC surveys a group of timeshare resort development companies to take the industry’s financial pulse—analyzing industry trends and setting benchmarks on product pricing, sales, marketing costs, financing, and other financial indicators. This year’s findings reveal a 14.3 percent year-over-year increase in net sales of timeshare resorts in active sales, as the industry subset reported $5.8 billion in U.S. net originated sales. Average net sales per active resort were $19.6 million.

“This latest financial research demonstrates that the industry’s financial performance remains on track with satisfying the growing popularity and consumer demands for vacation ownership,” said Howard Nusbaum, president and chief executive officer of ARDA.

Half of respondents sold more than 2,500 timeshare weeks during 2006, with the largest companies experiencing the most rapid growth (15.5 percent increase in net originated sales). While most timeshare companies continue to sell timeshares that are based on ownership of an interval week at a specific resort, points-based products, in which an owner has purchased points or credits backed by a usage right to a club's resorts, have achieved a prominent position. Of the $5.8 billion of net originated timeshare sales in the U.S. during 2006 (excluding fractional sales), $3.4 billion (57.7 percent) were classified as interval week sales, while $2.5 billion (42.3 percent) were classified as points sales.

Timeshare sales in many locations exhibit seasonal patterns, as popular vacation periods correspond to heightened sales activity. As a result, timeshare sales are strongest during the third quarter (July to September).

The complete article about this study can be at ARDA's website or by 'clicking' HERE.

This is fantastic news as Timeshare Adventures continues to spread the word about the substantial savings available on the secondary market. Our goal is to provide timeshare sellers with a viable outlet to effectively market their timeshare ownership while offering discounted timeshare ownership to potential buyers.

TAI_Staff · #2 (**permalink**) December 28th, 2007, 11:22 AM

The following information was compiled by the ARDA International Foundation (AIF), which is the research arm of the American Resort Development Association (ARDA).

Number of Owners

On January 1, 2007, 4.4 million households owned one or more U.S. timeshare weekly intervals or points equivalents. This represents a 7% increase over January 1, 2006.

Number of Timeshare Units

There are 176,232 timeshare units at 1,615 U.S. resorts, for an average of 109 units per resort. States with the most unit volume include Florida (30.4%), California (6.7%) and South Carolina (6.5%).

Number Of Resorts Selling Timeshare

About half of the resorts in the USA are currently selling timeshares, generating sales of $8.6 billion in 2005 (AIF2006).

More Interesting Facts About Timeshare

17% of recent buyers (within the last 12 months) are single.

31.4% of recent buyers and 24.9% of all owners have children under 18 years of age.

The average age of recent buyers is 52.

The median income is $74,000 for recent buyers and $81,000 among all owners.

As for the global scope of timeshare, Interval International reports there are 5,400 resorts in nearly 100 countries, with 2,004 worldwide timeshare sales estimated at nearly $11.8 billion (Interval International 2006).

With the 2008 new year just days away, I noticed that some of the reports and statistics published are from years past, which I assume is due to the nature of the study. Also, as timeshare ownership continues to grow, and with timeshare resort developers reporting financial gains and expansion year after year, one can speculate that while these statistics favor a very robust industry, the current state is even better that the documented information provided above.