Timeshare - A Timely Benefit For Florida Economy

TSA_Staff · #1 (**permalink**) March 28th, 2008, 11:16 AM

Chenchen Huang, a member of Lynn's College of Hospitality Management faculty was recently selected to presented his paper at the Travel and Tourism Research Association (TTRA) in June of 2008. This document called A Study of U.S. Timeshare Owners states among many other exciting claims that

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Timeshare Owners Tend to Revisit Often and for Longer, There-by Boosting the Local Economy.

This announcement was recently published at the Lynn University website and the complete article is quoted below and a link to the original article is accessible HERE.

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University News

Hospitality Professor Says the Timeshare Industry a Boon for South Florida and the State, But More Opportunities Exist
Timeshare Owners Tend to Revisit Often and for Longer, There-by Boosting the Local Economy says Huang

Published Thursday, March 27, 2008 12:00 pm

Chenchen Huang, a recent addition to Lynn's College of Hospitality Management faculty, was selected to present his paper, "A Study of U.S. Timeshare Owners," at the Travel and Tourism Research Association (TTRA) 2008 Annual Conference in Philadelphia this June. Huang's paper (which discusses owner's "civic engagement, perceptions of tourism planning, and willingness to participate in tourism planning") references techniques for further engaging timeshare owners.

"The timeshare industry," according to Huang, "is one of the fastest growing sections of the hospitality and tourism industry, and Florida is the number one timeshare resort destination in the country." A 2006 study conducted by the American Resort Development Association (ARDA), noted that the annual sales revenue of timeshares for the U.S. was over $10 billion, and in 2005, the timeshare industry contributed approximately $92 billion to the U.S. economy.

South Florida's warm weather, beaches, friendly people, and attractions, make it a primary location for both domestic and international timeshare owners who tend to be frequent leisure travelers and often return to the same destination. Studies show that compared with average leisure travelers, timeshare owners tend to travel more frequently and spend more money during their stay, which is very important for the local economy.

"By engaging timeshare owners through various ways and facilitating them to connect with their timeshare resorts and with the South Florida area, timeshare developers and management companies in South Florida will stay ahead of the game," says Huang. "If timeshare owners are more connected and engaged, they might visit south Florida more frequently, stay longer, or buy new timeshares in the area."

Timeshare Adventures invites our forum visitors to comment on this and any timeshare, vacation related topic!

TSA_Staff · #2 (**permalink**) March 29th, 2008, 09:35 AM

CNNMoney.com recently published an associated press article regarding timeshares potentially being an economic "Bright Spot" in the current economic state of the country.

This article is additional support of other recent indicators that the timeshare industry not being drastically affected by the sluggish economy. I have quoted some of the interesting selections of the article below and the complete article can be found HERE.

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Market Spotlight: Timeshares
Timeshares May Be a Bright Spot for Hotel Operators in Current Economic Slowdown

March 28, 2008: 04:23 PM EST

NEW YORK (Associated Press) - Lodging companies have not been immune to the economic slowdown, but the timeshare market may be an unexpected bright spot for the sector.

Hotel operators, along with many other sectors, have started to feel pressure as consumers tighten spending due to the continued housing downturn, escalating fuel costs, diminishing credit and recession fears.

Marriott International last month lowered its full-year revenue per available room growth target, while Starwood Hotels & Resorts in January projected revpar growth at same-store company operated hotels worldwide of 4 percent to 7 percent in 2008, down from 10.2 percent last year.

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Wyndham Worldwide reported fourth-quarter vacation ownership revenue climbed 4 percent to $576 million, while Marriott said timeshare sales and service revenue rose 2 percent in the same quarter.

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Robert LaFleur, a gaming, lodging and leisure analyst for Susquehanna Financial Group, said in an interview that timeshares continue to be a very profitable business while also providing a way for companies to extend their brand.

Timeshare developments also offer some flexibility during softer market conditions, as projects are typically built in phases and can be scaled back if necessary, he explained.

In talking with industry executives, LaFleur said he did not get a sense of panic setting in, as most said their closing sales are still hanging in and that they are not experiencing significant weakness in any particular U.S. market.

...and as always, Timeshare Adventures welcomes your opinions, comments, questions!

webgeek · #3 (**permalink**) March 31st, 2008, 03:16 PM

I would think the travel industry, and therefore timeshare sales would be more affected by the current US economy. I know we're not vacationing like we did a few years ago. At one time, we were taking a 7 day trip over the summer for our annual family vacation, usually someplace new. One year Hawaii, then Aruba and Mexico as well as a couple long weekends throughout the year in the Hampton's, Poconos or someplace closer to home. This 3 vacations per year has been reduced to the one week summer vacation. We feel vacationing as a family is important, so we have budgeted properly to afford it at least once a year.

We have always blown off the tempting timeshare lures tossed our way, but after looking at some of the rental options out there from timeshare owners, it's something to be considered. I do have a question: When renting a timeshare, am I obligated to tour with a timeshare salesman?

TSA_Staff · #4 (**permalink**) April 1st, 2008, 01:09 PM

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I do have a question: When renting a timeshare, am I obligated to tour with a timeshare salesman?

Hello,

There is never a pre-arranged obligation to tour with a timeshare salesperson, but be prepared to get approached by them while vacationing at a timeshare resort. In my opinion, the best way to avoid the salespeople is to tell them that you are aware of the savings offered on the resale market. That should keep them at bay and on to the next guest or potential timeshare buyer.

Thanks for your input and your timeshare rental question.

webgeek · #5 (**permalink**) April 1st, 2008, 08:10 PM

Thanks for the quick response to my inquiry about the timeshare rental issue. The articles sited about timeshares and the US economy were quite interesting and promising with the our current economic slow-down and forecast for the near future. Nice site by the way; good info, nice design, ease of use!

TSA_Staff · #6 (**permalink**) April 3rd, 2008, 03:09 PM

Hello Everyone!

This article is a bit more dated(December of 2007), but according to this Orlando Sentinel article, which quotes the CEO of Wyndham Worldwide Corp.

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Time shares can hold up amid sagging economy

The full article is quoted below and a link to the article is accessible HERE.

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In a recent meeting with Goldman Sachs analysts, Wyndham Worldwide Corp. CEO Steve Holmes said he thinks time-share sales can hold up despite a sputtering economy.

"On time share, Mr. Holmes reminded us, 'it is sold, not sought.' Local management can more aggressively market product during slowdowns by adjusting tourflow and incentives," Goldman Sachs analyst Steven Kent wrote in a recap of his meeting with Holmes. (Wyndham's time-share arm, Wyndham Vacation Ownership, is based in Orlando.)

Kent echoed the optimistic assessment himself, adding, "We note that the typical purchaser of timeshare product is 58-years-old with a decent-sized 'nest egg,' significantly more interested in leisure travel and less exposed economically."

Holmes did acknowledge that the sluggish economy could hurt hotel-room rentals, according to the recap. But he also argued that Wyndham could benefit because its hotels are mostly in the economy and mid-price ranges and more consumers may begin opting for more affordable lodging.

Holmes "stated we are at a stage in the country's life where vacations 'have become a birth right,' and people will work creatively to fit vacations within a tighter budget..." Kent wrote in his recap.

n2deep · #7 (**permalink**) May 13th, 2008, 08:41 PM

Nice to see a positive remarks on the economy (timeshares)! I guess people are always going to want to vacation and it seems difficulties here in the US right now won't affect our tourism industry.