Vacation Ownership (Timeshare) Industry Report: 2013 Edition- Koncept Analytics

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Vacation Ownership (Timeshare) Industry Report ---------------------------------------------------------------------2013

View Report Details Executive Summary With its humble beginning as a novel concept in the 1960s, vacation/timeshare ownership tourism has gradually attracted masses of tourists, real estate developers, and investors equally. It is one of the key segments of hospitality industry, holding vast growth potential, with major drivers being growing interest in vacationing and increasing disposable income. Developed countries like the US and Europe are the foremost markets for vacation ownership.

As the technological advancement in communications and travel has been moving on the rapid growth trajectory, a stark change in societal and demographic landscape is visible world over. For instance, increasing number of working adults and women, early retirement, growing demand for leisure and recreation, increasing urban population and ameliorating economic conditions are among some of the major factors responsible for raised demand of vacation ownership products.

At present, the global vacation ownership industry is recovering at a fast pace and both demand and supply factors are poised to observe substantial growth in the years to come. However, as the trend suggests, demand is growing relatively faster in comparison with supply. Increase in the factors like occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR) have made significant contribution to the growth of the industry.

The report offers an analysis of the global vacation ownership market. It discusses major market trends, growth drivers and challenges. The market for vacation ownership is personified by intense competition, with numerous large and regional players competing on the basis of quality and location of timeshare resorts, flexibility of usage, and other services offered by them.

Wyndham Worldwide Corporation is the leading player in the global vacation ownership market in terms of revenues, number of resorts, and number of owners. The other leading players include Marriott International, Starwood Hotels, Hilton Hotels, and Hyatt Hotels, among others.

By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables, and tests.

One of the major pieces completing the travel industry structure includes the ‘Hospitality Segment’ which stands out as a significant and important sect of the overall travel industry…

Global Timeshare Ownership Penetration

RoW

The timeshare ownership on global scale is found to be modest …….% of all the households worldwide. The highest share has been observed in North America, ……….%, followed by Europe …….%. In between 2010 and 2011, demand in the lodging industry of the US increased by a modest ………%, whereas, supply recorded a marginal growth of ……..%. In the non-US American region, the demand in the lodging industry has grown by ……..%, whereas, the supply has grown by ………% over the period cited. In the Asia Pacific region, demand and supply grew by …….% and …….%, respectively

South America Europe

Approximately ……..% of the respondents mentioned that owning timeshare properties help them in minimizing future vacation costs. About ……….% of the respondents have said that vacation ownership provides access to resorts in better locations

North America %

Reason of Buying Vacation Ownership

%

%

Demand & Supply of Global Lodging Industry (2011)

Saving on Location of Flexibility of Increasing Quality Exchange Future the resort Locations Certainty of Assurance opportunity Vacation and Time Vacation Costs

Change of Supply

Change of Demand

Timeshare lets families share ownership of completely furnished vacation accommodations, called a ‘vacation ownership interest’ (VOI). Owners can either buy a weekly interval or points for a one-time purchase price and yearly maintenance fees…

Average Resort Size in the US (2005-2012)

In the US, as of 2012 there were nearly …… units per resort on average.

Including lock-offs there were approximately …… units in totality. As of December 31, 2012, the total number of intervals and weekly equivalent intervals owned was approximately …… million.

No. of Units

Timeshare sales in the US peaked at US$........ billion in 2007 and just before the onset of global financial crisis and they plummeted significantly over the next two years, bottoming down to US$.......... billion in 2009.

Timeshare sales observed an increase of ……..% reaching US$................billion in 2012 from US$.......billion in 2011.

2005

2006

2007

2008

2009

2010

2011

Resorts with higher average sales prices are predisposed to have higher occupancy and maintenance fees. For instance, in 2012 the average selling price per interval was US$........., US$...........higher in comparison with US$...........in 2011.

2012

Average Selling Price per Interval in the US (2005-2012)

Vacation Ownership Market Sales of the US (2005-2012)

US$

US$ Billion

)

2005

2006

2007

2008

2009 ygff

2010

2011

2012

2005

2006

2007

2008

2009

2010

2011

2012

The average occupancy was found to be …..% witnessing a decline of ……….% as compared to the occupancy rate of ………..% observed in 2011. In terms of unit mix, there were approximately …. two bedroom units while one bedroom sets were the next most common thing with …… units.

The US Timeshare Average Resort Size Forecast

Timeshare Market Share by Company (2011)

No. of Units

(20011–2015F)

Wyndham

Marriott

Bluegreen

Starwood

Hilton

Hapimag

Disney

Holiday Inn

Silverleaf

Villa

Others

2011

2012

2013E

2014E

As of 2011, Wyndham Worldwide was the market leader in the timeshare ownership properties development segment with ………% share followed by Marriott Vacations in the second place with …………% market share. All the remaining players held no more than …………% share in the respective market during the cited year. The US timeshare average resort market size is forecasted to reach ………. units by the end of 2013, registering an increase of about ……….% compared to ……….. units in 2012. The same is expected to record a compound annual growth rate of approximately ………..% for the period spanning 2011-2015. The market growth is projected to be driven by an increase in GNI per capita in the US with global urban population and international tourists visiting the US fuelling the growth. All these factors are anticipated to generate increased demand for vacation ownership resorts in the region.

Note: Market attractiveness is inverse of penetration. Low penetration means high attractiveness and vice-versa

2015E

Table of Contents

List of Charts & Tables

1. Hospitality Industry: Overview

List of Charts

1.1 Vacation Ownership Industry 1.1.1 Working of the Timeshare Concept 1.1.2 Fractional Ownership

Hospitality Industry Structure Timeshare Industry- Relationship between Consumer, Developer and Exchange Network Global Timeshare Ownership Penetration Demand & Supply of Global Lodging Industry (2011) Reason of Buying Vacation Ownership (2011) Average Resort Size in the US (2005-2012) Vacation Ownership Market Sales of the US (2005-2012) Maintenance Fee charged per Interval in the US (2005-2012) Average Selling Price per Interval in the US (2005-2012) Average Occupancy of Vacation Ownership in the US (2005-2012) % Share of Units by Number of Bedrooms in the US Resorts Mix of Units by Number of Bedrooms in the US Resorts Global Urban Population (2005-2011) Internet Users in the World by Region (June 2012) Regional Internet Penetration Rate (June 2012) Internet Penetration in the Americas (June 2012) Growth of HNIs’ Wealth and Population (2005-2011) Global Wealth Distribution (2011) Distribution of HNIs Wealth and Population (2011) Global GDP (2001-2011) World GDP per Capita (2005-2011) US GNI per Capita (2007-2012) International Tourist Arrivals in the US (2007-2012) Timeshare Market Share by Company (2011) Wyndham’s Revenue Share by Business Segments (2012) Wyndham’s Revenues and Net Income (2009-2012) Marriott’s Revenue Share by Business Segments (2012) Marriott’s Revenues and Net Income (2009-2012) Starwood’s Revenue Share by Business Segments (2012) Starwood’s Revenues and Net Income (2009-2012) Hyatt’s Revenue Share by Business Segments (2012) Hyatt’s Revenues and Net Income (2009-2012) The US Timeshare Average Resort Size Forecast (20011–2015F)

2. Vacation Ownership Market Structure 2.1 Global Vacation Ownership Market -Market Overview -Penetration Rate 2.2 The US Vacation Ownership Market

2.2.1 Industry and Performance Statistics -Market Value -Resort Size -Maintenance Fee -Average Selling Price -Other Industry Statistics 2.2.2 Occupancy and Ownership Statistics -Average Occupancy -Segmentation of Resorts -Key Ownership Statistics 3. Market Dynamics 3.1 Industry Trends and Developments 3.1.1 Fast Paced Recovery of Timeshare Industry in the Developed Markets 3.1.2 Higher Profitability in Buying Timeshare Compared to Hotel Stays 3.1.3 Growing Popularity for Eco-Friendly Timeshare Resorts

3.2 Growth Drivers 3.2.1 Increasing Demand for Leisure and Recreation 3.2.2 Increasing Urban Population 3.2.3 Increasing Internet Penetration 3.2.4 Rising Population of HNIs 3.2.5 Growing Global Economy 3.2.6 Zealous International Tourism Industry 3.3 Challenges 3.3.1 Liquidity Constraint and Low Resale Value of Timeshare Properties 3.3.2 Business-Inherent Issues 4. Competitive Landscape -Competitive Overview -Market Share 5. Company Profiles 5.1 Wyndham Worldwide Corporation 5.1.1 Business Overview 5.1.2 Financial Overview 5.1.3 Business Strategies -Strategic Acquisitions -Technological Advancements 5.2 Marriott International, Inc.

5.2.1 Business Overview 5.2.2 Financial Overview 5.2.3 Business Strategies -Geographic Expansion -Revenue Management

List of Tables The US Vacation Ownership Industry Size (2011 and 2012) US Vacation Ownership Industry Performance Metric (2011 and 2012) US Vacation Ownership Rental Revenues (2011 and 2012) US Timeshare Interval Ownership Statistics (2011) Cost Outlay Comparison of Timeshare and Hotels (2011) Key Purpose of the Trip in the US (2010 & 2011) Dependent & Independent Variables (2007-2012) Correlation Matrix Model Summary – Coefficient of Determination Regression Coefficients Output

5.3 Starwood Hotels & Resorts Worldwide, Inc. 5.3.1 Business Overview 5.3.2 Financial Overview 5.3.3 Business Strategies -Long Term Growth Opportunities -Performance Measurement/Repositioning 5.4 Hyatt Hotels Corporation 5.4.1 Business Overview 5.4.2 Financial Overview 5.4.3 Business Strategies -Focus on Acquisitions -Performance Evaluation 6. Market Outlook 6.1 Market Forecast 6.2 Forecast Methodology 6.2.1 Dependent and Independent Variables 6.2.2 Correlation Analysis 6.2.3 Regression Analysis

View Report Contact Us:Details These are abridged and sanitized sample pages from the comprehensive report on the “Global Vacation Ownership Market”.

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Koncept Analytics

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