Friday, June 1, 2012
Yesterday, the American Resort Development Association (ARDA) announced findings from the State of the Vacation Timeshare Industry: United States Study 2012 Edition conducted by Ernst & Young.
Howard Nusbaum, president and CEO of the American Resort Development Association describes the state of the vacation ownership industry. Nusbaum says, “Our 8 million owners continue to value the proposition of vacationing better with timeshare as the products offer flexibility and rejuvenating amenities for the whole family.”
Timeshare sales, the report reveals, were up slightly in 2011 over the previous year. Just as importantly, nearly 80 percent of owners travel to their resort. This is an especially significant finding in view of the fact that hotel occupancy lags behind at only 60 percent in 2011. These findings are from a Smith Travel Research December 2011 report.
Vacation Ownership and Resort Rentals
The distinctive niche of rentals continue to be significant, with twelve percent of the resort occupancy rate being comprised of renters, and eighty-six percent of the resorts offering some form of rental program. In 2011, renters accounted for 10.4 million nights of total occupancy.
Other facts of interest about the timeshare industry include:
• Fifty-eight percent of sales in 2011 were from new owners, which indicates that over forty percent of sales were from repeat buyers.
• Seventy-two percent of resorts have at least half of their sales from new owners, showing a healthy influx into vacation ownership.
• Roughly seventy-two percent of the survey respondents own multiple weeks.
• Sixty-seven percent of vacation owners participate in a points based ownership structure.