Vacation Ownership (Timeshare) Industry Report: 2012 Edition
The vacation ownership or timeshare industry, which is a major segment of hospitality industry, represents significant growth opportunity in the future, driven by growing interest in vacationing and increasing disposable income. Developed countries like the US and Europe represent the major markets for vacation ownership. However, other developing countries in the Middle East and Asia Pacific region are also gaining popularity.
The global vacation ownership industry is currently in the recovery stage and both the demand and supply factors in the industry have recorded significant growth recently. However, the growth of demand in the industry is much faster compared to the supply side factors. Specifically, the increase in the factors like occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR) have contributed to the growth of the industry.
Saving on future vacation costs is one of the main reasons behind the popularity of buying timeshare over hotel stays as owning timeshare properties makes much more financial sense for families travelling on a regular basis. Along with that, the availability of preferred locations also plays a significant role in choosing vacation ownership over hotel stays.
The vacation ownership industry in the US has witnessed decline in the overall sales during 2007 to 2009. However, in the last two years the industry has returned to its growth trajectory. Within the US, provinces like Florida, California, and Hawaii have gained popularity and witnessed significant footfalls of vacationers recently.
The report provides an analysis of the vacation ownership market. It discusses major market trends, growth drivers and challenges. It presents the competitive structure of the industry and profiles major players in the vacation ownership market with a discussion of their key business strategies.
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.
The global vacation ownership industry is currently in the recovery stage and both the demand and supply factors in the industry have recorded significant growth recently. However, the growth of demand in the industry is much faster compared to the supply side factors. Specifically, the increase in the factors like occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR) have contributed to the growth of the industry.
Saving on future vacation costs is one of the main reasons behind the popularity of buying timeshare over hotel stays as owning timeshare properties makes much more financial sense for families travelling on a regular basis. Along with that, the availability of preferred locations also plays a significant role in choosing vacation ownership over hotel stays.
The vacation ownership industry in the US has witnessed decline in the overall sales during 2007 to 2009. However, in the last two years the industry has returned to its growth trajectory. Within the US, provinces like Florida, California, and Hawaii have gained popularity and witnessed significant footfalls of vacationers recently.
The report provides an analysis of the vacation ownership market. It discusses major market trends, growth drivers and challenges. It presents the competitive structure of the industry and profiles major players in the vacation ownership market with a discussion of their key business strategies.
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.
1. VACATION OWNERSHIP: AN OVERVIEW
1.1 Introduction
1.2 Benefits of Vacation Ownership
1.3 Working of the Timeshare Concept
1.4 Fractional Ownership
2. VACATION OWNERSHIP MARKET
2.1 Global Market
Global Lodging Industry
Consumer Preferences
Down Payments Upgrades
2.2 Vacation Ownership Market in the US
Market Value
Breakdown by Region
Segmentation by Property Type
Average Selling Price Trend
Occupancy Rate
Other Statistics
3. KEY TRENDS
3.1 Strong Recovery of Timeshare Industry in the Developed Markets
3.2 Higher profitability in Buying Timeshare Compared to hotel Stays
3.3 Growing Popularity for Eco-Friendly Timeshare Resorts
4. GROWTH DRIVERS
4.1 Growing Tour Volume and Sales per Tour
4.2 Growing Aging Population
4.3 Increasing Worldwide Tourism
4.4 Improving Worldwide Economy
5. CHALLENGES
5.1 Low Resale Value of Timeshare Properties
6. VACATION OWNERSHIP - COMPETITIVE LANDSCAPE
Competitive Overview
Financial Comparison
7. COMPANY PROFILES
7.1 Wyndham Worldwide Corporation
Business Description
Key Financials
Business Strategies
Optimization of E-Commerce Capabilities
Diversified Marketing Strategy
7.2 Marriott International, Inc.
Business Description
Key Financials
Business Strategies
Sales Deployment Strategy
Focus on Managing and Franchising
7.3 Starwood Hotels & Resorts Worldwide, Inc.
Business Description
Key Financials
Business Strategies
Growth through New Agreements in Key Markets
Reducing Investment in Owned Real Estate
7.4 Hyatt Hotels Corporation
Business Description
Key Financials
Business Strategies
Improvement in Performance of Existing Hotels
Expanding Presence in Attractive Markets
8. MARKET OUTLOOK
8.1 Market Forecast
8.2 Forecast Methodology
8.2.1 Dependent and Independent Variables
8.2.2 Correlation Analysis
8.2.3 Regression Analysis
1.1 Introduction
1.2 Benefits of Vacation Ownership
1.3 Working of the Timeshare Concept
1.4 Fractional Ownership
2. VACATION OWNERSHIP MARKET
2.1 Global Market
Global Lodging Industry
Consumer Preferences
Down Payments Upgrades
2.2 Vacation Ownership Market in the US
Market Value
Breakdown by Region
Segmentation by Property Type
Average Selling Price Trend
Occupancy Rate
Other Statistics
3. KEY TRENDS
3.1 Strong Recovery of Timeshare Industry in the Developed Markets
3.2 Higher profitability in Buying Timeshare Compared to hotel Stays
3.3 Growing Popularity for Eco-Friendly Timeshare Resorts
4. GROWTH DRIVERS
4.1 Growing Tour Volume and Sales per Tour
4.2 Growing Aging Population
4.3 Increasing Worldwide Tourism
4.4 Improving Worldwide Economy
5. CHALLENGES
5.1 Low Resale Value of Timeshare Properties
6. VACATION OWNERSHIP - COMPETITIVE LANDSCAPE
Competitive Overview
Financial Comparison
7. COMPANY PROFILES
7.1 Wyndham Worldwide Corporation
Business Description
Key Financials
Business Strategies
Optimization of E-Commerce Capabilities
Diversified Marketing Strategy
7.2 Marriott International, Inc.
Business Description
Key Financials
Business Strategies
Sales Deployment Strategy
Focus on Managing and Franchising
7.3 Starwood Hotels & Resorts Worldwide, Inc.
Business Description
Key Financials
Business Strategies
Growth through New Agreements in Key Markets
Reducing Investment in Owned Real Estate
7.4 Hyatt Hotels Corporation
Business Description
Key Financials
Business Strategies
Improvement in Performance of Existing Hotels
Expanding Presence in Attractive Markets
8. MARKET OUTLOOK
8.1 Market Forecast
8.2 Forecast Methodology
8.2.1 Dependent and Independent Variables
8.2.2 Correlation Analysis
8.2.3 Regression Analysis
LIST OF CHARTS
Relationship between Consumer, Developer, and Exchange Network
Demand & Supply of Global Lodging Industry, 2010-2011
Major Factors of Global Lodging Industry, 2010-2011
Reason of Buying Vacation Ownership, 2011
Down Payments Upgrades in the Global Timeshare Industry, Q108-Q411
Factor of Lodging Industry in the US, 2010-2011
Total Sales of the US Vacation Ownership Market, 2007-2011
US Timeshare Industry by Type of Properties, 2011
Average Selling Price per Interval in the US, 2007-2011
Average Occupancy of Vacation Ownership in the US, 2007-2011
Timeshare Occupancy Mix, 2011
Fee Delinquencies in the US Vacation Ownership Market, 2011
Management of Timeshare Resorts in the US, 2011
Revenue Sources for the Homeowners Association, 2010
Loan Portfolio of the US Timeshare Customers, 2011
Growth in Aging Population of the United States, 2004-2014F
Worldwide International Tourist Arrivals, 2008-2011
Worldwide Gross National Income per Capita, 2005-2011
Revenues of Major Players in the US Timeshare Market, 2010
Owned Properties of Major Players in the Global Timeshare Industry, 2011
Total Units of Timeshare Properties in the US, 2010
Wyndham’s Revenues by Business Segments, 2011
Wyndham’s Revenues and Net Income, 2007-2011
Marriott’s Revenues by Business Segments, 2011
Marriott’s Revenues and Net Income, 2007-2011
Starwood’s Revenues by Business Segments, 2011
Starwood’s Revenues and Net Income, 2007-2011
Hyatt’s Revenues by Business Segments, 2011
Hyatt’s Revenues and Net Income, 2007-2011
The US Timeshare Average Resort Size Forecast, 2011 – 2015F
List of Tables
Lodging Industry in the US, 2011
Timeshare Properties in the US by Region, 2011
Timeshare Consumer Preference in the US, 2010
Cost Outlay Comparison of Timeshare and Hotels, 2011
Dependent & Independent Variables, 2007-2011
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output
Relationship between Consumer, Developer, and Exchange Network
Demand & Supply of Global Lodging Industry, 2010-2011
Major Factors of Global Lodging Industry, 2010-2011
Reason of Buying Vacation Ownership, 2011
Down Payments Upgrades in the Global Timeshare Industry, Q108-Q411
Factor of Lodging Industry in the US, 2010-2011
Total Sales of the US Vacation Ownership Market, 2007-2011
US Timeshare Industry by Type of Properties, 2011
Average Selling Price per Interval in the US, 2007-2011
Average Occupancy of Vacation Ownership in the US, 2007-2011
Timeshare Occupancy Mix, 2011
Fee Delinquencies in the US Vacation Ownership Market, 2011
Management of Timeshare Resorts in the US, 2011
Revenue Sources for the Homeowners Association, 2010
Loan Portfolio of the US Timeshare Customers, 2011
Growth in Aging Population of the United States, 2004-2014F
Worldwide International Tourist Arrivals, 2008-2011
Worldwide Gross National Income per Capita, 2005-2011
Revenues of Major Players in the US Timeshare Market, 2010
Owned Properties of Major Players in the Global Timeshare Industry, 2011
Total Units of Timeshare Properties in the US, 2010
Wyndham’s Revenues by Business Segments, 2011
Wyndham’s Revenues and Net Income, 2007-2011
Marriott’s Revenues by Business Segments, 2011
Marriott’s Revenues and Net Income, 2007-2011
Starwood’s Revenues by Business Segments, 2011
Starwood’s Revenues and Net Income, 2007-2011
Hyatt’s Revenues by Business Segments, 2011
Hyatt’s Revenues and Net Income, 2007-2011
The US Timeshare Average Resort Size Forecast, 2011 – 2015F
List of Tables
Lodging Industry in the US, 2011
Timeshare Properties in the US by Region, 2011
Timeshare Consumer Preference in the US, 2010
Cost Outlay Comparison of Timeshare and Hotels, 2011
Dependent & Independent Variables, 2007-2011
Correlation Matrix
Model Summary – Coefficient of Determination
Regression Coefficients Output
