koncept analytics - vacation ownership market

7/31/2019 Koncept Analytics - Vacation Ownership Market

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Executive Summary

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 disposableincome. 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 factorsin the industry have recorded significant growth recently. However, the growth of demand in the industry is muchfaster compared to the supply side factors. Specifically, the increase in the factors like occupancy rates, averagedaily 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 ownershipover 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 likeFlorida, 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 driversand challenges. It presents the competitive structure of the industry and profiles major players in the vacationownership 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 predictedthe future growth of the industry. We employed various significant variables that have an impact on this industryand created regression models with SPSS Base to determine the future direction of the industry. Before deployingthe regression model, the relationship between several independent or predictor variables and the dependentvariable was analyzed using standard SPSS output, including charts, tables, and tests.

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Promising growth opportunity of vacation ownership market supported byfavorable market dynamics…

The three main business activities of lodgingindustry include ……….……………... In 2010,demand in the lodging industry in the USincreased by ….%, whereas, supply recorded a…… growth of …..%. In the non-US Americanregion, ……………………………………… hasgrown by ……%, whereas, the supply has grownby ……% in 2010. ………………………………….

Occupancy, average daily rate (ADR), andrevenue per available room (RevPAR) are the

three major factors affecting the hotels industry.During ……………… after the economic crisis,the occupancy rates in hotels …… to grow……………………………………………………

…………………………………..The ………………

is highest in ….. region and in ……, showing the……….. for hotel services in the particular regions.

Demand & Supply of Global Lodging Industry, 2010-2011

Major Factors of Global Lodging Industry, 2010-2011

US Non-USAmericas

Asia/Pac ific Europe Middle East & Africa

Global Market

%

Change of Supply Change of Demand

US Non-USAmericas

Asia/Pacif ic Europe Middle East& Africa

GlobalMarket

%

Change in Occupancy Change in ADR Change in RevPAR



The US vacation ownership market has recorded meager sales in recent yearsmajorly due to decline in the average selling prices and lower occupancy rates…

The total sales of the US vacation ownership market wasrecorded at US$......billion in 2011 compared to US$..........billion in 2007, registering a decline of ……%…………………………. However, in 2011, the market recorded

a marginal Y-O-Y growth of …..% on the back of growing ……..in the country. …… driven by …………………

In 2007, the average selling price (ASP) per interval in the USvacation ownership market was recorded at ……., whichdeclined by ….% to reach ….. in 2011. Furthermore, the ASPper interval in the country recorded a Y-O-Y decline of ….% in2011. This decline and ….....................................................

The average occupancy of vacation ownership was significantly

.. during 2007 and 2008 with ….% and …%, respectively.However, from 2008 the average occupancy of vacationownership started to decline in the wake of …. ..due to …… inthe US.

Average Occupancy of Vacation Ownership in the US

Average Selling Price per Interval in the US

Total Sales of the US Vacation Ownership Market

2 0

0 7

2 0

0 8

2 0

0 9

2 0

1 0

2 0

1 1

%

U S $ B i l l i o n

Sales Growth

2007 2008 2009 2010 2011

U S $

2007 2008 2009 2010 2011

%



The outlook of the US timeshare market looks optimistic supported by favorablesocio-economic factors in the country…

The US timeshare average resort market size is forecasted to reach ….. units by the end of 2012, registering anincrease of about …….% compared to …… units in 2011. The same is expected to record a compound annual growthrate of approximately ……% for the period spanning 2011-2015. The growth of the market will be driven by the rising……, improving ……, and ………………………………………….and …... All these factors will continue to generateincreased demand for vacation ownership resorts in the US.

The US Timeshare Average Resort Size Forecast

2011A 2012E 2013E 2014E 2015E

U n i t s



Table of Contents

1. Vacation Ownership: An Overview

1.1 Introduction1.2 Benefits of Vacation Ownership1.3 Working of the Timeshare Concept1.4 Fractional Ownership

2. Vacation Ownership Market

2.1 Global MarketGlobal Lodging Industry

Consumer PreferencesDown Payments Upgrades

2.2 Vacation Ownership Market in the USMarket ValueBreakdown by RegionSegmentation by Property Type

Average Selling Price TrendOccupancy RateOther Statistics

3. Key Trends

3.1 Strong Recovery of Timeshare Industry in theDeveloped Markets3.2 Higher profitability in Buying Timeshare Compared tohotel Stays

3.3 Growing Popularity for Eco-Friendly Timeshare Resorts

List of Charts

Relationship between Consumer, Developer, and ExchangeNetworkDemand & Supply of Global Lodging Industry, 2010-2011

Major Factors of Global Lodging Industry, 2010-2011Reason of Buying Vacation Ownership, 2011Down Payments Upgrades in the Global Timeshare Industry,Q108-Q411Factor of Lodging Industry in the US, 2010-2011Total Sales of the US Vacation Ownership Market, 2007-2011US 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, 2007-2011Timeshare Occupancy Mix, 2011Fee Delinquencies in the US Vacation Ownership Market, 2011Management of Timeshare Resorts in the US, 2011Revenue Sources for the Homeowners Association, 2010Loan Portfolio of the US Timeshare Customers, 2011Growth in Aging Population of the United States, 2004-2014FWorldwide International Tourist Arrivals, 2008-2011

Worldwide Gross National Income per Capita, 2005-2011Revenues of Major Players in the US Timeshare Market, 2010Owned Properties of Major Players in the Global TimeshareIndustry, 2011Total Units of Timeshare Properties in the US, 2010Wyndham’s Revenues by Business Segments, 2011

Wyndham’s Revenues and Net Income, 2007-2011Marriott’s Revenues by Business Segments, 2011

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4. Growth Drivers

4.1 Growing Tour Volume and Sales per Tour 4.2 Growing Aging Population

4.3 Increasing Worldwide Tourism4.4 Improving Worldwide Economy

5. Challenges

5.1 Low Resale Value of Timeshare Properties

6. Vacation Ownership - Competitive Landscape

Competitive OverviewFinancial Comparison

7. Company Profiles

7.1 Wyndham Worldwide CorporationBusiness DescriptionKey FinancialsBusiness Strategies

Optimization of E-Commerce CapabilitiesDiversified Marketing Strategy

7.2 Marriott International, Inc.Business DescriptionKey FinancialsBusiness StrategiesSales Deployment StrategyFocus on Managing and Franchising

Marriott’s Revenues and Net Income, 2007-2011Starwood’s Revenues by Business Segments, 2011

Starwood’s Revenues and Net Income, 2007-2011Hyatt’s Revenues by Business Segments, 2011

Hyatt’s Revenues and Net Income, 2007-2011The US Timeshare Average Resort Size Forecast, 2011 –

2015F

List of Tables

Lodging Industry in the US, 2011Timeshare Properties in the US by Region, 2011Timeshare Consumer Preference in the US, 2010Cost Outlay Comparison of Timeshare and Hotels, 2011Dependent & Independent Variables, 2007-2011Correlation MatrixModel Summary – Coefficient of DeterminationRegression Coefficients Output

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7.3 Starwood Hotels & Resorts Worldwide, Inc.Business DescriptionKey FinancialsBusiness StrategiesGrowth through New Agreements in Key Markets

Reducing Investment in Owned Real Estate

7.4 Hyatt Hotels CorporationBusiness DescriptionKey FinancialsBusiness StrategiesImprovement in Performance of Existing HotelsExpanding Presence in Attractive Markets

8. Market Outlook

8.1 Market Forecast

8.2 Forecast Methodology8.2.1 Dependent and Independent Variables8.2.2 Correlation Analysis8.2.3 Regression Analysis

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Vikas Gupta

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These are abridged and sanitized sample pages from the comprehensive report on the “Vacation Ownership (Timeshare)

Market Report”. To know more about this report or for any customized research requirement, please contact the following:

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koncept analytics - vacation ownership market

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