Vacation Ownership (Timeshare) Sector Analysis Report

• Publication date: July 2011

The hospitality market is a major component of the travel market , which has been affected by the performance of the global economy. Vacation ownership is a sector of the hospitality market . Weak economic condition, instability in the financial industry s, and low consumer confidence kept demand for timeshare intervals soft in 2009. Demand for fractional and residential units was particularly weak. As a result of global economic downturn,...

The hospitality market is a major component of the travel market , which has been affected by the performance of the global economy. Vacation ownership is a sector of the hospitality market . Weak economic condition, instability in the financial industry s, and low consumer confidence kept demand for timeshare intervals soft in 2009. Demand for fractional and residential units was particularly weak.

As a result of global economic downturn, the United States vacation ownership market , which represents the largest industry , has seen a significant decline during 2009. Inspite of weakening of leisure activities during the period, the timeshare owner’s confidence remains quite positive with higher average occupancy rates in the U.S. timeshare resorts than in hotels. Hence, the average sales price per interval has increased significantly in the U.S. vacation ownership market during 2009.

The vacation ownership concept originated in Europe during the late 1960s and spread to the United States thereafter. After U.S, Europe has a significant share in vacation ownership market with U.K and Ireland being the largest industry followed by Germany and Italy. However, other regions like Asia Pacific hold strong potential for industry leaders to grow as the growing middle class income and changing timeshare owner’s profile make it apt for vacation ownership market .

The report offers an analysis of the global vacation ownership industry . It discusses major industry trends, growth drivers and challenges. It presents the competitive structure of the market and profiles major players in the vacation ownership industry 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 market . We employed various significant variables that have an impact on this market and created regression models with SPSS Base to determine the future direction of the market . 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.

Hotel And Lodging Industry in the United States

Table of Contents

I. Vacation Ownership: An Introduction

Industry Overview
Economics of Timeshare

II. Global Vacation Ownership Market

Market Value
Market Breakdown by Region

III. United States Vacation Ownership Market

Market by Value & Volume
Industry Statistics

IV. Europe Vacation Ownership Market

Market Breakdown by Countries
Industry Statistics

V. Industry Trends

V. 1 Profile of Timeshare Owners
V. 2 Additional Timeshare Purchase Channel
V. 3 Rising Middle Class Reflects Potential Industry in India

VI. Key Market Drivers

VI. 1 Increasing Aging Population
VI. 2 Increasing Consumer Spending and Income
VI. 3 Expanding Middle Class in Asia

VII. Challenges

VII. 1 Purchase Hesitations

VIII. Competitive Environment

Comparison by Revenues
Comparison by Units & Resorts

9 Industry Player s

9.1 Wyndham Vacation Ownership

Business Overview
Business Strategies
Maintaining Cash Flow through Improving Quality of Loan Portfolio
Drive Greater Revenues and Industry ing Efficiency

9.2 Marriott Vacation Club

Business Overview
Business Strategies
Focus On Luxury Residential and Fractional Resorts

9.3 Starwood Vacation Ownership

Business Overview
Business Strategies
No New Projects and No Additional Phases of Several Projects
Accelerate Monetization Of Existing Inventory

10. Industry Outlook

10.1 Industry Projection

10.2 Projection Methodology
10.II. 1 Dependent and Independent Variables
10.II. 2 Correlation Analysis
10.II. 3 Regression Analysis

List of Charts

Economics of Timeshare Market
Global Vacation Ownership Market Revenues , from 2001 to 2007
Global Vacation Ownership by Geographical Breakdown, 2007
U.S Vacation Ownership Market Revenues , from 2005 to 2009
U.S Vacation Ownership Market Revenues Price per Interval, from 2005 to 2009
U.S Vacation Ownership Occupancy Rate, from 2005 to 2009
U.S Vacation Ownership Market Average Resort Size, from 2005 to 2009
U.S Vacation Ownership Market Performance by Geographic Regions, 2008
Growth of Resorts in Europe: from 2000 to 2007
European Vacation Ownership Market , Share in Total Resorts by Country, 2007
Number of European Timeshare Owners by Country, 2007
European Vacation Ownership Market , No. of Timeshare units by Country, 2007
European Vacation Ownership Market , No. of Timeshare Bed Nights by Country, 2007
Timeshare Owners by Generation, 2009
Additional Timeshare Purchase Channel, 2009
Projected Household Income of Indian Middle Class, from 2005 to 2025 E
Selected Countries Population Between 15-64 age group by 2020E
Projected Indian Urban Population, from 2000 to 2015 E
Population Over 65 Years of Age (%): Actual & Estimated (1960 - 2030)
World Private Consumption per Head: from 2003 to 2013
Comparison of Industry Leaders by Vacation Ownership Revenues, 2009
Comparison of Industry Leaders by Number of Owners, 2009
Comparison of Industry Leaders by Number of Resorts, 2009
Comparison of Industry Leaders by Number of Units, 2009
Forecasted Global Vacation Ownership Market Revenues : from 2008 to 2011 E

List of Tables

Opinion and Experience about Timeshare Owning
Top 10 Hesitations before Purchasing Timeshare, 2009
Wyndham Operating Statistics, from 2005 to 2009
Marriott Vacation Club Timeshare (all brands) Geographic Distribution, 2009
Starwood Vacation Properties by Type of Revenue Source, 2009
Dependent & Independent Variables (2003– 2009)
Correlation Table
Model Summary – Coefficient of Determination
Regression Coefficients Output