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2016 Marks Seventh Straight Year of Growth for the Industry

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 2016 Marks Seventh Straight Year of Growth for the Industry 

2017 SOI 

We are happy to share the latest research from our State of the Vacation Timeshare Industry: United States Study 2017 Edition. It shows the strength and resiliency of the timeshare industry after another year of growth in 2016. Here are a few of the highlights.   

In 2016: 

 

  •  Sales volume increased nearly seven percent, from $8.6 billion in 2015 to $9.2 billion; 
  •  Rental revenue increased by five percent, going from $1.8 billion in 2015 to $1.9 billion; 
  •  There were 1,558 timeshare resorts in the United States, representing about 206,080 units;  
  •  About 70 percent of these units feature two or more bedrooms; 
  •  Average unit size was over 1,000 square feet; 
  •  The average sales price was $20,940; and 
  •  Average occupancy was about 79 percent (compared to a 65.51 percent hotel occupancy rate).  

 

There were some other interesting facts as well:  

 

  •  Beach resorts are the most common type of resort; 
  •  Island resorts have the highest occupancy; 
  •  Florida has the most resorts of any region in the country; 
  •  Nevada has the largest average resort size—230 units on average; and 
  •  35 percent of resorts are now offering a mobile application to resort owners, up from just 12 percent last year.  

 

For more details, check out our infographic and for a copy of the full State of the Industry Study, visit www.arda.org/foundation

The International Timeshare Industry Has Steady Rising Ownership and an Optimistic Future

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 The International Timeshare Industry Has Steady Rising Ownership and an Optimistic Future 

 2016 World Wide Study 

According to the newly released 2016 Worldwide Shared Vacation Ownership Report from the ARDA International Foundation (AIF) conducted by Oxford Economics and Leger, the international timeshare industry is a dynamic industry that spans the globe, and this extensive survey of shared vacation ownership resorts worldwide has once again revealed the industry to be formidable in size, diverse in makeup and optimistic about its future.

With over 5,300 shared vacation ownership resorts in 121 different countries around the world and comprised of more than 527,000 units, the global timeshare industry has become an economic force that is diverse and steadily rising in ownership:

An Economic Force: 

 

  • Supports nearly 1.3 million jobs; 577,000 direct and 702,000 indirect 
  • Generates $146 billion in economic output; $57 billion directly and $89 billion indirectly 
  • Generates almost $17 billion in taxes 

 

Steadily Rising Ownership: 

 

  • Between 2014 and 2015, global sales increased 11.5% from $17.7 billion to $19.7 billion.
  • Average worldwide shared vacation ownership sales price was $18,626 per interval in 2015, representing a 0.5% compound annual worldwide growth rate between 2013 and 2015
  • Global shared vacation ownership occupancy registered 79.4% in 2015, up from 76.4% in 2014

 

The success of the shared vacation ownership resorts around the world have led to an even more promising future.  The shared vacation industry is on pace to add 91 new properties in 2017 and beyond, which will add nearly 7,300 total units for new investors to enjoy the timeshare industry, no matter where they are located.

 For more details, see ARDA’s infographic and for a copy of the full study, visit www.arda.org/foundation.

 

ARDA and ARDA-ROC Celebrate Victories in Florida and South Carolina

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ARDA and ARDA-ROC Celebrate Victories in Florida and South Carolina 


 advocate 

Since its inception, ARDA has been well-known for its tremendous advocacy efforts for the timeshare industry and consumers. These efforts stem from ARDA’s foundation of legislative and regulatory procedures that protect consumers, which were established in the early 1980s. Even before those laws and regulations took effect, the industry saw the importance of having rules and standards to govern themselves by, and took appropriate steps to regulate their own business endeavors. By laying that groundwork, the industry created a product in which consumers are protected and a competitive industry platform was established. This consumer-led approach has built a loyal customer base of more than nine million timeshare owners in the United States alone.

To provide even more consumer focus, the ARDA-Resort Owners’ Coalition (ARDA-ROC) – an alliance of more than 1.6 million timeshare owners, developers and resort managers – was established to advocate for public policy positions that protect the interests of individual timeshare owners, preserve the integrity of vacation products, and enhance the vacation purchase. This alliance has enabled ARDA-ROC to unite owners in support of legislative and regulatory policies that empower the timeshare industry to continue to provide high-quality vacation products that remain accessible and affordable to consumers.

Over the years, ARDA and ARDA-ROC have worked together on numerous pieces of legislation that help protect the consumer, as well as allow the vacation ownership industry to flourish. Recently, the ARDA and ARDA-ROC Government Affairs team has experienced a couple of “big wins” with Florida and South Carolina legislation.

Florida 

Florida has been a leader in the development of timeshare as a vacation option since the industry’s earliest days. The state has been a bellwether for advancements to the industry’s product, structure and regulation, especially when dealing with lifecycle issues for older resorts.

Dozens of legacy resorts in Florida, and a corresponding estimated 300,000 owners, have timeshare plans that are set to expire within the next few years. In many cases, little or no guidance has been made available to these resorts to continue operation, or simply transition into the next phase of their lifecycle.

The ARDA and ARDA-ROC Government Affairs team worked with government leaders in the state to provide legislation that supports sustainable tools for legacy resorts and their owners. Signed into law on May 23, 2017, the new legislation will allow timeshare Homeowners’ Associations (HOAs) to effectively manage terminated resorts, provide reasonable processes for older resorts to continue to thrive, and clarify the property rights of timeshare owners.

South Carolina 

Timeshare owners in South Carolina felt the need for better consumer protections against deceptive companies, especially within the secondary market. Owners that have fallen victim to these companies are defrauded out of thousands of dollars for services that were never completed. Scams in the timeshare secondary market not only hurt owners, but owners’ associations and damage the credibility of the entire industry as well.

The ARDA-ROC Government Affairs team won the battle for greater protections for South Carolina timeshare owners on May 22, 2017. The new law addresses the deceptive business practices of fraudulent companies by creating a clear standard of business conduct for resale companies in the state, as well as establishing increased contract requirements, escrow protections, and enforcement provisions for offenders.

This win adds to ARDA-ROC’s history of success in resale and transfer legislation. ARDA-ROC has also introduced, passed, or supported resale and transfer company legislation in Arizona, Colorado, Connecticut, Florida, Massachusetts, Nevada, New Hampshire, Puerto Rico, Texas, Virginia, and West Virginia.

Continued Advocacy 

ARDA and ARDA-ROC continue to make advocacy for owners and the industry a top priority and work tirelessly to ensure that the vacation ownership product and the competitive landscape it is within remain protected.

For more information on ARDA and ARDA-ROC’s Government Affairs wins, visit www.arda.org/government-affairs

The Timeshare Industry: Sharing Economy Trendsetter

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 The Timeshare Industry: Sharing Economy Trendsetter 

 In the quest for younger buyers, let’s remind them that timeshare was the original sharing economy product.  

sharing economy blog image 

As the market opportunity for new buyers shifts to younger millennials, it may be time to capitalize on what they already know and embrace: the sharing economy. Timeshare is the original product in today’s popular sharing economy. This phenomenon is defined as an economic model in which individuals are able to borrow or rent assets owned by someone else. Some of the sharing economy brands that might pop into your head right away are Uber, Lyft or Airbnb – but none of these businesses can say they were the first.

Not only was the timeshare industry the first but it also remains the best shared economy product in the hospitality industry. According to Gail Mandel, president and CEO of Wyndham Destination Network, “Travelers booking through peer-to-peer listing sites (like Airbnb or HomeAway) have virtually no guarantees about what they will find upon arrival, who their hosts are, and if the properties meet safety and cleanliness standards”

In fact, a recent study by Hotel News Now revealed that 67.6% of users don't trust renting a room in someone else's house. Of course, this isn’t the case with timeshare—our resorts pride themselves on providing guests the highest quality services and luxurious amenities. Timeshare brands have built strong reputations through reviews, photos, complete information, responsive platforms and a coherent and steady on-line presence.

And now with timeshare owners becoming younger (30% of new owners are millennials), a sharing economy is something they can relate to, helping change the perception of what a “normal” timeshare owner may look like. The timeshare and exchange model is actually quite appealing to millennials, which makes sense when you think about the fact that they are more interested in travel and experiences than past generations and are already so comfortable with different sharing economy businesses, according to Mandel.

Focusing on the new generation of timeshare owners through something that they are already very familiar with can help to attract new, younger families to invest in timeshare. And with using the clear advantages the industry has over peer-to-peer rentals timeshare can capitalize even further on being in the shared economy – which it has been doing ever since the beginning.