INDUSTRY OVERVIEW
From a global viewpoint, the last decade has seen growth and consolidation in timeshare and vacation ownership. Current prospects are positive, in spite of the downturn and recession.
How do the figures add up, over the years? Contributions from the US timeshare industry, which accounts for nearly 60% of the business worldwide.
| Combined direct and indirect economic impact and fiscal contributions |
US$ 92 billion |
| Consumer and business spending |
US$ 62 billion |
| Fulltime and part-time jobs |
US$ 565,300 |
| Payroll and related income |
US$ 21 billion |
| Tax revenues |
US$ 8.5 billion |
[Source: Economic Impact of the Timeshare Industry on the U.S. Economy, 2006 Edition. Prepared by PricewaterhouseCoopers for ARDA International Foundation]
After a 30-year initial phase, travelers across the United States are increasingly seeing the benefits of vacation ownership. Currently, nearly 4 percent of US households own timeshare; 4.1 million in 2005 grew to 4.4 million in 2006.
[Source: State of the Vacation Timeshare Industry: United States Study 2007,prepared by Ernst & Young for AIF. Survey sent to more than 1,600 timeshare resorts in the
United States - results based on 625 responses (a 39% response rate)]
What are the ratings on customer satisfaction?
A good 85 percent of timeshare owners described their experience as "Excellent," "Very Good," or "Good." The “home resort” invariably was the most preferred, with
70 percent rating their home resort experience as "Excellent" or "Very Good."
64 percent of timeshare owners said that they would recommend their home resort to other family members and friends. Owners also felt positive, regardless of ownership tenure.
Source: Vacation Timeshare Owners Report, 2008 edition. Prepared by Synovate for AIF. The study surveyed a national sample of 4009 current timeshare owners between May 30 and June 10, 2008
What is the picture like, closer home?
In India, the industry is still in a growth phase, with 4,640 timeshare units and 1,46,450 members accounting for 2,41,330 timeshare weeks. The growth in 2008 was 25%, against the last five-year average of 18%, according to Group Resort Condominiums International (RCI).
An RCI estimate on demand for timeshare products highlights an approximate growth of 16% per annum from 2006 to 2015 - facilitated by access to 12% holiday units per annum.
Source : Group RCI-Cushman and Wakefield Hospitality Report, The Spectrum of Leisure Real Estate Products in India
What are the views from the ring-side?
Here are two vacation ownership customers giving us their observations.
- 55-year-old holiday enthusiast from the corporate world:
“The opportunity to purchase vacation ownerships has given holiday seekers in India an exciting new horizon - right from the way the package is marketed, sold and managed. It offers them exciting getaways and the facility to exchange and swap benefits. With the additional option to gift or monetize annual holiday calendars.”
- Young, independent professional who takes annual holidays seriously:
“Vacation ownership also offers people the choice of new locations, in resorts off the beaten track. You don’t have to go to the same holiday location, year after year after year.”
How does AIRDA play the enabler’s role? Among the key reasons for the growing popularity of vacation ownership in India is AIRDA’s role as an industry barometer and business catalyst. In addition to promoting vacation ownership as an independent business driver in the travel and tourism industry, we serve members through a self-regulatory framework and constructive member / consumer relations management.
AIRDA also facilitates a common platform for dialogue across government, trade and consumer bodies – helping create a supportive climate for growth.
Among AIRDA’s consumer-oriented measures is a detailed Code of Ethics that helps monitor and govern the management and delivery of vacation ownership. AIRDA also helps focus the Government’s attention on the status of the industry – with a view to influencing policy matters.
Is there an “emerging consumer” in vacation ownership?
As we have seen, young upwardly-mobile consumers are getting onto the bandwagon - with the resources to make timeshare purchases early in life. They are also committed to annual holidays, for welcome breaks from highly stressed work environments.
Typical profile of Timeshare Consumers in India
| Average age |
42 years |
| Average household size |
4 people |
| Typical children count |
Between 1 and 2 |
| Membership gender |
89.8% male |
With younger profiles, the timeshare experience now includes fishing, water sports, scuba diving, skiing, rock climbing and trekking. Extended in-house facilities could include health clubs, games rooms, play-parks for children, upgraded laundry and dining options. Some resorts even have a compact course for the golf-inclined.
Over the years, the industry has seen stability, resilience and flexibility – allowing travelers to choose plans, swap locations and trade calendar bookings with considerable ease. The convenience of the pre-paid model further adds the reassurance of being inflation proof.
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