2. Executive Summary
One of the major pieces completing the travel industry structure includes the ‘Hospitality Segment’ which stands out as a significant and important
sect of the overall travel industry. Hospitality sector in itself comprises of various sub segments like lodging, vacation exchange and rentals, and
vacation ownership.
Vacation ownership, also known as timeshare, continues to lead in the hospitality and leisure industry with steady growth, as a large part of the
industry's constant innovation developed in response to consumer lifestyle needs and vacation preferences. Also, the timeshare product can take
one of several forms – fixed week, floating week or membership; however, the basic premise of owning time in a resort or group of resorts remains
the same.
This sector was once dominated by private developers selling one-week fee intervals, but now includes publicly-traded hospitality companies
actively developing a full range of offerings at different price points in resort and urban destinations. An increase in the factors like occupancy rates,
average daily rate (ADR), and revenue per available room (RevPAR) have made significant contribution to the growth of the industry.
The key factors driving growth of the global vacation ownership industry include rising number of HNWI and employed population, growing demand
for leisure and recreation, increasing internet penetration, ameliorating global economic condition and zealous international tourism in the US. Some
of the noteworthy trends and developments of this industry are enhanced buyer’s protection, shifting profitability from hotel stays to timeshare
buying, growing popularity for eco-friendly timeshare resorts and fast pace recovery of respective industry in the developed markets after recession.
However, the growth of vacation ownership market is hindered by a number of factors including stringent government regulations.
The report offers an analysis of the vacation ownership market. It discusses major market trends, growth drivers and challenges. The market for
vacation ownership is personified by intense competition, with numerous large and regional players competing on the basis of quality and location of
timeshare resorts, flexibility of usage, and other services offered by them. Wyndham Worldwide Corporation is the leading player in the global
vacation ownership market in terms of revenues, number of resorts, and number of owners. The other leading players include Marriott International,
Starwood Hotels, and Diamond Resort International, among others.
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.
View Report Details
3. Timeshare model has evolved tremendously over multiple decades, moving from fixed week, floating week
fractional units, and ultimately the proliferation of points a more fungible product that benefits both
consumers and timeshare developers/operators.
Till 2013, the occupancy rate in Asia Pacific has been
leading the board followed by Europe. It was the first time
in 2014, when Europe took the lead with a slight rise in
occupancy rate above that of Asia Pacific.
With lowest occupancy till June 2015 on YTD basis, Middle
East holds the highest revenue per room and the average
daily rate.
Year 2014 marked the rise in number of timeshare owners.
X% of new owners made just a single payment to cover
their purchase and X% spent US$10,000 or more on their
timeshare.
Global Hotel Index (YTD June 2015)
Global Hotel Industry - Occupancy Rate by Region (2009-2014)
Timeshare Industry by Ownership (2014)
2009 2010 2011 2012 2013 2014
%
Asia Pacific Americas Europe Middle East/ Africa
Asia Pacific Middle East/Africa Central and South
America
Europe
%
US$
ADR RevPAR Occupancy
Existing Owners
New Owners
%
4. Hotel rates vary from season to season, however the average rates remain in a range throughout the year.
The yearly average daily rates in the Americas was found to be rising
yearly from 2012 till date, opposite scenario is observed in the Asia
Pacific Region.
The beginning of the year 2014 was marked with extreme slash down of
monthly average rates for the industry. The major reason behind such
an act of the industry was found to be Ebola Outbreak in African
Region.
As of 2014, X% of the members own one week of equivalent points.
Furthermore, X% of owners held two to three weeks in the
aforementioned year, signaling a high level of satisfaction.
Monthly Average Hotel Daily Rates Worldwide (August 2013 - July 2015)
Yearly Average Hotel Daily Rates Worldwide by Region (2012-2015*)
Timeshare Industry Products by Type (2014)
Asia
Pacific
Americas
Europe
MEA
US$
2015*
2014
2013
2012
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
US$
Asia Pacific Americas Europe MEA
1 Week
2-3 Weeks
Traditional Weekly Variety
Points Based Products
Biennials
%
5. The global vacation ownership industry is recovering at a fast pace and both demand and supply factors
are poised to observe substantial growth in the years to come.
The total revenue of the US hotel industry was estimated at US$X
billion in 2013, which further inclined to US$X billion in 2014; an
increase of X% over previous year.
In 2014, the occupancy rate of the US hotel industry was X%, the
highest since 2009. An occupancy rate of X% was recorded for
the year 2013, marking a sharp rise in occupancy with X% in
2014.
The variables were found to be X% correlated with each other
implying that with increase in ADR, RevPar automatically
increased for the hotel industry in the US.
The US Hotel Industry Occupancy Rate (2009-2015E)
The US Hotel Industry Revenue and Annual Growth (2009-2014)
Correlation between ADR and RevPAR (2009-2015E)
2009 2010 2011 2012 2013 2014
%
US$Billion
Revenue YoY Growth
2009 2010 2011 2012 2013 2014 2015E
%
6. Koncept Analytics
CS-36, Second Floor, Ansal Plaza
Vaishali, Ghaziabad,
U.P. – 201010
T. +91-120-4130959
C: +91-9811715635
vikas@konceptanalytics.com
Contact Us:
www.konceptanalytics.com
Vikas Gupta
BD Manager
These are abridged and sanitized sample pages from the comprehensive report on the “ Vacation Ownership (Timeshare)
Industry ”. To know more about this report or for any customized research requirement, please contact the following:
View Report Details