Vacation Ownership (Timeshare) Industry Report: 2015 Edition - New Report by Koncept Analytics

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Vacation Ownership (Timeshare) Industry Report
----------------------------------------- 2015
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• 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
  buyers 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.

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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.
Global Hotel Industry - Occupancy Rate by Region
(2009-2014)

• 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
  US10,000 or more on their timeshare.

Global Hotel Index (YTD June 2015)
Timeshare Industry by Ownership (2014)
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Hotel rates vary from season to season, however
the average rates remain in a range throughout
the year.
Yearly Average Hotel Daily Rates Worldwide by
Region (2012-2015)

• 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.

Timeshare Industry Products by Type (2014)
Monthly Average Hotel Daily Rates Worldwide
(August 2013 - July 2015)
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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 US Hotel Industry Revenue and Annual Growth
(2009-2014)

• The total revenue of the US hotel industry was
  estimated at USX billion in 2013, which further
  inclined to USX 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)
Correlation between ADR and RevPAR (2009-2015E)
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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
Koncept Analytics CS-36, Second Floor, Ansal
Plaza Vaishali, Ghaziabad, U.P. 201010 T.
91-120-4130959 C 91-9811715635
vikas_at_konceptanalytics.com
Vikas Gupta BD Manager
www.konceptanalytics.com