ARDA's new Study

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

read from Timesharebeat

based on surveys of 938 recent timeshare buyers and 1,547 owners who purchased prior to 2005.

The vast majority of all owners (80.3 percent) express satisfaction with their timeshare purchase; 75.7 percent say owning a timeshare has increased their looking forward to vacations, and 68.4 percent say owning a timeshare has increased the amount of time on vacations. A full 66.4 percent of all owners say timeshare has increased their learning experiences, and 52.8 percent claim owning timeshare has increased their health and happiness.

Approximately 25 percent of recent buyers expressed interest in purchasing additional timeshares--a sizeable amount considering the average American is only allotted two weeks of vacation leave each year.

...
According to the study, the average timeshare visitor spends 8.6 nights per vacation in the resort area where their timeshare is located. The average timeshare visitor party spends $1,334 per timeshare vacation--an increase of 10.7 percent since 2002. The average size of timeshare visitor parties is 3.8 persons.

Of all owners, 35.8 percent personally used their own timeshare purchase during the past 12 months, while 47.4 percent exchanged or space banked it, 4.4 percent rented it out, and 2.9 percent gave it away. Only 9.5 percent of time owned by all owners went unused during the last 12 months.

Vacation owners are savvy travelers who shop around: The average recent buyer attended 2.6 sales presentations before making a purchase. Of recent buyers, 57.4 percent purchased directly from a developer; 24.9 percent purchased from a home owners' association; 10.5 percent acquired their timeshare as a gift, inheritance, or from some other source; and 7.2 percent purchased from a pervious owner.

These number looks conflict with other study. I think I read that every year, the usage is no more than 85%. So 9.5% unused looks odd. Maybe they include RCI rental. On the other hand, maybe with internet, it does increase the usuage.

Since 9.5% unused, so have to assume the owner of this 9.5% is not happy at all. Then only 1 out of 8 that use TS feel unhappy (80.3 percent express satisfaction with their timeshare purchase, or actually close to 90% of owners that uses the week)? Or this only done on the ones that actually planning on keeping the TS. FF group member is close to that number, but majority are very savy. I don't think other will have that rate

Rent rate is pretty low, 4.4%.

Assume the owner growth rate is 10% (57% part), it means resell owner count at 5% from all owner, and only 25% is from previous owner, but 75% is from HOA foreclosure.

I don't really know if I should believe study done by ADRA. Majority of its money is from sells and TS developer.

Of the spending, don't know if it counts MF and exchange fee. IMHO, it usually count less than 1/3 of my spending on vacation.

Jya-Ning

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

This survey does give more of its demographics and methodology than some past surveys, which is a step in the right direction, but still not enough of it.

New buyers do seem more inclined to exchange than longer term owners, but I would still be interested in more detailed demographics.

The low rental figure does seem about right.

The percentage buying from HOA's does look considerably too high and may reflect some skewed demographics.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Don't know how these exchange rent, owner used count.

Could not remember the exact ratio, but believe RCI's own reserach (through ADRA) in 2003, the exchange ratio is around 33% not more than 40%. RCI's income does not increase in last year, so these exchange is not done through RCI which probably is still 60% exchange happen outside of any mini system. Unless you count mini system exchange, which may seems low (50% total)

For rent, one assumption is more and more people when they found RCI rent out deposit, they will rent themselves, to think it only count to 4% is really low.

Unless the study includes other usage (cruise, hotel, ticket ...) as exchange, the total should not be equal 100%. If they include that as exchange, and there are 10% difference, assume 5% is for that pupose, it makes RCI to rent out 5%, and owner only rent out 4%.

Jya-Ning

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Now I finally figure out why I feel odd.

Based on ARDA's own survey in 2004 from both owner and developer's unit and () is 2005 data from owner

Resort Occupancy % of Total
Owner/guest 32.9% (35.8% + 2.9% or 38.7%)
Exchange guest 33.4% (47.4%)
Renter 12.3% (4.4%)
Marketing guest 6.0%
Average annual occupancy 85.6% (90.5%)

So in one year, exchanger suddenly jumped a notch (close to 15% from 33% or clsoe to 50% increase) and renter reduce a lot (8% from 12% or loss 66%). That is quite a change.

Jya-Ning