Study Reports Consumer Interest In Timeshares On The Rise

NATIONAL REPORT— “Iraqwarphobia.” “The Affluent Attitude.” “Time Poverty.” “Togethering.” These are just a few of the new buzz-words used to describe evolving trends in leisure travel in recent years. The war in Iraq led to the concept of anxiety reduction. The “Affluent Attitude” grew out of the money-grabbing 90s. “Time Poverty” emerged as a result of the growing influence of technology on contemporary life. And “Togethering” characterizes the increased desire to spend more time with family and friends because of, among other things, our time-impoverished lives. So what emerging lifestyle trends are likely to influence future timeshare buyers? According to the 2006 National Leisure Travel Monitor, a nationally-syndicated research study measuring the travel habits, preferences and intentions of Americans, the timeshare buyers of tomorrow believe strongly in taking control of their own lives; take parental responsibility seriously; are predisposed to travel in all forms and fashions; seek out places where they can experience a sense of participation and are actively attempting to reconnect with family while fostering strong ties with their children. Co-authored by Yesawich, Pepperdine, Brown & Russell/Yankelovich, Inc., the study is developed from a nationally-representative sample of 1,650 active U.S. adult leisure travelers. The Monitor also reveals that fully 14% of American adult vacationers are interested in purchasing some form of timeshare during the next two years. This represents a four percentage point increase over the percentage reported in 2005 and translates into a potential market of just over nine million households on a national basis. “The significant rise in purchase interest appears to be attributable to three factors,” said Peter C. Yesawich, chairman/CEO of Yesawich, Pepperdine, Brown & Russell. “First, the sustained recovery of the leisure travel industry; second, the remarkable increase in consumer familiarity with the concepts of both timesharing and vacation ownership; and third, the appeal of the benefits of the core timesharing product across a wider array of consumers.” Adult leisure travelers in America report a “moderate/good” understanding of the timeshare product, which is explained in part by their increased familiarity with the concepts of timesharing and/or vacation ownership. In fact, familiarity with timesharing increased from 68% in 2000 to 86% in 2006, while familiarity with vacation ownership has experienced a 20-point increase over the same period (from 39% in 2000 to 59% in 2006). Furthermore, respondents reporting a “solid understanding” of timesharing’s fundamental concepts increased fully 43%, while those reporting they have “no understanding” declined by approximately 40%. Not surprisingly, opinions of timesharing have improved as a result, and coincide with an increased likelihood of staying at such resorts. “These findings speak volumes to the gains being made across our industry that resort timesharing has evolved into a mainstream vacation alternative and to the effectiveness of both our consumer awareness and education campaigns,” said Howard A. Bendell, director of market research and analysis for Interval International. “It is clear that the efforts of all industry ambassadors— the American Resort Development Association (ARDA), branded and independent resort developers and marketers, and leading vacation exchange providers— are paying remarkable dividends.” And how does this familiarity translate into purchase interest? Another key finding of this year’s study is the fact that more than one in four adult leisure travelers familiar with vacation ownership is interested in learning more about it— either by attending a sales presentation or by experiencing the product through a mini-vacation package. This suggests a growing receptivity to the product concept and marketing message. According to Yesawich, this is not really all that surprising because more travelers now understand the inherent appeal of the product. “Consumers now have an enhanced understanding of the benefits associated with the product: condominium-style units as opposed to smaller guest rooms, exchange privileges at other resorts, a hedge against the escalating cost of future vacations, and the pride associated with ownership of resort real estate.” “In addition to the positive shifts reported in the incidence rate of consumers who are familiar with the resort timesharing concept, we are also seeing a broader spectrum of consumers interested in purchasing across various socio-economic and ethnic groups,” continued Bendell. “In fact, purchase interest continues to rise markedly within the diversity markets, represented principally by the African-American community, Hispanics, and those of Asian origin.” In fact, the incidence of purchase interest among this group as a whole increased seven percentage points over 2005, with African-Americans, alone, reporting an increase of four percentage points. Another interesting finding: Affluent consumers with an annual household income in excess of $100,000 also are exhibiting strong year-over-year increases in purchase interest. “All of these observations represent positive barometric indicators for the industry, and likely signal a continued focus on family-oriented travel. This translates into greater demand for traditional timeshare accommodations, the evolution of fractional and private residence club products, and other forms of shared leisure real estate ownership,” said Bendell. The vacation ownership industry has come a long way in recent years as a result of the convergence of three forces: the desire of leisure travelers to “own a piece of paradise,” a parallel desire on their part to control the escalating cost of future vacations, and the growing presence of respected, recognizable brands. “Today, consumers understand the product better than ever and this understanding has positively impacted perceptions of the industry,” concludes Yesawich. “This research is yet further reinforcement that resort timesharing continues to stake its claim among more traditional vacation alternatives. And consumer interest in the product will undoubtedly grow as the industry continues to educate leisure travelers about the benefits of timesharing, the value proposition associated with its purchase, and how it complements evolving lifestyles and vacation behavior.”