HOWARD NUSBAUM President

1
(No Transcript)
2
Personal Information
HOWARD NUSBAUMPresident
DARLA S. ZANINI RRP Executive Director
3
Overview

• History/ evolution of the industry
• Timeshare-the product
• The Industry at a Glance
• The Timeshare Consumer
• The Future of the Timeshare Industry
• ARDA role
• ARDA ROC
• ARDA International Foundation

4
A History of Timeshare
5
A History of Timeshare
The 1960s - Formation

• French Alps 1964
• Right to use product
• Hotel conversions

6
A History of Timeshare
The 1970s Coming to America

• Born out of the recession
• Exchange concept introduced by RCI
• Whole owner condominium conversions
• Independent developer dominates
• Industry is unregulated

7
A History of Timeshare
The 1980s A Maturing Industry

• Most significant era of growth for the industry
• Timeshare resorts increase 400
• Timeshare owners increase 300
• Sales volume increase 500
• Conversions dominate first half of decade
• Purpose built product dominates late 80s

8
A History of Timeshare
The 1980s A Maturing Industry

• Marriott enters the industry
• Floating time adds flexibility to product
• First urban timeshare introduced
• Image suffers as a result of sales practices
• Regulation introduced

9
A History of Timeshare
The 1990s National Perspective

• Most major hoteliers enter the industry
• US industry image improves
• Clubs and point programs gain popularity
• Vacation experience begins to drive sale

10
A History of Timeshare
The 1990s Global Perspective

• Worldwide expansion explodes
• Exchange accelerates growth
• Expanding middle class
• Europe regulation introduced
• South America a hot market
• Mexico devaluation of peso

11
A History of Timeshare
The 2000s A Work in Progress

• Consolidation rules the day
• September 11, 2001
• Fractional product resurgence
• Clubs and points dominate

12
Owners Rights

• Deeded
• Right to Use
• Undivided Interest

13
Timeshare The Product

• Fixed
• Float
• Biennials

• Split Week
• Points
• Loyalty Programs

14
Units

• Two bedroom most popular
• Lock-off units add flexibility
• Trend to larger units

15
Amenities
16
Average Units Per Resort
109 Units
Source 2007 State of the Vacation Timeshare
Industry
17
Average Price Per Week
Average Maintenance Fee
Source 2007 State of the Vacation Timeshare
Industry
18
History Resort Growth
1,615
Source 2007 State of the Vacation Timeshare
Industry
19
Resort Locations U.S.
North Dakota, Kansas and Nebraska are the only
states without timeshare resorts.
20
Resort Locations Worldwide
21
History Owners
4.4 M
Source 2007 State of the Vacation Timeshare
Industry
22
Sales Volume
10.0 B
Source 2007 State of the Vacation Timeshare
Industry
23
Economic Impact

• Direct Economic Impacts
• Indirect Economic Impacts
• Fiscal Impacts
• Total Impacts and Taxes
• 62 billion of output
• 565,300 jobs
• 21 billion in salaries, wages related income
• 8.5 billion in tax revenue

Source 2006 Economic Impact of the Timeshare
Industry on the U.S. Economy
24
Consumer Profile
81K
Median Income
Source Ragatz Associates - Resort Timeshare
Consumers Who They Are, Why They Buy
25
Customer Satisfaction
Source Ragatz Associates - Resort Timeshare
Consumers Who They Are, Why They Buy
26
Purchase Motivations
Source Ragatz Associates - Resort Timeshare
Consumers Who They Are, Why They Buy
27
Utilizations
Source Ragatz Associates - Resort Timeshare
Consumers Who They Are, Why They Buy
28
Timeshare Weeks of Annual Owner Usage
6.1
Source 2007 State of the Vacation Timeshare
Industry
29
Number of Fractional Resorts
190
64
Source Ragatz Associates, The Shared-Ownership
Resort Real Estate Industry in North America 2007
30
Fractionals Product Type
Source Ragatz Associates, The Shared-Ownership
Resort Real Estate Industry in North America 2007
31
Average Fractional Prices
247,700
Fraction price
48,300
Price per week
1,195
Weekly maintenance fee
Source Ragatz Associates, The Shared-Ownership
Resort Real Estate Industry in North America 2007
32
New Fractional Sales per Year
2.1 B
Source Ragatz Associates, The Shared-Ownership
Resort Real Estate Industry in North America 2007
33
Timeshare The Future
34
Dedicated to the Success of OurMembers
35
Advocacy

• Federal Legislative
• State Local Regulatory

36
Advocacy

• Political Vehicle for Change
• Voluntary contributions 3-5.00
• ARDA ROC-PAC

37
PR/Communications

• Developments Magazine
• Public Profiles
• Media Relations

38
Code of Ethics

• Code of Ethics
• Consumer Bill of Rights

39
(No Transcript)
40
Mission Statement

• The mission of the ARDA International Foundation
  is twofold
• Support, conduct and disseminate research and
  technical studies that will enhance and improve
  knowledge for the public and the industry and
• Develop educational resources that will optimize
  operations, value, acceptance and service for the
  industry and the public.

41
Research
42
Education

• Serving Three Segments
• Consumer
• Industry Professional
• Academia

43
Consumer Education
44
Industry Professional
45
Education Liaison Program
Academia
46
Fundraising
47
www.ardafoundation.org
48
Thank You

• To all our ARDA members who contributed visuals
  to this program.