WASHINGTON--(BUSINESS WIRE)--Oct. 19, 2005--The annual PricewaterhouseCoopers (PwC) benchmark study of the financial performance of the timeshare industry released today by the ARDA International Foundation (AIF) underscores the ongoing, robust growth of the multibillion dollar vacation ownership industry. The study, which focused on an industry subset of 47 companies encompassing 280 timeshare resorts in active sales(1), showed sales of $5.6 billion in 2004 and supported other recent studies on the full industry that also point to the dramatic strength in vacation ownership.(2)
Each year, PwC surveys a group of timeshare resort developers to take the industry's financial pulse--analyzing industry trends and setting benchmarks on product pricing, sales, marketing costs, and financing, and other financial indicators. This year's findings reveal a 15.4 percent year-over-year increase in net sales of timeshare resorts in active sales, following sales of $4.9 billion in 2003, as reported by PwC. Approximately 89 percent of 2004 sales occurred in the U.S. Average net sales per active resort were $20 million last year.
"Timeshare continues its spectacular growth with no signs of slowing down," said Howard Nusbaum, president and chief executive officer of ARDA. "The growth is occurring across the U.S. and around the globe with developments by public and private companies."
Timeshare sales in many locations exhibit seasonal patterns, as popular vacation periods correspond to heightened sales activity. Compared to 2003, net sales in 2004 were 25.2 percent higher in the first quarter, 18.5 percent higher in the second quarter, 10.5 percent higher in the third quarter, and 10.1 percent higher in the fourth quarter.
"Despite four hurricanes that ravaged Florida and other critical timeshare markets in the third and fourth quarter, last year's sales continued to exceed 2003 levels, demonstrating the strong resiliency of the vacation ownership industry," explained Scott Berman, a PricewaterhouseCoopers partner.
The median price of a timeshare interval, or week, sold during 2004 was $15,134, reflecting an increase of 12.5 percent over 2003 prices. The increases reflect changes in timeshare week prices as well as any changes that may have occurred in the types of units sold. Seventy percent of respondents reported that their company's average price in 2004 was higher than in 2003, indicating that price increases were broad-based. Study respondents reported financing approximately 71 percent of the dollar value of timeshare purchases.
The study participants included nine publicly traded companies, which accounted for 70 percent of net sales reported, and 38 privately owned companies. Twenty companies were headquartered in the Southeastern U.S., including 15 Florida-based companies; 12 in the Northeast and Midwest; and 11 in the Southwest and West. Approximately six percent of the respondents were based in Canada, and approximately two percent were based in other international locations.
ARDA is the Washington D.C.-based professional association representing the vacation ownership and resort development industries.
(1)Companies with resorts that reported 100 or more new sales during 2004.
(2)Timeshare sales climbed 21.4 percent during 2004 to $7.87 billion, according to a comprehensive industry study conducted by American Economic Group (AEG) and released in August by AIF. As of January 1, 2005, there were a total of 1,668 vacation ownership resorts operating in the U.S. The survey, composed of 466 timeshare resorts, also showed increases in new owners, new resorts, and the number of units.
I predict that as every home as a video, dvd player, and personal computer, Timeshare will be just as regular.
