the timeshare industry
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The Timeshare Industry
Timeshare A term used to describe the joint ownership of a resort
property shared with others. AKA - Vacation Ownership
Each “owner” owns a specific periods of time – usually by the week
A timeshare can take on a variety of forms Condominium, Hotels, Cabins, Cruise ships, Houseboats, Motor
homes.
A timeshare can be bought, sold, or traded
Largest timeshare exchange companies: Resort Condominiums International (RCI) & Interval International (II)
Timeshare (con.)
Timeshares began in the 1960 with families sharing vacation homes in the French Alps
The concept spread to North America in the 1970’s in the form of 7 day stays at resorts or condominium properties
About 5,100 timeshare resorts in 110 different countries
6 million timeshare owners residing in 270 countries
Cost range from $7,800 to $85,000/week (average = $14,500/week)
Average owner is older, educated, and has higher income (e.g. baby boomers)
Mixed-Use The scenario describes timeshare in a hotel environment
Mixed-use facilities have been soaring in popularity since the mid 1990s
Integrate golf courses, restaurants, swimming pools, etc. with a hotel and timeshare component to maximize returns
Marriott, Disney, Hyatt, Starwood, Four Seasons, Ritz-Carlton, and Hilton are companies adding the timeshare concept to their hotel businesses
Leverage hotel brand names and create cross-utilization opportunities between traditional hotel products and timeshare services and products
Creates stability and profitability Customers pay a sizable lump sum in advance Customers pay an annual contribution
Less affected by a downturn in the economy than conventional resort hotels
Help lower marketing, operational, and development costs, and maximize the yield of the operation through shared assets and staff
Advantages of Mixed-Use
Comparing Timeshare Ownership to Hotel Rental
Typical Hotel Rental Typical Marriott Vacation Club Villa
Accommodations 2 persons, roll-aways on request
6 to 8 in specious comfort
Common Usable Area 350 sq ft 1100 sq ft
Typical Floor Plan One room with bath - Separate living and dining areas- Multiple baths and balcony available
In-Room Dining Options Dine out, room service Full kitchen with service for 8
Features One TV set, Valet/Laundry Service
Multiple TV sets, VHS or DVD player Washer / Dryer
Long-term Financial Reward
Renting Owning
Cost ADR = $87 Ave. Cost/week = $14,500Maintenance Fee: $385/year
Have space and luxury of a resort villa or condominium apartment instead of a cramped hotel room
Exchange your timeshare for similar accommodations in desirable destinations all over the world
Have access to a lifetime of extraordinary vacation opportunities - pass your ownership on to family or friends
Customize vacations (time & place)
Consumers’ Benefits
The Bed-and-Breakfast Industry
B&B is a term for accommodations operated inprivate homes or historic buildings with distinctive rooms, where breakfast is usually the primary meal provided by the innkeeper ~
Bed-and-Breakfast (B&B)
Home-Stay Breakfast is the only meal served 3 or fewer rooms
Bed-and-Breakfast Breakfast is the only meal served Owner is most likely the innkeeper and lives on site 3 to 10 guest rooms
Country Inn / Bed-and-Breakfast Inn Serve an evening meal in addition to breakfast Many cases that the owner hires an innkeeper 10 to 20 rooms More services (e.g. weddings, small meetings, birthday party, etc.)
Types of B&B
Size Distribution of B&Bs and
Country Inns
1 to 4 guest rooms 33%
5 to 8 guest rooms 33%
9 to 12 guest rooms 14%
13 to 20 guest rooms 11%
21 or more guest rooms 9%
Number of Rooms Percentage of Total
Approximately 20,000 licensed B&B and country inns in the United States
Nearly 170,000 rooms
Financial Benefits IRS allows B&B owners to deduct certain costs (water, sewer,
electricity, mortgage interest, and real estate taxes)
B&B Facts
No one B&B is the same Distinctive rooms – decorated according to an appropriate local theme Romantic get-away, Historic buildings, Antique furniture, Ornate
gardens, etc. http://www.woodrowhouse.com/
Personal Touch Homelike atmosphere Experienced & knowledgeable innkeeper
Local attractions, events, restaurants, activities, etc. Tour planning
Uniqueness of B&B
B&B Industry Statistics (2004)
Average Occupancy Rate
Average Daily Rate
RevPar
Hotel
61%
$86
$52
B&B
41%
$143.9
$59.57
Average Occupancy Rate (2000 ~ 2004)
35%
40%
45%
2000 2001 2002 2003 2004
Year
Occ
up
ancy
%
Average Daily Rate (2000~2004)
120
125
130
135
140
145
150
2000 2001 2002 2003 2004
Year
AD
R
B&B Websites Professional Association of Innkeepers International
(PAII): the largest association of innkeeper professionals http://www.paii.org/
BedandBreakfast.com
http://www.bedandbreakfast.com/Index.aspx
Historical & Hospitality Accommodation of Texas
http://www.hat.org/
B&B in Taiwan
B&B in Taiwan
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