Financial Performance Of The U.S. Timeshare Industry

By Staff -- HOTELS Magazine, 3/1/2007

Timeshare Sales

The annual PricewaterhouseCoopers benchmark study of the financial performance of the
timeshare industry, which focused on an industry subset of 46 companies encompassing
293 timeshare resorts in active sales1, showed sales of $6.1 billion in 2005.

Average Net Sales per Active Resort by Company Category - 2005






2005 sales reveal a 9.1 percent
year-over-year increase in net sales
of timeshare resorts in active sales,
following sales of $5.6 billion in 2004.
Approximately 91 percent of 2005 sales
occurred in the U.S.

Average annual net sales per active resort
for all respondents was $21.3 million.

1 Companies with resorts that reported 100 or more new sales during 2004.




Of the $6.1 billion of net new timeshare sales in 2005 (excluding fractional sales), $5.1 billion (84 percent) was classified as interval sales, while $1 billion (16 percent) was classified as points sales.

Half of respondents sold more than 2,500 timeshare weeks during 2005, with the largest companies experiencing the most rapid growth.

Timeshare sales in many locations exhibit seasonal patterns, as popular vacation periods correspond to heightened sales activity. Compared to 2004, net sales in 2005 were 7.2 percent higher in the first quarter, 6.7 percent higher in the second quarter, 10.9 percent higher in the third quarter, and 10.5 percent higher in the fourth quarter.

Half of respondents sold more than 2,500 timeshare weeks during 2005, with the largest companies experiencing the most rapid growth.



Average Net Sales per Active Resort by Company Category - 2005

Product Pricing and Financing

The weighted average price of a timeshare interval, or week, sold during 2005 was $17,797, reflecting an increase of 3.8 percent over 2004 prices. The increases reflect changes in timeshare week prices as well as any changes that may have occurred in the types of units sold.





Approximately 63 percent of
respondents reported higher
average prices in 2005 than
in 2004, indicating that price
increases were broad-based.
Companies reported financing
72.9 percent of the dollar value
of timeshare sales in 2005,
compared to 69.7 percent in
2004. The remainder of the
sales was cash or cash-out
within the first 90 days.
The average interest rate in
both 2004 and 2005 was
13.9 percent.
The median company reported
receiving average down
payments of approximately
13 percent from 2003
through 2005.




Average Net Sales per Active Resort by Company Category - 2005

Source: PricewaterhouseCoopers based on 41 company survey responses
for term and interest rate, and 40 company responses for down payment.

Conducted by PricewaterhouseCoopers, the annual study analyzes timeshare industry trends
and sets benchmarks on product pricing, sales, marketing costs, financing, and other
financial indicators.

For media inquiries about AIF research on the timeshare industry, contact:

Lou Ann Burney ARDA (202) 207-1156 lburney@arda.org
Ellen Yui YUI+Company (301) 270-8571 ellenyui@yuico.com
Elizabeth Grace YUI+Company (561) 989-9855 lizkgrace@aol.com