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The Timeshare Industry

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

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The Timeshare Industry

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  1. The Timeshare Industry

  2. 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)

  3. 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)

  4. 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

  5. Advantages of Mixed-Use • 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

  6. Comparing Timeshare Ownership to Hotel Rental

  7. Consumers’ Benefits • 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)

  8. The Bed-and-Breakfast Industry

  9. Bed-and-Breakfast (B&B) B&B is a term for accommodations operated in private homes or historic buildings with distinctive rooms, where breakfast is usually the primary meal provided by the innkeeper ~

  10. Types of 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.)

  11. Size Distribution of B&Bs and Country Inns Percentage of Total Number of Rooms 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%

  12. B&B Facts • 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)

  13. Uniqueness of B&B • 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

  14. B&B Industry Statistics (2004)

  15. Average Occupancy Rate (2000 ~ 2004)

  16. Average Daily Rate (2000~2004)

  17. 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/

  18. B&B in Taiwan

  19. B&B in Taiwan

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