Significant Pent-Up Demand Bodes Well for Resort Developers and Marketers
MIAMI, FL (October 6, 2010)–Nearly seven in ten leisure travelers who are familiar with the concept of shared ownership seek vacation experiences that offer alternative accommodations, such as vacation homes, condominiums, and condo-resorts. In fact, 68 percent cite an intention to stay at a condominium-style resort during the next two years. Interestingly, four in ten (38%) have stayed in these alternative forms of vacation lodging during the past two years, thereby suggesting a significant level of pent-up demand for these types of resort offerings.
These findings, and others, are more broadly discussed in the new Shared Ownership 2010: A Market Perspective survey, which is being released by Interval International during the 12th Annual Vacation Ownership Investment Conference in Orlando, Florida. The survey was inspired by the growing interest leisure travelers have demonstrated in exploring vacation alternatives to conventional lodging accommodations. These travelers are drawn to a number of attributes, such as the spacious accommodations, amenities, and exchange opportunities typically offered by shared ownership.
“This report should be of particular value to resort real estate developers because it profiles the evolving preferences of resort real estate buyers as we emerge from the ‘Great Recession’ that has altered global resort industry dynamics,” said Peter C. Yesawich, chairman and chief executive officer of Ypartnership, author of the survey. “The desire to own vacation real estate illustrates how shared ownership resort products – such as timeshare or vacation ownership, fractional interests, and private residence clubs – are well positioned to serve the needs and expectations of the new consumer.”
“We commissioned this study in an effort to provide existing developers and potential entrants with the necessary market intelligence to create products targeted to future purchasers,” said David Gilbert, executive vice president of resort sales and marketing for Interval International, a leading global provider of vacation services. “It is our hope that these unique insights will assist in guiding the future growth of shared ownership.”
Other Notable Findings
- Leisure travelers familiar with the concept of shared ownership tend to be married (75%) and average 47 years of age. Approximately half report having children in the household.
- Leisure travelers familiar with the concept of shared ownership have taken an average of four (4.2) leisure trips during the past 12 months. These travelers averaged nearly three weekend trips (2.7), a similar number of weekday trips (2.6), and slightly more than two (2.2) extended trips (consisting of five or more consecutive nights) during this period.
- Leisure travelers who are familiar with the concept of shared ownership resort real estate report spending an average of $5,649 on leisure travel services during the past year, of which an estimated 61 percent was booked online.
The data for this study were collected during June and July 2010 using a nationally representative sample of U.S. consumers who were pre-qualified and screened for specific demographic and behavioral characteristics. Respondents were adults who took at least one trip for leisure purposes of at least 75 miles away from home that required overnight accommodations during the previous year; were between 25 and 64 years of age; and reported a minimum annual household income of $50,000. The results of this analysis are representative of the population of all leisure travelers in the United States.
About Interval International
Interval International operates membership programs for vacationers and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 34 years. Today, Interval has an exchange network of more than 2,500 resorts in over 75 nations. Through offices in 14 countries, Interval offers high-quality products and benefits to resort clients and approximately 2 million families who are enrolled in various membership programs. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq: IILG), a leading global provider of membership and leisure services to the vacation industry.
Chris Boesch, 305-666-1861, ext. 7267
SOURCE: Interval International