May 1, 2015 — According to “The Statistics Portal” (statista) which collects their “Statistics and Studies from more than 18,000 Sources”, in 2015 the average nightly rate for two adults in a hotel room in the USA (excluding taxes & additional amenities like ‘wireless’ access, etc.) is around $122 per night; or $854 for the week. Interestingly to me is that the current hotel nightly/weekly rate happens to be about the same as the average annual maintenance fee (nightly/weekly rate) a timeshare owner/member is paying in 2015 but for their funds they’re enjoying a fully furnished ‘suite’ with most of the bells and whistles.
So Here’s The Scoop: That is good news for TS owners/members and of course the developers’ marketing and sales ‘crews’ selling slices of Paradise. But the news is even better because according to an article by PKF-Hospitality Research, a CRBE Company, they forecast a “Record Occupancy for 2015” and that ”Positive Market and Economic Conditions to Sustain Longest Period of Growth in 20 Years.”
“In 20 Years” – OMG, that is fantastic news for the Land of Time, too, and they continue with more good news stating, “By year-end 2015, PKF-HR projects that the demand for lodging accommodations will have increased 25.8 percent since the depths of the recession in 2009, while the supply of hotel rooms will have grown by just 5.6 percent.”
Holy sun-soaked beaches, Batman! Up nearly 26%! Also in the news as reported by Hotel News Now.com on January 5th 2015 an article by Steve Hennis and Carter Wilson said, “Rates should be up 30% in 2020 when compared to 2014 levels.”
Up “30%” – But there is even more good news!
TravelClick is reporting in a press release that the “Average Daily Rate Continues to Propel Hotel Performance in Early 2015”. In that PR they go on to say, “NEW YORK – February 26, 2015 – Hotels in major North American markets continued to maintain positive growth in rate across all travel segments according to data from the February 2015 TravelClick North American Hospitality Review (NAHR). Overall, average daily rate (ADR) growth continues to be the metric for growth, requiring hotels to be vigilant in monitoring their local markets.”
And what I’ve included thus far is only the tip of the proverbial iceberg and the news is all good and positive in just about every corner of the hospitality industry, a sector of global commerce of which the ‘shared ownership’ industry is very much a part.
Air travel, ground travel, train travel and even bus travel are all up. Rates are up and that includes ADR (average daily rate) for hotel/motels/resorts as well as RevPAR (revenue per available room). And the same is true for those dining out whether it be from home or while traveling. Car rental rates are on the increase, cabs, too, etc., as the demand from both business and leisure travelers for just anything and everything that is travel and vacationing related is again in very high demand.
Even cruising the seven seas is up and considering all the bad publicity that industry has had the past few years that, too, is really a sign of how people want to again travel and vacation until their little hearts are fulfilled with days and nights of rainbows.
All this good news should also mean its good times once again for timeshare developers presenting them an incredible opportunity to recoup all those billions of dollars in lost sales that they collectively suffered beginning in 2008!
The ‘travel’ news is so positive – that it’s breakout time for TS developers.
But dare I say, this time around – while the sun is shining – developers ought to consider fine tuning their marketing and selling activities and do so in a manner that generates not a (e.g.) 15% net closing ratio but instead a 25-30% net closing ratio and other improved STATS.
Look at it this way ‘peeps’, the sun does not always shine and there will be, sooner or later, another ‘downturn’ – and you can take that to the bank, so to speak.
As such and if developers allow history to be their teacher and they look back at just the five years preceding the HUGE CRASH that began in late 2007 – had developers back then improved their STATS between 2003 and the end of 2007 doing so would not have been too bad an idea.
In fact, maybe some in ‘the biz’ wouldn’t have had to petition the ‘Feds’ for that “bailout” they sought during the most recent Great Depression/Recession that clobbered the very core of our otherwise very fine worldwide industry.
Hey, it’s just a thought folks – so don’t throw rocks at the messenger.
Good Luck Out There
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Contributing sometimes extravagant, bombastic, emotional, pompous or even pretentious writings about the timeshare industry, Scoop covers an array of industry related subjects each week including inside information, tips, scandals, interviews, forecasts as well as new (good or bad) products and services — and, of course, all the ‘Good’, the ‘Bad’ and the ‘Ugly’.