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 1970s 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, RitzCarlton, and Hilton are companies adding the timeshare
concept to their hotel businesses

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

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

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 = $14,500

Maintenance Fee: $385/year

Separate living and dining areas

- Multiple baths and balcony
available

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)

The Bed-and-Breakfast
Industry

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 ~

Types of B&B

Home-Stay

Bed-and-Breakfast

Breakfast is the only meal served

3 or fewer rooms

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.)

Size Distribution of B&Bs and

Country Inns
Number of Rooms

1 to 4 guest rooms

Percentage
of Total

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%

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)

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

B&B Industry Statistics (2004)

B&B

Hotel

41%

61%

Average Daily
Rate

$143.9

$86

RevPar

$59.57

$52

Average
Occupancy
Rate

Average Occupancy Rate (2000 ~

2004)

Average Daily Rate (2000~2004)

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