New Market Segmentation Analysis Method Offers Insight Into Timeshare Purchasers

Press Release
July 12, 2001
PARSIPPANY, N.J. -- Rodd & Tammie, Cindy & Dmitry and Danny & Vickie… are they the new marketing stars of the vacation ownership industry?

According to a study of timeshare purchasing trends by Ragatz Associates, a business unit of Resort Condominiums, LLC (RCI), these are just a few of the hypothetical couples identified through research as representing the characteristics of those consumers who are most likely to purchase timeshares in the United States. This new approach to market segmentation presents new insight into industry demographics, and offers timeshare marketers a new and more powerful method for identifying potential buyers and more accurately targeting marketing materials and campaigns.

The study, entitled, "Timeshare Purchases: A Profile of Recent Activity," revealed that 79 percent of all timeshare purchases from May 1999 through April 2000 were made by nine household types segmented by the Looking Glass Cohortsâ household-based market segmentation system. Respondents were "typed" to determine which Looking Glass Cohort they fit, based on their responses to demographic questions.

"Each of these Cohorts is more heavily represented among timeshare purchasers than among the U.S. population," said Steven Miner, director of research, Ragatz Associates, author of the study. "Together, all nine Cohorts represent only 48 percent of U.S. households; eight of these Cohorts are married couples, while one is surprisingly a single woman."

The largest percentage of timeshare purchasers are married couples who include young families, back-to-school families and teen dominated families, according to the study. These household types make up 24.5 percent of all timeshare purchasers. They are followed by affluent empty-nesters, named Alec & Elyse, who make up 16.2 percent. Burt & Marylyn are mature couples who comprise 12.5 percent. They are followed closely by Jules & Roz, affluent couples with kids, who make up 10.6 percent. Buddy & Carole, comfortable middle-aged couples, comprise 9.5%. And 4.3 percent of the respondents are hyperactive newlyweds named Bret & Tracey. The only single person who was included in the top nine was Victoria, a savvy career woman who came in at 3 percent.

Cohorts is a proprietary household-based market segmentation system developed by Looking Glass, Inc. located in Denver.

Using self-reported demographic and lifestyle information from 31 million households, Looking Glass performed a cluster analysis and discovered 27 naturally occurring consumer groups, or Cohorts. Looking Glass chose highly over-represented first names within each Cohort to name the segments, and developed lifestyle vignettes to better understand, identify with and target each group distinctively. For example, Cohort Alec & Elyse, the affluent empty-nesters, have a median age of 55, median income of more than $100,000 and "use their high discretionary incomes to enjoy all aspects of the good life." Cohort Cindy & Dmitry, on the other hand, have a median age of 38, a median income of $51,000, and keep their preadolescent kids occupied with pets, videos, computers and outdoor activities.

The Cohorts system is exceptionally powerful, helping marketers precisely target individual households with appropriate messages for marketing their goods and services.

For a summary of this study with tables, please contact John Barrows at (973) 496-8687. Full copies of the study, with tables, additional findings on issues such as maintenance fee trends, most successful purchase locations, most effective lead generation techniques and important explanatory details on the study’s key findings are available exclusively to RCI affiliated resorts through their regional RCI Resort Services account representative.

About RCI

RCI (RCI.com) is the world's leading global provider of products and services to the timeshare industry, with more than 3,700 affiliated resorts in 100 countries. In pursuit of its mission to be the market maker in global travel and leisure, RCI offers the world’s leading timeshare exchange services through RCI Points, the first worldwide points-based exchange system, and RCI Weeks, RCI's traditional week-for-week exchange system. Last year, more than 2 million exchanges were confirmed through RCI, sending an estimated 7.5 million people on vacation. RCI provides integrated timeshare solutions in addition to exchange through RCI Market Links, including consulting, travel agency and technological support. RCI is a subsidiary of Cendant Corporation (NYSE: CD).

Ragatz Associates

Ragatz Associates, a business unit of RCI, serves the international timeshare industry, offering market research, feasibility analysis and comprehensive consulting services to established resort developers, marketers, operators and prospective industry entrants.

About Looking Glass, Inc.

Looking Glass is a consumer marketing information company that has pioneered the use of household-based segmentation to help companies improve their marketing ROI. Looking Glass' Cohorts® system goes beyond ordinary geo-demographic segmentation systems to humanize demographic and lifestyle data, enabling companies to make data-driven marketing decisions, create customized communications and marketing programs, and make market research actionable. The company’s Internet application of Cohorts helps bridge online and offline consumer marketing efforts in order to create a totally integrated marketing tool.

With staff experience in market research, database development and database marketing applications, Looking Glass works with businesses in a variety of industries, including AT&T Broadband, The Bombay Company, Royal Resorts, Cablevision, Proflowers.com, Charming Shoppes, Norm Thompson and Wells Fargo.