Press Release
September 5, 2001
MIAMI, FL -- The outlook for timeshare continues to be very bright, as most leading indicators point toward sustained
growth in vacation ownership sales. This prediction is based on several factors, including a low penetration rate
of the leisure travel market (less than 5% of adults currently own vacation time), and the results of several independent
research studies that show both high product satisfaction among current owners and enhanced consumer awareness
of and interest in the industry among the traveling public.
Presently, 3.2 million United States (US) households own timeshare. A survey of Interval International's US membership
base revealed that 90% of current owners are satisfied with their purchase. In fact, this group owns an average
1.6 weeks and 20% plan to purchase additional weeks. Interval's United Kingdom members own even more: an average
of nearly two weeks, according to a recent study.
"Nothing demonstrates satisfaction as well as future purchase intent, and the fact that owners buy additional
weeks shows that the timeshare concept is meeting their needs very well," said Craig M. Nash, chairman and
chief executive officer of Interval International. "In addition, consumer perceptions are becoming increasingly
positive as more leisure travelers discover the appeal of condominium-style accommodations plus the flexibility
of exchanging vacation time in popular destinations across the globe."
The 2001 National Leisure Travel Monitor, co-authored by Yesawich, Pepperdine & Brown and Yankelovich Partners,
and sponsored in part by Interval International, reveals that nearly 60 percent of today's leisure travelers are
interested in staying in condominium-style accommodations while on vacation. Fourteen percent are interested in
purchasing some form of timeshare in the next two years.
While satisfied owners offer new sales potential, the 95 percent of consumers who have yet to purchase timeshare
clearly represent a huge opportunity for developers in today's market. So who are these prospective buyers?
According to the 2001 NATIONAL LEISURE TRAVEL MONITOR, they are younger than in the past. Interest actually is
highest among adults aged 23 to 36 (23%), followed by those 22 and under (19%) and those aged 37 to 55 (13%).
Purchase interest among adults 56 and older is 7%. These data clearly underscore the broad market appeal of the
concept.
"If young people just starting out are showing a high interest in owning timeshare, the market will expand
as their earning power increases," notes Nash.
The findings also show that the market potential of vacation ownership is fairly evenly distributed across all
income brackets. Among consumers with an annual household income less than $30,000, 18 percent are interested
in purchasing timeshare in the next two years; among those with an annual household income of between $30,000 and
$49,999 the number is 17%; between $50,000 and $99,999 the percentage is 14%, and among households with incomes
over $100,000, the number is 15%. These data suggest a widening of the product's market appeal and support the
recent industry trend toward product differentiation by price point.
Two other interesting trends were identified in the survey. While the vacation ownership industry traditionally
has targeted married couples, the National Travel Monitor survey revealed that the highest interest in purchasing
is among non-marrieds. Thirteen percent of married respondents indicated interest in purchasing, whereas 17% of
singles and 16% of divorced, widowed, or separated adults expressed interest. Growing interest also was identified
among minority groups.
"These results show that timeshare appeals to a wide variety of consumers, reinforcing the long-term potential
of our industry," said Nash.
Interval International is celebrating its 25th year in the vacation ownership industry. The company's reputation
for superior products and the highest levels of quality, service and value has attracted leading developers to
its network, which now includes nearly 1,900 resorts in more than 75 countries. Interval serves its developer
clients and consumer members through 29 offices in 20 countries.
------------------------------------------
CONTACT:
Rhonda V. Sibilia 305-666-1861, ext. 7267 rsibilia@interval-intl.com Interval International 6262 Sunset Drive Miami, FL 33143 U.S.A. www.intervalworld.com www.resortdeveloper.com