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 1970’s 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, Ritz-Carlton, and Hilton are companies adding the timeshare concept to their hotel businesses

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

Advantages of Mixed-Use

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 - Separate living and dining areas- Multiple baths and balcony available

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 = $14,500Maintenance Fee: $385/year

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)

Consumers’ Benefits

The Bed-and-Breakfast Industry

B&B is a term for accommodations operated inprivate homes or historic buildings with distinctive rooms, where breakfast is usually the primary meal provided by the innkeeper ~

Bed-and-Breakfast (B&B)

Home-Stay Breakfast is the only meal served 3 or fewer rooms

Bed-and-Breakfast 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.)

Types of B&B

Size Distribution of B&Bs and

Country Inns

1 to 4 guest rooms 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%

Number of Rooms Percentage of Total

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)

B&B Facts

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

Uniqueness of B&B

B&B Industry Statistics (2004)

Average Occupancy Rate

Average Daily Rate

RevPar

Hotel

61%

$86

$52

B&B

41%

$143.9

$59.57

Average Occupancy Rate (2000 ~ 2004)

35%

40%

45%

2000 2001 2002 2003 2004

Year

Occ

up

ancy

%

Average Daily Rate (2000~2004)

120

125

130

135

140

145

150

2000 2001 2002 2003 2004

Year

AD

R

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