Vacation ownership is one of the most evolving and profitable sectors in the hospitality and leisure industry. A sector once dominated by private developers selling one-week fee intervals, now includes publicly-traded hospitality companies actively developing a full range of offerings at different price points in resort and urban destinations.
Research conducted by PwC's Hospitality & Leisure specialists documents that public companies account for a large share of the vacation ownership industry’s annual revenues. The business model has changed dramatically as the sector has evolved. Building on our global network of experienced vacation ownership professionals, our insights into the pace and absorption of second-home buyers in the vacation ownership market, the growing demographic base of potential buyers with increasing leisure time and income, and assessing where and when to enter the growing overseas vacation ownership market can offer you the tools to make profitable, educated decisions.
If this is your situation
- You are planning a mixed-use resort and want to understand whether vacation ownership offers greater potential than additional hotel or residential units.
- You want to tailor a vacation ownership product to suit your target customers.
- You are entering a new market and want to understand the competitive landscape for a resort residential product.
- You find your current process to manage the sales and marketing operations of your vacation ownership development business constrains your growth.
How PwC can help you
The professionals at PwC are leaders in providing timeshare, fractional and whole ownership advisory services, specializing in both research and market analysis, and business plan development.
Research and market analysis
Effective, reliable research and market analysis are crucial first steps in identifying needs and opportunities within the vacation ownership industry. You can leverage PwC's global network of industry-focused analysts to produce specific reports and models designed to pinpoint optimal prospects for development, including:
- Annual research report for ARD
Decision makers for the timeshare and fractional ownership sector, through the American Resort Development Association (ARDA), recognized the need to conduct and disseminate performance research. For years, ARDA has requested that PwC produce an annual research report based on data collected from the timeshare and fractional ownership development community. This report provides trends on industry sales, pricing, absorption and pacing, key cost ratios, including sales and marketing, consumer financing trends and receivables performance.
- Proprietary research model to estimate economic impact
Our specialists have also developed a proprietary research model estimating the economic impact of timeshare and fractional ownership development. This model considers unit sales, incremental tax revenues, capital investment and increases in direct employment, as well as related economic multiplier effects.
- Econometric and statistical research
Our teams undertake econometric and statistical research to assist exchange companies, timeshare resort owners, managers and developers in decision making and business planning. Powerful analytical tools, such as econometrics, statistics and mathematical programming, reveal patterns and uncover relationships among different variables (for example, property-level profitability and marketing dollars). Through these tools, our professionals help clients derive value from databases where they collect information on members, properties and developers.
- Market analysis
The information derived from the discipline of economics also affects the way our specialists conduct market analysis in the timeshare, fractional and whole ownership industry, and distinguishes our work product from traditional market studies.
Business plan development
We offer advice and information to clients contemplating business decisions in the timeshare, fractional and whole ownership sector, including:
We help you evaluate specific success criteria based on market growth, visitation patterns, real estate development trends, accessibility and availability of tourism infrastructure.
- Site evaluation
When determining your next opportunity, our vacation ownership professionals use research to consider factors such as location, linkages to hotel/resort services, density and capacity considerations, and beach/golf/ski access in resort destinations.
- Industry trends
We monitor and analyze rapidly changing industry trends, including travel patterns, new supply dynamics, interval length, exchange program opportunities, unit size and bedroom mix, sales strategy and expense, pricing, absorption and pacing.
- Demand analysis
Our evaluation and analysis of the potential demand helps you target and reach different pools of buyers, depending on the opportunity.
- Product positioning
We evaluate and analyze various product types such as traditional timeshare, fractional or whole ownership products, and then make recommendations based on how well products integrate with your company's marketing and strategic plans.
- Financial modeling
Our professionals develop client-specific financial models based on the scope of the assignment. Standard inputs for timeshare/fractional/whole ownership sales modeling include: number of units, number of intervals/fractions per unit, days of use, pricing, sales pace and absorption period.
- Organizational structure and management
As the timeshare, fractional and whole (vacation) ownership industry has evolved, so have the organizational structure and management company services. Timeshare, fractional and whole ownership management requires a unique set of varying competencies focused on sales and marketing, traditional hospitality services and owner relationship building.
Solving complex business problems
PwC professionals have made a long-term commitment to the vacation ownership industry. Our global perspective, combined with operational knowledge, offers unmatched value for our clients. The in-depth experience of our specialists allows them to help manage the challenges that face the vacation ownership industry and provide maximum advantage to you.