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Continued Industry Growth, Despite Headwinds: Financial Performance Survey 2016

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 Continued Industry Growth, Despite Headwinds: Financial Performance Survey 2016  

By Phil Nix & Chris Folsom  

The vacation ownership industry continued to expand through 2015 with reported revenue growth of 8.2 percent, a higher rate than both 2013 and 2014.  In addition, Deloitte’s research for the ARDA International Foundation (AIF) indicates the U.S. vacation ownership industry has grown at a relatively strong pace, as it continues to withstand the turbulence observed in the broader economy.

The growth is a positive sign for the Timeshare Industry, but there are more numbers to dive into using AIF’s Financial Performance 2016: A Survey of Timeshare & Vacation Ownership Companies.   

The results of the Financial Performance survey are a measure of 2015 calendar year performance as reported
by timeshare company respondents. The results below are a summary of selected key metrics that AIF believes provide an overview of the vacation timeshare industry in the United States.

  • Timeshare sales reported in the 2016 Financial Performance survey continued to show signs of strong growth in the industry for the fourth consecutive year.
  • Respondents continued an emphasis on increased sales efforts in 2015, leading to the strong net originated sales results.
  • Average volume per guest increased from $2,705 in 2014 to $2,835 in 2015, and the average transaction value increased from $18,356 in 2014 to 19,225 in 2015. 

  • The industry survey also indicated continued increases in the weighted average yield per week. 

  • Rescissions, as a percentage of gross sales, decreased from 15.2 percent in 2014 to 14.4 percent in 2015 (representing a 5.3 percent decrease in the overall rescission rate). 

  • Respondents reported that payments for 91.4 percent of the dollar value
of their receivables portfolios were current (current or fewer than 31 days delinquent) at year-end 2015. 

  • Respondent companies began tightening their lending practices in 2009
as a result of the economic downturn and continued this trend through2015. 

For a more detailed look at this report be sure to visit or read about it in this month’s edition of Developments.