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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. 


 

Standing Together: ARDA & VRDA Join Forces

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 Standing Together: ARDA & VRDA Join Forces 

By Kathryn Mullan 

They say that you’re stronger together, and there’s power in numbers. This is a core principleof ARDA—how we have built our advocacy groups and likewise grown our entire membership base over the last 45 years. This is even truer at the state level, with various Committees doing awesome work around the country on behalf of the vacation ownership industry.

The state of Virginia is one of the best examples of this principle in action. A local group of developers and vendors came together in the early 1990s, as one of the earliest state group prototypes—banding together on common interests to help build a healthy environment for both development and owners. In 1994, they decidedto organize in a more official way and founded the Virginia Resort Development Association, Inc. (VRDA), a Virginia non- stock company.

During the 22 years of VRDAs existence, there have been many accomplishments and key points of work—namely, the writing and frequent updating of the Virginia Real Estate Time-share Act and its related regulations.

As with most things, there comes a point in time where trends in the industry— namely, consolidation—drive change, and the current VRDA is now considering a dissolution of the association and a shift to an ARDA-Virginia State Committee. If the VRDA Board approves this action at its upcoming December meeting, this change will take effect on January 1, 2017. ARDA State Affairs Director Justin Vermuth will become the lead contact for the Committee (as staff liaison)—working closely with local lobbyists, developer/management/ exchange companies, and vendor/owner groups with interests in this state.

Developments sat down with both Philip Richardson and Justin Vermuth to discuss these pending changes, as the VRDA turns the final page of its book and opens to new opportunities.  Pick up this month’s installment of Developments to find out what they had to say about VRDA’s lasting legacy and where they plan on taking VRDA next. 

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