Continued Industry Growth, Despite Headwinds: Financial Performance Survey 2016
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.
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.