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This excerpt taken from the WYN 10-K filed Feb 29, 2008. The
Vacation Ownership Industry
The $13 billion global vacation ownership industry, which
is also referred to as the timeshare industry, is one of the
fastest-developing segments of the domestic and international
hospitality industry. The vacation ownership industry enables
customers to share ownership of a fully-furnished vacation
accommodation. Typically, a vacation ownership purchaser
acquires either a fee simple interest in a property, which gives
the purchaser title to a fraction of a unit, or a right to use a
property, which gives the purchaser the right to use a property
for a specific period of time. Generally, a vacation ownership
purchaser’s fee simple interest in or right to use a
property is referred to as a “vacation ownership
interest.” For many vacation ownership interest purchasers,
vacation ownership is an attractive vacation alternative to
traditional lodging accommodations at hotels or owning vacation
properties. Owners of vacation ownership interests are not
subject to the variance in room rates to which lodging customers
are subject, and vacation ownership units are, on average, more
than twice the size of traditional hotel rooms and typically
have more amenities, such as kitchens, than do traditional hotel
rooms.
The vacation ownership concept originated in Europe during the
late 1960s and spread to the United States shortly thereafter.
The vacation ownership industry expanded slowly in the United
States until the mid-1980s; since then, the vacation ownership
industry has grown at a double-digit CAGR. The American Resort
Development Association, or ARDA, indicates that sales of
vacation ownership interests grew in excess of 16% CAGR from
1995 to 2006. Based on ARDA research, domestic sales of vacation
ownership interests were approximately $10 billion in 2006
compared to $4.2 billion in 2000 and $1.9 billion in
1995. ARDA estimated that on January 1, 2007, there were
approximately 4.4 million households that owned one or more
vacation ownership interests in the United States.
Based on published industry data, we believe that the following
factors have contributed to the substantial growth, particularly
in North America, of the vacation ownership industry over the
past two decades:
Demographic factors explain, in part, the growth of the
industry. A 2006 study of recent vacation ownership purchasers
revealed that the average purchaser was 52 years of age and
had a median household income of $74,000.
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The average purchaser in the United States, therefore, is a baby
boomer who has disposable income and interest in purchasing
vacation products. We expect that baby boomers will continue to
have a positive influence on the future growth of the vacation
ownership industry.
According to information compiled by the ARDA, the four primary
reasons consumers cite for purchasing vacation ownership
interests are: (i) flexibility with respect to different
locations, unit sizes and times of year, (ii) the certainty
of quality accommodations, (iii) credibility of the
timeshare company and (iv) the opportunity to exchange into
other resort locations. According to a 2006 ARDA study, nearly
80% of owners of vacation ownership interests indicated high
levels of satisfaction. With respect to exchange opportunities,
most owners of vacation ownership interests can exchange
vacation ownership interests through exchange companies and
through the applicable vacation ownership company’s
internal network of properties.
This excerpt taken from the WYN 10-K filed Mar 7, 2007. The
Vacation Ownership Industry
The $13 billion global vacation ownership industry, which
is also referred to as the timeshare industry, is one of the
fastest-developing segments of the domestic and international
hospitality industry. The vacation ownership industry enables
customers to share ownership of a fully-furnished vacation
accommodation. Typically, a vacation ownership purchaser
acquires either a fee simple interest in a property, which gives
the purchaser title to a fraction of a unit, or a right to use a
property, which gives the purchaser the right to use a property
for a specified period of time. Generally, a vacation ownership
purchaser’s fee simple interest in or right to use a
property is referred to as a “vacation ownership
interest.” For many vacation ownership interest purchasers,
vacation ownership is an attractive vacation alternative to
traditional lodging accommodations at hotels or owning vacation
properties. Owners of vacation ownership interests are not
subject to the variance in room rates to which lodging customers
are subject, and vacation ownership units are, on average, more
than twice the size of traditional hotel rooms and typically
have more amenities, such as kitchens, than do traditional hotel
rooms.
The vacation ownership concept originated in Europe during the
late 1960s and spread to the United States shortly thereafter.
The vacation ownership industry expanded slowly in the United
States until the mid-1980s; since then, the vacation ownership
industry has grown at a double-digit CAGR. The American Resort
Development Association, or ARDA, indicates that sales of
vacation ownership interests grew in excess of 17% CAGR from
1995 to 2005. Based on ARDA research, domestic sales of vacation
ownership interests were approximately $8,610 million in
2005 compared to $4,200 million in 2000 and
$1,900 million in 1995. ARDA estimated that on
January 1, 2006, there were approximately 4.1 million
households that owned one or more vacation ownership interests
in the United States.
Based on published industry data, we believe that the following
factors have contributed to the substantial growth, particularly
in North America, of the vacation ownership industry over the
past two decades:
Table of Contents
Demographic factors explain, in part, the growth of the
industry. A 2006 study of vacation ownership purchasers revealed
that the average owner was 52 years of age and had a median
household income of $81,000. The average purchaser in the United
States, therefore, is a baby boomer who has disposable income
and interest in purchasing vacation products. We expect that
baby boomers will continue to have a positive influence on the
future growth of the vacation ownership industry.
According to the information compiled by the ARDA, the four
primary reasons consumers cite for purchasing vacation ownership
interests are: (i) flexibility with respect to different
locations, unit sizes and times of year, (ii) the certainty
of quality accommodations, (iii) credibility of the
timeshare company and (iv) the opportunity to exchange into
other resort locations. According to a 2006 ARDA study, nearly
80% of owners of vacation ownership interests indicated high
levels of satisfaction. With respect to exchange opportunities,
most owners of vacation ownership interests can exchange
vacation ownership interests through exchange companies and
through the applicable vacation ownership company’s
internal network of properties.
This excerpt taken from the WYN 8-K filed Jul 19, 2006. The Vacation Ownership Industry The $12 billion global vacation ownership industry, which is also referred to as the timeshare industry, is one of the fastest-developing segments of the domestic and international hospitality industry. The vacation ownership industry enables customers to share ownership of a fully-furnished vacation accommodation. Typically, a vacation ownership purchaser acquires either a fee simple interest in a property, which gives the purchaser title to a fraction of a unit, or a right to use a property, which gives the participant the right to use a property for a specified period of time. Generally, a vacation ownership purchaser’s fee simple interest in or right to use a property is referred to as a “vacation ownership interest.” For many vacation ownership interest purchasers, vacation ownership is an attractive vacation alternative to traditional lodging accommodations at hotels or owning vacation properties. Owners of vacation ownership interests are not subject to the variance in room rates to which lodging customers are subject, and vacation ownership units are, on average, more than twice the size of traditional hotel rooms and typically have more amenities, such as kitchens, than do traditional hotel rooms. The vacation ownership concept originated in Europe during the late 1960s and spread to the United States shortly thereafter. The vacation ownership industry expanded slowly in the United States until the mid-1980s; since then, the vacation ownership industry has grown at a double-digit CAGR. The American Resort Development Association, or ARDA, indicates that sales of vacation ownership interests grew in excess of 17% CAGR from 1995 to 2004. Based on ARDA research, domestic sales of vacation ownership interests were approximately $7,870 million in 2004 compared to $4,200 million in 2000 and $1,900 million in 1995. ARDA estimated that on January 1, 2005, there were approximately 3.9 million households that owned one or more vacation ownership interests in the United States, which represents a 14.7% increase from the prior year in the number of households that owned interests. The following table lists information from 1990 through 2004 on the worldwide and domestic sales of vacation ownership interests and on the number of households that own one or more vacation ownership interests: | EXCERPTS ON THIS PAGE:
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