Washington, D.C.—A study of the timeshare industry's financial performance for 2003 has been released by the ARDA International Foundation (AIF) revealing another year of strong vacation ownership sales. The research, conducted by PricewaterhouseCoopers, shows that timeshare's 7.6 percent net sales growth outperformed the rest of the hospitality industry. This is particularly noteworthy within the context of a sluggish overall economy.

The study, sponsored and directed by AIF, the research and educational arm of the American Resort Development Association (ARDA), is a comprehensive look at how one of the fastest growing segments of the hospitality business performed during 2002.

Among the key findings:

  • Net sales among survey respondents totaled $4.1 billion in 2002, an increase of 7.6 percent from 2001. Approximately 89 percent of reported sales occurred in the U.S., the balance by companies with resorts in the Caribbean, Canada and Mexico.
  • Compared to 2001, net sales in 2002 were 7.1 percent higher in the first quarter, 7.6 percent higher in the second quarter, 0.3 percent lower in the third quarter, and 17.1 percent higher in the fourth quarter.
  • The weighted average price of a timeshare week sold during 2002 was $16,050, an increase of 9.8 percent compared to 2001.
  • Eighty percent of the companies reported higher average prices in 2002 than in 2001, indicating that the increase was broad-based.
  • Approximately 71 percent of timeshare purchases are financed. The average down payment in 2002 was 14.6 percent of the contract price and the average interest rate was 14.0 percent.

"The timeshare sector has outperformed other leisure sectors during difficult times. The 2003 financial performance survey confirms that the timeshare industry is healthy," according to Scott Berman, partner, PricewaterhouseCoopers Hospitality & Leisure Practice.

This is the fourth such study done for the industry by PricewaterhouseCoopers (1999, 2000, 2001 and 2003), covering the years 1996 through 2002. ARDA intends to continue this series of studies in future years.

"By conducting this research annually, the association aims to offer timeshare companies relevant and timely information, providing them the opportunity to measure individual performance against industry benchmarks. It also serves as a reference for tracking trends in vacation ownership and as a resource for potential entrants into the business and those who follow the sector," said Howard Nusbaum, ARDA's president.

A core group of 29 companies has consistently responded to the Financial Performance Survey over the past three years, providing year-in and year-out results yielding a stable perspective on industry trends. The core company set represents 78 percent of the active resorts surveyed and 72 percent of the total net sales reported by the overall response base. Twenty-eight percent are publicly traded companies, and approximately 21 percent of this core company set reported net sales of $100 million or more in 2002.

"I'm particularly pleased that this partnership between ARDA and PricewaterhouseCoopers will provide, in one place, key timeshare industry data on the stellar performance of this dynamic business. It's also gratifying to note that ARDA's members, through their generous contributions to the foundation, support this research," said Nusbaum.

Copies of the study may be obtained through the ARDA website or by contacting the association directly at 202-371-6700 ext.131. The cost for ARDA members is $200 and $300 for non-members.

Howard Glassroth
202/371-6700 ext. 130
ARDA