Friday, August 25, 2006
Less Rigid Timeshare Rules Appeal To Boomers' Kids
Baby boomers love timeshares.
People born between 1946 and 1964 make up 50.5 percent of all owners and 51.1 percent of recent buyers, according to a study on timeshare ownership by the American Resort Development Association.
Now children of boomers are taking a liking to vacation ownership, too, because of the experiences of their parents.
"Children of timeshare owners almost always buy," said Neil Cumsky, chief executive officer of Princeton Resort Group, which is developing Cibola Vista Resort and Spa in Peoria.
Traveling with their parents, they enjoyed extra space and privacy without the cost of additional hotel rooms, he said.
But some young buyers have been skeptical of timeshares, said Clark Rowley, director of marketing and sales for the Scottsdale Camelback Resort. They don't like the concept of fixed weeks and worry about wasting their investment if they don't use their time. However, with the advent of flexible timeshare use, more are choosing to buy.
"The X-Generation is coming into play," Rowley said. "They are seeking more flexibility and that's why the market is changing" with timeshares that allow buyers to use points to spend as little as a day at a resort.
People younger than 40 make up 18.5 percent of recent buyers. Overall, they make up just 9.3 percent of all owners, according to the ARDA report.
Many of those buyers are single professional women ages 25 to 35, Cumsky said, who buy with the intent of traveling with their girlfriends.
Margi Maisto, 47, bought her first timeshare while single in her early 30s. After the initial purchase, she liked not having to worry about budgeting for lodging costs.
It also forced her to take time off because she purchased a specific week.
Now married with young children, Maisto bought this year her second timeshare at a property in Orlando. The key attraction was the timeshare's points-based system, which didn't lock her into a specific week. She can make several mini-visits or one long one until all her points are used up.
"There's a lot more flexibility in the new-style program," the Peoria resident said. "It accommodated our current schedules, and we're really busy."
She also loves having a kitchen, which reduces the family's restaurant budget, and a number she can call to arrange her accommodations at a nice resort.
Those 60 and older also buy in fewer numbers than boomers do. They make up 40.2 percent of all owners but only 30.4 percent of recent buyers.
"Boomers are still very much the big buyer," Rowley said, largely because of their disposable income. "Generation X is still building wealth, or are not as into luxuries."
Life experiences also play a role in boomers' decisions to buy timeshares.
"Boomers are buying the product because they are the first traveling generation," said Cumsky, who is in his 50s. "My parents' generation never traveled more than 200 miles. When we (boomers) were in our 20s and 30s, we were traveling all over the place."
That affinity for travel has helped the industry grow to more than $7.8 billion nationally in sales in 2004.
The largest timeshare market is Florida, followed by South Carolina and California. Arizona ranks No. 9 nationally with 47 resorts, according to ARDA data. Industry folks in Arizona say that number is now 52.
A new report on the economic impact of timeshares in Arizona is expected out early next year, Rowley said. The most recent state data from a 2002 ARDA report show an overall economic impact of $980 million in owners' direct and indirect purchases. Nationally, the industry has a $44.4 billion impact, according to ARDA.
New timeshare sales in Arizona in 2002 were worth $200 million. That's thought to have grown significantly as more resorts now operate time shares. Westin Kierland Resort and Spa and the JW Marriott Desert Ridge Resort have added timeshares since then. Cibola Vista opened last year, and other properties have converted casita units into timeshares.
By the numbers
53: Median age of head of household time-share owner.
$200 million: Amount spent on new timeshare units in Arizona in 2002, the most recent year in which figures are available.
6.7: Average number of nights parties spend in an Arizona timeshare.
$1,744: Average amount a timeshare user spends in Arizona.
$15,789: Average cost of a timeshare unit nationwide.
People born between 1946 and 1964 make up 50.5 percent of all owners and 51.1 percent of recent buyers, according to a study on timeshare ownership by the American Resort Development Association.
Now children of boomers are taking a liking to vacation ownership, too, because of the experiences of their parents.
"Children of timeshare owners almost always buy," said Neil Cumsky, chief executive officer of Princeton Resort Group, which is developing Cibola Vista Resort and Spa in Peoria.
Traveling with their parents, they enjoyed extra space and privacy without the cost of additional hotel rooms, he said.
But some young buyers have been skeptical of timeshares, said Clark Rowley, director of marketing and sales for the Scottsdale Camelback Resort. They don't like the concept of fixed weeks and worry about wasting their investment if they don't use their time. However, with the advent of flexible timeshare use, more are choosing to buy.
"The X-Generation is coming into play," Rowley said. "They are seeking more flexibility and that's why the market is changing" with timeshares that allow buyers to use points to spend as little as a day at a resort.
People younger than 40 make up 18.5 percent of recent buyers. Overall, they make up just 9.3 percent of all owners, according to the ARDA report.
Many of those buyers are single professional women ages 25 to 35, Cumsky said, who buy with the intent of traveling with their girlfriends.
Margi Maisto, 47, bought her first timeshare while single in her early 30s. After the initial purchase, she liked not having to worry about budgeting for lodging costs.
It also forced her to take time off because she purchased a specific week.
Now married with young children, Maisto bought this year her second timeshare at a property in Orlando. The key attraction was the timeshare's points-based system, which didn't lock her into a specific week. She can make several mini-visits or one long one until all her points are used up.
"There's a lot more flexibility in the new-style program," the Peoria resident said. "It accommodated our current schedules, and we're really busy."
She also loves having a kitchen, which reduces the family's restaurant budget, and a number she can call to arrange her accommodations at a nice resort.
Those 60 and older also buy in fewer numbers than boomers do. They make up 40.2 percent of all owners but only 30.4 percent of recent buyers.
"Boomers are still very much the big buyer," Rowley said, largely because of their disposable income. "Generation X is still building wealth, or are not as into luxuries."
Life experiences also play a role in boomers' decisions to buy timeshares.
"Boomers are buying the product because they are the first traveling generation," said Cumsky, who is in his 50s. "My parents' generation never traveled more than 200 miles. When we (boomers) were in our 20s and 30s, we were traveling all over the place."
That affinity for travel has helped the industry grow to more than $7.8 billion nationally in sales in 2004.
The largest timeshare market is Florida, followed by South Carolina and California. Arizona ranks No. 9 nationally with 47 resorts, according to ARDA data. Industry folks in Arizona say that number is now 52.
A new report on the economic impact of timeshares in Arizona is expected out early next year, Rowley said. The most recent state data from a 2002 ARDA report show an overall economic impact of $980 million in owners' direct and indirect purchases. Nationally, the industry has a $44.4 billion impact, according to ARDA.
New timeshare sales in Arizona in 2002 were worth $200 million. That's thought to have grown significantly as more resorts now operate time shares. Westin Kierland Resort and Spa and the JW Marriott Desert Ridge Resort have added timeshares since then. Cibola Vista opened last year, and other properties have converted casita units into timeshares.
By the numbers
53: Median age of head of household time-share owner.
$200 million: Amount spent on new timeshare units in Arizona in 2002, the most recent year in which figures are available.
6.7: Average number of nights parties spend in an Arizona timeshare.
$1,744: Average amount a timeshare user spends in Arizona.
$15,789: Average cost of a timeshare unit nationwide.
# posted by John @ 4:46 AM 
