TABLE OF CONTENTS After studying this chapter you should be able to:
discuss the economic impact of timeshare real estate.
analyze the role and purpose of the consumer loan process and the relationship with resort development.
appreciate the legislative framework governing the consumer purchasing process.
The timeshare industry has advanced in quality of product offerings, services offered, entrants into the market, diversity of product offerings, and by the metrics of sales volume, number of owners, and number of available resorts (ARDA, 2004; Ragatz Associates, 2003; Interval International, 2003). From a product life-cycle perspective, these indicators show that the timeshare industry is in the early stages of market growth, which if all holds true the industry will continue to gain in consumer acceptance of products and services.
Coming to terms with consumer behavior is the key to success in the marketplace. Timeshare developers are constantly looking at owner purchasing and consumption patterns to predict future trends. To familiarize oneself with purchasing and consumption patterns, the developer has to engage in a structured process of collecting, analyzing, and using demographic information, past purchase patterns, and consumption of onsite and offsite services to better understand and predict the behavior of existing and prospective owners for business decision making. Once this information is mastered, the timeshare developer is well on her way to promoting the product, with a very identifiable target market in mind. Armed with this information the timeshare developer can generate a satisfactory tour flow so that costs associated with sales and...
