January 2009 - Howard Nusbaum
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Owning Your Vacation
Howard Nusbaum, President, American Resort Development Association
Approximately 76 million baby boomers (age 42-62) are compelled by the idea that “for the cost of a modest automobile, they can own a flexible vacation product that allows them to explore their wanderlust for a lifetime.” Now more than ever, the American Resort Development Association (ARDA) is committed to telling the vacation ownership success story and explaining the benefits of owning your own vacation – from health and wellness to better family vacations through the rejuvenation better vacationing offers. ARDA is currently communicating with elected leaders, the financial press, and ultimately to consumers through a new consumer website, www.VacationBetter.org. This site does an excellent job of explaining the value proposition and rewards of owning your vacation.
Vacation ownership is not a “one size fits all” product. Timeshares offer convenience for all types of vacations. Vacation ownership comes in a multitude of sizes, shapes and varieties - to fit a myriad of lifestyles, special interests and family needs. In today’s fast-paced society, it is one of the more flexible ways to vacation, providing the discipline and value of the great family vacations. And, the process is simple. With a one-time purchase of a specific share of a furnished condominium unit with resort accommodations, the benefits of timesharing give travelers the comforts of home with luxurious amenities and services at destinations across the globe.
Once you own a timeshare, the vacation choices are almost limitless. Vacation ownership, in most cases, allows you the flexibility to choose different locations or destinations, unit sizes, and even different times of the year in which to spend your vacation. The longer you own a timeshare, the more affordable vacationing becomes, especially when you compare it to the annual, ever- increasing expense of renting multiple hotel rooms for family members, and paying for pricey meals outside your room. More important than the dollars saved – is that this product offers better vacationing. No more do vacationers have to eat 21 meals out in a week which in itself can be a drain on the timing and enjoyment of a family vacation. Those with small children know the perils of keeping a family on schedule while taking in all that a vacation has to offer. With a timeshare, which contains a kitchen or kitchenette, families and groups can enjoy affordable meals in the comfort of their own unit, allowing for more family time and less hassle, which means more time for making lasting memories.
Accommodations in most timeshare resorts offer everything from studio units to two and three-bedroom villas, providing flexible vacationing in a variety of locales around the country and the world. Want to stay at the beach one year and somewhere in the mountains the next? Timeshare properties offer a staggering variety of vacation choices and options. And, with the necessary space for everyone to have their privacy, time for renewal and a better family experience.
Timeshare owners have the choice to visit their “home” resort each year, or exchange their stay to visit other resorts, destinations, spas (and even cruises or specialty tours) throughout the world—choices that suit many different lifestyles. Choosing a new vacation every year or returning to the same resort … you the vacationer has the control where, when, and how you enjoy your vacation.
The economics of timeshare lending (consumer notes) differs from current sub-prime crisis of the present recession. Our business model includes fixed rate loans, notes short in duration (under ten years), and low dollar amounts. Additionally, the ARDA International Foundation (AIF) 2008 Financial Performance Study conducted by PriceWaterhouseCoopers shows that timeshare consumers’ FICO scores are very credible (more than 50 percent above over 700). In short, our industry purchasers are made up of notes from people with good credit who are prepaying for their future vacations using traditional financing. Ironically, owners use their annual vacation budget to make the payments, money they would have spent anyway if they didn’t own the timeshare product!
Timeshare, fractional, and PRC owners understand that buying this real estate-based product is to use it. The value comes from use, not flipping it to sell. They buy because they value vacations and because traveling with their family and staying in accommodations that allow everyone the necessary space, comfort and quality to truly rejuvenate is achieved through this product. Timeshare enhances their family life, sense of well-being, and overall general and good health.
Although some developers in the vacation ownership industry are feeling the pain from this credit market crisis, the reality is that consumers who value vacations are continuing to purchase and use their timeshares. Timeshare and other forms of vacation ownership continue to perform well; and now more than ever American families need to make sure their health and wellbeing gets the positive impact of vacations.
Howard Nusbaum
President
American Resort Development Association
1201 15th Street, NW, Suite 400
Washington, DC 20005
202-371-6700
202-289-8544 (fax)
HNusbaum@arda.org
www.VacationBetter.org
www.ARDA.org