A number of positive trends that reinforce the appeal of the Caribbean market to both existing and potential vacation owners are being shared with delegates at the annual Caribbean Marketplace conference by Interval International, a leading global provider of vacation services.

First and foremost, members are visiting the region in increasing numbers and U.S. resident leisure travelers who have indicated an interest in purchasing some form of shared ownership in the next two years also chose this market as a top destination of interest.

“Member demand for vacation exchange and resort rentals in the Caribbean is strong and we continue to affiliate new projects throughout the region,” said David C. Gilbert, executive vice president of resort sales and marketing for Interval International. “In today’s environment, shared ownership offers resort developers a compelling business model with multiple profit centers and higher occupancy levels than hotels. In the case of mixed-use projects, it also provides the potential for cost-saving operating synergies and reduced marketing costs.”

Interval reported that bookings into the Caribbean increased approximately nine percent from January through November 2009, as compared to the same period in 2008. This is particularly encouraging in light of the global economic downturn that adversely affected overall arrivals to the Caribbean over the past year.
Additionally, interest in the region among U.S. resident leisure travelers considering a shared ownership purchase is significant. According to the Future Timeshare Buyers: 2009 Market Profile, the Caribbean is one of the preferred international destinations of choice among U.S. resident leisure travelers interested in purchasing vacation time in the next two years, as approximately eight in 10 (78 percent) indicate they want to vacation in the region.

In 2009, Interval expanded its resort network in the region through numerous affiliations, including Windjammer Landing Villa Beach Resort & Spa in St. Lucia, Gold Coast Aruba, Dawn Beach Club in St. Maarten, and Grand Laguna Beach and Los Altos in the Dominican Republic.

Los Altos, a residential resort located within Casa de Campo —a 7,000 acre mixed-use development considered one of the finest resort communities in the Caribbean — has affiliated with Preferred Residences™, Interval’s hospitality branded membership and exchange program for luxury shared ownership resorts.

Dawn Beach Club marked the entrance of Columbia Sussex Corporation, one of North America’s leading independent owners and operators of resorts and hotels, into the shared ownership industry.
Interval International is a longstanding supporter of the region through its strategic alliances with the Caribbean Hotel & Tourism Association and the Caribbean Tourism Organization, as well as through its conference sponsorships, including the Caribbean Marketplace in San Juan, Puerto Rico.

Interval International operates membership programs for vacation owners and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 33 years. Today, Interval has a network of approximately 2,500 resorts in more than 75 countries and offers its resort clients and about 2 million member families high-quality products and programs through offices in 26 cities in 16 countries. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq: IILG), a leading global provider of membership and leisure services to the vacation industry.

More than nine out of ten active leisure travelers in the United States report they are familiar with the concept of timesharing, reinforcing the wide-spread belief that this form of vacationing has established itself as a recognized, understood, and increasingly popular alternative to more traditional lodging accommodations. And among those familiar with the concept, approximately 2.3 million households state they are interested in purchasing some form of vacation time during the next two years.

These findings are from Future Timeshare Buyers: 2009 Market Profile, which was developed from a nationally-representative sample of active leisure travelers who have expressed interest in acquiring some form of vacation time during the next two years, and supplemented through insights revealed in the Ypartnership/Yankelovich, Inc. 2009 National Leisure Travel MONITORsm.  The study was authored exclusively for Interval International, which is releasing the results during the American Resort Development Association’s (ARDA) 2009 Fall Conference, held in Washington, D.C.

“Given the economic environment during the past year and the effect it had on both the demography of those interested in purchasing vacation time and respondents’ interest in travel overall, the level of purchase interest revealed in this study is quite remarkable and underscores the high degree of interest consumers have in this form of vacationing,” said Peter C. Yesawich, chairman and chief executive officer of Ypartnership. “Particularly noteworthy is the fact there are an estimated 2.3 million households interested in purchasing vacation time during the next two years.”

Active leisure travelers who are interested in purchasing vacation time have taken an average of seven qualifying leisure trips during the past year and nearly four in ten (38%) state they are likely to take more leisure trips during the next 12 months (than they did during the last). Eight out of ten prospective purchasers took at least one leisure trip of five nights or more in duration, and a similar proportion find a naturalistic component (such as a beach or a lake) to be an important aspect of their leisure pursuits.

The study also revealed that active leisure travelers interested in purchasing vacation time have a solid understanding of the concept of timesharing and are receptive toward the vacation ownership product.  An estimated 85 percent have a positive or neutral opinion of timesharing, and more than three-quarters (77%) state that they would be willing to take a two- to three-day mini vacation to attend a timeshare sales presentation.  Furthermore, approximately six in ten (62%) report that they are likely to stay at a vacation ownership resort during the next two years.

“These findings provide valuable insights for resort developers to better understand the travel habits and preferences sought by leisure travelers,” said David C. Gilbert, executive vice president of resort sales and marketing for Interval International, a leading global provider of vacation services.  “Possessing an appreciation for how these potential purchasers travel and view the vacation ownership product enables them to fine tune marketing and lead generation programs aimed at these consumers.”

The data for this analysis were collected from interviews conducted online with a panel of pre-qualified active leisure travelers.  Respondents had taken at least one leisure trip of 75 miles or more from home requiring overnight accommodations during the previous year, were familiar with the concept of timesharing or vacation ownership, and expressed interest in acquiring some form of vacation time during the next two years.

Other Notable Findings:
•    The majority of active leisure travelers interested in purchasing vacation time are married (61%) with an annual household income of $50,000 or more (88%).
•    Nearly two-thirds are between 30 and 62 years of age, and nearly eight in ten have completed at least four years of college education (78%).
•    Approximately four in ten (35%) reside in the Midwestern region of the United States, while an estimated three in ten live in the Northeast (29%) or West (27%).

About Interval International
Interval International operates membership programs for vacation owners and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 33 years. Today, Interval has a network of approximately 2,500 resorts in more than 75 countries and offers its resort clients and about 2 million member families high-quality products and programs through offices in 26 cities across 16 countries. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq: IILG), a leading global provider of membership and leisure services to the vacation industry.

Affluent Leisure Travelers Remain Committed To Vacations

Affluent leisure travelers interested in resort real estate strongly believe in the value of their vacations, as nearly nine in ten report that vacationing is important to their well-being and to the health of their personal relationships. They appreciate leisure travel experiences and activities such as spending time with family and friends, exploring unique and interesting destinations, taking part in new experiences, and setting aside time for rest and relaxation – all components that support their commitment to the concept of vacationing.
These are some of the findings from The Affluent Shared Ownership Buyer: A Market Profile, a study produced exclusively for Interval International, to provide insights about the travel habits and resort real estate preferences of the most affluent U.S. households interested in acquiring some form of resort real estate. Developed from the Ypartnership 2008 Portrait of Affluent TravelersSM, a comprehensive analysis of high-end lifestyles, social values, and travel trends of the top eight percent of American households defined by current income, the results are being introduced at the 11th Annual Vacation Ownership Investment Conference in Orlando, Florida.

“The fieldwork for this survey was conducted in August 2008, a time of considerable anxiety for many affluent households, particularly those with significant investments in equities,” said Peter C. Yesawich, chairman and chief executive officer of Ypartnership, author of the study. “The financial turmoil that prevailed during the remainder of the year amplified this anxiety, hence the implications for how affluent Americans feel about their leisure time, vacations, and resort real estate are very provocative.”

The study also reveals that nearly three quarters of affluent leisure travelers interested in purchasing some form of resort real estate confirm their interest in vacationing in condominium-style accommodations during the next two years. They are nearly twice as likely as their uninterested counterparts to be familiar with the concepts of vacation ownership, fractional ownership, and private residence clubs. Additionally, they see themselves as value-driven consumers who place a premium on quality and reliability.

“This personal viewpoint combined with their desire to own vacation real estate illustrates how aligning resort development plans with a branded exchange and benefit program can enhance the value proposition for affluent consumers,” said David C. Gilbert, executive vice president of resort sales and marketing for Interval International, a leading global provider of vacation services.

Affluent travelers assign high levels of perceived value to the availability of various attributes and activities when making their resort vacation purchase decisions.  These attributes generally take the form of physical features, as well as service offerings to complement their stay.  “Having access to features and amenities that extend their luxurious residential lifestyles is a key element in exceeding the expectations of this discriminating traveler. Today’s fractional interest product and private residence clubs are well positioned to appeal to the tastes and desires of this influential group of consumers,” said Yesawich.

“These findings will assist resort developers in offering affluent travelers the vacation experiences they seek,” Gilbert added.  “Understanding the specific luxury privileges and services, along with the physical and architectural resort features sought by this consumer group, gives them a competitive advantage in the marketplace.”

What does this all mean to the shared ownership industry? “It’s important to note there are approximately 1.3 million affluent leisure travelers in the U.S. who are interested in acquiring resort real estate during the next two years,” noted Yesawich. “They’re looking for vacation experiences that fit their changing needs and that also fulfill their penchant for status and the personal satisfaction of real estate ownership. Since shared ownership offers consumers the ability to purchase only the amount of time they intend to use, this augers well for the future of this business.”

The data for this analysis were collected randomly during August 2008 using a nationally representative sample of U.S. consumers, prequalified and screened for specific demographic and behavioral characteristics.  Respondents were adults who took at least one trip for leisure purposes of at least 75 miles away from home that required overnight accommodations during the previous year, stayed in a “luxury hotel or resort” (by self report) at least once during the previous year, and reported a minimum annual household income of $150,000.  Results are representative of the population of all affluent travelers in the United States.

Other Notable Findings
•    Affluent leisure travelers interested in resort real estate overwhelmingly tend to be married (93%) and White (80%) with an annual household income of $250,000 or more (52%) and a reported net worth of $1 million or more (72%).

•    More than four in ten are Boomers (44 – 62 years of age) (42%) and approximately four in ten are Generation Xers (30 – 43 years of age) (37%).

•    Affluent leisure travelers interested in acquiring resort real estate have taken an average of more than seven (7.4) leisure trips during the past 12 months.  Of those who took at least one trip in this category, approximately five (5.3) were to domestic destinations, whereas two in seven (3.5) were to international locales.

About Interval International
Interval International operates membership programs for vacation owners and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for more than 33 years. Today, Interval has a network of approximately 2,500 resorts in more than 75 countries and offers its resort clients and about 2 million member families high-quality products and programs through offices in 26 cities across 16 countries. Interval is an operating segment of Interval Leisure Group, Inc. (Nasdaq: IILG), a leading global provider of membership and leisure services to the vacation industry.