The 11th annual event draws a decent crowd despite economy

The 11th Annual Vacation Ownership Investment Conference (VOIC) was held September 14-17, 2009 at the Peabody Hotel in Orlando, Florida – a venue known for its quirky longstanding tradition of “marching” ducks in and out of the library each day at the designated time like clockwork.

VOIC itself seems to run like clockwork as well. But while the yearly event has occurred regularly for more than a decade, there were some doubts this time around given market conditions. Not that the conference wouldn’t be held – its organizers remained committed throughout – but that attendance would be soft. Many people were pleasantly surprised that the event actually did happen, thinking that it would be canceled like some other industry meetings.

But just over 500 industry professionals attended the event – and while that is down from the previous year’s 626 official attendees, conference organizers were very pleased thinking attendance might be as low as 300 to 400 people. What’s more, 20% of attendees were based outside the United States, which is an increase year-overyear – and a fulfillment of the intent of VOIC to help educate potential new entrants to the industry, whether they are involved with timeshare, fractional, private residence club or destination club projects. And the feedback from attendees was that the conference went extraordinarily well.

Networking and More
Following tradition, VOIC kicked off with its golf networking event, this year held at Shingle Creek Golf Club on its David Harman-designed course. Back at the Peabody, a fundamentals-oriented session and welcome
reception were held on the first day of the conference as well, but most the real takeaway content of the conference would be found during the many informational, educational and networking sessions occurring over the following two days.

A concerted effort is made to reach out to related industries (such as golf-course, hotel and second-home development) to help educate them on and draw them into shared ownership. The introductory sessions are
specifically geared to accomplish this goal. At one of these sessions, audience members were asked to raise their hand if they were a developer who was not in the industry but was currently exploring it. More than half of the approximately 300 in attendance did so. The conference reinforces the point that there are still plenty of opportunities in the vacationownership industry. In fact, actively lending companies – including several conference sponsors – were at the 2009 VOIC.

Despite the challenges in the marketplace, industry professionals were busy conducting business at and around VOIC during these four days in Orlando.

Knowledge Sharing
Perhaps what is most intriguing is the amount of insight industry experts are willing to share in an open forum. Those listening in could easily glean the benefit of years of experience in development, marketing and sales, finance and other key areas.

This year’s keynote speakers offered volumes of knowledge as well. A particular highlight was the irreverent and opinionated Robert Genetski, Ph.D., a featured conference luncheon speaker. Genetski, an interest-rate
forecaster and investment banker known for his research regarding and advocacy of classical economic principles, was an energetic and entertaining speaker who aptly held the interest of the crowd despite being an expert in a relatively dry field. Genetski’s criticisms of the U.S. Federal Reserve and multiple White House
administrations were delivered with insightful observations and sharp wit.

In what has become an expected and much-looked-forward-to event each year, Peter C. Yesawich, Ph.D., chairman and CEO of the Ypartnership agency, served as a featured luncheon speaker as well. Yesawich updated the crowd on the latest results from the widely anticipated National Travel Monitor, in which he explained travel and leisure patterns and how they are evolving. In addition, Yesawich also shared highlights from a recent survey of the resort real estate interests and preferences of affluent travelers.

Resort Tours
The fourth and final day of the conference comprised road trips to various Orlando-area resorts so that industry newcomers could see first-hand the daily operation of a successful project. This year, tour attendees chose among three visitation options that represented different products: Floridays Orlando Resort, which is a condohotel; Westgate Lakes Resort & Spa, representing independently branded timeshare; and Marriott’s Lakeshore Reserve at Grande Lakes, a hotel-branded timeshare resort.

The dates for next year’s Vacation Ownership Investment Conference have been set already: the 12th annual event will take place October 4 through 7, again at the Peabody Hotel in Orlando. For more information, visit
www.VacationOwnershipInvestment.com.

VOIC: Why You Should Attend and What You’ll Get out of It
The Vacation Ownership Investment Conference is one of the top industry events, focusing on the successful resort financing, development, branding, marketing, selling and management of vacation ownership properties. Industry professionals and those looking to enter the industry gain multiple benefits by attending:

- Discovering how vacation ownership can maximize a project’s earning potential

- Learning the latest on acquisition development and end-loan financing

- Exploring the boom in fractional resorts and private residence clubs

- Making valuable contacts, including developers, hoteliers, lenders, vacation ownership experts and government tourism officials

Attendance is geared toward resort developers considering or currently developing any type of vacation ownership product; lenders eager to learn about vacation ownership financing, and interested in meeting new and current vacation ownership developers; and existing players looking for capital or development opportunities.

Each year, the Vacation Ownership Investment Conference distributes to attendees complimentary copies of research studies and reports specifically created for the shared ownership industry. This year’s conference-goers received the following data, which has a retail value of US$1,500:

- Financial Performance 2009 Edition: A Survey of Timeshare & Vacation Ownership Companies – published and sponsored by the ARDA International Foundation, and conducted by PriceWaterhouseCoopers – helps in understanding overall economics of the industry and in tracking industry trends

- State of the Vacation Timeshare Industry, 2009 United States Study – published by the ARDA International Foundation and compiled by Ernst & Young – presents key characteristics of the U.S. industry

-Economic Impact of the Timeshare Industry on the U.S. Economy – commissioned by the ARDA International Foundation and compiled by PriceWaterhouseCoopers – is a detailed analysis of the direct, indirect and fiscal impacts the industry has on the U.S. economy

- Vacation Timeshare Owners Report 2009 Edition – commissioned by the ARDA International Foundation and compiled by Penn, Schoen and Berland Associates – evaluates various attributes of long-term owners and recent timeshare purchasers

- The Affluent Shared Ownership Buyer: 2009 Market Profile – drawn from the Ypartnership 2009 Portrait of Affluent Travelers – offers an in-depth exploration of the lifestyles, social values, travel habits and resort real estate preferences of the top 8% of U.S. households

- Affluent Market for Vacation Homes: Full and Fractional Ownership and Destination Club Membership 2009 – published by the American Affluence Research Center – tracks the behavior, attitudes and
preferences of the wealthiest 10% of U.S. households

Visit www.VacationOwnershipInvestment.com for more information.

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.

The 11th Annual Vacation Ownership Investment Conference was held recently at The Peabody Orlando with more than 500 registered attendees participating in panel discussions and networking opportunities. The event also featured special guest speakers Dr. Robert Genetski, Ph. D., economist and author, and Peter C. Yesawich, Ph.D., chairman and chief executive officer of YPartnership. The annual “Meet The Leaders” session included hospitality experts who shared their knowledge on the challenges and opportunities in vacation ownership.

Participants gather after the “Meet The Leaders” panel discussion, including (L to R) – Kemil Rizk, President, Royal Resorts; Craig M. Nash, Chairman, President, and Chief Executive Officer, Interval Leisure Group; Sergio Rivera, Chief Executive Officer, Starwood Vacation Ownership; Peter Yesawich, Chairman and Chief Executive Officer, YPartnership; and Howard Nusbaum, President and Chief Executive Officer, American Resort Development Association

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.