Leading timeshare research specialists, Ragatz Associates have released the results of their latest survey and despite sales volumes falling in 2012 compared to 2011, the outlook for Private Residence Clubs and fractionals looks good, says to a report in RCI’s magazine www.RCIVentures.com
Ragatz Associates held a webinar on March 20th to announce the preliminary results, which revealed thattotal sales volume was $497 million in 2012, down from $552 million in 2011.
“Despite the decrease, quite a few projects at the high-end PRC level actually had good years,” says Richard L. “Dick” Ragatz, Ph.D., who is founder and president of Ragatz Associates. “For the most part, these projects are located in areas where demand for vacation homes has been traditionally high and with limited inventory, e.g., Aspen, Vail, Napa Valley Wine Country, etc.”
The report also states: “It is widely felt in the resort real estate industry that the shared-ownership components will strongly rebound in the future. Reasons include being a concept that is based on: (1) personal use rather than speculation; (2) being able to purchase only the amount of time that have vacations to use and discretionary income to spend on; (3) lowering household spending habits and capabilities; (4) being hassle-free, i.e., ‘show up and enjoy;’ and (5) the opportunity for flexibility and variety of use due to the external exchange process.”
Timeshare owners in past surveys conducted by other industry organisations have revealed a high level of overall satisfaction with their holidays – well over 8/10 owners said they were happy with their timeshares.
The Ragatz survey goes on to say, “based on almost 40 years of experience in the resort real estate industry, we expect the shared ownership industry to once again be on a significant growth track as the national economy further stabilizes. Our extensive consumer research strongly suggests that the decline in the industry’s sales performance from the last quarter of 2008 through 2012 was much more due to external factors such as the economy and lack of financing, and much less due to lack of consumer interest in the concept.”