The ARDA In­ter­na­tional Foun­da­tion has re­leased its an­nual re­port ti­tled Fi­nan­cial Per­for­mance 2011: A Sur­vey of Time­share & Va­ca­tion Own­er­ship Com­pa­nies.  The re­port is avail­able for pur­chase from ARDA’s web­site.  Here’s a quick overview of some of the re­port’s find­ings:

Over­all Sales

Net orig­i­nated time­share sales de­creased 2.4% be­tween 2009 ($4.74B) and 2010 ($4.63B).  While this may not ini­tially look pos­i­tive, re­mem­ber that this sales fig­ure dropped 28.3% be­tween 2008 and 2009.  Some other good news:

  • Pub­lic com­pa­nies ex­pe­ri­enced a weighted av­er­age in­crease in sales of 1.2% for the pe­riod.
  • Com­pa­nies with more than $250M in net orig­i­nated time­share sales re­ported an av­er­age de­crease of only 0.2%.
  • More com­pa­nies with net orig­i­nated time­share sales be­low $250M re­ported growth as com­pared to 2009. 
  • Com­pa­nies with points-based of­fer­ings ex­pe­ri­enced a weighted av­er­age in­crease in sales of 3% for 2010.

Key Met­rics/Ra­tios

Sales com­mis­sions, mar­ket­ing costs and gen­eral and ad­min­is­tra­tive costs were re­duced in all but one com­pany cat­e­gory, re­sult­ing in a gen­eral im­prove­ment in pre-tax mar­gins.  In think­ing this through, I found the fol­low­ing most in­ter­est­ing:

  • The all-com­pany av­er­age pre-tax mar­gin pushed across the 10% thresh­old, with sig­nif­i­cant im­prove­ment for pri­vate com­pa­nies (+6.3%) and com­pa­nies sell­ing tra­di­tional in­ter­val prod­ucts (+5.3%).
  • The sales tour met­rics VPG and av­er­age trans­ac­tion value im­proved across sev­eral com­pany cat­e­gories.
  • The num­ber of com­pa­nies re­port­ing to­tal sales/mar­ket­ing costs as less than 45% of net orig­i­nated sales in­creased by 10%.  How­ever, the num­ber of com­pa­nies com­ing in at 60% or more in­creased al­most 5%. 
  • 83% of com­pa­nies re­port the share of net orig­i­nated sales to ex­ist­ing own­ers at 30% or more.  54% of com­pa­nies re­port a “re­load” share of 50% or more.  Not sur­pris­ingly, com­pa­nies with points-based of­fer­ings ap­peared to lead the charge, in­creas­ing their share of sales to ex­ist­ing own­ers from 41% to 74%.