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Results of an Industry Study of Fractionals & Private Residence Clubs

An industry study of the fractionals and private residence clubs market was recently completed. Below are some of the key findings:

  • Industry Size – As of April 2003, over 138 fractional interest resorts and private residence clubs were in existence in the United States. An additional 31 resorts are in various stages of planning.
  • Package Offerings – Most fractional interests are available in packages that range from two weeks to 13 weeks of use per year. Four and five weeks of annual use is the most widely offered package. Nearly all plans provide usage flexibility to accommodate the needs of owners.
  • Product Characteristics – The majority of fractional resorts and private residence clubs are located in ski destinations. The next most popular type of location is beach destinations. Golf and urban locations make up the remainder.
  • Customer Satisfaction – A full 96% of people who own luxury fractionals, and 89% who own more moderately priced fractionals, report that they are satisfied with their purchases according to a survey by Ragatz Associates, a research firm that specializes in the leisure travel industry. A significant percentage of these owners report interest in buying additional fractionals, a factor further indicating high customer satisfaction.
  • Buyer Profile – The most significant characteristic of owners of fractionals and private residence clubs is their high household income. The median income was $241,000 for owners of luxury fractionals and $108,000 for owners in the more moderately priced fractionals segment.
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