Darla S. Zanini RRP

Executive Vice President

Agenda

Understanding key generations Travel trends by generation Approach to planning travel Vacation rentals Connecting with consumers

Understanding Generations

A Generational Snapshot

Silent Baby Boomers Generation X Generation Y1926-1945 1946 – 1964 1965 -1982 1983 - 2001

68 – 87 years old 49 – 67 years old 31 – 48 years old 12 – 30 years old

35 million 78 million 55 million 84 million

12% of population 26% of population 18% of population 28% of population

Security Individuality Self-reliance Duty

Self-sacrifice Self-fulfillment Balance Complexity

I owe it I deserve it I need it Because I canWWII vets dying at a rate of 600 per day

Every day 10,000 Boomers turn 65

Currently the dominant family-rearing generation

First millennials turn 30 in 2013

Silent GenerationDefining Events• Farm Life• Great Depression• New Deal• World War II• GI Bill• Korean War

Values• Discipline• Hard Work• Dedication & sacrifice• Respect for authority• Duty before pleasure• Honor• Patriotism• Loyalty

Baby BoomersDefining Events• Civil rights & women’s rights• Rise of communism• Space travel• Political assassinations• Woodstock• Vietnam War & the draft• Watergate

Values• Optimism• Teamwork• Conformity• Opinions• Personal gratification• Personal growth• Work/jobs

Generation XDefining Events• High divorce rates• Gulf War• Space Shuttle Challenger• Political assassinations• AIDS epidemic• The mall• Internet

Values• Family• Self reliance• Entrepreneurialism• Fun• Informality• Convenience• Balance

– Work to live, not live to work

Generation YDefining Events• Columbine• Oklahoma City bombing• Instant access technology• Clinton - Lewinsky• 9/11 • Mid-East wars & terrorism

Values• Optimism• Individualism• Self-confidence• Achievement oriented• Respect for authority• Respect for diversity• Integrity• Drawn to civic duty• Education

Travel Trends by Generation

Mature Travel Trends• Rural America• Historical appreciation• Botanical• Luxury birding• Extended stay

Baby Boomer Travel Trends• Vacation clubs• Open road• Grandtravel• Exotic destinations• Second honeymoon• Fantasy camps

Generation X Travel Trends• Ritual free• Functional hotels• On the fly• Camping• Ruggedless adventure• Babymoon• Girls only

Generation Y Travel Trends• Destination status• Voluntourism• Green• Short burst• Indulgent extras

One Word…

Internet

Silent & Boomers• Established online players versus user-

generated content for research• Boomers more comfortable than Silents to

make online purchase• First generation travel Web sites for booking

travel• Still want the option to talk to a human with

questions and concerns

Gen X and Gen Y• Web 2.0 – want to know others’ experiences• Enjoy booking travel themselves• Treasure hunt for best deals• Tend to window-shop

Blogs• 3,796 Tourism• 6,048 Vacation• 56,253 Travel

– 5,169 family travel– 1,490 adventure travel– 1,096 beach travel– 374 leisure travel– 284 golf travel– 219 exotic travel– 160 eco/environmental travel– 72 culinary travel– 51 historical travel

Vacation Rental

Income Sources % of Income

Maintenance Fees 76%

Unit Rental 17.0%

Housekeeping 2.0%

Developer Subsidy 1.0%

Food & Beverage 1.0%

Special Assessment 1.0%

Other 2.0%

Resort Income Sources

Source: State of the Vacation Timeshare Industry: US Study 2013 Edition produced by Ernst & Young for ARDA International Foundation

2008 2009 2010 2011 2012

% Rent 77% 85% 82% 86% 74%Nights Rented 8.25 M 8.4 M 7.9 M 10.4 M 9.6 MAvg. Price $170 $153 $156 $162 $163Total Revenue $1.40 B $1.29 B $1.23 B $1.68 B $1.60 B

Rental

Source: 2013 State of the Vacation Timeshare Industry: United States Study, produced by Ernst & Young for ARDA International Foundation

Online Vacation Rentals

US travelers booked $23 billion in vacation rentals in 2012

7% of US travel market

1/5 of lodging market

US timeshare resort rentals totaled $1.6 billion in 2012

Source: 2013 The Rise of U.S. Online Vacation Rentals produced by PhoCusWright

Online Growth

2007 2012

12%

24%

Source: 2013 The Rise of U.S. Online Vacation Rentals produced by PhoCusWright

Online Vacation Bookings

By 2014, 3 in 10 US dollars spent on vacation rentals will be booked online.

Source: 2013 The Rise of U.S. Online Vacation Rentals produced by PhoCusWright

VRMCs

< 1 in 2

7 in 10 2012

2008

Percentage of VRMCs that offer live online booking

Source: 2013 The Rise of U.S. Online Vacation Rentals produced by PhoCusWright

Everyone Shops Online

Nearly 3 in 4 vacation rental guestsshopped for a rental online in 2012

15% of vacation rental guestsshopped for a rental on a mobiledevice

Source: 2013 The Rise of U.S. Online Vacation Rentals produced by PhoCusWright

Connecting with Consumers

Take Action Today• Establish a rental program• Searchable website• Mobile friendly• Social Media presence• Engage your owners and guests

THANK YOU!

www.aif.org