ADHM 360 Lecture Notes - Lecture 12: Timeshare, Ski Lift, Comminution
20 Jun 2018
School
Department
Course
Professor
Resorts
Provide an array of amenities and entertainment and recreational
activities for leisure travelers who seek self-renewal, enrichment, new
experiences, and an escape from routine.
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Types of resorts
By proximity to primary markets
Destination/non-destination resorts
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By seasonality
Year round/summer/ winter resorts
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By setting and primary amenities
Beach, ocean, lake, ski, mountain, golf, casino, eco, resorts, guest
ranches, etc.
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By ownership
Timeshare/vacation club
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Condo Resort
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Characteristics
Visitor Marker
Serve vacation and leisure segments of travel market, business-
cum-pleasure conferences, corporate incentive tour
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Facilities
Rooms with adequate space to accommodate longer length stay
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Extensive acreage to offer sports and recreational activities
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Be in tune with attractions of host community.
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Location
Resorts are often located in remote areas
Offer transportation
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Self-contained (e.g. storage facilities, self-contained waste
disposal systems)
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Require on-premises housing and recreation facilities for
employees
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More pronounced seasonality
20% of U.S resorts operate on a seasonal basis
Issues
Security and maintenance
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Restoration and restocking of inventories
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Human Resources
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Corporate responsibility
Host communities are often heavily dependent on the resort
employer for its economic survival
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Must consider welfare of the local comminutes
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Labor Skills
Need to deal with greater flexibility of duties and responsibilities
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Great deal of shifting of labor from one function to another.
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Source of revenue
10-20% of revenue from recreation, retail, and concessions (6% in
classic hotels)
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Ski resorts: 60% from ski lift, rental, and F&B
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Casino: 72: from casino, 15% from rooms
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Timeshare resorts: 25% from management fees
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Greater Fixed assets
Land, building, and other fixed assets constitute a much larger
percentage of total assets
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Little flexibility for alternative commercial use
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Long payback period
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Timeshare and vacation ownership
Timeshare
Multiple vacationers hold the rights to use the property
Managed by management companies□
Annual maintenance fees□
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Also used for "interval ownership" and "vacation club ownership"
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1,540+ timeshare resorts in the US
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American Resort Development Association (ARDA)
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Vacation exchange networks (e.g., Interval International, Resort
Condominium International)
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Types
Deeded property ownership
Title-based property ownership□
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Right-to-use ownership
The right of use or lease □
Has an expiration period with a renewal option □
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Use
Fixed time
Use a particular week every year□
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Floating time
Given a range of weeks to choose from each year□
Reservation in advance□
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Point-based program
Use a predetermined allotment of points each year at
different properties
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Most flexible □
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Ch. 12 & Ch. 13
Thursday, April 19, 2018
11:01 AM
Document Summary
Provide an array of amenities and entertainment and recreational activities for leisure travelers who seek self-renewal, enrichment, new experiences, and an escape from routine. Beach, ocean, lake, ski, mountain, golf, casino, eco, resorts, guest ranches, etc. Serve vacation and leisure segments of travel market, business- cum-pleasure conferences, corporate incentive tour. Rooms with adequate space to accommodate longer length stay. Extensive acreage to offer sports and recreational activities. Be in tune with attractions of host community. Self-contained (e. g. storage facilities, self-contained waste disposal systems) Require on-premises housing and recreation facilities for employees. 20% of u. s resorts operate on a seasonal basis. Host communities are often heavily dependent on the resort employer for its economic survival. Need to deal with greater flexibility of duties and responsibilities. Great deal of shifting of labor from one function to another. 10-20% of revenue from recreation, retail, and concessions (6% in classic hotels) Ski resorts: 60% from ski lift, rental, and f&b.
