Capital One Bank’s Vacation Ownership Group – which provides receivables, inventory and working capital loan facilities to timeshare operators across the United States and the Caribbean – surveyed 102 industry professionals at the American Resort Development Association (ARDA) World 2013 conference. In the proprietary vacation ownership survey, 78 percent of professionals expect 2013 timeshare sales to be stronger than in 2012.
The annual survey also found that confidence in sales growth among industry professionals increased 14 percent over last year.“Our survey results in 2012 suggested a strengthening growth trajectory for the industry, and the 2013 survey confirms this trend,” said Michael Szwajkowski, Executive Vice President, Capital One Bank’s Commercial and Specialty Finance Business. “As timeshare sales continue to increase throughout 2013 and beyond, the market demand is growing for receivables and inventory financing. Capital One Bank is dedicated to addressing this demand by offering timeshare companies tailored financing solutions delivered by our highly experienced and proven team of industry professionals.”
In addition, the survey noted that the majority (68 percent) of industry professionals expect renovations and modernizations of existing properties to gain the most momentum in 2013, compared to other industry trends such as developers moving to new/emerging markets (18 percent), increase in new, luxury developments (8 percent), and increase in new, economical developments (7 percent).
Of the industry professionals surveyed, 79 percent say consumer interest in the timeshare market is stable today compared to the past three years, and 21 percent indicate that consumer interest in the market has improved.
Access to Capital Remains Top Challenge for Timeshare Developments
Seventy-three percent of Capital One Bank’s Vacation Ownership Survey respondents indicated that access to capital remains the greatest challenge for the vacation ownership industry in 2013. In fact, this concern has risen, as last year only about half (51 percent) of respondents said access to capital was the greatest challenge for developments in 2012.
When asked what type of financing is most necessary to their organizations, 61 percent of respondents identify receivables financing. Twenty percent highlight development or construction financing and 16 percent name inventory financing. Financing for working capital is less important to industry professionals, as only 4 percent identify this as an issue.
“The survey results align with the spike in capital demand that our team has been experiencing,” added Jim Casey, Senior Vice President, Capital One Bank’s Commercial and Specialty Finance Business. “The strong demand exhibited across the spectrum of financing solutions we offer is indicative of the positive fundamentals of the industry and the growing consumer confidence that is propelling further market expansion.”