1. The Timeshare Industry

2. Timeshare A term used to describe the joint ownership of a resort property shared with others. AKA - Vacation Ownership Each “owner” owns a specific periods of time – usually by the week A timeshare can take on a variety of forms Condominium, Hotels, Cabins, Cruise ships, Houseboats, Motor homes. A timeshare can be bought, sold, or traded Largest timeshare exchange companies: Resort Condominiums International (RCI) & Interval International (II)

3. Timeshare (con.) Timeshares began in the 1960 with families sharing vacation homes in the French Alps The concept spread to North America in the 1970’s in the form of 7 day stays at resorts or condominium properties About 5,100 timeshare resorts in 110 different countries 6 million timeshare owners residing in 270 countries Cost range from $7,800 to $85,000/week (average = $14,500/week) Average owner is older, educated, and has higher income (e.g. baby boomers)

4. Mixed-Use The scenario describes timeshare in a hotel environment Mixed-use facilities have been soaring in popularity since the mid 1990s Integrate golf courses, restaurants, swimming pools, etc. with a hotel and timeshare component to maximize returns Marriott, Disney, Hyatt, Starwood, Four Seasons, Ritz- Carlton, and Hilton are companies adding the timeshare concept to their hotel businesses

5. Leverage hotel brand names and create cross-utilization opportunities between traditional hotel products and timeshare services and products Creates stability and profitability Customers pay a sizable lump sum in advance Customers pay an annual contribution Less affected by a downturn in the economy than conventional resort hotels Help lower marketing, operational, and development costs, and maximize the yield of the operation through shared assets and staff Advantages of Mixed-Use

6. Comparing Timeshare Ownership to Hotel Rental Typical Hotel RentalTypical Marriott Vacation Club Villa Accommodations2 persons, roll-aways on request 6 to 8 in specious comfort Common Usable Area350 sq ft1100 sq ft Typical Floor PlanOne room with bath - Separate living and dining areas - Multiple baths and balcony available In-Room Dining OptionsDine out, room serviceFull kitchen with service for 8 FeaturesOne TV set, Valet/Laundry Service Multiple TV sets, VHS or DVD player Washer / Dryer Long-term Financial Reward RentingOwning CostADR = $87Ave. Cost/week = $14,500 Maintenance Fee: $385/year

7. Have space and luxury of a resort villa or condominium apartment instead of a cramped hotel room Exchange your timeshare for similar accommodations in desirable destinations all over the world Have access to a lifetime of extraordinary vacation opportunities - pass your ownership on to family or friends Customize vacations (time & place) Consumers’ Benefits

8. The Bed-and-Breakfast Industry

9. B&B is a term for accommodations operated in private homes or historic buildings with distinctive rooms, where breakfast is usually the primary meal provided by the innkeeper ~ Bed-and-Breakfast (B&B)

10. Home-Stay Breakfast is the only meal served 3 or fewer rooms Bed-and-Breakfast Breakfast is the only meal served Owner is most likely the innkeeper and lives on site 3 to 10 guest rooms Country Inn / Bed-and-Breakfast Inn Serve an evening meal in addition to breakfast Many cases that the owner hires an innkeeper 10 to 20 rooms More services (e.g. weddings, small meetings, birthday party, etc.) Types of B&B

11. Size Distribution of B&Bs and Country Inns 1 to 4 guest rooms 33% 5 to 8 guest rooms 33% 9 to 12 guest rooms 14% 13 to 20 guest rooms 11% 21 or more guest rooms 9% Number of Rooms Percentage of Total

12. Approximately 20,000 licensed B&B and country inns in the United States Nearly 170,000 rooms Financial Benefits IRS allows B&B owners to deduct certain costs (water, sewer, electricity, mortgage interest, and real estate taxes) B&B Facts

13. No one B&B is the same Distinctive rooms – decorated according to an appropriate local theme Romantic get-away, Historic buildings, Antique furniture, Ornate gardens, etc. http://www.woodrowhouse.com/ Personal Touch Homelike atmosphere Experienced & knowledgeable innkeeper Local attractions, events, restaurants, activities, etc. Tour planning Uniqueness of B&B

14. B&B Industry Statistics (2004) Average Occupancy Rate Average Daily Rate RevPar Hotel 61% $86 $52 B&B 41% $143.9 $59.57

15. Average Occupancy Rate (2000 ~ 2004)

16. Average Daily Rate (2000~2004)

17. B&B Websites Professional Association of Innkeepers International (PAII): the largest association of innkeeper professionals http://www.paii.org/http://www.paii.org/ BedandBreakfast.com http://www.bedandbreakfast.com/Index.aspx Historical & Hospitality Accommodation of Texas http://www.hat.org/

18. B&B in Taiwan