Dr. Richard Ragatz provided more insight during the morning session by emphasizing the need for quality research prior to commencing a fractional ownership project.

By showing the difference between whole ownership and fractional developments, Dr. Ragatz demonstrated why there has been so much interest from developers and resort owners to enter the fractional space.

Occupancy rates for whole ownership vacation property stand at 35%, according to Dr. Ragatz, while fractional occupancy rates are around 80%, which means more ancillary income for resorts as more people spend more money at the destination.

Dr. Ragatz added that the first step for developers to enter this space is to conduct an independent feasibility study that sets the foundation for the project and will allow a developer to make an informed decision about entering the fractional market. Such an analysis will determine critical aspects such as pricing, legal issues, owner benefits and the size of the development.