The survey also revealed that more than 40 percent of the buyers were attracted to the properties because they were visiting the resort, while less than 16 percent were attracted because of advertising. And the most important reasons for making the purchases were for investment and personal use, according to the survey.
The survey was conducted by Tourism Techniques, a management and marketing consulting firm to the lodging and tourism industry, and was sponsored by Citicorp, Vacation Resorts, Inc., Eagle Ridge in Steamboat and Iron Horse in Winter Park. The nine resorts included in the survey were: Aspen, Avon/Beaver Creek, Breckenridge, Copper Mountain, Keystone/Dillon, Snowmass, Steamboat, Vail and Winter Park/Silver Creek.
The survey was designed to produce a multi-dimensional condominium owners’ profile by resort area by measuring socioeconomic, demographic, psychographic, life style and attitudinal characteristics. The value of this information is threefold. First, for real estate sales and marketing purposes, it is important to be able to identify high-potential buyers by city of origin and use that information to develop marketing programs that produce sales. Secondly, for developers it is important, not only to find practical, cost-effective methods for building resort condominiums, but now more than ever to be assured of a fast turnaround of inventory and marketability of the product. Additionally, investors are now asking for detailed attitudinal evidence that a project is justified and prospective attitudinal research plays an equal role with economic feasibility studies as a prerequisite for developers to secure financing.
Buyer = Resort Vacationer
One of the most surprising results of the survey was the response to the question, “What first attracted you to this property?” More than 40 percent of the respondents said they were first attracted to the property by simply visiting the resort.
Also surprising was the short time between when the buyers first saw the condominiums and when they purchased their units. According to the survey, 66 percent bought within three days. On the other hand, 86.5 percent of the buyers said they had visited the resort at least once before. This indicates that they were repeat visitors who had probably decided to purchase a condominium on a previous visit.
It seems conclusive that the highest potential buyers are people already vacationing at the resort: Buyer = Resort Vacationer. Once this fact is accepted, then the need to attract more of these vacationers to resorts becomes apparent.
The Colorado Resort Condominium Owners’ Survey produced a profile of the overall resort condominium owner by resort area and by the price of their condominium. This data led to fascinating comparisons and contrasts.
Generally, the Colorado resort condominium owners were found to be married, 40-49 years of age, employed in professional or technical fields making $50,000 to $100,000 a year and owners of their own businesses. They were very active in participatory sports, but their interest in travel, arts and culture varied greatly by resort. The largest number of owners came from the Denver area, but the second and third ranking cities of origin differed significantly by resort. Overall, the second ranking city of origin was Chicago and third was Dallas/Ft. Worth.
The largest percentage of owners bought their resort condominiums before 1980. The smallest percentage bought in 1981 and 1982. They bought for personal use and for investment reasons, bought in a particular resort because they were familiar with it and because of its activities and amenities. Their condominiums cost between $51,000 and $100,000. Slightly less than half said they would buy in the same resort area again while many others expressed a desire for warm weather resorts.
Condominium Owners’ Profile
Figures represent the combined responses of all respondents. Responses by resort area varied substantially. Italic indicates largest percentage of owners in multiple-choice situations.
- Principal residence: Denver area (33.4%).
- Occupation: Professional/Technical (49%), Upper Mgt./Administrator, Sales/Service/Middle Mgt., Clerical/White Collar, Craftsman/Blue Collar, Housewife, Retired.
- Marital status: Married (82%), single.
- Age: Less than 20, 20-29, 30-39, 40-49 (39%), 50-59, 60-69, 70+.
- Income: Under $50,000, $50,000-$99,000 (40%), $100,000-$199,000, $200,000-$299,000, $300,000-$399,000, $400,000-$499,000, $500,000+.
- Own any of the following: Own business (80%), Private Plane (9%), Yacht.
- Interests/hobbies: Participatory sports (100%), hobbies and crafts, travel, arts and culture.
- Year bought: 1979, 1980 (25%), 1981, 1982, 1983, 1984.
- Why that resort: Activities and amenities (41%), familiarity (34%), location, investment.
- Price: $51,000-$100,000 (35%), $101,000-$150,000, $151,000-$200,000, $201,000-$250,000, $251,000-$300,000, $301,000-$350,000, $351,000-$400,000, $401,000-$450,000, $451,000-$500,000, $501,000-$550,000, $551,000+.
- Attraction to property: Publications, direct mail, visiting the resort (40%), visiting the property, friend’s recommendation, salesperson’s recommendation, television advertisement, radio.
Young and Old in Steamboat
Steamboat had the highest percentage of owners who were retired as well as of owners in the 30-39 age bracket, and the second highest percentage of unmarried owners. Miami was the second ranking city of origin and 26 percent of all Miami owners owned in Steamboat. Of all Cheyenne, Wyo., owners, 54 percent owned in this resort.
Steamboat also had the highest percentage of condominiums owned in the $51,000 to $100,000 range as well as a higher than average percentage of owners who said they wouldn’t buy in that resort area again.
Vail’s Activities Attract
This resort had the highest percentage of condominium owners who purchased before 1980 as well as the highest percentage of owners who bought because of the resort’s activities and amenities. It also had the lowest percentage of owners who bought for investment reasons.
Avon/Beaver Creek = Older and Richer
Avon/Beaver Creek owners had the highest incomes of those surveyed, were older and a high percentage owned their own planes. Of all owners from foreign countries, 86 percent owned in Eagle County, which includes Avon/Beaver Creek and Vail. Avon/Beaver Creek had the highest percentage of condominiums bought in 1984 and it had the highest priced condominiums.
Aspen—Where the Singles Are
In Aspen, 39 percent of the owners were unmarried, a higher percentage than in any other resort. The incomes of owners in this resort were higher than the overall owner and their interest in travel, arts and culture was higher. Miami was the second ranking city of origin and Chicago was third.
The peak years for condominium sales were 1983 and 1984 and the condominiums were higher priced than the average. Almost three-quarters of the owners said they would buy in Aspen again.
Other Interests At Snowmass
Owners in Snowmass were, like Breckenridge, very similar to the overall average owner, except that this resort had the highest percentage of owners interested in travel, arts and culture. Houston was the second ranking city of origin, followed by Chicago. Regarding the condominiums purchased, a higher percentage were bought in 1983 and 1984 than in any other resort, and next to Avon/Beaver Creek, it had the lowest percentage of condominiums in the $51,000 to $100,000 price range.
Winter Park/Silver Creek Go South
Almost 80 percent of the owners in this resort who were interested in purchasing additional condominiums said they would not buy in Winter Park/Silver Creek again and indicated a preference toward future resort condominium ownership in warmer climates. It had the second highest percentage of owners making $50,000 to $100,000 a year and of condominiums in the $51,000 to $100,000 range. It also had the highest percentage of owners who said they owned their own businesses.
Minneapolis was the second ranking city of origin for these owners and of all owners from Minneapolis, 32 percent owned in this resort.
Breckenridge Area Typical
Breckenridge owners most paralleled the overall average owner in the survey. They were married, 40-49 years of age and made $50,000 to $100,000 a year. Cities of origin ranked Denver first, Chicago, then Dallas/Ft. Worth. Of all owners surveyed from Colorado Springs, 32 percent owned in Breckenridge. The largest percentage bought their condominiums before 1980 and their condominiums cost between $51,000 and $100,000.
Satisfaction At Copper
Copper Mountain had the lowest percentage of unmarried owners and the highest percentage of owners in the 60-69 age range. Copper Mountain had a higher percentage of owners with interests in travel, arts and culture, and the third ranking city of origin was St. Louis. It also had the highest percentage of condominiums owned in the $100,000 to $200,000 range and the largest percentage of owners who bought for investment reasons. Owners there also expressed higher than average satisfaction with the Copper Mountain resort area.
Marrieds At Keystone/Dillon
Keystone/Dillon also had a higher than average percentage of married owners and the largest percentage of owners in the $50,000 to $100,000 income range. Of all the owners surveyed who came from Kansas City, Mo., 23 percent owned in Keystone/Dillon. This resort also had the highest percentage of condominiums purchased in 1982.
A Prescription for Future Study
The winter resort condominium market appears to have peaked and is struggling to maintain its level. Warm weather resorts in a boom era will begin taking a larger slice of the pie. Just as the ski resorts must continually attract new skiers to their areas, so condominium developers must look to building condominiums which will appeal to a future market.
A high degree of cooperation, especially in shared research and cooperative marketing, seems a viable solution. For example, visitor studies and skier surveys should address the real estate issue, because the right condominium development is important to the success of a ski area and the success of a ski area is important to future real estate development. Research can provide answers and direction for future development.
In addition to learning more about current owners and vacationers, researching the non-buyer is important in determining the differences between those who bought and the people who toured but did not buy. This process provides strategies to convert non-buyers and suggests subtle changes within the project that will help expand appeal. Research can learn more about what will be in demand five, ten or more years from now. Master plan development can then address issues important to long-term growth.
But research is only the first step. Once the demographics, motivations, life style interests, behavioral characteristics and psychographics of vacation guests and real estate buyers are integrated, intelligent marketing decisions can be made regarding how to attract more of the visitors who will buy condominiums. Then, techniques are available through cluster profiling processes utilizing national data base files to locate high concentrations of potential buyers who match the profile of current owners. Advertising copy can be devised to communicate the right message to the right buyer.
Owner profile data is one tool investors, developers and real estate marketers have at their disposal. Its use can result in better planned, high demand resort properties.
Methodology and Scope
- 5,780 owners of second-home resort condominiums within the areas of Aspen, Avon/Beaver Creek, Breckenridge, Copper Mountain, Keystone/Dillon, Snowmass, Steamboat Springs, Vail and Winter Park/Silver Creek, Colorado, were selected on a random name basis.
- The sample was qualified under three strata criteria: 1) recent buyers who purchased a resort condominium within the last four years were included, 2) residents of the resort area were excluded to minimize survey responses from local primary homeowners, 3) the project was limited to major developments by screening out owners of condominiums located in projects containing six or less units.
- The questionnaire contained direct, fixed alternative (yes, no, multiple-choice), structured open-ended (numbers and locations) and free-response questions relevant to resort condominium owner’s attitudes, behavioral, life style, demographic, socioeconomic and psychographic profile.
- The questionnaire design and data-base program format provided the opportunity to cross-tabulate any question with any or all others, retrieve data on any statistic, compare the information with national data and develop lead-generation capabilities based on owner profiles.
- Mailing in October, 1984, consisted of four-page questionnaire, cover letter and stamped return envelope.
- 14 percent response rate provided statistically valid results.
