The timeshare industry is a rapidly growing market that offers a unique way for vacationers to purchase property that allows them access to specific resort locations and hotels. It has grown from its initial beginnings in the 1960s into a multibillion-dollar global business.
There are many factors that drive the growth of the vacation ownership (timeshare) market, including the rising number of individuals with high income who are able to travel on regular basis and trends in international business meeting, summits and conferences. A major restraining factor that hinders the growth of the timeshare market is the cost involved in maintaining these accommodations.
These expenses tend to increase every year irrespective of whether the owners are using them or not. This leads to a lot of financial losses for the owner.
This is why it is crucial to have an efficient system in place to monitor the maintenance of these properties. This will help in controlling the expenditures and ensure that the property is in good condition.
The industry is expected to see a significant growth over the next few years, particularly in the United States and Europe. This is mainly because of the increased demand for vacationing and leisure activities in these regions.
Moreover, the industry is anticipated to benefit from the economic recovery in these regions. This will allow consumers to spend more on their vacations and thus, the market for timeshare products and services should grow.
Another positive trend is the increasing number of millennials in the United States and other countries around the world. These young adults are now becoming the leading travelers and therefore, they can be expected to make a substantial contribution to the market for timeshare products and services in the future.
It is expected that the number of millennials who will be buying timeshare properties will continue to rise as they grow older. It is also estimated that the industry will witness a substantial growth as the baby-boomers reach retirement age and the millennials begin to have children.
A large portion of the timeshare industry is now owned by companies that are based in the United States, namely Wyndham Destinations (WYND), Hilton Grand Vacations (HGV), and Marriott Vacations Worldwide Corporation (VAC). These companies have been successful in this sector as they provide customers with excellent customer service and the product itself is easy to use.
There are various advantages to owning a timeshare, such as the ability to exchange points for free or reduced-rate weeks at different resorts. It is also convenient for those who want to travel regularly, as they are able to plan their trips in advance.
The timeshare industry is a fast-growing segment with an annual growth rate of over 12%. It is projected to reach 29190 million dollars by 2028.
One of the hottest trends in this industry is the growing popularity of point-based vacations. It has a lot of appeal among millennials because it offers them the flexibility to make their own decisions and decide when they would like to travel. It also provides access to VIP weekends and locations, luxury accommodations, and a variety of other amenities.