The timeshare industry is a lucrative business that has been growing consistently over the years. It has sustained its development through economic recessions, inflation, political unrest and even a pandemic.
The industry has also grown because of the popularity of vacation ownership, which allows people to buy vacation units or weeks at resorts for a fixed price. Today, more than a million owners have purchased timeshare properties and are spending billions of dollars annually on their units (American Resort Development Association, 2008a).
According to the American Resort Development Association, the average timeshare owner owns about 1.4 weeks. This indicates that most consumers are satisfied with their purchase and are expanding their purchases to additional weeks or units.
In recent years, the industry has seen a surge in young people buying timeshares. This trend has been attributed to the extra experiences that timeshares offer, such as sports and culinary activities.
Many of the younger generation have a strong desire to go on vacations and are using timeshares as their means of doing so. This is a significant shift from the past, when timeshares were purchased by people who could afford them.
This growth has been driven by the increased popularity of vacations in general, especially international travel. In addition, this industry is a major source of revenue for many resorts.
Changing demographics present opportunities for the industry to attract new customers and increase sales. For example, younger travelers may be less concerned about high maintenance costs and more comfortable with vacations that don’t involve driving.
In fact, the ARDA survey found that most of the vacation ownership executives expect 30-40-year-olds to be the biggest buyers in the future. Those younger people also tend to be more adventurous and willing to try different kinds of experiences.
Another trend that has been growing in the industry is the influx of international business travelers, which has increased the demand for accommodation. These visitors require facilities that are available at various resorts, such as kitchens and laundry facilities.
This is an important market for the industry because it allows them to provide these services at a lower cost than hotel rooms. This is why more and more hotels are incorporating the concept of timeshares in their operations.
Some of the key trends in this industry include increased competitive pressure, changes in legislation and marketing strategies and technological advances. These trends are expected to continue and will have a direct impact on the future of the industry.
One of the major challenges in this industry is the escalating annual maintenance fees, which make it difficult for resorts to keep their costs down. This can lead to financial losses and can have an adverse impact on cash flow.
The ARDA survey found that many of the resorts are using technology to help reduce this expense. For example, many of them are using IVR systems to allow owners to pay their fees online without calling a resort representative. This can save them $7 to $9 a year, as well as eliminate the need for resort call centers to process payments.