The timeshare industry has seen a tremendous resurgence over the past decade. This has aided the growth of the sector and contributed to its maturation in terms of credibility and acceptance by consumers and lenders alike. The segment is now recognized as one of the hottest segments in the hospitality industry.
The market for timeshares has been growing at a steady pace, and this trend is expected to continue for the foreseeable future. As the market continues to mature, companies that sell timeshares are looking to increase their presence around the world.
Currently, timeshares account for 40% of the global market in terms of household ownership. This percentage is expected to grow over the next five years.
As the demand for vacation time increases, there is a need for more variety in the product offering. This will help the market to gain popularity and eventually penetrate a larger portion of the population.
A growing number of corporations are also using timeshares as an employee benefit or incentive. This has helped the industry to become more profitable, and many executives agree that this has been a significant contributing factor in its continued success.
In order to make the most of this lucrative opportunity, a company must be able to understand how to market its products effectively and to target specific markets. This will help the company to attract new business and increase profitability in the future.
According to ARDA, the United States remains the largest timeshare market in the world, with more than 2 million households owning timeshares. This is a significant statistic because it indicates that the timeshare industry has a large customer base and a huge market potential.
Despite the recession, the industry is expected to continue its upward trajectory in the coming year, with more units built and more companies seeking to expand their portfolios. Several companies, including Disney and Marriott Vacations Worldwide, are planning to build 865 units in 2019, compared to 588 units the previous year.
With the increasing popularity of timeshares, many branded companies have entered the sector, which has brought more credibility to the industry. This has made it more appealing to investors, said Nusbaum, who has spent 20 years in the hotel industry and directs corporate and industry relations for the American Hotel & Motel Association.
While the industry still faces some challenges, the market is thriving and expanding at an annual rate of 15%. This growth is due to the entry of major hospitality players and the fact that the market has only grown in popularity over the past few years, according to Nusbaum.
The timeshare industry is expected to continue its resurgence and grow at an even faster rate into the future, especially with the growing popularity of vacation trips across the globe. This is because consumers are continuing to seek ways to make their holiday budgets stretch, and timeshares offer an affordable solution for those who can’t afford to own a vacation home.