The timeshare industry has had its share of missteps, but it’s also seen a lot of growth in the last decade. In fact, it has become a global industry with more than 5,000 resorts worldwide, according to the American Resort Development Association.
The strength of the vacation ownership industry has been its adaptability to evolving consumer needs, and its adherence to regulatory bodies. This includes ARDA and state governments, as well as Australia’s Timeshare and Holiday Ownership Council, the Organisation for Timeshare in Europe, La Asociacion Mexicana de Desarrolladores Turisticos, Latin America’s Association of Resort Developers and Tourism and South Africa’s International Association of Resort Ownership Management.
Despite the industry’s reputation for high-pressure sales tactics, most consumers who purchase timeshares enjoy their property and are satisfied with the product. Moreover, many owners find that their vacations are enhanced by the amenities and facilities of their resorts, as well as by their proximity to other guests.
In addition, the physical product of vacation ownership is a strong selling point, as leisure travelers enjoy the spacious condo-style accommodation and amenities available to them at the various resorts. These accommodations are often larger and have more amenities than a traditional hotel room, making them ideal for traveling with family and friends.
For these reasons, timeshare companies have been able to expand their offerings and appeal to a new generation of vacationers. Millennial and Gen X travelers are seeking more flexibility in their vacation plans and are willing to spend more for a luxury experience.
While there are still some rogue timeshare companies that operate on a purely self-serving basis, many big hospitality brands have entered the market, offering new types of timeshares and a more professional service that fits modern traveler’s preferences. Some of these brands include Marriott International Inc.’s Marriott Vacation Club International (MVCI) and Hilton Hotels Corp.’s Diamond Resorts, which offer exclusive experiences and perks.
Other timeshare companies have begun building urban properties, which are more popular among millennial and Gen X travelers. MVCI opened its first urban property in Boston’s North End in January, and plans to build another in the city this year. In an attempt to cater to these consumers, the timeshare company is developing a points system that can be used for cruises, guided jungle tours, or Super Bowl tickets.
These new offerings have given a boost to the vacation-club industry, which has been plagued by low occupancy rates and high maintenance fees. Several timeshare executives pointed to the increased focus on quality and customer satisfaction as key factors that are driving this trend.
In order to maintain a strong brand image, timeshare companies must be able to deliver a memorable and unique experience for each guest. That can mean incorporating more experiential perks into their packages, such as guided jungle excursions, or adding more amenities to their properties, such as yoga and Pilates studios.
The industry also is growing due to the increasing number of consumers who are interested in owning a vacation home that they can use on a regular basis, but don’t want to commit to paying for the full cost of maintenance and ownership. Nusbaum says these people are drawn to the idea of owning a fractional interest in a resort property instead of buying a vacation home outright.