The timeshare industry has grown steadily and developed into a booming business over the years. However, it’s not without its problems. In the past, questionable marketing practices and the urgency imposed on consumers to make a decision about purchasing a timeshare gave it the bad reputation of “pressured sales”. However, as the industry matured, consumer protection agencies came in and stricter regulations and laws were established. This, along with the formation of leading industry bodies such as ARDA in the US, CVOA in Europe and RDO in Mexico gave the timeshare industry credibility and strengthened its markets worldwide.
The growth of the timeshare industry has been fueled by several factors including increased spending by baby boomers, rising incomes, and a desire to travel more and live abroad. This trend is expected to continue as the industry is positioned for further growth. The increasing popularity of shared vacation ownership has also fueled the timeshare market, especially in Europe and the US. With the emergence of new players in the market and changing customer behavior, it is essential for the industry to stay on top of its game by adopting innovative strategies.
Although the timeshare industry has a reputation for being expensive, in reality it is not. In fact, most of the price tag is attributed to the costs involved in convincing a consumer to purchase a timeshare. It is estimated that up to 60% of the cost of a timeshare is spent on sales and marketing expenses. This includes everything from offering free vacation packages to attract consumers to commissions paid to agents who close a deal.
As the industry continues to grow, many companies are reorganizing their operations in order to maximize efficiency and profitability. Some are focusing on building new resorts while others are looking to expand their existing offerings in an attempt to attract more customers and increase revenue. The result has been a consolidation of the industry with big outfits such as Wyndham, Marriott, and Hilton Grand Vacations now dominating the industry. This has left smaller operators struggling to stay afloat in a highly competitive landscape.
Despite the coronavirus pandemic, the timeshare industry has continued to thrive, with North America occupying the biggest market share. The average timeshare unit costs $22,180 and about 9.6 million households in the United States own one or more timeshares. Moreover, the industry provides 540,000 full-time jobs globally. Moreover, 67% of owners are satisfied with their purchases according to recent surveys.
While the industry has experienced some bumps in the road, it is expected to rebound by the end of 2021. The pandemic has slowed down the rate of recovery, but with more vaccinations and reopening of borders, the industry is set to return to its steady growth trajectory. This article will discuss some of the most important trends that are shaping the future of the timeshare industry. This will include examining the changing market demographics, the current state of the industry, and some tips on how to avoid common timeshare scams.