Timeshares are a popular vacation option for many families and individuals. They offer a variety of benefits, including the flexibility to choose a destination and vacation dates that best fit your needs. However, there are some important things to consider before purchasing a timeshare.
The timeshare industry is thriving and has become a major economic contributor. This is a result of the fact that it offers an affordable way for people to experience the joys of vacationing and travel without paying the full price. Moreover, the industry also provides employment opportunities to thousands of workers worldwide. Considering the fact that the economy is recovering from the coronavirus pandemic, the timeshare industry has an excellent opportunity to increase its sales and grow further in the years ahead.
This is especially true for North America, which has a share of over 77% of the global market. However, the rest of the world is quickly catching up and is projected to overtake North America in terms of revenue in 2022-2024. Moreover, it is expected that the global vacation ownership (Timeshare) industry will reach a value of USD 29190 million by 2028, growing at a CAGR of 7.3% between 2022 and 2028.
As the baby boomer generation reaches retirement age, they will continue to be a driving force for timeshare sales. This generation has a lot of disposable income and is willing to spend it on vacations and luxury experiences. The industry has taken notice of this and is working to meet their expectations.
One of the most significant challenges faced by the industry is the problem of unscrupulous timeshare exit companies. These companies are known to lure unhappy or remorseful owners and persuade them to stop paying their mortgages and maintenance fees. The industry has responded by suing some of these firms and lobbying lawmakers to change the laws. However, this has not stopped the problem. Bluegreen, the company that owns Wyndham resorts, recently increased its administrative costs by $30 million this year because it is spending money to defend itself against these timeshare exit companies.
Another challenge the industry faces is the resale market. While it has become more regulated, the timeshare resale market is still filled with fraudulent businesses that are stealing from honest consumers. The industry has taken steps to combat this by forming an alliance with a number of law enforcement agencies. The association has also partnered with several consumer advocacy groups to educate consumers on how to avoid being scammed by these fraudulent businesses.
Despite the challenges, the industry has continued to expand and thrive. This has been largely due to the entry of large, branded operators. These companies have brought a level of innovation and credibility to the industry. However, it is important to note that smaller, independent timeshare companies are still in existence and have a significant share of the market. The industry will need to find a balance between these two forces in order to remain competitive.