The timeshare industry has shown steady growth over the past few years. In fact, it has experienced 10 consecutive years of growth. Yet, the industry continues to have a few challenges. These include the funky reputation of the industry and the growing competition with other hospitality businesses. Luckily, the industry is expected to show continued strength and growth in the coming years.
According to the ARDA International Foundation, sales of timeshares in the United States reached a new high of $10 billion in 2006. The growth of the timeshare industry in the United States has been helped by major lodging companies. Some of these companies have provided innovative products and services that have increased consumer acceptance of timeshare. Despite these benefits, the industry has faced some challenges since the economic downturn.
The timeshare industry also faces a problem with consumers who feel they are being pushed into a debt trap. The timeshare company can send them to collections or even foreclosure, if they cannot afford to pay their assessments. There are a few state laws that protect consumers from timeshare companies. However, there is not enough regulation to ensure that the timeshare industry remains in a healthy position.
Another problem that the industry has faced is the number of fraudulent people. Many of the companies that sell timeshares have deceptive business practices, and scammers are constantly looking for new victims. They often appear as desperate buyers who want to get into the industry.
The timeshare industry has faced several regulatory issues in recent years. Several consumer protection agencies have worked with the industry, leading to stricter regulations. This has resulted in a larger number of cases being filed and a greater degree of enforcement. Additionally, the timeshare industry has been hit hard by travel complications, such as the COVID-19.
A recent survey of 127 timeshare executives found that the largest challenge for the industry lies in marketing. Consumers have been less interested in buying timeshares because of the perceived faults of the process.
One way to improve the image of the timeshare industry is for timeshare developers to form a trade association. Timeshare industry players are reexamining their product offerings and marketing to ensure that they are meeting the demands of the market. While the overall projections for the future of the timeshare industry remain promising, some players need to take a look at the details of their offering to make sure they are attracting new customers.
The industry is also facing a shortage of data on potential new owners. The AIF estimates that 2020 will see $4.9 billion in timeshare sales. For the next decade, the industry needs to develop data acquisition strategies that will allow them to capture the necessary data.
To achieve this, the timeshare industry will need to implement new marketing techniques and rethink its product offerings. It will also need to look at the sales process to ensure that it is targeting the right demographic.