The timeshare industry has been in existence for nearly six decades and has grown to become a significant part of the world’s travel and vacation market. The key development over the years has been its acceptance and growth by consumers.
The emergence of brands has played an important role in the growth and consumer acceptance of timeshares as well as the increase in its popularity. These brands have brought credibility, quality, and brand awareness to the timeshare industry.
Today, the largest timeshare developers are branded hotel and resort companies such as Marriott, Starwood, Disney, and Hilton. These companies have a strong competitive advantage over smaller independent developers.
Credibility/quality & brand awareness: These branded hotels and resorts have a strong reputation in the public, allowing them to command a higher price than other properties. These brands also have a strong marketing team to promote their property.
Financial and economic advantages: These brands have a strong competitive advantage over independent developers as they have the ability to obtain financing at low interest rates. They can also offer a variety of amenities and benefits to attract guests.
Sales and marketing: These branded hotels and resorts are known for their high-quality service and have a strong customer support system in place. This is an important factor for customers who may not be able to book their vacations at the last minute, as they can often rely on their customer support representatives for assistance.
Liquidity and flexibility: These branded hotels and resorts offer owners the opportunity to exchange their timeshares at other resorts in the same or different destinations as their original one. This can save owners money and time in planning their next holiday.
Consolidation: These branded hotels and resorts are owned by large hotel companies that have an established network of distribution channels. They are more likely to receive better prices from suppliers than smaller independent timeshare developers.
State regulation: These branded hotels and resorts are required to operate in specific states and must register with the relevant authorities for the sale of their timeshares. This can impede the use of the internet for timeshare sales and lead generation.
Taxation: These branded hotels and resorts have been heavily taxed in the past. This can affect the profitability of timeshare operations.
Amenities: These branded hotels and resorts have an attractive set of amenities that can attract guests, including spas and pools. However, these facilities can be expensive to maintain.
Despite these challenges, the vacation ownership industry is expected to remain strong in its existing markets and grow in new ones. Changing demographics will present opportunities for new markets and potential customers, as well as provide business for existing vacation ownership companies.
The key to the success of the vacation ownership industry is overcoming weaknesses in sales processes and costs, taxation concerns, and room amenities, while maintaining sales. These factors will be important in the coming years as the industry continues to grow and compete for customers worldwide.