With the pandemic slowly receding, the world is gearing up for a rebound in travel. In particular, timeshare companies such as Wyndham Destinations (WYND) may see a return to pre-pandemic sales. As the economy reopens and vaccination rates increase, many experts believe that pent-up demand for vacationing will fuel growth in the industry.
A timeshare is a type of vacation ownership that allows owners to use their units for specific weeks each year or to exchange them with other resorts around the world. The industry first gained popularity in the 1970s and has since grown to become a major global business. Today, the industry includes over 5,669 resorts worldwide and approximately 9.6 million households own a timeshare.
In addition to providing a great value to consumers, the timeshare industry also delivers significant economic benefits to local communities where resorts are located. A recent study conducted by the ARDA International Foundation, which is commissioned to conduct various surveys and research on vacation ownership, shows that timeshare provides more than 161,000 full-time jobs and supports $5.4 billion in wages and salaries. The study also found that vacationers who stay at timeshare resorts generate over $540 million in taxes.
With this in mind, it is important for the industry to focus on enhancing consumer experience and creating new marketing opportunities that will lead to increased consumer interest and loyalty. One such opportunity involves the adoption of digital billing and payments, which is becoming more and more common among timeshare providers. By switching to digital or IVR billing and payment methods, the industry can significantly reduce costs related to postage, printing, and call center staffing. In addition, these options are often safer and more secure than traditional paper checks.
The emergence of these technological advancements in the timeshare industry will have a positive impact on its reputation and consumer confidence. The ability to make payments online or with the help of an IVR system eliminates the need for consumers to speak with a representative and thus improves the customer service experience. Furthermore, these methods of payment are more efficient than sending and receiving paper bills and can significantly improve a resort’s cash flow.
Despite these improvements, the timeshare industry still faces challenges. For example, hefty fees and maintenance charges can be a turnoff for consumers. Additionally, the concept of being tied to a specific property or location is unappetizing for some potential buyers. This is especially true for younger generations who are more accustomed to the flexibility of renting an apartment or house while on vacation.
However, if the industry can successfully adapt to these changing market conditions, it is likely that it will continue to prosper in the future. With the recent consolidation of the industry, major brands such as Marriott Vacation Club, Hilton Grand Vacations, and Wyndham Destinations are expected to dominate the market. Smaller independent developers may struggle to compete with these big players. But, with the right strategies and focus, they can remain competitive in the face of growing challenges.