The timeshare industry has grown to a remarkable extent over the past half century. From a shady reputation, owing to high-pressure sales tactics employed by its representatives on southern European beaches and at airports, it has risen to be a significant part of the travel and tourism economy with a presence in most countries across the globe. Several key developments have contributed to this growth, which is anticipated to continue into the future.
One of the most significant contributions to timeshare’s growth and consumer acceptance has been the entry of large branded hotel companies. These companies have brought a level of credibility and innovation to the industry that was not previously present. Additionally, they have altered the product offerings, allowing for a variety of travel related experiences that were not possible before.
Another significant contribution to timeshare’s growth has been the growing sophistication of the regulatory environment in which it operates. The timeshare industry has been able to establish itself as a legitimate business, with the support of allied governmental bodies such as the Australian Timeshare and Holiday Ownership Council, the Organisation for Timeshare in Europe, La Asociacion Mexicana de Desarrolladores Turisticos, the Canadian Resort Development Association and American Resort Development Association (ARDA International Foundation). This increased professionalism has helped to transform the image of the industry into a credible alternative for consumers.
It is important to note that despite the positive trends in the market, there are still challenges facing the industry. A major challenge is the annual maintenance costs, which can prove to be a significant financial burden for the owners. This can sometimes deter new buyers from purchasing timeshares, especially as the resale markets for this type of accommodation remain relatively closed in comparison to other types of vacation accommodations.
Other potential challenges that timeshare faces include the threat of taxation. Several executives indicated that several counties or cities have sought to tax vacation ownership in the same way that they tax hotel rooms. Although they appreciate that ARDA has been successful in fighting these proposals, they are concerned that the issue could grow as the industry grows larger and more visible.
The final major contributing factor to the growth of the industry is that more and more consumers are discovering that they enjoy timeshare vacations. This trend has been aided by a number of marketing and advertising campaigns that are targeted directly at the target audience, such as television commercials and online ads. Additionally, the growing popularity of social media has enabled vacation companies to reach a wider audience and communicate the benefits of vacation ownership.
Considering these factors, it is safe to say that the future for timeshare looks bright. With a growing global population and increased disposable incomes, it is likely that the industry will only continue to expand. The emergence of the millennial generation also has the potential to increase interest in vacation ownership, as they are more inclined to seek out new and exciting destinations.