The timeshare industry has come a long way since its introduction in the United States nearly thirty years ago. Once characterized by dubious business practices and negative consumer perception, timeshare has transformed into a reputable source of vacation ownership. The timeshare concept, at its simplest level, is to divide condominium-style units into weekly increments, commonly called intervals. These intervals are sold to consumers either in perpetuity or for a specific period of time. Timeshare is a major global industry that generates more than $10.5 billion in annual sales.
Despite the recent financial crisis, many experts believe that the timeshare market will continue to experience strong growth in the future. Many factors can be credited for this positive outlook, including the continuing desire of people to spend time with family and friends. It is also important to note that a number of the companies in the timeshare industry have made significant improvements in their business practices and have adopted a more ethical approach to marketing.
The industry has seen substantial change in the past decade, with the majority of resorts now owned by large hospitality corporations. The industry has also evolved from a collection of independent or small companies to a more complex organization that offers a wide variety of products and services to its consumers. The development of resale markets and the proliferation of exchange programs have also benefited the industry. Changing demographics also offer opportunities for new markets and potential customers.
Although many executives interviewed for this article acknowledged the difficulties caused by the recent economic crisis, most of them were confident that the timeshare industry is on the road to recovery. Several of them anticipated that sales volume in 2023 would exceed the level achieved in 2019.
One executive explained that one of the strengths of the timeshare industry, which helped to sustain it through its seedy periods, is the fact that consumers actually like the physical product. In addition to the convenience of staying in larger condo- or villa-style accommodation, timeshare owners enjoy the extra amenities and features that they provide such as kitchens and laundry facilities.
Another key factor contributing to the positive outlook for the timeshare industry is that, according to most of the executives interviewed, a large percentage of owners are satisfied with their purchases. Considering that the average timeshare interval costs $22,180 and that approximately 9.6 million households own them, this is quite an impressive statistic.
Lastly, the increasing affluence of the middle class in many countries has led to an increase in tourism and timeshare sales. As more people can afford to travel and take a vacation, the demand for timeshare accommodations will only continue to grow.
Timeshare companies need to focus on marketing and advertising their products more effectively in order to continue to attract the attention of potential customers. This will require the industry to be more innovative and creative in its approach to advertising, as well as focusing on the development of unique experiences that differentiate it from the competition.