The timeshare industry is one of the most significant vacation industries in the world. It provides access to the best resorts and hotels at popular destinations across the globe.
The industry is a growing business sector with an annual turnover of over $10 billion. The global vacation ownership market has also expanded with rising internet penetration and urbanization, which is a driving force behind the growth of the industry.
There are many different types of timeshares available to consumers, but the most common type of timeshare is a week-based product, which allows owners to use their weeks for stays at various vacation resorts around the world. Typically, these units are sold in the form of condo- or villa-style accommodations with kitchens, laundry facilities, and separate bedrooms.
As the economy began to stabilize, the industry experienced a sharp increase in sales volume. ARDA International Foundation (AIF) reports that annual timeshare sales rose to $8.1 billion in 2021.
AIF notes that the recovery of the industry has begun, as evidenced by a 5% rise in timeshare sales volume in 2020 over 2018. However, there is still work to be done to return the industry to its previous highs, as shown in the following graph.
While a number of major consolidations are taking place within the industry, most observers expect that the top three companies will emerge as dominant players in the market. The largest of these is Marriott, which acquired ILG Inc. in 2018, adding 250,000 timeshare owners to the company’s portfolio.
In addition, Hilton Grand Vacations has purchased Diamond Resorts and Welk Resorts in the last year. These acquisitions have added an additional $700 million in sales to the company, and RedWeek reports that they’re bringing on more vacationers than ever before.
The holiday ownership industry has a reputation for providing outstanding customer service, which is another factor that could help to attract new customers and sustain existing ones. For example, in October 2022, Holiday Inn Club Vacations was recognized by J.D. Power for offering “An Outstanding Customer Service Experience” through their Owner Support team in 2022.
This recognition is a testament to the efforts of timeshare brand managers to take great care of their guests and ensure that they have the best possible vacation experiences. These efforts have helped to strengthen the brand’s credibility and build its presence in the industry as a whole.
A recent ARDA survey found that most timeshare owners are happy with their overall ownership experience and would recommend timeshares in general. These findings demonstrate that the timeshare industry’s reputation for fairness and credibility is intact, despite recent challenges.
The timeshare industry is in a transition period that many other businesses are experiencing. Its consolidation phase is a normal transition, which can take about 25 years to complete.
This transition will allow the industry to evolve and refocus on its core products and services, while attracting new customers. As a result, the industry will likely see a strong increase in timeshare sales volume over the next few years.