The timeshare industry is an important component of the travel and tourism sector. It generates more than $10.5 billion in annual sales, and it provides jobs to over 540,000 people. However, the industry also has its critics. Some consumers find the cost of owning a timeshare to be prohibitive, while others are dissatisfied with restrictions and fees associated with the ownership of a vacation property.
The resale market for timeshares is a valuable resource for current owners and potential buyers alike. It allows current owners to recoup some of their initial investment and sell a portion of their vacation ownership rights. In addition, the resale market for timeshares provides access to popular vacation destinations that might not otherwise be affordable.
According to the American Resort Development Association (ARDA), the combined direct, indirect and fiscal impacts of timeshares in 2005 were $92 billion. This included $62 billion in consumer spending, more than 565,300 full- and part-time jobs, and $21.5 billion in salaries and wages. In addition, timeshares help to stimulate local economies. In the United States, for example, the industry supports more than 1,600 timeshare resorts and attracts over 4.1 million timeshare owners.
Many of the top companies in the global timeshare industry have adopted various organic and inorganic business strategies to maintain their competitive edge in the marketplace. These include expansion of service facilities, collaboration with other businesses and mergers and acquisitions to expand their business networks.
ARDA is a trade association that represents the legislative interests of its members and their consumers through the Resort Owners Coalition (ARDA-ROC). In this way, the organization is fighting to ensure that regulations preserve the balance between consumer protection and economic development. The organization also fights to educate the media about the state of the timeshare industry today.
In recent years, the timeshare industry has seen tremendous growth in the Asia-Pacific region. This is largely due to the increasing number of people in the region that are able to afford to purchase luxury vacation properties.
The coronavirus pandemic has impacted the timeshare industry in several ways, including reducing the amount of travel and forcing consumers to reevaluate their budgets. While the impact has been slow, it is anticipated that the industry will recover in 2021-2024.
With a steady increase in the population of baby boomers and the rise of millennials, the timeshare industry is expected to continue its growth. The industry will be able to capitalize on the rising interest in affordable, all-inclusive vacations.
The industry will continue to grow, but it must be cautious to avoid overcapacity. It will need to focus on providing quality vacation experiences that are in line with market trends, and ensure that its customers have the best possible holiday experience. Additionally, the industry must continue to improve its efficiency and reduce operational costs to keep up with customer demands. This will be achieved through the adoption of digital billing and payments, as well as IVR that enables owners to make a payment without contacting a resort representative.