Timeshares are a type of vacation real estate, where you buy a fixed week at a resort that you can use for a specified period of time. You may use the week at different resorts, or you can exchange it with other owners. Typically, you have to pay a monthly maintenance fee, and you have to own a mortgage for the property.
In recent years, timeshare industry has witnessed robust growth. It has survived several economic and political challenges and thrived. The industry has grown to become a global presence. Today, over 5,000 timeshare resorts are located around the world. They offer luxury accommodations and added amenities to their customers.
A recent study by the ARDA International Foundation found that sales volume in the United States grew to $10 billion in 2006. This is an impressive number, and the timeshare industry is expected to grow considerably. The report was based on the responses of 127 timeshare executives, and it revealed that most of the challenges faced by the industry are related to marketing issues.
The study also found that more than 80% of consumers are satisfied with their timeshare ownership. Although the timeshare industry has suffered from a negative image, it remains an attractive option for travelers. However, its growth could slow down due to the increasing competition in the tourism industry.
Timeshares are a great choice for savvy travelers. Not only do they provide a luxury accommodation, but they also provide a convenient way to book your trip. These are the reasons why this industry continues to gain traction.
Another positive aspect of this industry is that it has a wide range of demographics. It is a popular option for both boomers and millennials. While boomers enjoy the idea of the American Dream, millennials are bringing innovative technologies to the world. Their income levels are lower than those of their predecessors. Therefore, they are creating more affordable ways to get luxury travel.
Timeshare companies have had to change to cope with this evolving market. They have consolidated their businesses to make it easier for people to switch between a large pool of properties. Some major hospitality brands have entered the timeshare sector, such as Hilton Grand Vacations and Marriott.
Most timeshares run on a points system. Owners are assigned a specific amount of points, which equate to nights. The more points you have, the more expensive your package will be. But when the economy recovers, this could give a boost to the industry.
Timeshare developers are now able to offer cheaper weeks in the off-season and more expensive peak-season weeks. This is a benefit of the Right to Use (RTO) program, which gives members access to more amenities.
Timeshares have also been affected by the economy. As the economy rebounds, the demand for timeshares will increase. In fact, one survey conducted by Morning Consult showed that 63% of Americans were excited about traveling when the economy reopened. This means that timeshare companies will likely raise their prices.