The timeshare industry has grown substantially over the last several years. In 2006, sales reached a new high of $10 billion. Sales were fueled by the increasing demand for travel and vacations. Since the financial crisis of 2008, the industry has been able to return to a more balanced growth rate. However, the industry will likely experience a slowdown in the coming years. This is because the recession may temporarily crimp the market’s growth.
The timeshare industry is primarily dominated by four manufacturers. These include Wyndham Vacations, Hilton Grand Vacations, Marriott Vacations, and Timeshare Management Corporation (TMC). Globally, these companies hold a combined 55 percent share of the global market.
There are over 5,000 resorts in the world, allowing timeshare owners to book accommodations in many different locations around the globe. Accommodations can range from single or multiple bedrooms, living rooms, and full kitchens. Most resorts are affiliated with a timeshare exchange company, which administers the exchange service.
In recent years, the timeshare industry has become more consumer friendly. A number of new timeshare clubs have emerged, attracting the attention of both the younger population and the older generation. Additionally, the advent of the internet has helped the industry develop a more online presence. Several new products have been introduced, enabling timeshare owners to trade vacation weeks, as well as access a variety of other amenities.
The industry also continues to evolve, with more affluent buyers increasingly considering buying timeshares. Despite the challenges that the industry is facing, it has a promising future. Some experts believe that the economic recovery will create a considerable demand for timeshares and other related services.
According to the ARDA International Foundation, the timeshare market in the United States reached a new high of $10 billion in 2006. It’s projected that this market will grow at a 7 percent CAGR for the next five years.
The United States is the largest market for the timeshare industry, followed by Europe. Overall, the ARDA International Foundation study suggests that the global market will grow at a 7.3 percent CAGR for the next few years.
As with other industries, the timeshare industry has suffered from deceptive practices. Many consumers have been misled by deceptive businesses. Several scammers have seized the opportunity to make money off these people. Typically, scammers will disappear after they receive funds. They create the impression that they are a legitimate buyer.
In fact, the timeshare industry has been plagued with fraud for years. Scammers are able to take advantage of a desperate buyer. To avoid this, timeshares have cooling off periods. During these periods, a client can change their mind and get out of a contract. Those who miss this period lose the right to cancel.
Although the timeshare industry is growing, it is not an investment for the average vacation seeker. Rather, it makes sense for households that prefer to vacation in the same location each year. Similarly, the industry is being pressured by other hospitality businesses. Even so, the overall satisfaction of owners is relatively high. Over 85% of owners say they are satisfied with the overall ownership experience.