While the timeshare industry certainly has its critics, it’s no secret that vacation ownership is an integral component of many consumers’ travel plans. In fact, a recent survey conducted by the American Resort Development Association (ARDA) revealed that more than 9 million households currently own timeshares in the United States. The results are a testament to the enduring popularity of the vacation ownership model and its positive impact on the economy.
The timeshare industry is a multi-billion dollar market, and it’s not hard to see why. With a variety of products and options available, the industry has something for everyone, from the avid traveler to the family looking for a reliable vacation spot that’s close to home. In addition, timeshares provide a great option for those who want to take advantage of the value and benefits of a vacation rental while saving money.
While timeshares certainly have their shortcomings, the vast majority of owners are satisfied with their purchase. In fact, the ARDA report found that 77% of timeshares sold last year were to repeat buyers. This shows that people who buy timeshares actually plan to use their vacation property in the future, which speaks to their satisfaction with the product.
One of the biggest drawbacks of a timeshare is that maintenance fees typically increase at a rate higher than inflation. This can be a turnoff for some consumers, especially those on a tight budget. In some cases, the high maintenance fees can even be a deal-breaker, which is why it’s important to read a timeshare contract carefully before purchasing one.
However, some of the major timeshare developers have updated the product to meet the demands of today’s consumer. Companies like Marriott Vacation Club, Hilton Grand Vacations, Disney Vacation Club, Wyndham Destinations, and Holiday Inn Club Vacations have replaced the inflexible fixed week/fixed unit product that dominated in the early years of the industry with flexible club products that offer more flexibility in destinations, units, and vacation experiences.
The new products are also gaining in popularity as the baby-boomers near retirement age and the younger millennials start to enter the workforce. With a wide array of options, the timeshare industry looks to have a bright future ahead of it.
As the industry evolves to meet the needs of the next generation of travelers, timeshare will continue to be a popular option for consumers across the globe. As a result, it’s expected that timeshare sales will return to growth as the economy recovers from the coronavirus pandemic.
Timeshares are a popular choice for consumers because they’re “pre-paid” vacations that help protect against rising rates of inflation. In addition, maintenance fees are a fraction of the overall cost of a trip and often include the costs of hotel stays, airfare, and other vacation-related expenses. Moreover, the increased occupancy and transient rentals of unused or unsellable timeshare inventory helps offset carrying costs.
Regardless of the negative perception of timeshares, the industry is thriving and expected to continue its robust growth in 2021. According to the ARDA International Foundation, timeshare sales reached an all-time record of $8.1 billion in the first quarter of this year.