The timeshare industry is poised for growth in the years ahead. This is mainly due to people’s revived wanderlust and their ability to spend money on vacation experiences. The industry is also experiencing a boost from the consolidation of large branded companies. These companies are gaining credibility, quality and brand awareness with consumers that the smaller independent developers simply do not have.
A number of studies have shown the benefits of vacationing, including decreased stress levels and improved mental health. However, many individuals do not have the resources to afford a vacation every year. The timeshare industry offers an affordable solution that allows travelers to experience a variety of destinations and resorts around the world. The industry also provides access to amenities such as fitness centers, spas and restaurants.
According to a study conducted by ARDA International Foundation (AIF), timeshare sales reached an all-time high of $10 billion in 2006. The combined direct, indirect and fiscal impacts from vacation ownership were estimated at $92 billion. These impacts included consumer spending, employee compensation and taxes. Over 90 percent of a timeshare party’s expenditures occurred at local businesses away from the resort itself.
Traditionally, the industry has been criticized for using high pressure sales tactics to sell vacation ownership products. This was especially true in Southern European locations where visitors couldn’t walk along the seafront without being approached by sales representatives. In recent times, the industry has made a significant effort to clean up its sales practices. The industry has also incorporated governing bodies and consumer protection agencies into its structure. This has helped to earn it a greater level of credibility with consumers and strengthened its market presence worldwide.
In addition to the traditional fixed week timeshares, there are a number of other options available. These include floating week and points-based timeshares. The resale market is another source of demand for timeshare properties. In this market, purchasers pay 50-90% less than the initial purchase price. However, there are a number of problems associated with buying and selling timeshares on the resale market.
Aside from the resale market, there are also a number of other factors that may help drive timeshare industry growth in the future. One is the increased popularity of point-based timeshares. These systems replace the concept of a specific week in a specific location with the notion of “points” that can be used to book trips. The concept is much more flexible than a fixed week, but it still requires the buyer to pay annual fees.
Another factor is the ongoing economic recovery. A recession or a pandemic could stifle the growth of the timeshare industry, but it is expected to recover quickly once the economy picks up again. With pent-up demand for vacations and the reopening of airports and cruise ships, timeshare sales should rise once again. In addition, a strong job market will encourage Americans to take more vacations. As a result, the timeshare industry will continue to grow in the future.