Timeshare industry is one of the fastest growing industries in the travel and tourism sector worldwide. As a result, it contributes to the economy by creating direct, indirect and fiscal impacts across multiple sectors. Moreover, it has a huge impact on the hospitality sector and provides over 540,000 full-time jobs globally. The emergence of large branded companies and increased consumer acceptance facilitated the growth of the industry. However, the questionable marketing practices and high pressure sales tactics quickly earned the industry a bad reputation. But, as the industry evolved, governing bodies and consumer protection agencies were established. This led to better marketing and ethical practices enabling the industry to gain a higher level of credibility.
Despite the recent pandemic, the timeshare industry is resilient and continues to grow. The demand for shared vacation ownership is still strong, with an occupancy rate of 81.1% in 2019. The industry is mainly driven by the baby boomer generation, which accounts for 35% of timeshare ownership. Nonetheless, the younger generation is catching up and may soon overtake this segment. This is good news for the industry as the millennials tend to prefer flexible vacation options and are more willing to spend on amenities and services, such as a VIP weekend.
The millennials also appreciate the value of timeshare ownership and are receptive to new technologies and innovations that help them make the most out of their vacations. This is an important factor that will drive the industry’s growth in the coming years. This will boost the demand for timeshares and enhance their market share. In addition, the rising traction of point-based vacation systems and luxury resorts will attract a larger audience.
In order to sustain their competitive edge in the global market, key timeshare industry players are adopting various organic and inorganic strategies. These include product launches, expansions, and strategic partnerships and collaborations to strengthen their market position. Furthermore, they are focusing on offering modular, customized timeshare solutions to cater to the demands of their clients.
Another strategy is to increase brand visibility through digital marketing and social media. In addition, these firms are leveraging the power of new technology to offer enhanced user experiences and improve customer satisfaction. They are also focusing on enhancing their customer service by offering 24/7 support and training.
In terms of profitability, the industry is generating revenues from several sources, including contract sales, interest payments, maintenance and club membership fees. The revenue generated from these sources is not impacted by the economic performance, making it a valuable investment for developers. In addition, the industry has also expanded its horizons by introducing flexible and affordable timeshare plans, thereby attracting more customers. Moreover, the industry is benefiting from the increasing popularity of mobile applications and online bookings.