The timeshare industry is a major source of revenue for many vacation resorts around the world. It also has a significant impact on local communities, resulting in jobs and income for people who live near the resorts. Timeshare sales have increased in recent years as the economy has improved and more families are able to afford vacations. However, the future of the industry remains uncertain because of changing consumer preferences and an aging demographic.
The questionable marketing practices and the sense of urgency that timeshare developers used to use to push consumers into making a decision quickly earned the industry its reputation as a “pressured sale.” However, as the industry evolved and became regulated by governing bodies and consumer protection agencies, the timeshare market was rebranded with more credibility and a stronger position in the markets worldwide.
With the rebranding and improved customer service, the industry gained more acceptance and the timeshare market grew significantly. This is largely due to the increasing disposable income of consumers and the availability of credit. Moreover, the improving economy has increased tourism which has further supported the growth of the industry.
In the past, timeshare companies primarily marketed their products through sales centers and at their resorts. Currently, there are more than 5 million owners in the US who have timeshare interests. The industry generates more than $10.5 billion in annual sales, with more than 5,669 resorts worldwide. Timeshare resales are also a significant revenue stream for the industry, with consumers buying timeshares through third parties or through direct sales from the resort company.
Although the timeshare industry took a hit during the coronavirus pandemic of 2020, it has bounced back and is poised for continued success. T+L, the Orlando-based timeshare company, reported that its earnings are up 12% for the first three quarters of 2021 compared to the same period in 2020. The strong performance reflects the value consumers see in timeshare, especially when compared to hotel and other alternative lodging.
T+L has acquired several properties and brands including Diamond Resorts, Welk Resorts, and Wyndham Destinations and now has 833,000 members in its vacation clubs. The company has a long-term commitment to its members and is positioned well for the future. In addition, the company has a robust resales program through its RedWeek marketplace and a solid loyalty from its owner base.
In the year 2025, the Global Vacation Ownership (Timeshare) Market is projected to reach a value of $20.8 billion with a CAGR of 7.1 percent over the forecast period. This is mainly because of the increase in incomes of consumers and a rise in the tourism industry, which in turn has boosted demand for vacation ownership. Besides this, increasing Internet penetration and ameliorating economic conditions are some of the key factors driving the global market for timeshare. The report on the Global Vacation Ownership (Timeshare) market by Absolute Reports provides a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period.