The timeshare industry, a type of vacation ownership, is one of the world’s largest markets. It is growing in popularity as a way to travel and save money for future trips, according to the American Resort Development Association (ARDA), an industry trade group.
The market has also become more diversified in its offerings and has more product differentiation, especially on the lower end. Some developers are bringing on more modest products to reach middle-income consumers, and others are looking for new locations that may be more appealing to millennials who have a less disposable income than boomers, said Richard Ragatz, vice president of research and development for Hendersonville, Tenn.-based Smith Travel Research, a company that tracks the timeshare industry.
More than two million people in the United States own a timeshare, and those numbers are expected to grow. Millennials, who are often described as those born between 1981 and 1996, are the most active buyers of timeshare products.
They want to enjoy a vacation experience without having to worry about maintenance fees and mortgages. They’re willing to pay a bit more for the opportunity to stay in a resort they can visit again and again, Nusbaum told Bloomberg.
Despite the economic downturn that began with the pandemic, North America remains the largest market for timeshare sales, according to HVS Inc., a leading timeshare marketing and technology firm. The company projects growth in 2021 and beyond as consumer preferences evolve.
It’s a big industry, with millions of people and thousands of companies involved in its business. That’s why it’s important to understand it — and what the latest trends might mean for you in your own operations.
A major trend is that of the emergence of the millennial generation, which has grown up with smartphones and Internet access at a higher level than previous generations. Unlike boomers, millennials are not afraid to take risks or create their own businesses in an effort to improve their lives and increase their wealth.
In fact, millennials are also becoming more and more interested in luxury travel as the economy recovers. In the United States, millennials account for more than 50% of new and resale timeshare purchases, according to ARDA.
More and more of those buyers are buying from branded companies. This has helped to increase the credibility of the timeshare industry, Nusbaum said. Among the most well-known brands are Marriott, Hilton and Starwood, all of which have entered the timeshare market in recent years.
Those companies have made it easier for consumers to get into the timeshare business by offering a range of products and services, from simple resorts with minimal amenities to more expansive ones with pools, restaurants and spas. They’ve also added to the appeal of timeshares by allowing owners to purchase points that can be used to book VIP weekend stays and high-end accommodations, Nusbaum said.
There’s also a lot of interest from corporations, which are using timeshare as a way to offer a vacation incentive. They’re seeing the value of having employees or clients spend a week in a hotel or condo that isn’t their own, according to Jim Kinney, vice president and general manager of Boston-based MVCI.