The timeshare industry is an ever-evolving sector that has evolved and adapted to suit the needs of the savvy consumer. Today, the industry offers vacationers luxury accommodations with flexible booking options, competitive prices, and the convenience of a timeshare. Despite some drawbacks, such as higher costs, timeshares have become popular choices for many people, especially those looking to take advantage of the seasonality of travel.
The timeshare industry is a multi-billion dollar business that has seen robust growth over the last two years. The growth is driven by the growing number of consumers who are seeking health and wellness travel. However, the industry has also faced a lot of competition from online travel companies and the proliferation of short-term rentals.
To keep the business running, timeshare companies must be able to meet customers’ evolving needs. They have to be transparent and provide value to their customers while keeping the integrity of their brand. At the same time, they need to be able to compete with other hospitality businesses.
In 2006, the ARDA International Foundation reported that timeshare sales reached a new high of $10 billion in the United States. This was up from the previous year’s record of $7.4 billion, which is a hefty sum, considering the average price of a timeshare is about $4,600.
The resurgence of the industry has helped to establish the industry’s credibility. Many large branded companies have joined the fray, contributing to consumer acceptance. Additionally, the industry has become more consumer friendly, thanks to the introduction of diversified Vacation Ownership products.
During the past five years, the ARDA International Foundation has conducted a study, which showed that the timeshare industry has enjoyed an annualized growth rate of 81%. It also found that the timeshare industry is the fastest-growing segment of the travel industry.
The ARDA International Foundation’s study was followed by an updated report by Kenneth Research. These studies are designed to help timeshare companies identify what changes need to be made in order to meet the needs of customers.
In a recent survey, 63% of Americans said they were excited about taking a vacation after the economy was reopened. In fact, many owners have been banking vacation weeks for future use. There are some risks involved, however, as the disparity in allotted vacation hours per family can cause debt accumulation.
One major drawback to the timeshare industry is that they are notoriously difficult to resell. While the resale market has grown, it still has a ways to go. Some of the largest developers, such as Marriott and Hilton, are acquiring smaller rivals in order to diversify their product portfolios. Fortunately, the industry is also expanding its reach in the secondary resale market.
As the travel industry continues to recover, the timeshare industry is set to grow substantially. But with a shortage of inventory and increased competition from the likes of Airbnb, it’s important that the industry makes some real changes before it can truly reap the rewards.
