The timeshare industry is the fastest growing segment of the travel industry today. Historically, the market for vacation timeshares has shown an annualized growth of 38%. As a result of the increasing number of consumers buying timeshares, the timeshare industry is forecasted to continue to grow in the coming years.
While the timeshare industry has been around since the 1960s, the industry has evolved over the years. One of the most important changes in the industry has been the introduction of diversified Vacation Ownership products. These products are less restrictive than the original form of timeshares. This has attracted more savvy travelers and affluent buyers.
Purchasing a timeshare can be an emotionally charged purchase. Many people make purchases with little or no research or analysis. They are lured into a high-pressure sales presentation by free lodging and recreational activities. However, the sale of a timeshare is a serious financial commitment that requires payment of monthly maintenance fees and mortgage payments.
Consumers who purchase a timeshare may find that their investment is worthless after a few years. Moreover, many timeshares are not well maintained. A lack of maintenance can lead to damage to the property. Also, prepaid vacations are often arranged in uninviting facilities. Despite these facts, many people still buy timeshares, especially those who can’t afford to take a trip away.
Today, timeshares are sold and exchanged through a network of exchange companies. The largest timeshare networks are RCI and Interval International. Both of these companies have a combined 7,000 resorts worldwide. Most timeshares are affiliated with just one of these exchange agencies. Some developers have restrictions regarding transfers.
The timeshare industry has survived the major global financial crisis. It has also experienced strong periodical growth. In 2008, timeshare sales in the United States reached a new high of $10 billion. Since then, the industry has maintained its strong growth. Another major change has been the involvement of consumer protection and governing bodies, which have contributed to stricter regulations.
One of the most common timeshare complaints is that consumers are pressured into making a decision they do not want. There are also consumers who feel that the timeshare industry is lacking in disclosure.
During the 1990s, the industry experienced a resurgence. This led to a better image of the industry. Several key players in the hospitality industry started joining the timeshare market.
The timeshare industry has been a boon for the tourism industry. Despite the challenges of the recession, the industry has shown consistent growth over the past several years. For the next few years, millennials are expected to become the biggest travel market. With more affluent and connected consumers looking for ways to get luxury travel, the timeshare industry has a bright future.
In Europe, the RDO is the official trade association for the timeshare industry. The organization provides information to consumers and promotes best practices in the industry. Additionally, the organization offers a conciliation service for consumers. By utilizing this service, consumers can learn more about the products they are considering.
