The timeshare industry is a global industry that is thriving. It has grown to become a major player in the vacation travel industry, and it is worth $8.1 billion worldwide.
Founded in Europe in the 1960s, timeshares are a type of ownership that allows owners to use their resort accommodations for a certain number of weeks per year. There are four common types of timeshares: fixed-week, floating-time, split-week and fractional shares.
A typical sales approach in the timeshare industry starts with a tour guide who shows the prospective buyer around the resort, or sometimes other vacation properties. The tour guide will try to convince the potential buyer that a timeshare is the best way for them to have a great holiday.
If the prospect is interested in the sale, they will be asked to sign a contract that states that they are committing to buy the timeshare. The terms of the agreement will be binding and will usually be for life.
While the timeshare industry is a popular choice for many, it can be a costly commitment. It is important to understand all of the costs involved before making a decision.
Costs for purchasing a timeshare can include maintenance fees, transfer fees, recording fees and assessment fees. They can also be subject to inflation. Check with individual properties for exact rates.
The costs of buying a timeshare vary by location and property, but the average cost is between $22,000 and $48,000. It is also possible to pay more than the total purchase price if you want to exchange your ownership for another time period or stay at a different resort.
In some cases, there are additional fees for the right to transfer a timeshare, including a ‘nuisance fee’, which can be significant. In addition, a timeshare owner will have to pay taxes on the unit.
Taxation of timeshares has been a concern for some local governments. Some counties have even attempted to pass legislation requiring that they tax the ‘exchange’ of timeshares for hotel rooms.
ARDA has played a proactive role in helping to prevent these propositions. They have also helped to educate legislators, particularly in the U.S., on the need for appropriate regulation of this growing industry.
Executives in the industry report that their sales and marketing efforts are becoming more sophisticated, and that they are able to differentiate their products and services to meet consumers’ different needs. In addition, their focus on the consumer has led to a more streamlined business model.
This has increased the profitability of their products. Nevertheless, there is still a need to improve internal and external processes to ensure the smooth flow of information, as well as to increase customer satisfaction.
The future of the timeshare industry remains bright. The American Resort Development Association (ARDA) reports that sales have been increasing in recent years, and that the industry is expected to grow to over $10.5 billion by 2021.
The timeshare industry is one of the most popular and profitable investments in the world. However, the industry is rife with gray areas and questionable business practices, so it is important to do your research before you make a purchase.
