These timeshares can be used as a vacation home for people who cannot afford to purchase a home or to rent one. They can be rented out, traded or even sold. In the 1970s, Florida was home to the first timeshare market. Timeshares have spread from Florida to other areas, such as urban areas and ski resorts.
A recent survey by RedWeek revealed that the number of inquiries and offers for timeshares increased by 43% in 2021. This is a promising sign for the future of the vacation ownership industry.
The industry has seen overbuilding and excess expansion in recent years. The economic exposure for developers has been limited as a result. The timeshare market saw a 26% increase in sales during this time. It’s estimated that 4.4 million people dump their timeshares into the secondary market each year. However, the sector has seen an increase of consumer interest which might help it recover more quickly.
As the industry continues to evolve, it has gained more popularity among the younger generations. Timeshare owners still largely consist of baby boomers, but millennials quickly make up that difference. They are much more likely to live at home than the previous generation, and they are proving to be innovators, contributing to the development of technology.
Also, millennials make less than other generations. However, they tend to be more willing to travel. There are also affordable ways for them to afford luxury travel. Consequently, the resale secondary market for timeshares is expected to continue growing. The potential for timeshare to grow and improve is evident considering the impact of the economic recovery on other industries.
While timeshares can be a great way to travel, they may not suit everyone. People who purchase them not only end up making a terrible investment but are also often foolish to invest so much. High marketing costs are another red flag for timeshare investors.
There have been problems with owners in the past. Surveys of 127 timeshare managers revealed that industry image is their biggest problem. That’s why some developers have formed a trade association to address this problem.
Timeshare’s growth has been aided by technological advancements, increased focus on health, and booming tourism. Additionally, the demand for both business and leisure travel is growing. Timeshare is being explored by many condo and hotel owners. While some of the newer players offer more basic products, others create more luxurious and sophisticated offerings.
Marriott International, with headquarters in Washington, D.C., offers Horizons, the first affordable timeshare brand. Similarly, Hilton Grand Vacations recently acquired Diamond Resorts for $1.4 billion. And in January, Marriott announced its entry into the Asian market. These developments point to a bright future for vacation ownership.
