The timeshare industry has evolved a lot throughout its history. For a brief moment in time, the industry had a terrible image. But it is also worth mentioning that it had a resurgence in the 1990s, which helped to develop an enviable reputation.
In the US, for example, timeshare sales have increased steadily for over a decade. From a low of $3.5 billion in 2000 to a record high of $10.5 billion in 2006. During this time, the US timeshare industry generated $92 billion in economic activity and provided jobs to 62,000 people.
As the economic landscape has shifted, timeshare companies have had to re-evaluate their strategies. In response, they have become more transparent and have done a better job of conditioning their ownership base. They have also implemented consumer-friendly changes that have made their products and services more appealing to both consumers and buyers.
One of the more notable changes in the industry is the influx of new timeshare-vacation clubs. RCI and other major hospitality brands incorporated their timeshare divisions, which resulted in the introduction of diversified Vacation Ownership products. These products offered less restrictive ownership models, which appealed to savvy travelers. Among these products were fractional timeshares, which are similar to fixed week timeshares but come with a few extra amenities.
Timeshare owners and guests spent $10 billion on vacations in 2005. This amount was more than the combined revenues of all hotels and airlines. However, it was a smaller amount compared to the $92 billion in economic impact the timeshare industry had on the United States in 2005.
Nevertheless, the timeshare industry has a strong presence in the global economy. It is estimated that the resale secondary market will continue to grow. Also, there is a huge demand for new timeshare-vacation clubs. There are more than 4.1 million households that use their timeshare rights. With the increasing availability, more and more consumers will be interested in buying their own timeshares.
The timeshare industry is a polarizing one between many small independent single site operators and a few large publicly quoted multi-site branded operators. Regardless of where you stand, it is important to remember that you cannot buy timeshares without traveling. So, if you are in the market for a timeshare, you are wise to book your vacation dates early. You can also take advantage of free information from the RDO, the official trade association for the timeshare industry in Europe.
A recent study by HVS Shared Ownership Services found that the timeshare industry is on the rebound. Specifically, it showed that there was a 50% rate of respondent satisfaction on the industry’s overall recovery, based on a survey of the top 16 timeshare companies. Four of eight respondents indicated that they believe timeshare sales volume will reach ninety-one percent to 100 percent of their 2019 levels by 2022. Of these, one respondent thought that timeshare sales volume in 2022 would exceed the level of sales in 2019.
The ARDA International Foundation, a timeshare research and education organization, published a study in 2007 that projected an 81% growth in sales over the next five years. Although this statistic is a mere 1% higher than the HVS study’s estimate, it is a good indicator of how the industry is faring.