Timeshares are a form of vacation ownership that provides occupants with access to resort properties for a fixed period each year. The COVID-19 pandemic has put a damper on timeshare sales, but industry leaders remain confident that the market will recover shortly.
The industry’s overall occupancy rate was 81.1% in 2019, which is a testament to the fact that timeshares continue to be a popular choice for travelers. This is a significant number that highlights the resilience of the industry as a whole, and serves as a positive sign for prospective buyers looking to invest in a timeshare property.
It’s important to remember that purchasing a timeshare is a serious investment that comes with a substantial financial cost. As such, it’s crucial that consumers understand the full details of what they’re getting into before making a purchase. To this end, there are several important statistics that prospective buyers should take into account when evaluating the market for a timeshare.
A common way to reduce the cost of a timeshare is by exchanging it for points in another resort system. This can be done with resorts owned by the same company (internal exchange), or with other resorts in the ARDA membership network (external exchange). In addition to reducing the upfront costs of purchasing a timeshare, this option allows owners to expand their vacation options without incurring additional expenses.
When purchasing a timeshare, it’s important to understand the various types of contracts that are available. While some companies offer timeshares in perpetuity, others only sell them with the right to use for a set amount of years. The most common type of timeshare contract is a Right to Use contract, which grants the owner the right to use the property for a specified number of years. In general, these contracts last between 30-99 years.
In 2005, the timeshare industry contributed $92 billion to the national economy. This figure includes direct spending by owners and guests, as well as indirect jobs created through visitor spending at other businesses. These figures serve as a strong indicator that the timeshare industry is a valuable contributor to the tourism sector and that it continues to have a growing impact on the economy.
The timeshare industry has come a long way since its inception nearly thirty years ago. While it initially suffered from dubious business practices and a poor consumer image, it has now transformed into a reputable source of vacation property ownership.
One of the main reasons for this turnaround is the efforts of private groups like Timeshare Exit Team, TimeShatter, and Timeshare Freedom Group. These organizations are dedicated to helping consumers exit their timeshare agreements, and they have helped many people get out of their contracts with minimal or no monetary loss.
The industry’s current landscape is characterized by a few large, publicly-quoted multi-site branded operators and a myriad of smaller, independent single-site timeshare companies. As these large outfits consolidate, they’re putting the smaller firms at a disadvantage. This is an issue that needs to be addressed in order to maintain the integrity of the marketplace and prevent consumers from being abused.