Despite economic recessions, inflation and political unrest, the timeshare industry has managed to thrive. Unlike other hospitality and tourism industries, timeshare companies have been able to sustain double-digit percentage growth for more than a decade during periods of worldwide economic volatility.
The growth of the timeshare industry has been driven by rising internet penetration and rapid urbanization. The growing popularity of international tours has also contributed to its growth, as many people are now opting for vacations abroad for both business and leisure purposes.
There are many different types of timeshare resorts available, including traditional or fixed-week units and fractionals. Fractionals, which are more expensive and larger apartments or homes than traditional timeshares, offer a variety of amenities and a higher quality construction and finish.
Most fractional owners purchase units for a fixed week, or one that is guaranteed to be available during a certain season each year. For some people, this is a good way to avoid the hassle of changing weeks when they get bored with their vacation spot.
However, there are some disadvantages to timeshare ownership. First, timeshare properties can degrade over time as they become less desirable for original purchasers and lose most or all resale value. This can result from lower initial quality, inadequate maintenance and management and increased user traffic.
The number of timeshare owners per unit is also a factor to consider, as it affects the owner’s sense of pride in their property and how much they care for it. For example, if a large number of owners are involved in a property’s operation, the owners can feel isolated and deprived of an emotional connection to the property.
As a result, they often become apathetic about the property and its needs, and can be difficult to keep up with. This, combined with the fact that they visit their properties only once a year for a short period of time, can lead to wear and tear on the property, which is not in keeping with the overall quality and reputation of the resort or hotel it represents.
Another major concern is that the ownership of a timeshare can be costly, with annual fees, maintenance fees and annual dues that must be paid each year. This can cause the owner to spend more than they planned, and may have a negative impact on their finances.
The timeshare industry is regulated by various governmental and regulatory bodies, as well as by consumer protection agencies. The governing bodies have a vested interest in ensuring that the industry is fair and operates ethically. In addition, they have to ensure that the interests of the consumer are protected at all times.
