The timeshare industry has been around for decades. Its main focus is on providing access to vacation property to a group of people, usually a family or a couple, for a certain period of time. Typically, the resorts are affiliated with an exchange company, which manages the service for the owners. Timeshares may be bought or rented and the maintenance fees are typically $1,000 per year.
Over the years, the timeshare industry has exhibited steady growth. In the United States, timeshare sales reached a new high of $10 billion in 2006. This number is expected to increase in the future. Several factors are contributing to this growth. Among them are increased demand for travel, social sharing and health and wellness travel.
The timeshare industry is now a large and stable part of the global economy. As the industry continues to grow, it has been able to capture a wider market base, including the younger generation. These consumers are interested in the luxury accommodations and convenience of timeshares. Many of these buyers are well-educated and have a mid- to upper-middle income. But there are some downsides to owning a timeshare.
One of the biggest disadvantages of owning a timeshare is the difficulty in reselling it. Since most timeshares are tied to a specific week of the year, it can be difficult to change the assigned week to another period. If you wish to switch to a different week, you may have to apply for a change of status through an act of Congress. You may also have to pay a hefty upgrade fee.
Another disadvantage is that the costs of timeshares are often unpredictable. For instance, a two-bedroom unit can be as expensive as a three-bedroom unit, and a triennial timeshare may be less expensive than a biennial or annual timeshare.
However, there are also several benefits to owning a timeshare. First, it saves you the hassle of planning your vacation. Secondly, it offers you the flexibility to choose a place to stay every year. Thirdly, it may offer you a better deal on nightly hotel expenses. Fourthly, it gives you the security of knowing that you will have a room to stay in for a given period.
Despite its many drawbacks, the timeshare industry is still a popular choice. Many of the larger hotel chains, such as Hyatt and Hilton, are now in the timeshare business. Other major players include Wyndham and Marriott.
There are also a number of governing bodies and consumer protection agencies that are involved in the timeshare industry. These groups help ensure fairness to consumers and ensure that companies adhere to strict regulations. Also, there are private groups that provide assistance to timeshare customers.
The timeshare industry is predicted to reach $17.3 billion in revenues this year. While this is only a fraction of the total industry revenues, it is a sign that the market will continue to grow.
With the rising number of millennials and baby boomers, the timeshare industry is poised for strong growth in the coming years. With the economy beginning to recover, the demand for timeshare products will likely continue to increase.