The timeshare industry has seen a substantial rise in popularity. Timeshares offer owners a way to experience the luxury accommodations of a resort, without having to pay the full cost of the vacation. Owners receive the right to use the resort’s amenities and services during a specified period, which can vary from one week to a lifetime.
The timeshare industry has faced many problems. In the past decade, it has experienced an uptick in maintenance fees. This may be due to a mismatch between the number of units offered and the actual demand. Also, resorts may not have a reserve to cover large property expenses. Aside from that, it is also difficult to sell a timeshare.
It is crucial that owners make an effort to understand the changes taking place in the timeshare industry. These changes have been a result of the new economy. Moreover, the industry has gained new credibility and traction thanks to major brands.
Today, the timeshare industry is facing a lot of competition, especially from the likes of Airbnb and TripAdvisor. Nonetheless, it still remains a popular choice for people who seek a predictable and luxurious vacation. However, it has also come under some scrutiny from consumers. Many of these issues have to do with the sales tactics and marketing techniques used by the industry.
Despite these issues, the timeshare industry is making an impressive comeback. After a few years of slow growth, the industry recorded robust growth in 2018. There was a surge in social sharing and health and wellness travel, which drove the growth in the market. Another reason for the increased popularity is the growing presence of the Millennial generation. They have a heightened interest in the American Dream, and have contributed to the world’s innovative technology.
However, the timeshare industry has been hit hard by the COVID-19 pandemic. This prompted stricter regulations, limiting vacations to a few weeks per year, and restricting the ability to transfer ownership. Although a gradual recovery has been observed since the pandemic, the industry is still at a disadvantage.
Fortunately, a recent study by HVS Shared Ownership Services found that the timeshare industry is on track to recover by 2023. Several survey respondents are optimistic about the industry’s future. Among those surveyed, four expect the industry to grow more than 90 percent in 2022, while five expect the industry to recover fully by 2023.
With the economy on the mend, the timeshare industry is experiencing an uptick in demand. Most resorts are affiliated with an exchange company, which offers members a service where they can trade weeks for other accommodations at other resorts. Additionally, there are several private groups that provide assistance to timeshare customers.
Timeshare companies need to have integrity, honesty, and fairness when selling their products and services. If they don’t, they could be stuck in bankruptcy. To protect themselves, owners should be aware of the warning signs of a timeshare disaster and take action to avoid further letdowns.