The timeshare industry is expected to experience a strong growth in the coming years. The economy is on the rebound and tourism is back in demand. Timeshare products are expected to have a large part to play in this recovery. In fact, the AIF estimates that annual sales will reach $4.9 billion in 2020. However, the economic crisis has affected several industries, including the travel and hospitality sector. Thus, the timeshare industry needs to make substantive changes if it wants to maintain its market share.
In order to attract more consumers, the timeshare industry has undergone some consumer-friendly changes. One of the major changes is the move from deeded interest contracts to points ownership programs. This has increased the number of vacation options for owners. Also, the introduction of the Vacation Exchange has allowed them to trade their vacation week with others.
There are now more than 5,000 resorts in the world. Most of these resorts are affiliated with an exchange company. Owners can then exchange their vacation week with other owners and use the same property for a certain period of time. When a buyer purchases a fractional unit, they pay a higher price upfront and expect to pay more for maintenance fees.
Another change is the increasing competition among other hospitality businesses. For example, the timeshare industry competes with Airbnb and other short-term vacation rentals. As a result, it is important for timeshare companies to keep up with consumer trends.
To be successful, the timeshare industry has to address the needs of a younger generation of consumers. The ARDA International Foundation, a group dedicated to research, education, and advocacy in the timeshare industry, recently completed a study that highlighted the factors that matter most to millennials.
One of the major concerns for the timeshare industry is the increase in competition. With so many hotels and resorts in the United States, there is a need for the timeshare industry to compete for the attention of these travelers. Among the key challenges facing the timeshare industry are the lack of trust between buyers and sellers and the high level of pressure in the sales presentation.
The ARDA study revealed that in 2006, sales in the United States reached a record high of $10 billion. During the next five years, the industry is projected to experience a total of 81% increase in sales.
According to HVS, the timeshare industry has been experiencing robust growth in 2018. It is expected to continue to grow in the future. Furthermore, the resale market for timeshares will grow. Moreover, the timeshare industry is projected to expand in 2022 and 2023, with one respondent predicting that it will increase to more than 91 percent of the 2019 sales volume.
While the industry has made substantial gains over the past few years, the industry is not out of the woods yet. However, the timeshare industry will continue to grow and evolve as it captures more consumers’ interests.