State of the U.S. Vacation Timeshare Industry Study Shows a Stable Timeshare Industry

Posted on by David Van Norman
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Timeshare Industry Stable Says Ernest and Young 2011“…the future looks very bright for the timeshare industry in the years to come.”

Ernest and Young’s 2011 study on the timeshare industry has shown a stable market, with sales of vacation products held steady with a slight increase from the previous year, while nearly 80 percent of owners continued to travel to their timeshare destination. The industry is seeing more and more rentals each year, while developers and resellers are reaching out to those not currently invested in vacation ownerships.

Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA) was quoted saying, “People are still making budget-conscious decisions when it comes to travel, which is why the value proposition of timeshare products is so appealing to our approximately 8 million owners”.

When comparing occupancy rates, timeshares are besting the hotel industry, which carries at 58% occupancy rate. This can be explained by the flexibility in today’s vacation products, which allow owners to use a kitchen in their condo, use large units like penthouses for reunions, as well as the fact that the timeshare locations are situated in some of the most desirable destinations.

Approximately 55 percent have some form of points-based products, about 73 percent of owners surveyed have ownerships of the traditional weekly type; and 36 percent of respondents have biennials.

The industry is seeing high customer satisfaction, which is shown by 45% of timeshare retail sales coming from existing owners. This is a healthy number for developers as it costs a fraction of the marketing dollars to complete a sale with an existing owner, as they are not paying the presentation costs.

So, in short, the future looks very bright for the timeshare industry in the years to come. There are many new owners entering the market, price levels are at a favorable stability, and the public is continuing to be informed about vacation ownerships.

The report was conducted by Ernst & Young and commissioned by the American Resort Development Association (ARDA) International Foundation.