Timeshare News and Updates
The timeshare industry is undergoing a transformation, moving from a passive, hotel-focused model to one that emphasizes experiential travel. Companies like Wyndham Vacation Resorts and Marriott Vacation Club are responding to this new direction by expanding their portfolios. In some cases, companies are even starting to develop new products based on timeshares.
These new products are designed to appeal to millennials and other people who may be more likely to sign up for a timeshare than an airline ticket or a hotel stay. For example, Travel + Leisure has introduced subscription services to a growing segment of the timeshare market, and the company’s recent IPO offers investors the chance to get in on this trend early.
With the economy chugging along, timeshare stocks are seeing some good momentum. The market is predicting earnings growth for the industry at around 75% this year. This is the highest rate of EPS growth in years, and it is driven by increased bookings. Inflation is also adding to the value of timeshares, as owners are able to lock in a price long-term rather than getting a hotel room with a high daily rate.
More importantly, the timeshare industry is becoming more competitive as more and more companies are developing timeshare-branded hotels and vacation homes. These hotels and homes are often less expensive than a traditional timeshare, and are often more attractive to vacationers.
As these hotels and vacation homes become more affordable to consumers, the timeshare industry will need to do a better job of attracting and keeping owners in the fold. That means making sure the properties have good on-site amenities, offering a wide variety of activities and keeping the fees low so that customers can afford them.
The best way for timeshare developers to do this is by building a deep location catalog that includes properties in attractive destinations. This will make it harder for competitors to poach existing customers, and give them confidence that they can attract and retain new ones.
For many timeshare developers, a strong location catalog is a key to their long-term success. It can help them weather economic downturns by allowing them to sell their inventory more quickly and increase their sales volume at the same time.
Another benefit of having a large catalog is that it makes it easier to diversify the product mix and avoid getting caught up in a single property market that can be difficult to navigate. TNL, for example, has a number of popular destinations across the globe in its portfolio, including Paris, Rome, Bali and Miami.
This diversity helps timeshare companies maintain their customer bases and drive growth as hotel rates go up, as well as boost the quality of their property offerings. Having a broad portfolio also helps timeshare companies differentiate themselves from other hotel operators, especially during downturns, and gives them the ability to offer additional types of experiences to their guests.
A recession may cause some timeshare companies to see a decrease in the amount of money that consumers spend on travel. In turn, that could hurt their bottom lines, although it would not necessarily affect timeshares as much as other types of vacation investments. However, if consumers cut back on their discretionary spending, it could be an opportunity for timeshare developers to raise prices to compensate for the loss of revenue.
