Timeshare news can be helpful for consumers and investors alike. It can give insight into broader trends in the travel industry and how timeshare companies are handling the cyclical nature of their business.
The most important thing to remember about the timeshare industry is that it’s highly cyclical and can be hit hard by a bad economic cycle. That said, a company’s stock can often rise during these times as it works to recover from the downturn.
Having a large, diverse catalog of properties and locations is one of the biggest factors that can help a timeshare company stay strong. It also gives shareholders confidence in the company’s ability to attract new customers and retain existing ones.
Another key benefit is that timeshare companies can generate significant revenue from fees and financing. This can help them weather the volatility of economic conditions and ensure that they can continue to pay out a high dividend.
This is a huge advantage for TNL, which has an impressive portfolio of 245 resorts in some of the most desirable vacation destinations on the planet. It’s also a big reason why TNL is able to generate such good EPS results recently, despite its stock being down around 10% over the past few years.
The company’s debt levels are low, and it has a relatively stable relationship with lenders for revolving lines of credit that don’t require the need for liquidity injections. That makes it easier for TNL to keep rates low on its timeshare loans while still generating strong margins.
Aside from that, TNL has a deep portfolio of resorts, which provides a barrier to entry for competitors who want to compete in the timeshare space. This has helped TNL fend off the recent hotel price wars that have eroded the value of timeshares and made them more difficult to sell.
If you’re considering buying a timeshare, be sure to research the product carefully and consider the location it’s being offered in. Many timeshare salespeople will push hard to sell you a timeshare in a location that you don’t want or that you can’t afford, according to Brian Rogers, owner of the Timeshare Users Group (TUG), a website for timeshare owners.
Purchasing a timeshare that you’re not happy with is a very risky business. It’s common for salespeople to pressure you into a purchase, and then they’ll make the sale even more expensive with hidden costs.
As a result, timeshares can be a financial nightmare for many people. They can cost thousands of dollars in annual maintenance fees, assessments and other costs. And the value of the property can depreciate rapidly over the course of a year.
That can put you behind in your annual dues and force you to pay extra for repairs or upgrades that the resorts can’t cover by the funds from your annual maintenance fees. This can also affect the quality of the resort.
If you have a problem with your timeshare, you need to find the right resources to address it. A good place to start is with your timeshare salesperson. Ask to see their contract and be careful not to sign anything you don’t understand.
