The timeshare industry is in an interesting place right now. The market is thriving but there are also some serious challenges that could make it even more challenging in the future.
A major risk to timeshare companies is that the economy could go into a recession. This is a possibility because of the rise in interest rates, which can make it harder to attract new buyers and owners.
As a result, companies may have to tighten their belts to stay competitive in this environment. This means cutting back on advertising, fees and financing to make their products more affordable for customers.
While this might not seem like a good thing, lowering costs is an important way for companies to compete with other vacation options, such as hotels and cruises, that are more expensive. The price of a hotel room, for example, can rise by 39% over a year’s time, and prices on airline tickets can increase by 5% or more.
Many timeshares come with annual dues that can be high. Those fees can be difficult to afford, especially for people with a fixed income.
It’s possible that a resort might raise its dues to offset the cost of maintaining its buildings or other facilities. This can cause a downward spiral for timeshare owners, who might not be able to afford their payments and might then find themselves in a position where they no longer have access to the resort that they once enjoyed.
If you want to avoid these problems and are thinking of purchasing a timeshare, you need to understand what you’re buying. You need to know that when you buy a timeshare, you’re not buying a real estate property, you’re buying the right to use a specific resort for the rest of your life.
This can be an expensive and confusing investment, but it’s one that you’ll never regret. If you’re planning a family vacation with kids, or if you’re an experienced traveler, a timeshare can be the best choice for your needs.
In fact, a recent survey conducted by Timeshare Users Group (TUG) found that 8 out of 10 timeshare owners owned more than one timeshare! This is a great indicator of how happy consumers are with their timeshares.
The Timeshare Industry is in an Excellent Position Despite the Economic Downturn
For the timeshare industry, the economic downturn was not as bad as some predicted. Unlike other sectors, the timeshare industry was able to maintain sales levels through the crisis. Several major developers reported marked increases in Q3 2020, and are confident that sales will continue to grow through 2021.
Another positive trend is that timeshare owners have beaten travel inflation by locking in a lifetime of vacations. Inflation is a major concern for people who travel frequently, because it makes a lot of things more expensive.
Moreover, there’s been a big push to get people to experience more destinations in their life. Those who are looking to upgrade their timeshares can do so for free with the help of TUG, an organization that works to create better exchanges between owners by creating and running a platform that allows members to list their units in exchange for other members’ units.