Timeshare News: Industry Updates and Breaking Stories
Buying a timeshare is a commitment that can last decades. This can be a difficult decision for many consumers, particularly those who are used to making short-term vacation decisions. But the industry has made efforts to make it more clear what they are purchasing.
The first thing buyers should understand is that they are not buying real estate, which can be resold at any time. They are purchasing the right to use a specific resort every year for an extended period of time at a predetermined rate.
Consumer advocates warn that this is a very long-term commitment, and one that can be difficult to break. They encourage potential buyers to have these discussions with the company they are considering buying from and to avoid signing a contract that requires them to pay big fees in advance of being able to end their timeshare ownership.
In addition, timeshare companies are known for using high-interest rates to fund their business operations. This creates a risk that they will need to raise capital if interest rates go up in the future, which can cause them to lose value.
During a downturn, timeshare sales can suffer as consumers cut back on discretionary spending. But some analysts suggest that the luxury timeshare market might be insulated from the effects of a recession because these companies have a higher-than-average net worth among their owners.
This is an especially important point in the case of Marriott Vacations Worldwide, which has a customer base that self-reports having an average annual income of $1.5 million. These higher-income travelers might be more likely to splurge on travel during a downturn.
The Timeshare Industry is in an Uptrend
While a few companies have experienced some struggles in recent years, the overall timeshare sector has been enjoying record growth. This is due in part to the global easing of regulations that are making it easier for more people to travel and spend money abroad.
Timeshare developers have also begun to focus on developing new product offerings that will keep consumers coming back for more. For example, Marriott Vacations Worldwide recently launched a program called Abound that will allow owners to exchange their timeshares for stays at other Marriott brands.
The timeshare market has a lot of growth ahead of it. This is because many of the biggest timeshare companies are expanding their resorts to more attractive locations, which can be a major selling point for prospective customers.
Moreover, the timeshare industry has also been focusing on ways to attract millennials who aren’t as interested in making long-term commitments. This can include introducing subscription services or partnering with companies like Airbnb to offer short-term accommodation products.
Another positive sign for the timeshare industry is that more hotels are opening in desirable destinations. This will help timeshare companies compete with other hotel chains.
In fact, a large number of new resorts are expected to open in the next few years as timeshare developers continue their aggressive expansion plans.
