Timeshare Industry Development
The Timesharing concept was born in Europe and often been accredited to Paul Doumier a developer in the French Alps in the late 1960’s who coined the phrase “ It is cheaper to own the hotel than rent the room” And, it caught on!
The industry has changed along the way however millions of families today enjoy the simple concept of being able to “own their vacation”
As the industry grew typically in the 70’s and 80”s timeshares were quickly built around the world and very prominent in the U.S. in places such as Florida and Hawaii. The industry’s reputation was perceived to be less than favorable especially due to urgency placed on the choice to “buy today “and sometimes considered to be high pressure. As the industry evolved with various governing bodies placing strict measures and implementing improved regulation, the timeshare industry enjoys a much more consumer-friendly and positive reputation.
In the early days the timeshare industry had little respect. However beginning in the 1990s the timeshare industry experienced a renaissance and it continues to mature. New developer sales and timeshare resales activity continue to grow beginning a new era for this once questionable industry.
Initially timeshare properties were marketed as investments. Timeshares are not in fact investments and one should not buy a timeshare with the expectation of reselling it for a profit.
While one might buy a timeshare property to make an investment in a lifestyle, few timeshares appreciate—only the ones in choice locations during specific seasons.
The increasing positive image of the retail and timeshare industry is a result of two main factors. One is the influx of well established companies into the new sales market such as Marriott, Disney, Hilton, Hyatt, Wyndham and others. These corporations have spent significant resources informing the public of the many benefits of timeshare and counteracting the poor reputation that lingered from the early days of the timeshare industry. Branding by Marriott, Hilton, Disney, Westin, Hyatt and others has improved product image and helped new timeshare sales & resales.
The second factor is that people are realizing that the concept of timeshare is a real vacation option. With the improved industry reputation, more and more people are attracted to the idea of timesharing as opposed to discrediting the concept because of those early, new sales techniques and marketing. The day has come where consumers are waking to the idea of “Today I am going to look at buying a timeshare.”
The timeshare industry is the fastest growing segment of the Travel and Tourism industry.
A study released by the ARDA International Foundation (AIF) in 2007 and conducted by Ernst & Young, LLP points out indicators of future growth and accelerated growth in the future.
In 2006 14,000 new units were built and 11,000 in 2007. In 2008 and beyond, the current forecast is for about 47,000 new units. The Ernst & Young study showed a new sales growth of 81% over a five year period. Additionally, the number of timeshare owners in the U.S. grew from three million in 2002 to 4.4 million in 2006 with 1,615 resorts operating in the U.S. and 176,232 timeshare units. The AIF study further found that U.S. new sales reached a new high of $10 billion in 2006.
Developer/Hoteliers also have found that occupancy rates for timeshare units exceed those of their hotels
What does that say about the timeshare industry?
That demand for new timeshare-vacation clubs is growing and the resale secondary market will continue to grow proportionately.
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