Sales of vacation products increased slightly from the previous year, according to the State of the Vacation Timeshare Industry: United States Study 2012 Edition conducted by Ernst & Young. While nearly 80 percent of owners continue to travel to their timeshare destination—a figure that continues to outpace traditional hotel occupancy (60 percent in 2011 according to Smith Travel Research December 2011 report) year after year. Twelve percent of the timeshare occupancy rate was comprised of renters, with 86 percent of timeshare resorts offering some form of rental program.
“Our 8 million owners continue to value the proposition of vacationing better with timeshare as the products offer flexibility and rejuvenating amenities for the whole family,” said Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA).
ARDA points to the spacious accommodations which allow guests the option to prepare meals in their timeshare unit rather than dining out for every meal when vacationing with a traditional hotel stay. The expanded rental programs is also a factor in attracting new consumers to the timeshare vacation products. Fifty-eight percent of timeshare sales are from new owners, and 72 percent of resorts have at least half of their sales from new owners, according to the survey.
In addition, timeshare resorts continue to add flexibility and ease to the way a consumer can buy timeshare intervals. Instead of selling just one week per year, many offer increased flexibility through “points-based” programs that owners can use to customize their vacation needs. They can break up or extend vacation weeks, travel during various times of the year, and/or stay in various unit types at a range of locations. Some vacation programs also offer biennial products that allow owners to use intervals every other year, instead of each year. About 72 percent of survey respondents have intervals of the traditional weekly variety; about 67 percent have some form of points-based products; and 42 percent of respondents offer biennials.
The continued growth in the timeshare rental market and timeshare sales from existing owners is also an indicator of the industry’s vitality. In 2011, renters accounted for 10.4 million nights of total occupancy, while 42 percent of timeshare sales were from those who already owned a timeshare product, demonstrating the continued high satisfaction with the product offerings.
The study concluded that the industry’s outlook for the future remains positive based on consumer demand for expanded product offerings, occupancy remaining steady, and the success of rental programs with existing inventory.
Overall, a very bright picture for the future of the timeshare vacation industry!
Advantage Vacation is a member of the American Resort Development Association (ARDA) and offers the best buys on the timeshare re sales market today. We never charge an upfront fee for clients who want to sell a timeshare and only receive a commission, paid from escrow, when the transaction is closed.
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