Timeshare Resale in the 2010’s: The Decade of the Timeshare Owner

Published over 12 years ago

It’s safe to say that most of us in the timeshare industry are happy to close the door on the last decade. Though the Aughts (or the 00’s, or whatever) brought some advances to our industry, they carried over many of the same problems we faced during the previous century. Ultimately, over the last ten years,
timeshare
continued to be defined by resort developers
; a paradigm that’s done a good job of selling ‘new’ timeshares, but has left many owners frustrated over their ability to sell once their needs change.

The ‘credit crisis’ of the last couple years has lead to developers scaling back their marketing, raising their lending standards, and even appealing (unsuccessfully) to Washington for a
bail-out. During the same time, American families have begun
borrowing less, saving more, and finding ways to
do more while living on less
. In the midst of this apparent turmoil, resales have quietly grown to represent a much larger share of the timeshare market. While many of these sales have been at prices significantly less than market value, the fact remains that more timeshare buyers than ever are choosing resales over developer inventory.## The Decade of The Timeshare Owner

Recently,
ARDA reported that while hotel occupancy has been stagnant at 60%, timeshare occupancy has remained a strong 80%. One explanation that’s been suggested for this is that while most Americans couldn’t afford to vacation, timeshare owners that had pre-paid for their vacations were able to continue vacationing –
because they could still afford it
. As more mainstream news media and consumer advocates point out the disparities in quality of vacations, and affordability, that exist between owners and non-owners, American families should increasingly consider timeshare ownership as an alternative ‘vacation investment tool.’

During the ‘developer decades,’ the thinking went that, since timeshare’s value is so difficult to illustrate simply, it can
only be explained in intensive, private sessions between potential buyers and a developer representative (i.e. the timeshare tour.) During ‘the decade of the timeshare owner,’ no high-pressure tactics are required to
sell timeshares – the value proposition alone is enough to attract potential buyers. Developers can’t pitch timeshare
solelyon its value for one simple reason: the interest rates they charge on timeshare notes. With timeshare resales, not only are prices lower, buyers can choose their own financing, or just
buy a timeshare for cash. In a resale scenario,
the only reason to buy a timeshare is value
: actual savings on vacations, and better quality vacations.

Proactive Owners are the Best Owners

Economic and societal factors may bring more attention to the value of timeshare ownership, but to fully realize the dream of ‘the decade of the timeshare owner,’
timeshare itself needs an image rehabilitation
. If we continue to make developers solely responsible for this, as we have over the last two decades, then developers will continue to reap the benefits of an increasingly attractive product. If timeshare owners themselves will take an active role in shaping perceptions of timeshare, then they too can benefit from the image makeover.

It’s been said here on helptimeshare.com before, but it bears repeating: If you have a problem with your current timeshare ownership, address it with your
HOA
privately. The place to vent frustrations with your resort developer, exchange company, or resale provider is
not on the internet – not if you care about: 1.) Your resale value, 2.) Your fellow owner’s resale values, 3.) Your exchange value, 4.) The company’s willingness to resolve the problem.

Looking Forward

If you own timeshare now, make it your commitment this decade to be a proactive
timeshare owner. Make an attempt to attend HOA meetings. Tell a friend (or two) about why you like owning timeshare. Visit a travel website and write a complimentary review of your resort. At a time when American families are watching their budgets more than ever, timeshare ownership makes sense
becauseof its value. When happy owners share their experiences with timeshare, and take responsibility for shaping perceptions,
buying a timeshare resale will be the norm, rather than the exception
– and posterity will look back on the next ten years as ‘The Decade of the Timeshare Owner!’