ARDA Reports that Modern Timeshare Owners are Young & Diverse
Wednesday, November 5, 2014
In the years since the recession America has returned to a time of growth, and that includes the timeshare industry. New resorts are being built and timeshares are being purchased, both from developers and the resale market.
ARDA, the leading association for the industry, has followed this growth period through their research division, the ARDA International Foundation (AIF). Today, the association released reported that according their recent Shared Vacation Ownership Study, modern timeshare buyers are younger, more diverse, and wealthier than ever.
President and CEO of ARDA, Howard Nusbaum said, “We’re excited not only about the fact that sales are up in our industry but also about why they are up. While existing owners continue to enjoy the lifestyle and purchase more timeshare, it’s the new owners that are responsible for the majority of qualified new sales.”
Compared to what was believed to be “typical” timeshare owners, these new owners are about ten years younger. Roughly 39% of these owners are Gen Xers and 30% are Milliennials, which makes the median age of a timeshare buyer about 39 years old.
The foundation also found the participants to be extremely diverse. Out of this group, 42% were African American or Hispanic. In addition, new timeshare owners are also extremely well educated. Amongst those polled, 72% earned a college degree and 23% received a graduate degree or higher.
As far as earnings, AIF found the median household income to be $94,800. These new owners also have money they’re willing to spend. Over 47% of new buyers chose not to mortgage their timeshare purchase, but paid it in full. Keep in mind that 57% of these buyers paid $10,000 or more on a single ownership. Although these buyers are willing to shell out the cash to purchase a timeshare, many said that it was to save on future vacations. Others stated that the reason they bought the timeshare was for the flexibility that timeshares offer.
The study had also shown that these owners were not impulse buyers. Many decided to purchase their timeshare after visiting multiple times, or having some kind of interaction with the resort. Whether they visited the resort with a friend, or attended multiple presentations, they waited until they knew it was the right decision for them.
The Shared Vacation Ownership study was commissioned by AIF and conducted by HSR Associates. To purchase the entire study, visit ARDA.org/foundation, or view their infographic ”Today’s Timeshare Owners: They’re Changing”.