U.S. Timeshare Industry Sees Eighth Straight Year of Growth
Monday, June 18, 2018
For the eighth year in a row, the United States timeshare industry has seen growth. This study and information is from the State of the Vacation Timeshare Industry: United States Study 2018 Edition, and is conducted by EY for the ARDA International Foundation (AID). In 2017, sales volume increased nearly four percent to $9.6 billion. Average occupancy rate was over 81 percent as well.
Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA) spoke on the perks of timeshare vacations that attribute to the growth:
“Eight years of consecutive growth attests to timeshare’s unique value proposition for vacationers. Timeshare offers more space and privacy for the whole family, tremendous use-value over time, and over 5,300 resorts worldwide to choose from, coupled with the health benefits of vacationing on a regular basis. This is a product and industry positioned to provide incredible vacation experiences well into the future.”
Sales volume went from $9.2 billion in 2016 to $9.6 billion in 2017. A four percent increase and more than a 26 percent increase since 2013. Rental revenue has also increased by 20 percent from $1.9 billion in 2016 to $2.3 billion in 2017.
Occupancy rates are also up with more than 81 percent in 2017, whereas the average hotel occupancy rates were just 65.9 percent. Beyond the benefits of higher occupancy rates to the resort itself, the local surrounding markets are seeing benefits with visitors dining at local restaurants, purchasing groceries for their timeshare kitchen, and purchasing gas for rental cars.
The United States has 1,570 timeshare resorts in 2017 with around 205,100 unites. 72 percent of timeshare units are two bedrooms or more, and the average unit size is over 1,000 square feet. Maintenance fees have remained about the same since 2016, with only a one percent increase.
Other interesting things to note from the study include:
- Beach resorts are the most common type of timeshare resort (34 percent)
- Island resorts have the highest occupancy (90 percent)
- Florida has the most timeshare resorts (373)
- Nevada has the largest timeshare resorts (249 units on average)
To learn more about the timeshare industry this study, visit the ARDA website, where you can download a full copy of the State of the Industry and view the ARDA’s Infographic Timeshare in 2018: Paradise Found.