Timeshare Sales Analysis Overlooks Timeshare Resales
Tuesday, June 24, 2008
When financial analysts for Goldman Sachs looked at the timeshare industry recently, they may have overlooked something very important – the impact of timeshare resales.
In an article released last week, CNN.com reported that financial analyst Steven Kent, had observed that the timeshare industry would be one segment of the economy likely to see growth in 2008. Kent noted that the timeshare industry would probably see gains despite the real estate slump and the credit crunch. But he overlooked one other very important fact; he failed to give credit to timeshare resales for also slowing the sales of new timeshare.
While the lodging industry overall is feeling the crunch as consumers tighten their grasp on their dollars, timesharing is one segment of the hotel and lodging arena that continues to grow. But the timeshare industry isn’t escaping the weak economy totally unscathed; increases in the number of timeshares sold will be only slightly greater in 2008 than they were in 2007. In other words, timeshare sales are predicted to increase this year, but the percentage of growth will be less than it has been in the past.
The Associated Press article noted that Marriott International Inc, shares had fallen by 17 cents to $28.25 after hitting an earlier three-year low of $28.01. Similarly, Wyndham Worldwide Corp had gained 26 cents, but only after having already dropped to a low of $18.64 earlier that same day. While analysts may point their finger at the overall weak US economy, they are remiss in not addressing the effect timeshare resales have on the sale of new timeshares.
The Attraction of Timeshare Resales
Thanks to online timeshare advertising services like Sell My Timeshare NOW, it has become remarkably easy for timeshare owners to advertise their timeshare for sale, gaining global visibility on the World Wide Web. People interested in buying timeshare are turning to the resale marketplace to buy the same properties sold as new timeshare, but at a fraction of the price.
To quote James Carville, in advising former President Bill Clinton during his successful political campaign against former President George H. W. Bush, “…it’s the economy, stupid.”
But in this case, it’s also the value and ease of buying timeshare resales.
Economists, peering into their crystal balls, are negligent when they overlook the incredible impact that timeshare resales have on the sale of timeshares purchased from developers. As more and more people come to understand that the best values in vacation lodging today are in timeshare resales and timeshare rentals, bought or rented directly from the people who own them now, timeshare developers will continue to see changes in the timeshare marketplace.
…And that’s okay. The automobile industry can handle the co-existence of dealers that sell new cars, dealers that sell previously owned cars, dealers that sell both, and current car owners that resell their cars themselves…it works with cars…and it works with timeshares.