Why the Timeshare Industry Continues to Build New Resorts

If you are outside the timeshare industry and have only read the headlines, you probably think timeshares are tanking at this very moment. Timeshare developers took a hit when the credit markets dried up, making it harder to arrange financing for timeshare buyers and harder to borrow money themselves for growth and expansion. But as we’ve already established, (read: Timeshares are Bulletproof Says Hotel Interactive after VOIC, Vacation Ownership Industry Conference) timeshare owners have continued to use timeshares they own, continued to enjoy the product and remain loyal to the concept.

Orlando Managing Partner with Deloitte and Touche, Michael Harding, says, yes, timeshare sales were down throughout 2009. First quarter reports for 2009 showed sales down 39.8 percent; second quarter the drop was 35 percent; in the third quarter, it was at 33.3 percent and by the fourth quarter of 2009, sales were down by only 20.4 percent. Harding explains, “The worst is over for the industry, and performance of timeshare paper will probably be better than people thought it may have been for the most part.”

People Buy Timeshares and Timeshare Resales Every Day

According to Harding’s research, the average buyer of timeshare from a developer is a homeowner, in his or her early 50’s, with a media income of $78,400. Fifty-seven percent of timeshare buyers have graduated from college. ARDA President Howard Nusbaum describes this consumer saying, “This is a very stable purchaser. They don’t walk away from responsibilities. They value vacationing and believe this product offers a better way to vacation and they will come rain or shine.”

When you understand the stability of the timeshare consumer, and the returning trend to buy timeshare, it really makes sense that many timeshare developers, including Disney Vacation Club timeshare, Marriott timeshare, and others are confidently building and growing their inventory of beautiful resorts in desirable locations.