Timeshare Sales in Rebound as Developers Shop Rather than Build
Monday, October 18, 2010
Many will be surprised to learn that in an assessment recently released by an expert for the Gerson Lehman Group, the future of timeshares appears bright. Despite bankruptcies by Celebrity and Island One, most timeshare companies have been able to effectively cut costs, reduce payrolls, and sell more efficiently—taking much the same approach to living leaner that many individuals worldwide have used with their personal finances.
And for the timeshare industry, this belt tightening appears to be paying off. According to the GLG report, 12 to15 percent growth is a viable forecast for the timeshare industry over the next twelve months. While money for new timeshare construction may still be tight, the natural balance that so often comes to play in the economic world is evening things out, providing a ready-made inventory for timeshare expansion.
As residential and vacation condo development has become more available to acquire, (in the form of ‘failed condo projects,’) timeshare companies have been able to step in and creatively ‘shop’ for desirable properties in all stages of development—often at very attractive prices. On top of the developer’s capability to ‘bailout’ other construction projects, timeshare ownership itself has proven to be a much-needed stabilizer to the tourism industry. The author explains it, saying:
“One interesting point about this two-year dip in the economy, while many people postponed or shortened vacations, for the most part, they didn’t stop taking vacations. Those who owned their timeshare already, were able to use their previous purchase to minimize their vacation costs in this poor economy. Owning timeshare in this economy has been an advantage for many people.”
Ironic, isn’t it, that although the mainstream mindset is often critical of timeshares and timeshare ownership, in the end, the need for timeshare developers to expand to new properties and the stability of timeshare owners to continue to vacation, is proving to be an important contributor to the restoration of our economy.