Recently, a news release from PRWeb reported that the future of the timeshare industry is bright.
They reported “The study (Pricewaterhouse Cooper), which focused on an industry subset of 40 companies comprising 298 timeshare resorts in active sales, showed that companies posted a healthy 14.3 per cent growth, on average, during 2006.
The findings reveal that the industry subset has reported $5.8 billion in USA originated sales (net) while average net sales per active report were $19.6 million.”
They went on to say “Major hospitality brands such as Starwood Hotels, De Vere, Hilton Grand Vacations Club, Marriott Timeshare Resales and Timeshare Disney Club Vacation are enjoying unprecedented success with their shared vacation ownership divisions, while major players such as Butlins and Club La Costa -- one of the original founders of the Organisation for Timeshare in Europe, an industry organisation that works to raise standards and protect consumers' rights -- are leading the way in Europe.”
I asked Jay about his impressions of the report:
“As the hospitality industry continues to allocate more resources towards the timeshare and fractional product the future for the resort side will remain bright. Every day thousands of new prospects are exposed to the product even though only 10 to 15 percent will actually purchase at the new sales table. With the increasing quality and acceptance of timeshare more people are realizing the value and benefits. This is not only good news for the hotel giants but translates into growth for the resort timeshare resales market as well.
Many timeshare companies continue to sell units based on ownership of weeks at specific resorts; points-based products are becoming widespread throughout the industry. The points based product may have its positive side offering increased flexibility and can have a profitable effect on closing percentage's at the new sales table it also has a down side. The developer has the right to change the values, options, benefits and rules. Just as the wild west past of timeshare is beginning to fade because as we all know time heals all. Here comes the proliferation of the point based product and a new shell game enters the picture. Furthermore, regulators and consumers alike need to be cognizant of the one to one purchaser to accommodation ratio when considering a points based product. As always in this business: caveat emptor.”