Ninth year of growth for US timeshare industry
The U.S. timeshare industry witnessed its ninth consecutive year of growth in 2018 – positive news that is sure to be welcomed by the wider global vacation ownership community.
The news comes from the recently-released ‘State of the Vacation Timeshare Industry: United States Study 2019 Edition’, conducted by EY for the ARDA International Foundation (AIF). The report reveals that sales volume increased by nearly seven per cent to $10.2 billion and the average occupancy rate was consistent at 80.8 per cent in 2018.
Jason Gamel, president and CEO of the American Resort Development Association (ARDA), said: “Our members continue to evolve their product and strive to provide owners and guests unique and experiential vacations at a great value.
“Timeshare offers owners and guests the ability to vacation at over 1,500 resorts in the U.S. and over 5,300 resorts worldwide. In addition to offering more space for the entire family, including kitchens, our members’ resorts provide owners and guests with high brand standards and a consistent vacation experience that is regulated for safety, security, health codes, business licensing and accessibility.”
Sales volume rose from $9.6 billion in 2017 to $10.2 billion in 2018, nearly a seven per cent increase and more than 26 percent increase since 2014 – an average of six per cent annually. Rental revenue increased from $2.3 billion in 2017 to $2.4 billion in 2018.
Average occupancy rate was nearly 81 per cent in 2018, compared to the 66.2 per cent average hotel occupancy rate. This higher occupancy rates extend benefits beyond the resort itself, into the local surrounding markets and communities such as spending at local restaurants, purchasing groceries for the fully-equipped in-unit kitchens, and on other experiential and cultural activities that timeshare resorts are able to offer due to their deep community involvement.
“Today’s vacationer is looking beyond resort amenities and for unique experiences both on and off property,” continued Gamel.
“The combination of our on-site staff that are rooted in the community and our single focus on hospitality, enables us to provide guests with the knowledge to experience the local culture and unique activities, whether that be through an immersive cooking class on property or a first-hand recommendation of the area’s best kept secrets.”
There were 1,580 timeshare resorts in the United States in 2018, representing approximately 204,100 units. About 68 per cent of timeshare units are two bedrooms or more and the average unit size is over 1,000 square feet. Annual maintenance fees averaged $1,000 in 2018, an increase of just two per cent over 2017.
For a copy of the full State of the study, visit www.arda.org/foundation.