Timeshare Trends Blog

Among timeshare owners, owner satisfaction rates are high, while defaults are low. According to the latest research by the American Resort Development Association (ARDA) and Smith Travel Research, despite the fact that timeshare sales continue to reflect the national trend of lower consumer spending, there are 80% occupancy rates in timeshares versus a 60.4% hotel occupancy rate.

Timeshare buyers also remain happy about their purchases with 86% reporting that they are satisfied are very satisfied with their purchase. Research also indicates that nine out of ten timeshare owners are current on their monthly payments.

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FRAUD ALERT

WE HAVE BEEN ALERTED TO A NEW FRAUD BEING PERPETRATED ON OUR CUSTOMERS.

COMPANIES ARE CALLING OUR CUSTOMERS AND ADVISING THEM THAT THEY WORK WITH TIMESHARES BY OWNER® AND THAT THEY HAVE A BUYER. THEY FURTHER STATE YOUR LISTING PRICE, THAT THEY ARE A FINANCE COMPANY, AND THAT THE BUYER HAS ALREADY DEPOSITED 20% OF THE PURCHASE PRICE. THEY REQUIRE THE PAYMENT OF A FEE FOR CLOSING AND FINANCE CHARGES.

THIS IS A FRAUD THAT IS BEING CONDUCTED WITHOUT OUR AUTHORIZATION. WE DO NOT WORK WITH ANY OTHER COMPANY TO SELL YOUR TIMESHARE. IF THE COMMUNICATIONS DOES NOT COME FROM US, IT IS FRAUDULENT.

IF YOU RECEIVE THIS CALL, PLEASE CALL BECKY GOMEZ OF TIMESHARES BY OWNER® IMMEDIATELY TO REPORT IT AT 888-707-8463.

THANK YOU FROM THE STAFF OF TIMESHARES BY OWNER

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The timeshare industry has recently seen its single largest increase in maintenance fees according to a report from Apex Professionals LLC. According to their report, with the recession, timeshare owners around the world have had to reconsider their once affordable timeshares as debt they need to eliminate. The Apex Professionals report spotlighted one developer that seems to be a major player in this game of increasing fees, which is Diamond Resorts International (DRI).

The annual maintenance fees for a DRI property have doubled since 2001, increasing from $695 to $1,400 today in 2009. Owners of DRI properties seem to have a common complaint and concern over how quickly the fees are increasing, and although, DRI is not the only company guilty of this trend, they are currently in the spotlight due to owners demanding answers and drawing attention to the situation.

Like many other timeshare owners, DRI owners have been feeling powerless with decisions on maintenance fees and special assessments, which is mainly due to the fact that most owners associations and board members are employees to that particular developer. It is rare to find a large developer today that isn’t designed that way. With this structure, it is nearly impossible for the owners to have control over their properties and the fees that come along with it.

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The Club La Costa Resorts and Hotels have been undergoing a major restructuring in response to the changing trends caused by the worst global recession to affect the holiday industry. Recently, the company moved to close down four of its five off-site sales operations in the United Kingdom due to the country’s continuing economic battering, to refocus on new programs aimed at increased activity.

Club La Costa Resort’s prestigious sales and exhibition center in London’s West End continues to operate, but a decision was made to shut down its other sites as their effectiveness in the current financial climate was under question.

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The Orlando area’s hotel occupancy rate has decreased another 6.7% from a year ago despite providing deep discounts. Orlando’s hotels filled 57.5% of their rooms, according to a report by Smith Travel Research, and the decline occurred despite heavy cuts in prices.

The average daily rate fell 14.6% to $91.36. Revenue per available room, a key industry measure fell 20.3% in October. The hardest hit area was International Drive, where the Hilton Orlando opened in September adding 1,400 rooms. Occupancy in the International Drive area fell 9.2% in October despite price cuts of more than 18%

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Disney Vacation Club has launched a new bonus strategy for its staff in a bid to boost the number of people that use its resorts. The timeshare club is adjusting its salary and bonus strategy to try to encourage members of its staff to help increase sales of Disney timeshare units.

Rena Langley, spokesperson for the Disney Vacation Club, explained that the pay structure among advance sales associates will enable them to provide more reward and recognition to top performers in the sales team. Disney timeshares have long been a popular option among European timeshare holders and new research shows that sales have been increasing among adults and couples without children.

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Timeshare owners often rent first. Half of recent purchasers have rented a unit prior to buying, according to the Vacation Timeshare Owners Report, 2009 Edition by the ARDA. Also reported, recent timeshare purchasers are younger, wealthier and happy with their vacation product.

Overall, more than six in ten timeshare owners are age 45 or older, with Bby Boomers ranked as the largest generation of timeshare owners (45%). However, recent purchasers are younger than timeshare owners in general, with 58% under the age of 45.

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Timeshare division of Marriott International has hurt earnings. According to the Orlando Sentinel, Marriott International lost $466 million in the recent quarter on hefty impairment charges from its Orlando-based timeshare business, which declined drastically in the recession as vacationers cut back spending.

Marriott lost $1.31 a share for the period ending September 11 compared with a profit of $94 million or 25 cents a share a year earlier. In the recent quarter, adjusted timeshare contract sales declined 42% to $176 million, compared with $49 million in the prior year quarter.

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Hawaii timeshare occupancy has increased in 2009. Despite the economy and its impact on Hawaii, according to the Honolulu Star Bulletin, timeshare visitors have posted solid gains.

According to the newspaper, “The number of visitors who stayed in a timeshare for part of their Hawaii vacation rose by 4.6 percent during the first six months of this year, with the number of visitors who spent their entire vacation in a timeshare up by 5.8 percent, according to data from the Hawaii Tourism Authority.”

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Despite tighter credit markets and high unemployment rates, the U.S. timeshare industry continues to demonstrate its resilience.

Although overall sales continue to reflect the national trend of lower consumer spending, timeshare owners continue to enjoy their pre-paid timeshare vacations, with an 80% occupancy rate and an 86% product approval rate. This compares with a 60.4% hotel occupancy rate, according to Smith Travel Research.

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