Timeshare Trends Blog

Timeshare occupancy is strong despite a weak economy. According to the AIF State of the Vacation Timeshare Industry: United States Study, 2010 Edition, prepared by Ernst and Young, the timeshare industry reported an average of 79.7% occupancy rate in 2009, compared with the 54.7% occupancy rate at the hotel industry. Around 54% of resorts are at least 80-percent occupied, and 34% have occupancy of at least 90%. Only 12% of resorts are less than 60-percent occupied.

Bookmark To:

Resale Integrity offers free service to report timeshare resale fraud. Resale Integrity, a non-profit group dedicated to stopping fraudulent resale companies, is offering a totally free service to report resale fraud. Timeshare resale fraud is a growing problem in the vacation industry, with many companies stating that they have buyers waiting, or that the property is “guaranteed” to be sold in a short period of time. Resale Integrity will report the fraud to the appropriate government regulator. The best way to stop the fraud is to have these bad actors put out of business. In addition: #1- There is no fee or cost associated with this service. It is a totally free service.  #2- They will not disclose any of your personal data for any purpose other than to report resale fraud to the government. #3- They cannot obtain a refund for the consumer. This must be obtained from the resale company or your credit card company. To report timeshare resale fraud, email all of the details to reportfraud@resaleintegrity.com, or call the Fraud Hotline toll free at 1-866-605-2217

Bookmark To:

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.

Bookmark To:

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.

Bookmark To:

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.

Bookmark To:

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%

Bookmark To:

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.”

Bookmark To:

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.

Bookmark To:

Experts continue to paint a bleak picture of the industry’s financing operations as discussed in recent meetings where timeshare executives gathered for the 11th Annual Vacation Ownership Investment Conference recently held at the Peabody Hotel in Orlando.

Not much has changed since the capital markets ceased last fall, making it difficult for timeshares to fund development and sales. The good news is that, after a year, developers have at least adapted to the new conditions. Because of a lack of financing, timeshare developers deliberately slowed sales this year. Total industry sales this year are likely to total between $6 billion and $8 billion, which is equivalent to sales in 2004.

Bookmark To:

Recent surveys of the timeshare industry demonstrate continued owner satisfaction. The timeshare industry uses various types of studies to measure timeshare guest or timeshare owner satisfaction. The State of the Vacation Timeshare Industry: United States Study 2009 is prepared by primarily using data provided by the timeshare resorts, timeshare developers, and management companies, through a survey commissioned by the ARDA International Foundation (AIF) and conducted by Ernst & Young LLP.

The study has demonstrated that there is continued owner satisfaction with timeshares. One fact cited by the study point out that 41% of timeshare sales are from timeshare buyers who already own a timeshare with that developer. The AIF report also showed that timeshare resorts were able to add timeshare units and that timeshare occupancy rates have actually increased, with approximately 67% of resorts being at least 80% occupied, and 40% having occupancy of at least 90%.

Bookmark To: