Timeshare resale is a growing market. That much is clear when you look at the figures. Resale equates to approximately 10% of all timeshares bought year on year in Europe and the USA.
Such growth is due in part to reputable timeshare resale brokers affiliated with industry governing bodies, such as RDO, TATOC, and ARDA. At 2016’s annual RDO conference, Interval International President David Gilbert took the reins and brought forth a presentation which highlighted some key points about the growth of the resale market.
Timeshare Resale: the 2015 Insight Study
II’s 2015 Insight Study aimed to obtain a better understanding of timeshare owners in four key world areas. There were Europe, the USA, Asia/Pacific, and Mexico. The study covers such salient points such as:
- Where they bought their timeshare
- Factors that led to their purchase
- What type of timeshare product they own
- From where they would be most likely to purchase additional timeshare products, and more
The results were certainly illuminating for everyone in the industry, but particularly for those involved in the resale market. For a niche market in a somewhat niche industry, we need to work hard! Much of the work for timeshare resale brokers comes from a need to elevate and adjust consumer perception. For those whom timeshare is not the right holiday product, it is easy for the product to be seen as a “rip off” or a “scam”.
However, the industry as a whole has dedicated much time and effort towards changing this. There are now standard procedures, strict guidelines and codes of ethics, and a professional image. All of this has been done in order to provide a holiday product that is just as viable as any other.
Timeshare Developers vs. Timeshare Resale
The Insight Study found that resort developers show the highest percentage of being the primary purchase source for timeshare owners. However, the resale market is the source for between 4 and 9% of owners worldwide. We know that it may sound low! But consider the US timeshare industry alone, which is worth $9.4 billion. It’s not such a small slice of the pie!
It also looks like owners gave similar answers for the factors that will influence them when purchasing timeshare. Three out of four world areas ranked the quality of the resort/unit as their first consideration. No one wants to buy timeshare at a shabby, unkempt resort or in a run-down unit. In fact, 90% of holidaymakers report higher quality holidays when the unit includes a kitchen (Howard Nusbaum, RDO7 Conference).
Location was also a high-ranking factor for most. Everyone wants their holiday somewhere that suits them, that gives them an escape, and that stimulates them. But of course, cost is also important, and purchase price is the third most important factor for owners. Other factors such as annual maintenance fees, exchange trading power, and flexibility of use are also in play.
Traditional vs. Modern
Flexibility is itself a growing concern. More and more owners no longer want to own timeshare on a traditional fixed-week basis. Instead, resort developers are seeing a boom in floating weeks. Owners can use these weeks at any time during set ‘seasons’, subject to availability. Other owners may instead own timeshare points. Owners can use these for holidays any time of the year, and are not tied to a particular resort. Instead, they can choose from a portfolio of locations, often spanning the globe. II’s study found that the highest percentage of points owners can be found in the Asia/Pacific region, at 31%.
And now we come to future purchases, because who doesn’t love a repeat customer? The highest percentage of owners likely to buy more timeshare was in Mexico, at 37%. Europe and Asia/Pacific followed closely behind, with USA owners showing a 12% interest. And, for the resale market, the next statistics are our proudest:
8% of European timeshare owners indicated that they would buy future timeshares from a resale company. That figure jumped to 16% in the Asia/Pacific region, and rose to a staggering 23% in the USA. This shows that the resale market really is growing in popularity. This is due to the industry’s elevations, accrued knowledge, and of course, the savings that can be made.
Why Buy Timeshare Resale?
You can purchase almost exactly the same product you would get from a resort developer on the resale market. However, always do your research on your chosen timeshare resale broker. Make sure to choose one that is affiliated with industry governing bodies such as RDO, TATOC, and/or ARDA.
When purchasing a timeshare resale, you get a high quality deal at a fraction of what you would pay a resort developer or management company. This is because resale brokers don’t have the sales and marketing costs incurred by developers. You can often find that timeshare resale weeks and points come at a significant discount, sometimes as high as 80% off the developer’s prices.
Of course, some resorts will impose certain restrictions on club benefits, but you will always get the same resort features and amenities.
Travel and Leisure Group timeshare brokers are the longest-running resale agent in Europe. We have a dedicated team of brokers available to help you find the right timeshare for your needs. If you want an annual fixed or floating week, or even a points membership with an entire portfolio waiting for you, we can assist.
Travel and Leisure Group: matching people with places… with pleasure!