If you are a timeshare owner, or perhaps considering a purchase, you may well be wondering how the US industry has fared in the wake of the COVID-19 pandemic. To help you stay informed, let’s explore how the sector has evolved over the past few years and what the future holds for owners.

The Impact of the Pandemic on Timeshares

In 2020, as the world grappled with unprecedented restrictions, the timeshare industry faced a significant downturn. Sales volume plummeted by nearly half, dropping to approximately $4.9 billion, while rental income saw a sharp decline to around $1.3 billion. This was, of course, a direct result of global travel bans and the general atmosphere of economic uncertainty.

A Resilient Recovery

By 2024, however, the landscape has been remarkably transformed. Sales have surged to $10.5 billion, and rental revenues have reached a robust $3.2 billion. What has driven this recovery? Firstly, there has been a significant boom in domestic tourism within the United States; travellers have prioritised "staycations" and exploring their own shores.

Secondly, the timeshare product itself has evolved to become far more flexible. The industry has moved away from rigid, fixed-week models towards versatile points-based programmes and multi-resort access. This shift has made ownership considerably more convenient and appealing for the modern holidaymaker.

What Does This Mean for Owners?

Currently, resort occupancy rates are hovering around 80%—a figure notably higher than the hotel industry average. This suggests that owners are actively utilising their points or successfully letting out their intervals. Major players, such as Marriott Vacations Worldwide and Hilton Grand Vacations, continue to invest heavily in infrastructure and service enhancements. For you as an owner, this translates to better facilities, more exchange options, and a higher quality of service.

Navigating Economic Headwinds

Despite the challenges of inflation and rising interest rates, leisure travel remains a priority for many households. Timeshare ownership continues to be viewed as a more accessible alternative to purchasing a second home, as it offers the benefits of a holiday property without the substantial long-term financial burden of full ownership.

The Outlook for the Future

Experts predict a steady growth in demand. The integration of new technologies, increasingly flexible ownership models, and high levels of reported owner satisfaction are expected to propel the industry forward.

Source: “How Has the U.S. Timeshare Industry Fared in the Post-Pandemic Economy?” The Mercury and industry data from ARDA’s “State of the Vacation Timeshare Industry” reports