5 Facts to Know about the Timeshare Industry in the United States
Dec 09, 2016
A thriving travel industry is one indicator of a strong economy. One segment of the travel industry that has recently garnered attention is that of timeshares, which have seen an uptick in popularity lately. Here are five things you need to know about timeshares in the United States.
#1. Timeshare Sales are Up
In 2015, sales volume for the timeshare industry increased by more than 9 percent over 2014. This marked the sixth straight year of growth according to the American Resort Development Association. Timeshare sales in 2015 amounted to more than $8.6 billion, which was up from around $7.9 billion in 2014. This was the second-largest percentage increase since the recession.
#2. Beach Resorts are the Most Common Type
When time for a vacation, many people still prefer to spend it at the beach. Research from the American Resort Development Association also indicates that more timeshares are located on the beach than in any other setting. This could account for the fact that Florida has more timeshares than any other state. In fact, Florida is home to around 23% of all the nation’s timeshares, and is also first in sales volume.
#3. The Occupancy Rate is Higher than for Hotels
In 2015, the occupancy rate for timeshares was nearly 80 percent. That is much higher than the average of 66 percent for hotels. At 86.7%, Hawaii has the highest occupancy rate of any region. The occupancy rate for timeshares has increased by two percent over the last year, and is expected to keep climbing.
#4. The Average Number of Units is 130
There are a total of 1,547 timeshare resorts in the country, containing a total of 200,720 units. This amount to an average of 130 units per resort. More than 70% of those units have two or more bedrooms, and are larger than 1,200 square feet. Studio units are an average of 410 square feet, 1 bedroom units are around 700 square feet, and three bedroom units are approximately 1,660 square feet.
#5. Millions of Nights are Rented Each Year
According to ARDA, there were more than 10.4 million timeshare nights rented in 2015. This amounted to more than 1.8 billion in rental revenue across the industry. More and more people are looking for ways to save money on their vacation, and are choosing timeshares over hotels because they are more cost effective. There has also been an increase in the number of websites that help people rent their unused timeshares over the past few years. This number is likely to increase even more in the years to come as more people become aware of the benefits of renting timeshares.
These five facts show that the timeshare industry in the United States is stronger now than at any point in recent history. If you have been considering a timeshare, now is an excellent time to invest in one.