Millennials now account for half of all timeshare owners, a 2022 report by the American Resort Development Association finds. In fact, the average age of a timeshare owner is now 39 years old.
In the past decade, the timeshare industry has been quietly transforming from something your grandparents owned for an annual week in January to a dynamic, anytime vacation rental.
Millennials are embracing this change and becoming the newest generation to buy timeshares.
New generation of owners
Unlike the traditional timeshare owner – retired grandparents who almost always went to Hawaii or Florida – today’s owner doesn’t rely on certain properties or dates. Timeshare programs like Club Wyndham and Hilton sell ownership by way of points, exchangeable for stays in any of their hundreds of properties worldwide.
Several factors contribute to the appeal of timeshares to millennials. The generation values vacations, new experiences, and guaranteed yearly vacations fit their priorities. Plus, as more millennials work remotely, timeshares can provide a home away from home.
The ARDA report notes 63% of timeshare owners say nothing will stop them from taking a desired vacation. This determination to prioritize travel and relaxation is a defining characteristic of the millennial approach to work-life balance.
How expensive?
Typical timeshare owners pay upfront costs of $23,940 and $1,000 maintenance fees annually.
While that does seem like a lot of money, most owners see it as an investment in their future.
Timeshare costs vary widely depending on location. For example, one Club Wyndham employee says their most expensive timeshares were in Las Vegas, while the cheapest timeshares are in the Midwest.
A $23,940 investment will give you 1-2 weeks of vacation in any of their properties – just one week during the busy season. An offseason stay can last two weeks or more.
Some millennials find creative ways to enter the market, like resale purchases or investing with friends or family.
Why timeshares?
Quite simply, a timeshare has and holds financial value, while a hotel or Airbnb does not. The only way to gain is to be a property owner. Do you want to invest in a piece of your vacation, or pay higher and higher hotel and bed prices while you wish you had a timeshare?
As hotel and vacation rental prices continue to rise, especially in popular destinations, locking in vacation costs at today’s prices is particularly attractive to millennials. The fixed costs associated with timeshare ownership can mean significant savings over time, particularly appealing to those buying timeshares in locations with lower maintenance fees.
Long-term investment
The most telling statistic from the ARDA report: 71% of timeshare owners plan to upgrade or purchase additional timeshares within the next two years.
This high level of satisfaction and desire to reinvest indicates timeshare ownership delivers value to the millennial buyer.
Ownership means more travel
Timeshare ownership can influence vacation habits. A Timeshare Users Group study found 79% of owners take more vacations than they would without their timeshare. The ARDA report puts the number at an average of four vacations per year for timeshare owners.
Granted, there’s no evidence to prove people who love to travel a lot buy timeshares, or that owners suddenly travel a lot, just more consistently. But if you do want to catch the vacation bug, the purchase of a timeshare could be key.
Will this boom continue?
Millennials continue to change the conversation around timeshares and vacationing. The travel industry is experiencing an ongoing shift as millennials change the conversation around timeshares.
Will a millennial who buys a timeshare today at age 30 still own it 40 years from now? No one can say for certain, although the companies certainly hope so. Minds, hearts and prevailing trends change all the time.
But the best way for the timeshare companies to stay relevant and maintain their voice in the conversation is to continue to evolve by offering flexibility and value.
This article was produced by Media Decision and syndicated by Wealth of Geeks.