A $70 billion dollar industry accounting for more than 577,000 full and part-time positions and more than $28 billion in salaries and wages, the timeshare industry in the United States contributes more than $10 billion in federal and state taxes. With 5,357 timeshare resorts in 106 countries, nearly 3 out of every 100 households in the United States owns timeshare. The business model is attractive, as it includes various recurring revenue streams. Watch this short video to better understand the Timeshare Industry Model.
The industry is unique and complex with unprecedented annual growth rates and healthy statistics even during the recent economic decline. Timeshare resorts boast annual occupancy levels that are 16 points higher than traditional hotels, providing some relief for seasonal peaks and valleys.
The timeshare industry is comprised of multiple business units and recurring revenue streams which makes it an attractive business model for developers and service providers alike. With a presence from global lodging company brands such as Wyndham, Marriott, Starwood, Hilton, Holiday Inn, as well as Disney, the industry is attractive to investors, as well. The industry business model has been referred to as a “3 legged stool”; with the recent squeeze on available funds for consumer financing, a 4th “leg” has been added to represent a mortgage bank component that many of the larger industry players have created within their organizations.
Source: ARDA International Foundation’s 2016 Analysis of the Global Shared Vacation Ownership Industry