Although plagued with a reputation of bait-and-switch marketing techniques, sleazy salespeople and high-pressure presentations, the vacation timeshare market is poised for a revival.
The failing housing market — coupled with the industry’s own refurbished reputation — has propelled the sales of timeshares to 10.6 billion in 2007, up from just six billion in 2003 according to Ernst and Young.
“Timeshares are not for everyone,” said John McLeod, an accountant from Annapolis who owns a timeshare in Ocean City. “But since we go to Ocean City every summer, it made sense to lock in a price at a property that we liked and felt comfortable with.”
Industry reforms, along with established travel companies like Marriott, Hilton and Wyndham joining the timeshare market, have also increased customer confidence.
“The continued growth of the timeshare industry in today’s economy is a direct indication of strong consumer satisfaction,” said Howard Nusbaum, president and CEO of the American Resort Development Association.
Timeshares should not be considered a real estate investment.
“It’s important for consumers to buy timeshares for the right reason — to use it regularly for a vacation, not as an investment,” advised Jason Tremblay, president of Sellmytimesharenow.com. “Most timeshares quickly depreciate from the sale price, similar to the way a car drops in value once driven off the lot, because of commissions, marketing and giveaways.”
A cost-effective way to get into the timeshare market is to consider buying resale from owners looking to opt out of their contracts.
“The resale market is an excellent way to buy a timeshare because, in most cases, you’re buying direct from the owner,” said Tremblay. “Resales must be priced competitively to offer the best opportunity for a sale, with timeshares often selling 30 to 40 percent below the original sale price.”
With the rising prices of gas and consumer goods, timeshares do offer value to vacationers.
Tremblay said, “With a timeshare, people are essentially buying a future vacation at today’s prices and saving on the costs of a hotel, which in many cases is far higher per day than the cost of a timeshare.
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