ARDA Releases 2025 “State of the Vacation Timeshare Industry”

Despite macroeconomic headwinds and a shifting travel landscape, the U.S. timeshare industry enters 2025 on firm footing—leaner, more technologically savvy, and laser-focused on consumer experience. The recently released State of the Vacation Timeshare Industry: United States Study 2025 Edition, conducted by Ernst & Young LLP on behalf of ARDA, offers a compelling snapshot of how the sector has weathered post-pandemic turbulence and emerged with new vitality.

For industry professionals—from resort managers and developers to sales teams and marketers—the data tells a story of transformation. Sales volumes are stable, rental revenues are growing, and occupancy rates have bounced back stronger than ever. But behind the topline numbers is a more nuanced tale: a sector evolving through consolidation, modernization, and a strategic right-sizing of legacy inventory.

Let’s break it down.

Sales Volume Steady, Despite Inflation Pressures

According to the EY/ARDA study, total timeshare sales volume in the United States reached $10.5 billion in 2024, marking a return to near-peak levels first seen in 2022. While slightly down from 2023’s $10.6 billion, this number represents stability after a turbulent decade marked by recession, pandemic, and inflationary pressures.

The average transaction price came in at $23,160, a modest drop from 2023’s $24,170. This dip may reflect shifts in buyer behavior, as consumers—especially younger vacationers—look for lower price points, shorter-term packages, and more flexible options. It also reflects how developers are diversifying offerings to capture a broader demographic base, including millennial and Gen Z buyers who value experience and flexibility over long-term obligation.

Occupancy Outpaces Hotels: A Demand Signal

Perhaps the most striking data point from the report is the 80.0% occupancy rate across U.S. timeshare resorts in 2024. That figure not only represents full recovery from pandemic lows (49.2% in 2020), but it also vastly outperforms traditional hotel occupancy, which averaged 63.0% in 2024 according to Smith Travel Research.

What accounts for this dramatic outperformance? In part, it’s structural. Timeshare owners are contractually committed to vacations and are more likely to travel regardless of market conditions. But it’s also strategic. Developers and resort managers have made significant investments in digital guest services, in-unit amenities, and community engagement—turning vacation ownership into a dependable lifestyle product rather than a discretionary luxury.

Rental Revenue Surges to $3.2 Billion

The rental side of the business is also booming. In 2024, rental revenues hit $3.2 billion, up from $3.0 billion the year before and a massive leap from $1.3 billion in 2020. This is due not only to increased occupancy but also to rising nightly rates and more aggressive inventory management.

While timeshare salespeople may not bank on rentals for primary revenue, the rental trend signals opportunity: more travelers are sampling the timeshare experience before buying. It also opens the door to resort marketing teams who want to generate leads and build brand loyalty through trial-based funnels.

Maintenance Fees Rise with Inflation and Insurance Costs

One area of rising concern for both developers and owners is maintenance fees, which jumped from $1,260 in 2023 to $1,480 per weekly interval equivalent in 2024. That’s a nearly 17.5% increase year-over-year. While part of this is attributable to a change in the reporting pool of resorts, the majority stems from economic realities:

• Inflation has driven up the cost of labor, utilities, and goods across the board.
• Insurance premiums have skyrocketed, especially in disaster-prone areas like Florida and California.
• Some resorts are playing catch-up from deferred maintenance and underfunded reserves during the pandemic slowdown.

Developers and managers who communicate these dynamics transparently—and who reinvest visibly in property upkeep—will be better positioned to retain owner satisfaction.

Market Consolidation & Resort Contractions: A Mixed Blessing

Another major trend highlighted in the 2025 ARDA/EY study is the consolidation of the industry into fewer, larger players. Of the 573 survey respondents, a substantial 511 belong to a network of 10 or more resorts. This consolidation trend is reshaping the landscape, allowing for better economies of scale, shared marketing infrastructure, and more robust owner services.

At the same time, the total number of U.S. timeshare resorts and units has declined by about 5% since 2020. This is due to the strategic sunsetting of aging or underperforming properties—a process that, while painful for some legacy owners, may ultimately enhance the industry’s long-term health.

Resorts that can’t keep pace with modern expectations—whether due to outdated design, inaccessible locations, or deferred maintenance—are being repurposed or shuttered. In their place, developers are doubling down on new builds, refreshed branding, and urban or mixed-use concepts that appeal to today’s buyers.

Global Growth Mirrors U.S. Strength

On a global scale, the numbers are equally bullish. A recent Vacation Ownership (Timeshare) Market report from Business Research Insights projects the global market will grow from $17.7 billion in 2021 to $28.9 billion by 2028, reflecting a CAGR of 6.8%.

This international outlook reinforces the U.S. trends: vacation ownership is no longer a North American curiosity—it’s a worldwide evolution in how people plan, pay for, and personalize their leisure time. Rapidly growing middle classes in Asia-Pacific and Latin America, along with shifting work-from-anywhere policies, are giving the timeshare product new relevance and reach.

What It All Means for Industry Stakeholders

For professionals across the spectrum of timeshare development, sales, and operations, the 2025 landscape presents a clear challenge—and a clearer opportunity.
Here’s what you should be thinking about:

• If you’re a Vendor or Supplier: The industry’s growth and consolidation mean larger bulk orders and new sales opportunities—especially with multi-resort networks. Position your products and services as scalable, efficient, and tailored to the evolving demands of high-occupancy resorts.
• If you’re in Sales: The average deal size may be lower, but the volume is there. Embrace flexible product structures, educate on value, and focus on long-term ROI for families—not just “vacation savings.”
• If you’re in Resort Operations: Rising occupancy means higher expectations. Owners and renters alike demand quality, safety, and convenience. Leverage tech for check-ins, feedback, and amenity booking.
• If you’re in Marketing: Rental activity is your new lead funnel. Use trial stays, exit surveys, and post-visit follow-ups to drive interest and capture warm leads for future ownership conversations.
• If you’re in Finance or Management: Stay ahead of maintenance fee conversations with transparent communication. Align reserves and insurance strategies with climate-related risk data. Consider bulk buying and network resource sharing.

Looking Ahead: Smart Growth & Owner-Centric Innovation

The data from the 2025 ARDA/EY report is more than just metrics—it’s a roadmap. While not without its challenges, the timeshare industry is healthy, profitable, and deeply embedded in the future of travel.

Success in the next five years will depend on how well the industry continues to balance tradition with transformation. As younger generations come into purchasing power, the product must evolve—not just in how it’s sold, but in how it’s lived.

With stable sales, rising rental demand, robust occupancy, and long-term global growth on the horizon, timeshare is no longer just about vacation. It’s about lifestyle. And that’s a future worth investing in.

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Visit ARDA.org for the full report: https://www.arda.org/research-library/state-of-the-vacation-timeshare-industry-2025-ed/