Shaping the Timeshare Narrative for a New Generation: A Focus on Modern Travel Trends

During the American Resort Development Association’s (ARDA) 2024 ARDAventure—a first-class annual VIP member retreat designed to connect, inspire, and inform ARDA Trustee and Chairman’s League Members—ARDA unveiled an important report revealing some surprising statistics. The report can by found here: https://link.arda.org/3c6758

After reviewing the document, Resort Trades’ Board of Directors decided to share a few observations. The document began by describing the consumers who had been consulted and their preferences.

“It’s no surprise that travelers prefer the comfort of condominium-style accommodations over a hotel room, no matter how swank,” says Resort Trades Publisher Sharon Scott Wilson, RRP. “But what surprised me was the diversity in age and race of the next generation of timeshare owners. The next target audience was described as ‘affluent Millennials and Gen Xers aged 28 to 59.’ Not only does the report speak to who these next customers will be, but it tells how to ‘create a new narrative for timesharing’ to win their confidence.”

Understanding Today’s Travel Environment

Despite economic uncertainties, travelers continue to prioritize vacations as a vital part of their lives. According to Hilton’s 2024 Trends Report, 64% of global travelers plan to reduce spending in other areas to afford leisure travel. Modern vacationers are increasingly drawn to experiences that offer customization, cultural immersion, wellness, and relaxation, as well as jet-set travel and unique events. This trend aligns perfectly with the offerings of modern timeshares, which provide spacious accommodations, consistent service, and the familiarity of returning to beloved destinations.

However, the timeshare industry faces a significant barrier: its lingering reputation, which can deter potential new customers. To overcome this challenge, the focus should shift to how timeshares can meet the evolving desires of today’s vacationers.

The Challenge: Expanding Timeshare Appeal

While timeshare owners already represent a strong, loyal base, the industry must broaden its appeal to younger travelers—specifically Millennials and Gen Xers. These groups, particularly those with a household income of over $75,000, are more likely to prioritize travel and vacation-related spending. However, they also seek ease and convenience in their vacation planning, often turning to online resources such as social media, travel blogs, and online travel agencies (OTAs) to make decisions.

The ARDA study revealed that while 100% of timeshare companies rely on traditional in-person sales presentations, only 53% have a notable online presence. This presents an opportunity for the industry to improve its digital marketing efforts and increase visibility on platforms where younger travelers are already planning their trips.

Bridging the Gap Between Timeshares and Modern Travelers

The timeshare industry offers unique benefits that closely match what modern travelers are seeking. These include:

Spacious Accommodations

The home-like spaces provided by timeshares offer the comfort of Airbnb-style lodging with the consistency and reliability of hotels.

Return to a Favorite Destination

Travelers who enjoy returning to familiar locations year after year can embrace the idea of making vacation a “non-negotiable” part of their life, creating lasting memories with family and friends.

Ease of Planning

In contrast to the stress of planning vacations, timeshares provide a straightforward, reliable booking experience. The familiarity of activities, amenities, and destinations offers vacationers a sense of relaxation and predictability.

These benefits address key pain points for many modern travelers who, according to the ARDA report, often spend between 16 and 20 hours planning a vacation. By emphasizing convenience and reliability, timeshares can offer an attractive alternative to other vacation options like Airbnb or hotels.

Who is the Target Audience?

The next generation of timeshare owners is defined as affluent Millennials and Gen Xers aged 28 to 59, with a median household income of $142,000. This group is more diverse than the industry’s current owner base, with 29% identifying as non-white, and an equal split between men and women. They prioritize travel and often prefer vacation options that require minimal planning, such as packaged deals.

They are also highly discerning consumers who value authenticity and transparency. Unlike older generations, they are not as familiar with the high-pressure sales tactics associated with timeshares in the past, making them more open to the concept—if presented honestly and effectively.

Creating a New Narrative for Timesharing

To successfully capture the attention of this new audience, the timeshare industry must focus on rebranding itself not through a complete overhaul, but by “owning” the concept of timesharing. As younger consumers are more digitally savvy and adept at recognizing marketing ploys, the industry’s message must be authentic and clear.

The ARDA meeting highlighted a strategy for evolving from a point of low awareness and negative sentiment to becoming an industry that garners organic, positive advocacy. This journey begins with increasing awareness through strategic digital marketing, leveraging the voices of current satisfied owners, and creating memorable, shareable experiences that new audiences can relate to.

Innovative Campaigns for a Digital-First World

In line with these goals, ARDA and its partners plan to utilize modern digital tools, including AI-driven technologies like the new AI-powered timesharing concierge, Shari. This tool aims to simplify vacation planning by providing clear, transparent answers based on timeshare data. By introducing Shari at the ARDA annual conference, the organization seeks to position itself as an innovative leader in the travel industry, further elevating the timeshare experience.

Conclusion

By aligning with modern travel trends and emphasizing transparency, ease, and authenticity, the industry has the opportunity to reshape its narrative and broaden its audience.

“Resort Trades readers, who are the professionals creating next-level vacation products and services, have never had it easy,” says Wilson. “But they’ve always been up for the challenge, particularly as they are assisted by ARDA.”

For more information, access the full ARDA August Meeting deck online.