Today’s Timeshare Industry
According to the American Resort Development Association (ARDA), “In the United States today, there are more than 1,500 timeshare resorts with over 9 million owners. Globally, there are more than 5,000 timeshare resorts in 121 countries. The modern vacation ownership industry is made up of some of the most respected hospitality brands in the world.”
What started in the ‘80s principally as a concept to save failed motel projects, has morphed into a multi-billion-dollar industry today. Although some of those early projects are still going strong, the entrance of large companies such as Hilton, Marriott, and others assure that timeshare isn’t going away (which I’m sure makes the exit companies very happy).
Tricky Terrain
When we take a closer look at Phillip M. Perry’s article, “Forecast 2024…Navigating a Tricky Economic Terrain,” he foretells a distinctly unoptimistic outcome resulting from high interest rates and slower economic growth. His report was written prior to the Federal Reserve announcing it would hold the key interest rate steady in mid-December 2023 and that we can expect three cuts coming in 2024.
I’m no economist, but I’ve heard enough gloom-and-doom news to believe the American public is still feeling the pinch from inflation. Still, Phillips’ article reports Assistant Director and Economist at Moody’s Analytics Bernard Yaros, Jr. saying, “We expect real GDP to grow 1.4% in 2024.”
Measured Optimism
So, what does 2024 look like for the industry? Many have expressed measured optimism. As the Feds get a better grip on inflation and with a continuing healthy job market, consumer confidence is likely to increase. Lately, the challenge for business leaders is the pressure to raise wages. Our industry is feeling the brunt of this in every department from housekeepers, customer service team members, and landscapers, to middle and senior management.
It’s reported that the construction industry appears to be gathering strength. In a drive through the center of Nashville, Tennessee, for example, one can spot no fewer than eight construction cranes working on high rise edifices. The focus of most major construction firms, we are told, is on sustainability and efficiency, plus the advancement of digitalization and generative AI. Resort Trades will be watching for increased growth in our own sector.
Lending Outlook
Another matter of concern is that of the availability of funds from lenders. “The banking sector is in retrenchment and lenders are becoming more risk averse,” said Anirban Basu, Chairman and CEO of Sage Policy Group (sagepolicy.com), says the article.
We’ll soon be asking Bill Ryczek, Partner of Colebrook Financial, to share his thoughts on this topic. (Meet Bill and SPI Software CEO Gordon McClendon article, “Words of Wisdom from Two Seasoned Timeshare Execs Linked Through Baseball and Long Careers in the Timeshare Industry,” by Marge Lennon and Georgi Bohrod Gordon RRP.)
