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In recent years, both the timeshare experience and the demographics of timeshare ownership have evolved considerably. At Skift Global Forum, ARDA CEO Jason Gamel explored how the vacation ownership industry is innovating, modernizing, and expanding its offerings to satisfy the expectations of today’s travelers.

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This sponsored content was created in collaboration with a Skift partner.

For many, the concept of “timeshare” conjures up images of families returning to vacation at the same resort, during the same week, year after year. However, Jason Gamel, president and CEO of ARDA, says that this outdated perception no longer represents the modern timeshare experience. 

At Skift Global Forum, Gamel spoke with Darren Frei, senior branded content editor at SkiftX, about a new white paper that highlights the future of timeshare and how the vacation ownership industry is evolving to align with modern traveler preferences. For example, today’s timeshare owners aren’t locked into the same week of the year or even the same location. They can reserve as much or as little time as they want at as many as 1,500 timeshare resorts in the U.S. or thousands of other properties throughout the world.

Some of that evolution came to bear during the pandemic — while much of the travel industry ground to a halt, total timeshare sales volume reached $4.9 billion in 2020. 

“People didn’t know when they were going to be able to travel next or where they could go,” Gamel said at Skift’s event. “But timeshare’s drive-to locations — with spacious accommodations, outdoor experiences, and all the amenities — made people really excited about the future.”

The nature of timeshare’s pre-paid accommodations also played a pivotal role in this shift. Since owners had already paid for their vacation stays, they were able to pivot easily to drive-to destinations, ensuring they could still take advantage of their investments without the uncertainty of flying or booking new accommodations during travel disruptions.

At the same time, investments from major hospitality brands like Marriott, Hilton, and Disney have enhanced the segment’s reputation and broadened perceptions of its potential. While those household names tend to grab headlines, about two-thirds of timeshare resorts in the U.S. are not affiliated with hotel hospitality brands and are part of the thriving independent resort community. 

In the new white paper, ARDA addresses how independent developers that lack global brand-sized budgets are meeting challenges like consolidation, innovation, and modern inventory management. 

Revolutionizing Ownership for a New Generation With Data and Technology 

Technology has played a pivotal role in driving recent innovations within the vacation ownership industry. Most notably, the ability to aggregate and analyze vast amounts of data offers timeshare brands an unparalleled view into their consumers’ lives. By combining financial insights from real estate transactions, travel data from owner bookings, and publicly available information, timeshare developers can gain a deeper understanding of their owners — something that is only possible due to the long-standing relationship timeshare brands have with their owners.

“In a perfect world, with the right data, AI could unlock many opportunities,” said John Staten, president and chief executive officer at Holiday Inn Club Vacations in the white paper. “However, our industry is still in the data cleanup phase. While you don’t necessarily need a perfect 360-degree view, you can start by focusing on sales and marketing data and refining those areas.”

This data-driven approach will help timeshare developers market more effectively to their target audience while delivering the elevated, modern experiences today’s travelers expect. Most timeshare owners today are Gen Z and Millennials, who value membership, flexibility, and unique experiences over accumulating possessions. To attract these younger travelers, developers will need to adapt to their preferences. For example, younger travelers expect to browse and purchase everything — including travel products — directly from their smartphones. 

“Technology allows owners to seamlessly integrate their timeshare ownership with other aspects of their lives,” Gamel said at the event. “It also enhances their on-property experience significantly.”

Fueling Growth with International Expansion 

The U.S. State Department issued a record 24 million passports between October 2022 and September 2023, reflecting the growing number of Americans traveling abroad. As U.S. travelers explore international destinations in unprecedented numbers, their interest in timeshare properties is also expanding globally. 

“Timeshare is truly a global concept,” Gamel said in response to Frei’s question on international timeshare trends. “You can find timeshare resorts worldwide, though they may differ somewhat from what we’re accustomed to in the U.S.”

Juan Ignacio Rodriguez, managing director at RCI, estimates the global vacation ownership industry to have sales totaling approximately $21 billion. Of that, $10.5 billion comes from the U.S., $6.2 billion from Mexico, and $2 billion from Brazil. The timeshare model is also expanding in the Americas, taking hold in countries like the Dominican Republic and Argentina.

In the Asia Pacific region, vacation ownership is gaining popularity in countries like Japan, Vietnam, Thailand, and China. Although strict regulations in markets like Australia have slowed timeshare expansion, the growing middle class in countries like India is creating a new segment of timeshare travelers.

Elevating the Owner Experience With Lifestyle Partnerships

As explored in the white paper, strategic industry partnerships play a crucial role in helping developers attract and retain owners. 

“Hospitality has traditionally focused on rooms and loyalty programs,” said Michael Brown, CEO of Travel + Leisure Co., in the white paper. “Now, it’s about integrating personal lifestyle into a state of mind associated with the brand.”

For example, Travel + Leisure created its Margaritaville Vacation Club timeshare brand in partnership with Jimmy Buffet’s Margaritaville, crafting a deeply integrated lifestyle experience. Through a new partnership with Sports Illustrated, the company plans to launch multi-use resorts designed for sports fans across the country.

“It’s about finding ways to activate different groups of people who are interested in travel,” Gamel told the Skift Global Forum audience. “The value proposition of timeshare — the prepaid nature of the product — that really gets people traveling. That’s an important thing for our industry to understand.”

Read more about the trends, opportunities, and insights travel professionals need to know now in ARDA’s white paper, Navigating the Future of Timeshare.

In this white paper, you’ll also find:

  • Tips for building industry partnerships that elevate the owner experience
  • Strategies for leveraging tech innovation to unlock growth opportunities
  • The state of international market expansion and growing global interest
  • How a modern management approach can help independent developers get ahead
  • An inside look at younger owners’ priorities, expectations, and behaviors

“Our future will be shaped by the industry’s ability to adapt to these trends while staying true to its core value: delivering exceptional, memorable vacation experiences,” Gamel said. 

This content was created collaboratively by ARDA and Skift’s branded content studio, SkiftX.

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Tags: data, partnerships, SkiftX Creative Studio, SkiftX Showcase: Hospitality, SkiftX Showcase: Technology, timeshares, vacation ownership

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