Tough Times Don't Cut Meat, Timeshares Hold

In the era of economic uncertainty, travel demand remains strong, yet travelers are becoming increasingly intentional about how they spend their vacation dollars. This shift in consumer expectations has reshaped the hospitality industry's approach to delivering value.

As President and CEO of ARDA, the trade association for the vacation ownership and timeshare industries, I've witnessed firsthand the resilience of this sector. Timeshare demand has remained strong even as broader travel trends fluctuate. In fact, Travel + Leisure Co., the world's largest vacation ownership company, recently reported a 6 percent year-over-year increase in net revenue.

One reason for this stability is the timeshare model's inherent predictability. Unlike traditional travel bookings, becoming a timeshare owner involves a long-term relationship between travelers and their vacations. This approach provides a predictable base of demand that benefits both resorts and the destinations that rely on tourism.

The economic impact is significant. In Hawaii, the timeshare industry generated more than $5.3 billion in economic output in 2024, supported over 25,000 local jobs, and contributed $518 million in state and local tax revenue. Nevada offers another example of the sector's stabilizing role, with its 56 timeshare resorts supporting approximately 18,900 jobs and generating $4.3 billion in annual economic output.

At the consumer level, the timeshare model also helps travelers navigate today's higher-cost travel environment. Owners essentially lock in the cost of future vacations when they purchase their timeshare, giving families greater predictability in their travel planning as they are less susceptible to market shifts and inflation.

Affordability is also supported by where and how owners travel. Many choose timeshare resorts within driving distance of their homes, helping avoid airfare volatility. Road trips have become an increasingly practical option for families seeking accessible getaways, and many timeshare resorts are located within convenient driving corridors that make these trips easy to plan.

The industry has undergone significant transformations over the past decade that help explain its continued momentum. Historically, timeshares were associated with fixed-week stays at a single property. Today's model offers much more flexibility, with points-based ownership systems allowing travelers to choose when, where, and how they travel.

This flexibility aligns closely with the expectations of modern travelers. Consumers want the freedom to explore new destinations, extend their stays, and tailor vacations to their personal interests.

Timeshare brands like Hilton Grand Vacations, Travel + Leisure Co., Marriott Vacations Worldwide, and Westgate Resorts have also expanded the range of experiences available to travelers. Many companies now incorporate partnerships, destination programming, and curated sporting, entertainment, and culinary experiences that connect visitors more deeply with the places they visit.

The emergence of younger travelers, particularly Millennials and Gen Z, has also played a significant role in shaping the industry's evolution. These travelers prioritize flexibility, meaningful experiences, and authenticity in the destinations they visit. They often seek travel opportunities that connect them with local culture and outdoor adventure.

Wellness has also become an increasingly critical driver in travel plans. Recent ARDA research illustrates how strongly the timeshare model aligns with this trend. In a nationwide survey of 1,000 travelers, 74 percent of timeshare owners said they plan to prioritize health and wellness on their next vacation, compared to 59 percent of travelers overall.

The continued growth of the timeshare industry offers important insights into the future of travel. As hospitality leaders, we must continue adapting alongside changing expectations. Flexibility, experiential value, and meaningful connections to destinations will continue to shape how people travel in the years ahead.

For hospitality brands across the industry, the lesson is clear: success will depend on a willingness to innovate, remain flexible, and anticipate how travelers want to experience the world.

Timeshare's evolution demonstrates how one segment of the travel industry has embraced these changes, creating experiences that are closely aligned with the needs of modern travelers.