Today’s Timeshare Owner More Diverse, Younger
42% of New Owners Are African American or Hispanic; 10 Years Younger
WASHINGTON, November 4, 2014 – The timeshare industry has
returned to growth mode, in part due to the influx of a new type of owner—one
that will help to continue the trajectory of the industry. According to the newly released Shared
Vacation Ownership Study from the ARDA International Foundation (AIF), these
new owners are younger, have higher incomes than current owners and represent a
more culturally diverse cross-section of U.S. households.
“We’re excited not only about the fact that sales are up in
our industry but also about why they are up,” says Howard Nusbaum, president
and CEO of ARDA. “While existing owners
continue to enjoy the lifestyle and purchase more timeshare, it’s the new
owners that are responsible for the majority of qualified new sales.”
The profile of the new owner has changed. They are nearly 10 years younger than typical
timeshare owners. Thirty-nine percent
are Gen Xers and thirty percent are Millennials, with the median age of
thirty-nine. Forty-two percent are
African American or Hispanic. They are
also highly educated, with seventy-two percent being college graduates and
twenty-three percent of those having graduate degrees.
Their median household income is $94,800 and they have
plenty of disposable income—forty-seven percent of new owners made just a
single payment to cover their purchase and fifty-seven percent spent $10,000 or
more on their timeshare. In terms of financial commitment, the new timeshare
owner values the long-term vacation savings and flexibility timeshare provides:
thirty-six percent purchased timeshare to save money on future vacations and
thirty-one percent bought for the flexibility the product offers.
The new owners are also savvy consumers, with seventy-five
percent having had some form of interaction with a timeshare resort before
purchasing. Forty-four percent initially
stayed at the resort where they bought as a guest of another owner and
forty-two percent experienced timeshare vacations through renting first. Thirty-five percent attended multiple sales
presentations before buying.
And overall ownership has increased: U.S. households that
own a timeshare rose from 7.2 percent in 2012 to 7.9 percent today, with the
purchase price having risen to an average of nearly $20,000. Among overall timeshare owners, timeshare
vacations are fairly evenly spread between summer, fall and spring and forty
percent are as likely to travel under 500 miles as they are to travel 1,000
miles or more (43%). Seventy-five
percent of owners vacationed at a timeshare resort while sixteen percent
converted their timeshare to a different type of vacation or vacation-related
purchase (cruises, airline tickets, car rentals, hotel stays etc.).
The report was conducted by HSR Associates and commissioned
by the ARDA International Foundation.
For more details, see ARDA’s “Today’s Timeshare Owners: They’re
Changing” infographic and for a copy of the full study, visit www.arda.org/foundation.
The American Resort
Development Association (ARDA) is the Washington D.C.-based professional
association representing the vacation ownership and resort development
industries. Established in 1969, ARDA today has almost 1,000 members ranging
from privately held firms to publicly traded companies and international
corporations with expertise in shared ownership interests in leisure real
ARDA International Foundation (AIF) is the timeshare industry’s leading source
for market intelligence and career advancement resources. AIF, a 501(c) (3) organization,
serves to enhance knowledge for the public and industry through its
comprehensive timeshare research studies, and aims to enrich careers through
ongoing training, learning and development. For more information, visit