Brave New World: What Should the Next-Generation Timeshare Product Look Like?

Guest Author Mike Kennedy is the Cofounder and CEO of KOALA, a tech-driven marketplace transforming how timeshare owners rent their vacation ownership. His mission is to drive greater transparency, innovation, and owner empowerment across the industry.

The timeshare industry is at a defining moment. For decades, it has delivered on a promise that still matters—reliable, high-quality vacations and a sense of belonging that many travelers cherish. But the next generation of consumers has different expectations, and if we want to remain a relevant and thriving part of the hospitality landscape, we need to evolve—decisively and strategically.

This is not about abandoning the foundation that built our industry. It’s about building on it in ways that reflect the technology that people have access to today and how they prefer to travel.

The Generational Shift 

Millennials and Gen Z aren’t just the future—they’re already reshaping the timeshare landscape. According to ARDA, 57% of owners are now 45 or younger. That signals real progress, but there’s still ground to cover. To truly capture the next generation of travelers, the industry must keep modernizing the product with technology and experiences that speak to younger audiences.

Starting in the 1980s, timeshare expanded options to so many families that needed space. Today, other short-term rentals have challenged the timeshare product–which means we need to be focused on making timeshare something new that travelers want. 

Many of today’s consumers prioritize flexibility, exclusivity, and experience over long-term commitments or even ownership. They’re quite comfortable with subscription models, digital self-service, sharing economy platforms and the ability to try something before making a major decision. More importantly, If we want younger generations to consider timeshare products of the future, then cutting-edge technology must be at its core. This means better utilization and availability through use of AI and machine learning, clear liquidity systems– that enhance rental and resale viability and shorter-term membership options with a lower barrier to entry. 

The good news? The core value proposition of timeshare—spacious accommodations, resort amenities, consistency that comes with professional management, and exclusivity —still holds strong. But I am of the opinion that it needs to be reimagined through a new lens for tomorrow’s world.

Technology First
The timeshare industry is on the cusp of a digital transformation. While many systems were built for a different era, this presents an exciting opportunity to evolve and meet today’s traveler expectations. From mobile-first booking, machine learning search, and personalized experiences, the bar has been raised—and that’s a good thing. With the right investments in infrastructure and data, timeshare companies can not only catch up but leap ahead, offering the kind of seamless, tech-enabled vacations modern travelers are drawn to. As highlighted during the AI Skift talk at the 2025 Spring ARDA conference, strengthening our data foundations will unlock powerful tools—like AI—that are already reshaping how people plan, “book”, and enjoy their time away.

Experience Over Things

The future of this industry is not in selling real estate—it’s in selling experiences.

Younger travelers aren’t interested in asset-based ownership as much as they are in experiential travel. That shift opens exciting new doors: flexible membership products, access-based travel clubs, and unique stays that prioritize connection, exploration, and personalization.

While the construct of ownership may still resonate with many in the future, there’s a need to refocus the conversation around what ownership provides. When we shift the value from structure to experience, we speak directly to the next generation’s values—and we reframe timeshare as a tool for adventure.

Leveraging Owner Rentals

Owner rentals are not a fringe activity—they are a thriving part of how today’s owners get value from their timeshare. When done responsibly and transparently, owner rentals bring new guests into the ecosystem, offset costs for owners, and build awareness among travelers who may never have otherwise considered timeshare. KOALA has seen this firsthand: owner-to-renter interactions, when facilitated through legitimate platforms, result in positive brand experiences and increased long-term interest. Instead of overregulating rentals, we should be enabling them—with guardrails that protect brand integrity while looking for new marketing opportunities.  

Rethinking the Duration of Commitment

The fractional ownership model that once defined the industry may not be as compelling in the not-so-distant future. The industry is already seeing a shift in offerings that deemphasizes specific resort intervals in lieu of vacation points connected to a deeded trust. Evolving more in that direction could introduce shorter-term membership or subscription models. This would likely create on-ramps for new buyers who want to experience the benefits of timeshare without purchasing a deeded ownership. This isn’t just about consumer preference—it’s about market reach. Shorter-term models increase accessibility, reduce buyer hesitation, and open new revenue streams. While these structures will likely introduce complexities around revenue recognition, we still must find ways to prepare for the future and circumvent those challenges. 

What Comes Next

Timeshare has always been a resilient, community-driven product—one that’s delivered meaningful value across generations. And now, we have a powerful opportunity to evolve. By modernizing technology, elevating experiences, embracing rentals, rethinking ownership models, and expanding access, we can usher in a new era of innovation. These shifts won’t just future-proof the industry—they’ll help make timeshare a more relevant, mainstream choice for the next generation of travelers.

ARDA Note: Additional thoughts from ARDA President and CEO, Jason Gamel, on the future of the industry can be found in this white paper.