Words: Ashley Rigg
Published: 1st October 2009
US: Timeshare sales fall through the floor
The American Resort Development Association (ARDA) reports sales of timeshare property are down 30% on this time last year.
The decrease follows an 8.5% drop in the previous 12 months from a peak of $10.6 billion in 2007. The figures exclude the luxury fractional business and private residence clubs. However the
Marriott Group announced plans to scale back its fractional plans last week.
The decline in fractional purchases is being driven by high unemployment and low consumer confidence. ‘Timeshares are just very, very discretionary items. It’s the perpetual vacation. Buyers are pre-paying for the ability to take a vacation every year. Under current economic circumstances people are more reluctant to pay for that,’ said Chris Woronka, an analyst at Deutsche Bank Securities in New York.
There has been considerable hype around fractional as a panacea to the woos of the overseas property market and in the long term the argument has merit but
recent reports from the likes of Savills have shown consumer take-up to date has been disappointing.
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