Canadian Vacation Ownership Association (CVOA) has announced that timeshare is experiencing a global resurgence, appealing to a younger generation of buyer, who is more affluent.
Although the average age of the timeshare owner is still in the early 50’s, millennials are starting to pay more attention to the affordable holiday options that timeshare offers.
The American Resort Development Association reported that among new timeshare owners, 30 percent are millennials.
Brent Dickson, Director Dream Hotels and Resorts, said he anticipates global trends will eventually filter to South Africa.
“The weaker rand has already encouraged South Africans to stay at home and look for more affordable holiday options. We also see multi-general families travelling together, usually driven by younger parents who plan the holiday and an increasingly more youthful baby boomer generation of grandparents,” he said.
Dickson said there was five reasons why the timeshare model is expected to become a hit among South African millennials. These include:
A focus on flexibility and experiences
Millennial travellers value experiences over material possessions. With a deep curiosity about the world, they are interested in experiential travel, authenticity and local interaction. Vacation ownership companies today offer a vast array of experiences in both active, experiential destinations, as well as urban locations. They now can experience a destination on their own terms.
Product flexibility and the wide variety of locations offered by shared vacation ownership is a big draw card for owners, says also Alex Bosch, spokesman for the Vacation Ownership Association of Southern Africa.
Family-friendly and multi-generational travel options
According to research, 40% of millennials, some 32 million millennials, are parents today. Parents, whether they are born in the fifties, seventies or the noughties, tend to look for the same holiday facilities. Millennials are also more likely to embark upon multigenerational trips, something for which timeshare facilities are ideally suited.
Sustainability is key for Millennial travellers, which is one of the reasons this generation enjoys the sharing economy. Dickson said millennials are conscious of the impact they have on the world, and look for sustainable holidays.
Dickson explains the timeshare model is inherently green or sustainable, as travellers can enjoy the benefits of using a vacation property without having to purchase the entire vacation home. Most timeshare properties are also taking active steps to offset their carbon footprint.
Sharing economy without the risk
The advantage of a timeshare option compared to other peer-to-peer sharing properties is that there is a clear quality control, according to Dickson. In the peer-to-peer sharing industry, travellers get very few guarantees when it comes to safety and cleanliness. However, timeshare units are maintained and run by industry professionals.
A clear exit strategy
One of the main obstacles for millennials to purchase a timeshare unit is that there is no re-sellable value in the real estate they buy. Most traditional timeshare companies traditionally have never had a clear ‘exit strategy’ if travellers feel the timeshare no longer fits their lifestyle,