Do People Still Buy Timeshares?

The question of whether people still purchase timeshares is common, reflecting curiosity about this unique form of vacation ownership. The timeshare industry has undergone significant changes, adapting to evolving consumer preferences and technological advancements. What was once a straightforward concept of shared vacation property has matured into a complex ecosystem offering various ownership structures and usage options. This article explores the contemporary timeshare landscape, examining market activity, motivations for acquisition, and the forms these arrangements can take.

Current State of the Timeshare Market

The timeshare market continues to be active, demonstrating growth and adaptation. The global vacation ownership market was valued at $12.2 billion in 2023 and is projected to reach $25.1 billion by 2032, indicating a compound annual growth rate (CAGR) of 7.9%. Sales volume in the U.S. timeshare industry increased by 1% to $10.6 billion in 2023, with the average transaction price also seeing a slight rise to $24,170.

The industry has shown a robust recovery, with sales volume and rental revenue returning to pre-pandemic levels and showing upward trends. Occupancy rates for timeshare properties averaged 76.8% in 2023, notably higher than the 63.0% average for hotels.

A significant trend is the shift from traditional deeded weeks to more flexible points-based systems. Over 48% of new buyers prefer these systems, which allow for customized travel across various resorts. This reflects changing consumer preferences, with younger generations, particularly millennials and Gen X, representing over 45% of new timeshare purchases in 2025. These demographic shifts indicate a demand for flexibility, digital integration, and experience-based vacation options.

The internet plays a significant role in new sales and the resale market. Online platforms have changed how timeshares are promoted and sold, allowing for broader reach. This digital evolution has also facilitated the secondary market, where individuals can buy and sell timeshares, often at different price points than initial developer sales. The timeshare industry continues to evolve its offerings to meet contemporary travel demands.

Motivations for Timeshare Purchases

Individuals acquire timeshares for various reasons, often centering on the desire for predictable and comfortable vacation experiences. A primary motivation is the appeal of vacation planning, which ensures access to preferred destinations and accommodations. This provides a structured approach to leisure travel, removing the effort of last-minute booking or uncertainty about availability. Owners appreciate having a dedicated vacation spot or a network of resorts to choose from, simplifying travel arrangements.

Access to specific resort amenities and larger accommodations also drives purchases. Timeshare properties offer more spacious units than standard hotel rooms, often including multiple bedrooms, living areas, and kitchen facilities. This setup is appealing for families or groups, providing a “home-away-from-home” feel. Resorts typically feature a range of on-site amenities such as pools, spas, restaurants, and recreational activities.

The opportunity for exchange within extensive networks provides another reason for ownership. Many timeshare systems are affiliated with large exchange companies, allowing owners to trade their designated time or points for stays at other resorts worldwide. This flexibility enables diverse travel experiences, catering to those who desire to explore new destinations rather than returning to the same location each year.

Some purchasers view timeshares as a convenient solution for regular family travel, ensuring consistent quality and familiarity. The shared ownership model provides consistent standards from major hospitality brands. The appeal lies in the convenience of a pre-arranged vacation option, aligning with a lifestyle that prioritizes consistent leisure time without extensive annual planning.

Common Timeshare Structures

Timeshare ownership can take several forms, each with distinct characteristics regarding usage rights. Historically, the most common structure was the deeded timeshare, where a buyer receives a fractional ownership interest in a specific property, similar to traditional real estate. This deed grants the right to use a particular unit for a set period each year, often a fixed week. Some deeded timeshares offer a “floating week” option, allowing the owner to reserve a week within a designated season, providing flexibility.

A shift has occurred towards non-deeded arrangements, particularly right-to-use contracts or club memberships. In a right-to-use agreement, the buyer purchases a lease or license to use a property for a specified number of years, typically 20 to 99 years. At the end of this term, usage rights revert to the developer. These arrangements often offer more flexibility than fixed-week deeded timeshares, as they can be part of a larger system that allows for varied usage.

The points-based system has become increasingly prevalent and is now a dominant model. Buyers acquire points that can be redeemed for stays at various resorts within the developer’s network. The number of points required for a reservation depends on factors such as the resort’s popularity, unit size, time of year, and length of stay. This system provides owners with greater flexibility to customize vacations, allowing for shorter stays, different unit types, or access to multiple destinations. Over 61% of timeshare owners in the U.S. opted for points-based systems in 2023, reflecting their growing popularity.

Fractional ownership represents a different tier of shared property, involving a larger ownership share and a higher purchase price than a traditional timeshare. Owners acquire a deeded interest that grants more usage time, often several weeks per year, and may include more exclusive amenities or services. While distinct from timeshares, fractional ownership also involves shared access to luxury properties. These varied structures reflect the industry’s evolution to offer products appealing to a broader range of vacation preferences and financial commitments.

Key Aspects for Consideration

When evaluating a timeshare purchase, understanding the financial commitments beyond the initial price is important. The upfront purchase price for a timeshare can vary significantly, with the average transaction price in the U.S. reaching approximately $24,170 in 2023. Beyond this initial outlay, owners are subject to ongoing annual maintenance fees, which cover the costs of property upkeep, utilities, insurance, and administrative expenses. These fees averaged around $1,260 in 2023 and have been increasing, often due to broader inflationary trends.

In addition to regular maintenance fees, timeshare owners may also be responsible for special assessments. These one-time or periodic charges are levied to cover significant capital improvements, unexpected repairs, or major renovations to the resort property. Such assessments can add an unpredictable financial burden, as they are typically not included in the annual maintenance fee and can range from hundreds to several thousands of dollars depending on the scope of the project. Understanding a resort’s financial health and capital improvement plans can help anticipate these potential costs.

The practical realities of timeshare usage, including booking windows and availability, should also be carefully considered. While timeshares promise vacations, securing desired dates and locations, especially during peak seasons or for popular resorts, can be challenging. Many timeshare systems operate on a reservation basis, requiring owners to book their stays well in advance, often 9 to 12 months out. Availability can be limited, particularly for the most sought-after times or unit configurations, which may necessitate flexibility in travel plans.

Exchanging weeks or points within networks also involves specific processes and potential limitations. While exchange programs offer variety, they often require exchange fees and depend on the availability of desired units at other resorts. The value of points or weeks can fluctuate, meaning a desirable exchange might require a significant number of points or involve less favorable trade ratios. Understanding the rules, fees, and historical availability within an exchange network is important before relying on this feature for diverse travel.

Finally, the resale market for timeshares presents a significant consideration. Unlike traditional real estate, timeshares generally depreciate in value compared to their initial purchase price, making them difficult to sell for a profit or even recoup the original investment. The secondary market is often flooded with inventory, and selling a timeshare can be a lengthy and challenging process, sometimes requiring owners to sell for a fraction of what they paid. Potential buyers should be aware that exit strategies can be complex, and finding a buyer for an unwanted timeshare often proves difficult.