To be fair, any industry that publishes surveys always present their products through rose tinted glasses, the timeshare industry is no exception. We recently looked at a survey entitled:
Timeshare Industry Statistics And Trends in 2023
Albeit a short snapshot of the industry with a USA focus, there were some points that seem to contradict what the industry would have us believe. The use of statistics in surveys has always been milked extensively but statistics may be read two ways.
Reversing statistics
In this part of our review we will look at certain statistics quoted and then add a layer of fact, we start with this one:
Timeshare sales have an average closing rate of 15% for first-time visitors.
The accompanying text goes on to say:
“This statistic is a telling indication of the success of the timeshare industry, as it demonstrates that a significant portion of first-time visitors are converting into customers. It is a valuable insight into the effectiveness of the industry’s marketing and sales strategies, and provides a benchmark for future performance.”
Taking the reverse view would indicate that 85% of first time visitors didn’t purchase therefore how can this be justified by use of the word “significant”. It would be truer to say a significant portion didn’t buy. If you’ve ever been involved in sales, you wouldn’t keep your job for very long if your closing rate was just 15%
The timeshare industry is continually telling us that the age demographic of buyers is getting younger so it’s odd that this statistic should be published:
Baby boomers make up approximately 35% of the timeshare ownership demographic in the U.S.
Unless our understanding is wrong, baby boomers describe people born in the years following the Second World War, a time when there was a temporary marked increase in the birth rate. Admittedly, reversing this statistic means that 65% of owners are anything other than baby boomers so to prove a point, why does the statistic not refer to so called millennials? The millennial generation is defined as anyone born between 1981 and 1996; this may be better proof of a younger market.
The statistic also means that timeshare developers are relying on over a third of their owners to maintain ownership, the very age group who now are the prime contenders to get rid of the burden of their timeshare ownership.
Around 72% of timeshare owners plan to travel the same or more in the next two years compared to the past two years.
The text then says:
“This statistic is a testament to the enduring popularity of timeshares, as it shows that the majority of owners are still planning to use their timeshares in the future.”
We really don’t believe that this statistic genuinely indicates the enduring popularity of timeshare, it merely points out that having paid a considerable sum to buy a timeshare, then shelling out lots more each year in maintenance fees, owners need to get some benefit from their expenditure, or why buy it in the first place.
Taking the final comment drawn from this report:
“On average, each resort has 131 units, with Florida holding 28% of all U.S.-based units. Financing is used in 90% of these purchases, and it typically includes a maintenance fee averaging around $1,000 per year for interest holders. Additionally, 25% of the units have lock-off features or separate living spaces, and there is an 81.1% occupancy rate for vacations lasting an average of 7 days, primarily among Baby Boomers who constitute 35% of the market.”
According to figures quoted in the report, the average cost of a timeshare is now $22,180 so that means 90% of buyers can’t really afford to buy because they need very expensive finance to complete the deal. With the still present global financial crisis, is this really sensible?
Given the fact that virtually every timeshare resort on the planet may be booked directly online without the need to be a timeshare owner, does the 81% occupancy refer to the resort as a whole or visiting timeshare owners?
TCA comment
“There are three kinds of lies: Lies, Damned Lies, and Statistics” this statement has been attributed to Mark Twain, who himself attributed it to British Prime Minister Benjamin Disraeli. Unfortunately it’s true. Statistics can be presented or manipulated to suit any purpose.
A report in the Daily Express stated that a staggering 4.5 million UK drivers – the equivalent of one in 25 people (4%) – have broken the law by driving while under the influence after attending a Christmas party, wow that is a frightening statistic, but the reverse statistic is 96% of drivers were not under the influence after attending a Christmas party. This example is used purely for statistical comparison and in no way does TCA agree, or endorse any form of driving under the influence of either drugs or alcohol.
Statistics certainly have their uses but often when drilling down all is not necessarily what it seems. Recently the American Resort Development Association (ARDA) produced a glowing timeshare survey but by their own admission only slightly over 1,600 participants were surveyed. Given that ARDA also proudly proclaim that there are approximately 10,000,000 timeshare owners in the USA, can a survey of only 0.0176% of those owners really be representative?
For those interested in reading the full Timeshare Industry Statistics And Trends in 2023 survey, it may be accessed here.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk