DUBLIN, July 7, 2023 /PRNewswire/ — The “U.S. Vacation Ownership Market – Industry Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.
U.S. Vacation Ownership Market is projected to reach a value of $15.32 billion by 2028 from $10.08 billion in 2022, growing at a CAGR of 7.2%
The U.S. vacation ownership market is highly fragmented, and the degree of fragmentation is expected to accelerate during the forecast period. There are a significant number of global and domestic vendors in the region.
Global players, such as Wyndham, Marriott Vacations Worldwide, Hilton, InterContinental Hotels Group, Disney, and Bluegreen Vacations Holding Corporation, try to expand their market presence through profitable partnerships, whereas domestic vendors capitalize with product and service portfolios that best suit domestic needs. Launches, M&As, and collaborations are some strategies of key players in the market.
MARKET TRENDS & OPPORTUNITIES
High Occupancy Rate
Hotel occupancy rate is a key performance indicator in the hotel industry. It represents the percentage of a hotel occupied or an average percentage of several hotels’ occupancy within a region.
In 2022, U.S. occupancy gains and rate performance outpaced that in 2021, supported by health and leisure travel demand. In 2022, the occupancy rate increased to 82.6% and exceeded pracademic levels of 80.8%. Furthermore, in March 2022, the revenue per available room (RevPAR) increased compared with 2019 levels.
Virtual Reality & Augmented Reality in the Vacation Ownership Industry
AR helps an individual experience the virtual elements in the real physical world. The technology is valuable to the hospitality industry since hotels fundamentally sell a physical environment that can be augmented through AR.
Moreover, the significance of technology in the vacation ownership industry increased in line with the shift in target demographics. Millennials are the dominant consumer generation, likely to employ digital technology and invest in VR and AR devices. AR and VR have gained considerable momentum and are expected to provide new growth opportunities in the U.S. vacation ownership market.
Significance of Point-Based Vacation Ownership
A point-based timeshare is a progressively popular alternative to owning a traditional, fixed week. It offers flexibility and convenience to owners, who can plan their vacations according to their preferences. A point-based timeshare is also obligated to exceptional customer service, personalized concierge services, and hotel and dining selections granting vacationers maximum enjoyment from their investments. Point-based timeshare gives an opportunity to members to explore destinations globally.
High Maintenance Cost
An owner is responsible for paying annual maintenance fees when purchasing a timeshare. The maintenance fees cover upkeep and repairs to the property, such as amenity repairs, pool cleaning, golf course maintenance, gym equipment servicing, landscaping, mowing grass, ranking of leaves, record keeping, property insurance, administration, and scheduling.
Furthermore, the average timeshare maintenance fees increased by around 4% each year from 2013 to 2017, according to a 2018 study by ARDA. The maintenance fees seem to be a main part of the income of the timeshare companies since they are used for much more than just maintenance on the property.
In addition, an extra assessment fee is another way to get money out to cover things, such as natural disasters, not covered by the maintenance fees. Hence, such costs are thrown at the owner, who has no choice but to pay them. Therefore, the high maintenance cost hinders the U.S. vacation ownership market growth.
INSIGHTS BY TYPE
The timeshare ownership type segment is expected to be the largest U.S. vacation ownership market contributor. Timeshare ownership is one of the most popular vacation ownership. Multiple individuals own the right to a resort or vacation property through a fixed week, season, floating week, or point-based system in timeshare ownership.
According to ARDA, timeshare ownership is a shared ownership of vacation property that may or may not consist of an interest in real property. Earlier, timeshare ownership was given on a fixed-week basis every year. However, the best vacation brands and clubs offer a point-based system for greater flexibility and freedom. Timeshare resorts offer more privacy and space; people can rent unused units for years.
INSIGHTS BY OCCUPANCY
The U.S. vacation ownership market by occupancy segments into the owner, renter, exchange, marketing, and vacant guest. In 2022, the owner segment was the largest, accounting for over 43% of the market share. Owner guests are buyers with the right to occupy a real estate unit over a specific time frame.
For instance, a one-week timeshare purchase means the buyer owns 1/52nd of the unit. A one-month purchase means 1/12th of the ownership. The segment is anticipated to generate additional revenue of USD 2.33 billion during the forecast period.
INSIGHTS BY OWNER TYPE
The Generation X owner type held the largest U.S. vacation ownership market share in 2022. Flexibility and unique experiences drive the demand for timeshares among Gen X owners.
Unlike before and after generations, Gen X has larger travel spending, and more than 70% use online travel agencies for information and purchasing. Furthermore, most Gen X members with careers tend to lack family time and hence prefer family vacations to solo trips and opt for nearby, family-friendly resorts.
The Southern U.S. region dominated the U.S. vacation ownership market, accounting for a share of over 46% in 2022.
The presence of the largest population base, resulting in significant domestic traveling, the presence of rural areas, and growth in the real estate, tourism, and hospitality sectors, generates a high demand for vacation ownership in the region.
The region has several states, including Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.
Key Company Profiles
- Marriott Vacations Worldwide
- InterContinental Hotels Group
- Bluegreen Vacations Holding Corporation
Other Prominent Vendors
- Exploria Resorts
- Breckenridge Grand Vacations
- Westgate Resorts
- VI Resorts
- Somerpointe Resorts
- Capital Vacations
- Expectations Club
- Royal Holiday
- Raintree Vacation Club
- Multi Resort Ownership Plan
- Royal Aloha Vacation Club
- Landex Resorts International
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of the Study
4.4 Market Segmentation
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Premium Insights
7.1 Market Overview
7.2 Segment Overview
7.3 Competitive Landscape
8.2.1 Hotels & Resorts
8.2.2 Condominiums & Apartments
8.2.3 Camping Grounds
8.3 Contract Type
8.3.1 Deeded Timeshares
8.3.2 RTU Timeshares
8.3.4 Biennial and Triennial Timeshares
8.4 Economic & Demographical Analyses
8.4.3 Generation & Age Trends
8.4.4 Racial/Ethnic Trends
9 Market Opportunities & Trends
9.1 High Occupancy Rate
9.2 Virtual Reality & Augmented Reality in the Vacation Ownership Industry
10 Market Growth Enablers
10.1 Significance of Point-Based Vacation Ownership
10.2 Growth of Tourism & Hospitality Industries
10.3 Significant Urbanization
11 Market Restraints
11.1 Complex Mergers & Acquisitions
11.2 Complications in the Promotion of Timeshare Business
11.3 High Maintenance Cost
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.2.1 US Timeshare Industry: Arda
12.2.2 Historic Data
12.3 Five Forces Analysis
12.3.1 Threat of New Entrants
12.3.2 Bargaining Power of Suppliers
12.3.3 Bargaining Power of Buyers
12.3.4 Threat of Substitutes
12.3.5 Competitive Rivalry
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 Timeshare Ownership
13.4 Fractional Ownership
13.5 Club Ownership
14.1 Market Snapshot & Growth Engine
14.2 Market Overview
14.3 Owner Guest
14.5 Exchange Guest
14.6 Marketing Guest
15 Owner Type
15.1 Market Snapshot & Growth Engine
15.2 Market Overview
15.3 Silent Generation
15.4 Baby Boomers
15.5 Generation X
16.1 Market Snapshot & Growth Engine
16.2 Region Overview
For more information about this report visit https://www.researchandmarkets.com/r/m6o8ck
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Originally published at https://www.prnewswire.com/news-releases/united-states-vacation-ownership-market-outlook–forecast-report-2023-a-15-billion-market-by-2028—significance-of-point-based-vacation-ownership-bolsters-growth-301871831.html
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