The Missing Value Proposition. Is It Dead?

There are many changes that the timeshare industry can and should implement sooner, rather than later if it going to remain both profitable and relevant in the 21st century. 

I’ve discussed many of those changes in this blog and in media appearances through the years. 

But in my opinion, the industry’s lack of focus on the value proposition of owning-at a price that’s higher in most cases than 20+ years of renting hotel rooms for the average family-is the one thing that continues to trip them up. 

Many timeshare resorts like to talk about the ‘value’ of regular vacations and then bolster that discussion with lovely photos of families enjoying a seemingly care free swim in a pool, lounge on the beach. sweat free game of sand volleyball or meals whipped up in the timeshare kitchen. And there’s nothing wrong with any of that. I don’t think you can find a person that’s opposed to vacations or even one that doesn’t agree that vacations are useful, maybe necessary. 

But here’s where that thinking goes awry in my opinion. That vacation, that sand volleyball game, that picture perfect meal?  They’re all available to anyone without the pesky purchase price of $20,000+, the annual fees of $1,000+ (payable whether or not you vacation in any given year) and the various other fees associated with using a timeshare. 

Whether from the resort itself, individual owners or a third party platform, vacationers have a plethora of timeshare rental options available to them. And those options are available to them every single year, with absolutely no limit or restrictions. I know people who rent timeshare accommodations every year or even multiple times per year, pre COVID  at least, and have absolutely no interest or intention of ever becoming a timeshare owner. Can you blame them?

No 4 hour sales pitch. No buy in cost of $20,000+. No exchange company membership fee. No exchange fee…which, if you haven’t checked lately, is insanely costly. No 1 in 4 usage restriction. All the space. All the amenities. All the fun. And yes, all the memories and benefits of a vacation. 

The industry experts will of course be quick to counter these statements by saying that renters aren’t guaranteed these timeshare accommodations. Fair enough. Neither are owners!  Unless we’re talking about a fixed week/fixed unit plan, which only a tiny fragment of consumers have, owners aren’t guaranteed anything either!

Which brings us back to the missing value proposition of owning. Unless/until the industry changes the very nature of the timeshare product and makes those accommodations, those beaches and yes, those kitchens exclusive for owners, I’m not sure how it’s going to survive. 

Agree?  Disagree?  Respectful comments and discussions are welcome.