As per newly released data by Future Market Insights (FMI), the vacation ownership market is estimated at USD 11.6 million in 2023 and is projected to reach USD 21.9 million by 2033, at a CAGR of 6.6% from 2023 to 2033.
| Attribute | Details |
|---|---|
| Vacation Ownership Market Estimated Size (2023) | USD 11.6 million |
| Vacation Ownership Industry Projected Size (2033) | USD 21.9 million |
| Vacation Ownership Industry Value-based CAGR (2023 to 2033) | 6.6% |
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The market of vacation ownership (timeshares) is predicted to expand faster than average due to changing consumer holiday tastes, an increase in international visitors, and a rise in people with high net worth. The demand for timeshare accommodations has grown along with the travel and tourism sector, and several timeshare accommodation exchange companies have entered the market. Customers can switch their vacation lodging with another timeshare owner's lodging in a different location, thanks to the exchange organization.
Customers can use completely furnished vacation homes and share ownership due to the vacation ownership sector. Over time, the worldwide vacation ownership industry has experienced substantial growth. Due to their propensity to take numerous journeys for vacation each year, people who live in cities and urban areas significantly increase the value of the vacation ownership industry. Additionally, the growing popularity of business travel is influencing the rise in hotel and resort visits, fueling the growth of the worldwide vacation ownership industry. The vacation ownership industry is expected to grow at an increased rate due to the evolving consumer vacation preferences, upsurge in global tourism arrivals, growing high net worth population increasing partnership of market players across the globe in the forecast by 6.6%.
The global vacation ownership industry is projected to grow owing to rising growth in the vacation industry. Increasing focus on health and wellness, increasing trend of business travel, increase in disposable income, the rising popularity of tourist places, and the rise in the adoption of point-based vacation. The market is anticipated to be driven by factors including increased internet penetration, rising internet usage, increasing international travel, fast urbanization, and improving economic growth. Favorable demographics, technological innovation, an increase in business travel, and a growing emphasis on health and wellness are a few prominent trends.
The short-term expansion of the vacation ownership industry may be impacted by intense rivalry from both domestic and foreign competitors. Additionally, whether or not the facility is used, there are yearly maintenance costs associated with vacation ownership accommodations that could arise. However, strict rules, hazards related to seasonality and cyclicality, and other aspects of the vacation ownership industry are expected to pose challenges to the market's expansion.
The challenges facing acquirers of vacation ownership companies can be divided into three primary areas: legal, financial, and operational. The legal structure of vacation ownership inventory has evolved from deeded weeks to floating weeks to points-based systems. Almost every company has something unique in its structure, and acquisition targets often have a different form of inventory than the acquirer. The vacation ownership industry's complicated business model makes determining the financial and accounting implications and developing a credible financial forecast related to an acquisition extremely difficult. While certain operational aspects of an acquisition in the vacation ownership space are not dissimilar to acquisitions in any other industry, there is no shortage of challenges in HR, IT, branding, customer service, and other functional areas.
The United States Vacation Ownership is Rising Due to Rapid Economic Growth and High Occupancy Rates.
| Country | The United States |
|---|---|
| Market Share % (2022) | 15% |
Due to the rising occupancy rate and rapid economic growth, the United States is experiencing the fastest growth. The desire for vacation ownership is also being significantly fueled by the growth of the hotel sector in the United States. To accommodate massive visitors for a vacation stay, several resorts and hotels in the United States are increasing their typical size. The vacation ownership industry in the United States is anticipated to continue expanding in the years to come as a result of all these factors.
South Africa is Growing Due to the Local Non-branded Vacation Ownership Market.
South Africa has proven to be a growing country in the national vacation ownership industry. South Africa is a very highly pierced and very developed vacation ownership industry. Accordingly, the capacity of this market does not boost new development or increased demand.
The Vacation Ownership Market is riding in Spain as it is More Stable and Mature Due to the Development Strategy.
Spain has a different development strategy, and vacation ownership product is more mature, and they are more stable. The increase in the available capital and new propensity in the market has created a demand for vacation ownership.
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The Popularity of India's Sustainable Tourism Among Middle-aged People is Projected to Remain High
26 to 35 age group people are more likely to travel, and it is expected to remain the same, as the people of this age are more like to get attracted and are ready to travel and they want to explore islands, new adventures experiences like scuba diving, water rafting, kayaking, surfing, etc. and visiting popular sites according to destination rating.
Package Travel is Mostly Preferred by the Consumer
| Segment | Package Traveler |
|---|---|
| Market Share % (2022) | 36% |
Tourist mostly chooses packaged travel because it is cheaper than traveling individually. Packaged travel includes expenses of accommodations, transportation, and sight entrance fee with heavy discounts and offers.
Consumers Mostly Prefer Point-based Vacation Ownership.
The market segment for point-based vacation ownership is anticipated to expand at a notable rate throughout the forecast period due to rising millennial traction for vacation ownership (timeshare), flexibility in decision-making, and the availability of enhanced benefits like access to VIP weekends, club location options, luxury accommodations, etc. These factors are expected to drive vacation ownership sales.
Leading players operating globally are focusing on expansion and new tour launches to expand their business globally. The leading players in the vacation ownership industry are adopting new strategies and innovations to strengthen their market.
For Instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Region Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Germany, the United Kingdom, France, Spain, Italy, Russia, Benelux, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia & New Zealand. |
| Key Segments Covered | Type, Booking Channel, Consumer Orientation, Tourist Type, Tour Type, Age Group, and Region. |
| Key Companies Profiled | Wyndham; Marriott Vacations Worldwide; Hilton Grand Vacations; Hyatt; Diamond Resorts; Bluegreen Vacations; Disney Vacation Club |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The vacation ownership market holds a valuation of USD 11.6 million in 2023.
The United States stands out as the country demonstrating substantial demand for vacation ownership.
The vacation ownership market is projected to experience a CAGR of 6.6% through 2033.
The package traveler type segment holds high revenue potential as consumers greatly prefer the convenience of packaged travel.
By 2033, the global vacation ownership market size is anticipated to surpass USD 21.9 million.
| Current Year Value (2023) | USD 74.8 billion |
|---|---|
| Expected Forecast Value (2033) | USD 132.7 billion |
| Projected CAGR (2023 to 2033) | 5.9% |
| Market Size Value (2022) | USD 10.5 Trillion |
|---|---|
| Market Size Value (2032) | USD 17.1 Trillion |
| Market Growth Rate (2022 to 2032) | 5% |
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