The surplus in timeshare inventory has caused owners and operators to re-evaluate their properties. However, they may find themselves in good position—thanks to an economy where people turn to timeshare because they cannot afford a second home.

“The aspirational-type buyer has been hammered,” said John Murray, senior vice president of financial services for Hilton Grand Vacations. “Their retirement horizons have been lengthened. They might have dreamed of a condo on the beach. They can’t do that anymore. Timeshare is a different alternative. The traditional snowbird is a thing of the past.”

Murray joined his colleagues discussed the impact of the economy on the timeshare industry during the 31st annual New York University International Hospitality Industry Investment Conference, which was held at the Waldorf-Astoria.

The conference discussed the industry’s search for new buyers. The industry execs also said that timeshare companies should make maintenance costs a priority—even if this means raising fees. Finally, speakers advised that timeshare companies cut costs in some areas, like marketing and advertising.

According to Gordon Gurnik, president of RCI Group North America, the new pool of buyers would be those customers who are exploring the idea of a second home. The downside for new buyers is that they will need down payments of 25 to 30 percent.

“We’re getting back to the fundamentals of the industry,” said Gurnik.

Industry executives remain optimistic. Statistics suggest that customers continue to pay HOA fees and assessments, because they like having a timeshare.

“People are paying their mortgage and HOA fees,” said Christian Hempell, vice president of Holiday Inn Club Vacations. “People love this product and they’re protecting it.”

Source: HotelInteractive.com