For years, consumers have been finding cheaper alternatives to buying vacation homes and timeshares have provided them a way to cut vacation costs. However, as of late, many timeshare owners are scrambling to sell their units, even if it means losses and mortgages.

On the other hand, this scenario does pose benefits. For one, timeshare buyers are getting great deals. Plus, resorts that were previously hard to get into are now available at a more affordable price.

In 2008, timeshare sales dipped by eight percent—marking the first decrease since the American Resort Development Association (ARDA) began tracking sales 34 years ago.

“Timeshares used to be the little engine that could, whether the economy was up or down,” said Howard Nusbaum, ARDA president and chief executive. ““We were the one piece that always outperformed the market.”

With the recession at hand, Americans are reducing expenditures on travel and vacation. As a result, timeshare developers like Marriot International, Starwood Hotels & Resorts, and Wyndham Worldwide are closing sales centers, suspending projects, and reporting sales drops.

At Marriott International, 80 percent of buyers used to receive financing and now only 50 percent do, said Ed Kinney, VP of corporate affairs for Marriott International.

Starwood Hotels & Resorts has cut back in incentives, like free nights for timeshare owners. “Obviously, we’re watching every dollar,” said David Matheson, spokesman for Starwood Vacation Ownership in Orlando.

Wyndham Worldwide is reducing timeshare sales and will cut 4,000 jobs in its timeshare division due to lack of financing. The company is forecasting a 800 million decline in sales this year. 

Source: NYTimes