Q&A: Timeshare Owners Defy the Travel Slowdown 

SKIFT TAKE

As discretionary travel spending softens, timeshare owners remain the travel industry’s most reliable leisure segment. These travelers continue to book, plan, and take vacations at rates far above the broader market — a testament to the power of prepaid “banked leisure.”

Even as travel budgets tighten, timeshare owners are proving remarkably resilient. According to new research from ARDA, the trade association for the vacation ownership industry, 63% of owners have already reserved their next vacation, compared with 39% of all travelers. Nearly 69% strongly agree that “nothing will stop me from taking a vacation,” and they are 44% more likely to say they’ll spend significantly more time on vacation in the next six months.

What’s emerging is a model of “banked leisure”: a prepaid, built-in commitment to taking time off that shields owners from inflation anxiety and fluctuating consumer confidence. With major brands now piloting prepaid or subscription-style loyalty programs, the timeshare industry’s decades-old structure suddenly looks prescient.

As the travel industry navigates a slowdown, timeshare ownership may not just weather the storm — it could help redefine what financial and emotional resilience look like for leisure travel in 2026.

To explore this dynamic, SkiftX spoke with Jason Gamel, president and CEO of ARDA.

SkiftX: How has the prepaid structure of timeshare ownership shaped owners’ ability to continue traveling through recent periods of economic volatility?

Jason Gamel: Timeshare has always been about prepaying for future vacations. You lock in your vacation cost today and hedge against whatever might happen tomorrow — job loss, airfare spikes, or inflation. When people buy a timeshare, they’re making a commitment with their time, loyalty, and emotions.

About 80% of owners have fully paid off their purchase, so they’re mainly covering a predictable maintenance fee. That makes travel affordable and steady, even when everything else gets more expensive. Over the decades, whether it was after 9/11, during the 2008 recession, or through Covid, owners never stopped traveling. Maybe they’ll swap a flight to California for a drive to Williamsburg, Virginia, but they still go.

Many leisure travelers are cutting back right now. What drives timeshare owners to maintain such strong vacation intent?

Intent comes from that built-in commitment: use it or lose it. Owners know they’ve already paid for the time, and they see it as part of their lifestyle. During the pandemic, when air travel stalled, people actually doubled down on their travel plans. They viewed their resort as a second home — a safe, professionally managed space that allowed room to distance themselves.

In 2020, when much of the world was locked down, $4.9 billion in new timeshares were still sold. That demonstrates how much people trust the product and the idea that vacations are essential, not optional.

Beyond price, how are owners redefining the concept of “value” today?

Forty years ago, value meant square footage — multiple bedrooms, a kitchen, maybe proximity to a major attraction. When big hospitality brands entered the space, value expanded to flexibility, location, and brand loyalty.

Now, ownership is a lifestyle. If you’re a Hilton Honors or Marriott Bonvoy member, your vacation ownership connects you to that larger family. You can convert points for hotel stays or experiences. Owners today buy for space, flexibility, brand trust, and the experiences woven into their membership.

ARDA’s research also highlights the generational shift underway. How are Gen Z and younger millennials contributing to this culture of resilience?

Gen Z grew up in the sharing economy. Uber, Airbnb, on-demand everything — that’s their baseline. The concept of “owning a piece of something” fits perfectly.

They’ve often vacationed with their parents at timeshares, so the product feels familiar and safe. For them, co-owning with friends or family is normal. ARDA’s data shows Gen Z owners are 37% more likely than other owners to vacation with friend groups and 61% plan to upgrade or purchase additional ownership within the next two years — nearly double the rate of older owners

They also take more trips — approximately 3.3 leisure trips every six months, compared to 2.6 for other owners — and spend more time and money overall. For a generation that prizes experiences and flexibility, timeshare checks every box.

Major brands are experimenting with prepaid or subscription-style loyalty programs. What other lessons does the timeshare model offer the broader travel industry?

The travel industry is realizing that commitment drives engagement. When you prepay for value, you’ve got skin in the game — and brands have a reason to keep earning your loyalty.

We’re seeing pieces of the timeshare model appear everywhere: subscription travel clubs, co-ownership homes, even “third-home” exchanges where people trade time in their personal properties. Those are direct descendants of timeshare concepts, such as exchange networks and shared maintenance.

It’s no coincidence that as loyalty programs become more experiential and membership-based, they’re adopting what our industry pioneered.

Beyond economics, what emotional or psychological benefits do owners describe when vacations are “already planned and paid for”?

Peace of mind. Planning a family vacation can be stressful — booking flights, choosing accommodations, worrying about costs. With a timeshare, most of that is settled. Owners know what they’re getting and that it’ll be clean, safe, and ready.

That predictability takes away the anxiety of fluctuating hotel prices or airline disruptions. And many resorts are drive-to destinations, an advantage at a time when air travel feels unpredictable. Owners can simply load up the car and go, which our latest research shows more people are planning to do in 2026.

You mentioned maintenance fees earlier. How does that funding structure help sustain quality and loyalty?

Every owner contributes annually to upkeep and enhancements, and that’s what keeps resorts desirable decade after decade.

People sometimes ask, “Why pay maintenance fees?” My answer is: you pay for maintenance everywhere — either as part of a nightly rate at a hotel or as a homeowner. Timeshares are no different.

Most resorts refurbish their units on a five-year cycle, replacing furniture, appliances, and even flooring. So the product ages well. Owners return to find the resort looks as good, or even better, than when they bought it. That level of consistency builds trust and repeat visits.

As more travelers seek predictability and a sense of belonging in their leisure experiences, could timeshare evolve into a broader “lifestyle” membership?

Absolutely. We’re already seeing it. The industry is moving toward a full ownership lifecycle, providing people with an easier on-ramp and off-ramp, more flexible durations, and increased integration with everyday life.

Technology will also play a significant role. We’re working toward digital booking and management experiences that mirror what people expect from hotels or airlines. At the same time, experiential travel remains the sweet spot — sporting events, culinary weeks, and wellness retreats.

What we’re building now is connection beyond the trip itself: how a brand stays part of your life even when you’re not on vacation.

Looking ahead, how is the industry performing as the broader travel economy cools?

Public data shows our major developers — Marriott Vacations Worldwide, Hilton Grand Vacations, and Travel + Leisure Co. (Wyndham) — are maintaining or even exceeding last year’s record $10.5 billion in timeshare sales.

That’s remarkable when consumer confidence is falling and hotel revenue growth is slowing. It means people still see the long-term value in locking in their vacations. For them, it’s not just a financial hedge. It’s an emotional investment in time with family and friends.

What does this resilience say about the future of leisure travel?

It shows that leisure is becoming a planned, protected part of people’s lives. Whether the economy is up or down, vacations remain non-negotiable.

Timeshare owners have essentially built a safeguard for joy — a prepaid reason to take time off. That idea, I think, is where the broader travel industry is heading: providing travelers with more certainty, a sense of belonging, and more reasons to keep coming back.

To learn more about ARDA, click here. 

This content was created collaboratively by ARDA and Skift’s branded content studio, SkiftX.