As businesses do their best to recover from the coronavirus, there are some that may not recover from the impact of the virus. These businesses share a list of characteristics including no income during the pandemic, loss of loyal customers, continued expenses at the same time and challenges for recovering. The timeshare industry is a perfect example of this as many of their current clients have not been paying during the pandemic or even canceled their agreements. At the same time, there have not been any new signups for most of these resorts and things do not look to change in the short-term, or by the end of 2020. Finally, these resorts, while not making revenue, still have to pay for their property including taxes and insurance, utilities and a staff.
Some based on their size are able to handle the slow turnaround for the rest of the year but others may not be able to handle another five or more months of slow or non-existent revenue. The other thing to consider is the time for rebounding for these businesses. While airlines and hotels could rebound quickly once people begin to travel, the chances that the timeshare industry will do the same is low. Travelers, regardless of the deals available, will not be interested in agreeing to long-term deals that require them to invest thousands of dollars in hopes that the country has put Covid-19 behind them.
Even investors will be reluctant to sign up for lower than normal rates as they are not sure what availability they will have for renting out their properties throughout the year and also may not be interested in long-term commitments at this time. One thing timeshares may have to do over the next year is to rent out their units like hotels or an air-bnb. While this is not ideal for them, they may not have an alternative if they want to generate short-term revenue.
2020 has certainly challenged everyone and we are not sure how the year will end. The tourism industry has shown sparks of improving as coronavirus numbers go down and people finally seem to appreciate the facts about the virus and how to stay safe while also living a somewhat regular life. It’s hard to imagine a scenario where the tourism industry sees an immediate spark as a slow upward trend makes more sense. The timeshare industry will be one of the last to benefit from this trend and each company will have to determine how long it can hold out in the meantime until that happens.
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We know how stressful timeshare contracts can be. What once sounded like a dream resort package turned into a nightmare. When you don't know where to turn, look to PMG to relieve you of your timeshare burden. We pride ourselves on open, honest, and frequent communication with our clients.
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Still not sure what's the next step? Our dedicated team can review your agreement and guide you through the process. The Primo difference is all about service. Our timeshare elimination consultants have one mission: To serve our clients and bring the peace of mind that comes from relieving their timeshare obligation.
Get StartedThe timeshare industry has spent a tremendous amount of time and money to delay, confuse and deter you from canceling your timeshare contract. Your team of timeshare elimination experts act as your consumer advocate and will work tirelessly to free you from your timeshare contract, mortgage, and maintenance fee bill.
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