The recent economic crisis that broke out in late 2007 is described as the worst global financial crisis since the Great Depression. Although almost two years had passed already, everyone is still experiencing the adverse effects of this difficult situation. In the timeshare industry, as many owners are trying to get out of their timeshares, almost every timeshare company also had been put to a test in withstanding this unfavourable economic climate.
In one case, the Wyndham Worldwide Corp. had announced that its profit fell in the 3Q as it spent less on timeshares. The said company’s earnings dropped by 27%. This is equivalent to $104 million or 57 cents per share compared to 80 cents per share or $142 million a year ago. Not including legacy items, the earnings were 58 cents per share, which exceeded the analysts’ forecast of 56 cents per share.
On the other hand, Wyndham reduced its timeshare investments and attributed some of its losses to the strong bounce of the dollar and the softness of the lodging sector. The said company’s timeshare gross sales dropped by 35% to $366 million. Moreover, Wyndham cut its expenses on many timeshare operations, including shutting down offices and minimizing marketing campaigns.
The case of Wyndham is just one of the many cases of timeshare companies which are surviving this economic climate. The current economic condition aggravates the image of timeshare ownership today which becomes unattractive for most people. Take note that several owners these days are trying to get rid of their timeshares. Some even hire a timeshare transfer company such as the Transfer Smart just to get rid of it. Although most companies are implementing strategic measures to minimize costs and increase sales despite the unfavourable economy, losses are still a commonplace for this industry today.