The recession affected all industries including timeshare. Timeshare industry then faced not only their problem with timeshare owners seeking for timeshare relief but also the decline of sales of the timeshare companies.The accommodation industry suffered much because of the recession. A number of vacationers cancelled their vacation because they are pressed financially and going on a vacation was a luxury. Other vacationers opted to vacation on shorter period so they can save on their expenses. These decisions made hotels, fractional ownerships and timeshares lose some sales.
Timeshare was all the more affected when the financial institutions released more stringent criteria for financing approvals. Some timeshare prospective buyers found it difficult to get personal financing preventing them from purchasing a timeshare.
These difficulties became an industry – wide problem resulting to a decrease in sales. Because of the decrease in profitability, some timeshare companies had to close down other sales offices. Some also dismissed other employees to be able to decrease their operational expenses. The freebies that they used to offer were also removed. Those efforts are aside from the basic operational savings that they had to do.
The recession caused this much difficulty for the timeshare industry. Without their efforts to save on expenses, they will surely be forced to close down their whole companies. Timeshare owners, on the other hand, especially those who want to get rid of their timeshares will continue to increase in number. Only the freedom from recession will revive the whole industry as the case continues to worsen.
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