If in the past timeshares contributed to rescue destinations affected by a natural disaster or a crisis of violence, in 2020 the flow generated by timeshares was fundamental for many hotels not to go bankrupt or close their doors, said John McCarthy Sandals.
The Leisure Partners CEO explained that even at the height of the Covid-19 crisis, less than 20% of timeshare and discount club owners stopped honoring their monthly payments, and that flow was used to keep many resorts operating without tourists.
Overall, the impact on lodging businesses that had a vacation club or timeshare was much less than on those who were out of that business.
Closing a hotel, he explained, costs a lot of money because air conditioners break down, furniture and curtains are ruined and then it is economically very complicated to reopen them.
McCarthy was this week at the annual meeting of the American Resort Developers Association (ARDA) and considered that the dominant message was that "flexibility" is the key word for the future of this business.
Now not only are weeks of accommodations interchangeable between properties, but they can be used for half weeks and also redeemed on cruise ship cabins.
There has been a great evolution in this activity, he said, to monetize timeshares so that the client has many more options to redeem his points, he concluded.