Sociology

Timeshare is recognized as a form of ownership or the right to use a property. The properties that are usually recognized under the timeshare are resort condominium units that are usually shared by multiple parties in an allotted period of time. The parties that are involved in a timeshare have the right to use the property in a certain amount of time without really owning it (Schreier, 2005). The concept of timeshare has gained popularity among resort developers and prominent hoteliers like Hyatt, Hilton, Marriott, and Disney (Foster, 2007). Vacation ownership through timeshare is very lucrative for stakeholders in these resorts and hotels because of its popularity to vacation-goers. Due to this, competition among resorts and hotels are observable wherein they tend to out do each other when it comes to the length of their timeshare, quality of products, quality of rooms being shared, privileges, additional bonuses, and others. Big resorts and hoteliers have more resources in giving more privileges and amenities for the members of their timeshare. Despite the fact that only six percent of the United States household has timeshare, the concept of vacation ownership is continuously expanding, many resorts have timeshare. According to the American Resort Development Association International Foundation (AIF) about half of the resorts in the United States are currently involved in timeshare and they are producing 8.6 billion of profit in 2005 (Haight  Singer, 2005).

Timeshares are originally offered to the market by the developer who is responsible in creating a resort or converting a real estate property to a hotel. Developers worked hard in order to establish an environment wherein the amenities offered by the timeshare will stimulate demand in the market. Developers use two common ways in stimulating demand in the market. First, developers of timeshares are having contests wherein the winners have the opportunity to spend a free weekend in a luxurious resort and then, they will experienced a high-powered sales pitch that will influence them to take part in the timeshare. Second, developers will offer a valuable prize to people in exchange for them into coming to the resort wherein they will be exposed to sales pressure, which often times makes people succumb to this effort and participate in timeshare. The people who avail of timeshare through these means usually regret it because they paid it for a price that is way above the market price of the property. Being the case, the presence of the secondary market tends to address this problem. The market price for timeshare is identified in the secondary market wherein the force of supply and demand in relation to the emotional appeal of certain timeshare is reduced to its economic value. Due to this, the second market for a certain timeshare is almost always has a price that is well below the primary market with discounts that amounts to 40 percent (Schreier, 2005). Second market for timeshares is not well centralized. There are instances wherein a resort in which the timeshare is located will establish its own secondary market for timeshares. The Internet is also recognized as a medium that shows the essential role of the timeshare secondary market. The importance of second market in timeshare is clearly seen in the number of timeshare owners association that supports an active secondary market for timeshares (Haight  Singer, 2005).

Timeshare is increasingly gaining popularity in the market, especially for people who frequently go on vacation. This concept is regarded as a lucrative business endeavor, which is why most resorts and hoteliers are also involved in it. Competition among major resorts and hotels like Marriott and Hilton is observable because of the profit returns for timeshare is indeed very significant for the businesses of these aforementioned stakeholders. In addition, other parties like the second market also play an important role in timeshare, as they are responsible in giving the economic price for timeshares, which the market could afford. In this sense, timeshare is indeed a lucrative endeavor for resorts and the market could also take advantage of this offer because they could get great benefits and rewards in availing timeshares of resorts and hotels.