The Timeshare Industry’s Mandate: Evolving for the Next Generation of Travel
The timeshare industry has reached a defining moment. Its foundational promise—reliable, high-quality vacation accommodations and a cherished sense of belonging—remains incredibly valuable. Yet, to stay relevant and thrive within the broader hospitality landscape, the industry must evolve. It must embrace the technology and shifting expectations of modern consumers.
In a recent guest article for ARDA, Mike Kennedy, co-founder and CEO of KOALA, believes this strategic evolution isn’t about discarding the past; it’s about building on that high-quality base in ways that reflect today’s digital access and travel preferences.
The Generational Imperative: Redefining Value
Millennials and Gen Z are already reshaping the market. According to ARDA data, 57% of owners are now 45 or younger. This shift is progress, but it demands modernization.
Timeshare originally provided the space and consistency families needed. Today, the challenge comes from agile short-term rental competitors. To win, the timeshare product must be reimagined with flexibility, exclusivity, and experience at its core.
Younger consumers are comfortable with:
- Subscription Models: Access over long-term ownership.
- Digital Self-Service: Seamless booking and management.
- Sharing Economy: Trying before making a major commitment.
If we want the next generation to consider timeshare, cutting-edge technology must be non-negotiable. This means ensuring better utilization through AI, establishing clear liquidity systems (rental and resale viability), and introducing lower-barrier, shorter-term membership options.
The core value—spacious accommodations, professional management, and resort amenities—is strong. We just need a new lens for tomorrow’s world.
Technology First: The Digital Transformation Mandate
Kennedy believes the timeshare sector is at the precipice of a necessary digital transformation. While many existing systems were built for a different era, this creates an opportunity to leapfrog competitors.
The bar has been raised by consumer tech: mobile-first booking, machine learning-driven search, and hyper-personalized experiences. With the right infrastructure investments, timeshare can not only catch up but also get ahead.
As highlighted at the 2025 Spring ARDA conference, strengthening our data foundations is the key. This will unlock powerful tools—like AI and machine learning—that are already reshaping how modern travelers plan and book their time away.
Experience Over Assets: A Shift in Focus
The future of this industry lies not in selling real estate, but in selling experiences.
Younger travelers prioritize experiential travel over asset-based ownership. This mandate opens significant doors for innovation:
- Flexible Membership Products: Offering access-based travel clubs.
- Unique Stays: Prioritizing connection, exploration, and personalization.
Kennedy says that business must shift the sales conversation from the asset’s structure to the experiences and adventures it enables. This refocusing directly addresses the next generation’s values.
Strategic Growth: Embracing Owner Rentals
Owner rentals are no longer a fringe activity; they are a vibrant, powerful part of how owners derive value from their product.
When managed responsibly and transparently, owner rentals offer three crucial benefits:
- Customer Acquisition: Rentals bring new guests into the ecosystem, acting as a low-risk trial phase for travelers who would not otherwise consider timeshare ownership.
- Owner Retention: They help owners offset costs, reinforcing the value proposition of their purchase.
- Brand Awareness: Rentals build positive brand experiences through legitimate, transparent platforms (a mission exemplified by KOALA).
Instead of overregulating, the industry should be enabling owner rentals with guardrails that protect brand integrity while maximizing marketing opportunities.
Rethinking the Duration of Commitment
The traditional fractional ownership model is being challenged. While the industry has made progress by shifting toward vacation points connected to deeded trusts, further evolution is necessary.
Introducing shorter-term membership or subscription models creates essential on-ramps for new buyers. These models:
- Increase Accessibility: Lowering the financial barrier to entry.
- Reduce Hesitation: Allowing travelers to experience the benefits without a lifelong commitment.
- Expand Market Reach: Opening new revenue streams that address consumer preferences directly.
While these new structures introduce complexities in revenue recognition, preparing for this future is necessary to maintain market relevance.
Timeshare has historically been a resilient, community-driven product. Now, we have a clear path to evolve. By modernizing technology, elevating experiential offerings, strategically embracing rentals, and diversifying commitment models, we can usher in a new era of innovation that makes timeshare a more relevant, mainstream choice for the next generation of travelers.
How is your organization preparing to leverage AI and flexible models to capture this new generation of owners?
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This is based on a guest article by Mike Kennedy, Co-founder and CEO of KOALA, originally published by ARDA (July 2025)