The risk of timeshares is the cost versus the ROI. There are many issues with owners not paying the maintenance fees and other costs and then WD (Wyndham Destinations) having to go after them and potentially losing the money. The other risk is that timeshares are expensive to own versus just traveling and staying in a hotel. As an investment, timeshare are always increasing their fee’s sometimes faster than the rate of inflation and the timeshare doesn’t generate income for the owner (Larry Ludwig, 2019). This means that if WD launches too many projects too quickly that don’t meet their sales goals, WD is deep into the red. On the other hand, if WD doesn’t stay ahead and continue growing their timeshares locations the competition will do it. Marriott and Hyatt have started their own timeshare and rental property programs. WD has the advantage of its reach globally. Continuing to expand will keep their success but only if people continue to use their timeshares.
References:
“Timeshares & Vacation Ownership.” Wyndham Destinations, http://www.wyndhamdestinations.com/.
“Why Buying a Timeshare Is a Bad Idea.” Investor Junkie, 5 Feb. 2019, investorjunkie.com/91/why-buying-a-timeshare-is-a-bad-idea/.
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