Insights

The Rise of Vacation Ownership and How Loan Servicing Plays a Role

Written by Ericka Schwarm | Aug 10, 2023 2:36:57 PM
Vacation ownership has been gaining popularity rapidly as a cost-effective and flexible way to secure luxury vacations. A phenomenon that's been driven by factors such as more flexible offerings, higher standards of accommodation, and evolving consumer preferences, it has now emerged as a booming sector within the tourism industry. But there's another key player in this equation often overlooked: loan servicing. Let's explore how loan servicing is powering the growth of the vacation ownership industry.
**Understanding Vacation Ownership**
 
Vacation ownership, also known as timeshares, allows individuals to purchase the right to use a property, typically a resort condominium, for a specific period each year, or even any time of the year and as many days as they want to stay if their vacation ownership property allows them to do so.. The draw? It offers the comforts of a home away from home without the hassles of full-time property management.  
 
**The Growth of Vacation Ownership**
 
This industry has grown exponentially, thanks to the promise of affordable luxury vacations with a large dose of flexibility. However, affordability isn't a universal trait among prospective timeshare owners. While the idea of owning a slice of a vacation property sounds appealing, the upfront costs can be a deterrent for many.
 
**Loan Servicing: The Unseen Hero**
 
Enter loan servicing – the silent hero powering the vacation ownership industry. Loan servicing companies, such as Concord, bridge the gap between aspiration and ownership. They manage loans on behalf of lenders, sending payment reminders, collecting payments, maintaining payment records, and handling any issues that arise.
By providing prospective vacation owners with accessible financing options, loan servicing companies make vacation ownership more attainable. This, in turn, fuels the growth of the vacation ownership industry.
 
**Transforming Vacation Ownership**
 
Loan servicing not only makes vacation ownership financially feasible for many more people, but it also simplifies the ownership process. With a streamlined system for managing payments, owners can focus on enjoying their vacations rather than worrying about the intricacies of their financing.
 
 
The rise of vacation ownership is a testament to the evolving demands of the modern traveler and the industries that adapt to meet these needs. Loan servicing, with its consumer-focused approach, is an essential cog in the wheel, quietly facilitating this growth. As the vacation ownership industry continues to evolve, the role of loan servicing in making dream vacations a reality for many will only become more crucial.