Timeshare Industry Faces Headwind from New Transparency Bill
A bipartisan bill proposes a 14-day cancellation period, targeting the industry's long-standing high-pressure sales tactics and threatening its business model.
The U.S. timeshare industry, a multi-billion dollar sector dominated by major hospitality brands, is facing a significant legislative threat that could upend its deeply entrenched sales model. A new bipartisan bill, the Timeshare Pricing Transparency Act, aims to arm consumers with a powerful tool against high-pressure sales tactics: a 14-day, penalty-free cancellation window.
Introduced by Senator John Curtis (R-UT) and Representative Adam Schiff (D-CA), the proposed legislation directly targets the industry's reliance on quick, binding decisions. Currently, state-mandated cancellation periods—often called rescission periods—are as short as three to ten days. Critics argue this brief window is insufficient for buyers to reconsider a complex, multi-decade financial commitment often made under intense pressure.
This change could prove disruptive for an industry built on a sales-focused model. As noted by personal finance personality Dave Ramsey in a recent analysis, a 14-day cooling-off period could potentially slash sales by as much as 70%. The commentary reflects a belief that a significant portion of timeshare sales are driven by impulse and tactics that a longer reflection period would neutralize.
The legislation would impact the sector's largest publicly traded companies, including Marriott Vacations Worldwide (NYSE: VAC), which holds a market capitalization of approximately $2.02 billion; Hilton Grand Vacations (NYSE: HGV), valued at around $3.97 billion; and Travel + Leisure Co. (NYSE: TNL), the parent of Club Wyndham, with a market cap of about $4.72 billion.
In a statement announcing the bill, Senator Curtis's office framed the issue around consumer rights and clarity. "This legislation is designed to empower consumers with clear, upfront pricing information and a reasonable timeframe to review their contracts, protecting them from predatory practices," according to the official press release. Beyond the extended cancellation window, the act also mandates that companies provide an itemized breakdown of all a la carte and closing costs.
The move comes as the industry already contends with shifting consumer preferences and a growing 'timeshare exit' sub-industry that profits from owners' desires to escape perpetual, and often escalating, maintenance fees. While occupancy rates at timeshare properties have remained robust, major players like Hilton Grand Vacations and Marriott Vacations Worldwide have recently signaled a pullback in spending from new buyers, reflecting broader economic pressures.
Industry advocates, such as the American Resort Development Association (ARDA), have historically defended their sales practices and emphasize the value and flexibility of modern vacation ownership products. They argue that existing state-level regulations are sufficient and that the industry provides significant economic benefits, including job creation and tourism spending.
However, the introduction of a federal bill with bipartisan support indicates a new level of regulatory risk for the timeshare business. If enacted, the Timeshare Pricing Transparency Act would force a fundamental shift in sales strategy, moving it away from the high-urgency, same-day closing model that has defined it for decades. Companies would need to adapt to a landscape where their product must withstand two weeks of outside scrutiny, family discussion, and competitor comparison, a challenge that could fundamentally reshape the economics of vacation ownership.