It comes as no surprise that timeshare is becoming less and less popular. But why?
The below figures and information collated from several sources conclude that it is due to lack of confidence. The TCA strongly agrees with this. The industry has become riddled with opportunists who seek to milk the timeshare owners of their hard earned cash and exploit those in need of guidance. Consumers have, since the 1970’s watched this decline.
They have either experienced first-hand the pressure selling tactics, persistent cold-call chancers and the relentless and unhelpful resorts. Or they have heard of everyone else’s misfortune whilst on holiday and have thanked their lucky stars that they didn’t entertain the timeshare salesperson the day before. Timeshare should be a fantastic investment. It should be something you purchase that is reliable, affordable and enjoyable. Instead it is (in the majority) anything but.
The historic decline of EU timeshare sales
1970’s- 1980’s – Timeshares strongest years
1990’s – annual sales growth halved from approx. 30% to 15 %
1996 – late 2000’s – sales volumes dropped even further from approx. 15% to less than 5%
Reports formed over the last 5 years all suggest that the decline in EU timeshare sales are down to consumer confidence.
However, due to the initial popularity of timeshare within the EU, it is recorded that approx. 1.45 million households hold the rights to around 3.3 million European timeshare weeks and/or points.
The figures show that the UK hosts the largest number of timeshare/LTHP consumers in Europe with 589,000 owners, followed by;
- Germany with 197,000
- Italy 136,000
Most resorts are concentrated in Spain and the Canary Islands.
In 2010;
- Timeshare sales were estimated at 1.24 billion Euros;
- Spending on maintenance and upkeep was estimated at 290 million Euros;
- The total economic output in Europe was estimated at 5.4 billion Euros
In 2011;
- 78,118 sales were completed across Europe
- An average of 121 sales per resort
- Total sale at each resort averages approx. 1 million Euros
- Average sale valued at being over 9,500 Euros
Exchange Schemes are reported to have declined in popularity within Europe as consumers are looking for less commitment. Reports suggests that consumers now favour the shorter term products which do not carry the burden.
Holiday club schemes which provide consumers with a membership to a club which provides flexibility for a fixed period has slowly risen in popularity since they were introduced in the 1990’s.
Due to the decline of timeshare popularity, studies suggest that the market turned its eyes to that of reselling in order to stay in line with what the consumers want. Over the past 10-15 years this has become a sector riddled with scammers and fraudulent businesses. In an attempt to tackle this issue, the latest Directive made the move to ensure that all existing timeshare owners were afforded the same rights and protection as those purchasing timeshare.
If you are thinking of purchasing a timeshare then let our advice be clear, do your homework. Thanks to the internet, good or bad, consumers are taking to it to tell everyone of their experience. If you have been on holiday and have enjoyed your time at a resort which offers timeshare opportunities, go online and check them out. If you are happy with the reviews, then your next step is to go into the sales part with your eyes wide open.
- Do not sign anything on the day. Take the contract away and look over it thoroughly. Preferably with a legally minded person. Better yet, speak to a Solicitor.
- Do not pay anything there and then. They should not be taking a deposit. As a tip, don’t take any form of money. That ensures that you cannot be forced into any position that is against your will.
- Make sure you understand all of the terms set out in the contract. They legally should be in your language; each clause of importance should be pointed out or placed in bold to attract your attention.
- If the seller does not provide you with all relevant details of your agreement that could have influenced your decision at the time, you will be in a position to terminate the contract.
Interest in timeshare is declining, that doesn’t mean that sales in timeshare will stop tomorrow. What it does mean is that the industry is contemplating its position and is creating new and ‘improved’ ways of gaining sales. Be aware of what you are getting yourself into before it’s too late.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk