To start it is important to explain once again who the RDO stand for and their role within the timeshare industry. In essence the RDO are a trade organisation for the promotion of timeshare within Europe. Their membership consists of both large and small timeshare developers and resorts plus a number of companies operating on the peripheral of the industry.
Amongst their illustrious membership are readily recognisable names such as Club La Costa, Diamond Resorts, Hilton Grand Vacations, Pestana to name but a very few. So it is clearly obvious that the RDO is not only funded by the timeshare industry but also has to defend its actions.
RDO Comment
The RDO were asked for a statement for the BBC Radio 4 You and Yours programme in relation to the payment of 2020 maintenance fees and the loss of holidays due to the COVID-19 pandemic. The RDO basically implied that it was too early to say whether 2021 fees should be adjusted. The show was broadcasted on 28th October. Coincidentally, the RDO published their thoughts on the subject on the 29th October; the following is the RDO comment:
Timeshare owners pay an annual fee towards the maintenance of their resort, irrespective of whether they choose to holiday at their ‘home’ resort or use the exchange system to holiday elsewhere. The fee typically covers cleaning, maintenance, staff salaries, taxes, insurance, energy supplies and the operation of any common facilities eg swimming pools, spas, children’s play areas, tennis courts, golf courses, restaurants and cafes. A portion of the management fee is set aside to build up reserves to pay for non-recurring costs such as furniture and appliances.
At this stage it is too early to assess the impact of the pandemic on maintenance fees and whether adjustments can be made in 2021 to reflect the actual costs incurred for 2020. Whilst many resort staff was put on furlough during lockdown and operations wound down, core functions still had to be maintained and taxes and bills paid. Resorts also had to invest in new equipment and extensive staff training to ensure they were Covid-secure and in line with strict government protocols when they reopened.
Customer satisfaction is paramount and RDO members have made it their priority to look after owners who have been unable to take their timeshare holidays during lockdown, offering them alternative holiday options. This is administratively complicated and time consuming but our members are rising to the challenge.
We are additionally concerned at reports from owners of unsolicited contact by people purporting to be representatives of ‘consumer organisations’ and are advising them to report such approaches to Citizens Advice so that checks can be made and, where appropriate, actions can be taken.
Reading between the lines
Reading between the lines, could it be that after investigation the RDO may be suggesting to owners that some form of financial recompense could be paid. This of course; as the RDO state, is too early to confirm, whatever that means?
At TCA we have maintained and agreed that of course resorts have expenses, but given that many are closed or running on a skeleton staff, there must be excess income over expenditure. Therefore it would only seem right and proper that owners are compensated for loss of use having duly paid their fees in good faith.
We are rapidly approaching the time of year that 2021 maintenance fee invoices will be issued, so the problem will only compound. We suspect that it is unlikely that the global pandemic over before the conclusion of the first quarter of next year, so the RDO need to get their thinking hats on before some owners suffer a double whammy of paying their 2021 maintenance fees only to find that they still cannot use their entitlements. Added to their loss of their 2020 occupancy, the situation is not looking good at all.
Naturally, we will report on any future developments and would like to think that the RDO decision will make a decisive impact. It’s all very well for the RDO to be funded by the timeshare industry but the industry would not exist without its customers. Our thoughts would be to reiterate the mantra of well run businesses and that is “The customer is king”.
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