We are right in the middle of “maintenance season” that jolly time of year when most resorts send out their invoices for payment of next year’s fee. 2020 has proved a very trying year for both resorts and owners due to the continuing pandemic; however this has not slowed or stopped the machine that is timeshare. Many owners contacting TCA have expressed their frustration at not being able to holiday this year but still having to pay their maintenance fees; with this in mind we thought we would attempt to clarify the position.
Maintenance fee or holiday cost?
It is obvious that many owners associate their annual fee with their holiday; this is factually incorrect although we can fully understand this misinterpretation. As far as timeshare is concerned, it is the initial purchase payment that effectively guaranteed future holidays and, In a nutshell, maintenance fees are collected by the timeshare company to maintain the resort property, pay insurance, utilities, purchase appliances and furniture, refurbishing the property, and various taxes.
Maintenance fees are a contractual liability and we have never seen a purchase contract that does not contain a clause stipulating this point.
Fair or not?
Realistically, it is difficult to validate whether this charge is fair or not. On the one hand it’s fair to say that most timeshare resorts offer a superb guest experience and are very well maintained but on the other hand the promised exclusivity, one of the main purchase motivators, is for the most part a thing of the past.
Virtually every timeshare group offer non member bookings, as do the myriad of online platforms that have flourished over the past few years. So if maintenance fees paid by owners are to cover the items listed above, then it could be argued that owners are subsidising non owners’ holidays, which of course becomes unfair.
Double bubble
Forgetting the pandemic for a moment, it is extremely rare for timeshare resorts to be fully occupied. For whatever reason many owners do not actually take their holidays or exchange to other resorts, this is fabulous news for the resort. Whether owners choose to use their allocated time or not, maintenance fees still need paying. Naturally it would be rather foolhardy for resorts to leave accommodation empty so they will rent it out. So not only have they had a full year’s maintenance payment from the owner but also benefit from the rental income.
Are we right or wrong?
Since the evolution of floating weeks and points based ownership, reports we receive often express problems with availability. Part of this, we are sure, is the ability to sell more than the standard 50 or so weeks of a fixed week contract but also, we would venture, part of the problem is created by interlopers encouraged to book resorts either directly or with online platforms.
Owners have already paid substantial funds to purchase their timeshare and are now contractually bound to pay annual maintenance fees, often for holidays they cannot book, but despite this we must return to where we started. Annual maintenance fees must be paid and regardless of any reasons that, either globally or personally, owners cannot use their allocation, they signed the contract so now must abide by the terms. Is this fair? In reality, as an owner, you are armed with facts and must therefore make your own decision.
One certainty is as long as you continue to own a timeshare expect a maintenance bill every year; also expect that this bill will rise each and every year.
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