Over the years the once exclusivity of timeshare resorts, being for the sole use of owners, has been slowly diminishing to a point where virtually every resort is now able to be booked online by anyone. We hear the explanation from developers that the reason is spare capacity or inventory, fair play if that was the case but it seems that there is a high element of massaging the truth.
The American trade association ARDA is always bleating on about high occupancy rates. In statistics we found online it’s stated that occupancy rates for quarter 3 in 2022 was quoted as 82.6% so that potentially leaves 17.4% vacant, which could be rented out to non owners.
In the very same content there is a graph produced from a survey carried out by the highly respected Deloitte & Touche based on 12 developer responses:
This graph tells a slightly different story. In both cases, over a third of bookings were from non owners! Admittedly these figures are dated but we guess the story is similar today.
Cheaper to own or rent?
In the order of fairness it’s difficult for us to draw a 100% conclusion without factual data, but looking at the figures quoted for holidays in timeshare resorts, using the online booking platforms, the numbers quoted look remarkably similar to the annual maintenance fees paid by owners.
Whist penning this article we came across a comment from a Diamond Resorts owner:
“I am an owner at Mystic Dunes Resort managed by Diamond Resorts. The property has been paid off but we are still responsible for a maintenance fee on the years we have access to a week (every other year).”
“I realised recently that my maintenance fee (we get bills from The Palms Country Club and Resort Condominium International.) is higher than the cost of that same week on the internet, available to anyone without being owners.” “Our bill is $1,303 and the cost on internet is $980.”
If these figures are correct, and we’ve no reason to believe they’re not, then this owner is paying 33% more than a non owner for the same holiday. Of course the missing figure is the amortisation of the initial purchase cost which technically adds to the annual cost.
TCA comment
In the past there was absolutely no comparison between the quality of exclusive timeshare resorts and the normal run of the mill holiday accommodation. To a certain extent this is still true, although given the demands of today’s holiday maker; other venues are pulling up their socks. That said, as this article implies, the quality may still be there but the exclusivity has all but gone.
As we have reported on numerous occasions the largest complaint area from timeshare owners is the lack of availability. ARDAs own figures would seem to indicate that resorts in general are not running at 100% capacity so why the problems? It would appear that not only is supposed spare capacity being consumed external of owners but also at the expense of owners.
In conclusion, if you like the idea of taking holidays in timeshare resorts, then why buy when you can book online. No initial cost, no ongoing maintenance fees and no long term tie in contracts just a pay as you go holiday coupled with the timeshare experience. In the USA, specialist rental companies exist such as Koala. These companies not only serve the timeshare owner but also those who wish to holiday in timeshare resorts. Failing that, Mr Google is crammed full of online booking platforms which means you can probably go where you want, when you want, unlike the poor timeshare owner.
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