Regrets and rising costs – Why timeshare ownership is losing popularity

Industry trade bodies would have you believe that all is moonlight and roses in the world of timeshare ownership; however that’s not what TCA find.

The American Resort Development Association (ARDA), the trade body for timeshare USA, carried out a survey recently and found that 85% of owners are happy with their purchase. But another study by the University of Central Florida found that 85% of buyers regret their purchase. So which 85% would you be a part of?

TCA research would indicate that timeshare is facing a significant backlash, with owners burdened by ever increasing costs, lack of availability and no clear exit strategies for those who simply want out. According to the University of Central Florida survey, if up to 85% of buyers regret their purchase; does this not confer a message that industry needs reforms?

Costing more, getting less

Historically, timeshare was a product worthy of a place in the holiday industry; however, over the years the greed of developers has created a significant criticism from owners burdened by escalating costs and diminishing returns. The industry in the USA boasts about 10 million U.S. households as timeshare owners, as you would imagine, simply looking at the UK, where the market is way way smaller, there are only about 650,000 owners.

 Over the years the cost of an average timeshare in the USA has risen to $23,940 as of 2023 and around £20,000 in Europe. The timeshare concept is under scrutiny for, amongst other things, contracts that are hard to exit and rapidly increasing maintenance fees etc, leaving many to question the value of their purchase.

The dream that turns into a nightmare

The resort sales teams are well versed with the tactics of selling a slice of paradise coupled with the promise of idyllic getaways. Unfortunately, timeshare ownership for many has morphed into a source of financial strain and regret. Relating to the University of Florida survey, again we repeat the findings that up to 85% of timeshare buyers regret their purchase.

The survey cited various reasons for the seemingly current dissatisfaction, ranging from financial burdens to unmet expectations about availability and value. The resale market offers little solace, with timeshares often selling for a fraction of the original purchase price that of course presupposes that they can be sold at all. This financial quagmire is compounded by the fact that annual maintenance fees, which only ever rise, averaged $1,170 in 2022, according to ARDA, thus trapping owners in a cycle of rising expense with diminishing returns.

Alcatraz is easier to get out of!

Finding a way out of timeshare contracts proves daunting for many owners. While some companies may accept a return and a very few may offer a buyback programme, this is not a universal practice. The corollary of the lack of formal published exit strategies leaves owners searching for exits via resale or legal means. However, the resale market is out of balance, there are more sellers than buyers. TCA have seen some spectacular timeshares for sale with an asking price of a single Dollar, still with no takers.

As we have stated on a number of occasions, the value of timeshares plummets upon purchase, making it difficult to recoup even a portion of the initial outlay. Consumer advocacy groups, such as TCA, and resale websites offer guidance, but for many, the financial damage has been done. The situation is exacerbated by the high number of complaints filed against major timeshare companies, reflecting widespread dissatisfaction and feelings of entrapment among timeshare owners.

TCA comment

The internet is awash with personal stories of timeshare regret; it doesn’t take long to establish that there are thousands of timeshare owners who feel pretty disgruntled with their lot. One such website, Timeshare Facts, doesn’t simply moan about the industry in general but catalogues real people with real stories who have been wronged by the industry, some of which beggar belief.

As the timeshare industry faces growing scrutiny and calls for reform, the experiences of countless owners serve as a cautionary tale about the risks and realities of timeshare ownership. With financial burdens mounting and satisfaction waning, the future of timeshares may well be hanging in the balance. In a recent TCA article we calculated that the average sales closing rate for timeshare presentations is 15% at best. As often said, bad news spreads like wildfire, the negative stories surrounding timeshare is prompting potential buyers to think twice before signing on the dotted line. This shift in perception may herald a significant transformation in how timeshare is marketed and managed but this will only happen if considerably less people buy and more people leave. For an industry that seems to still make substantial profits, even when 85% of sales presentations fail, the path to a redesigned fair for all product would seem to be a long way off.

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