Press release -
Another timeshare giant calls it a day. Club La Costa announces "discontinuation of new timeshare sales"
Club La Costa announces discontinuation of new timeshare sales
Club La Costa (CLC) announced in October this year that they were 'pausing all sales operations until further notice.' Observers at the time believed this to be a sign that the timeshare powerhouse may be getting out of the business for good.
CLC confirmed this expectation with an announcement by email on Friday 20th November 2020 that after over three decades at the top of the timeshare industry, they are finally admitting defeat. Club La Costa are discontinuing new timeshare sales.
Administration
The email which was sent to all CLC members informed them that the decision was made to place the timeshare sales companies into a "controlled administration process" and that the closure of the companies will have "no impact whatsoever on CLC World's (existing) members".
CLC email to all members
Inevitable
Greg Wilson, a claims expert from the Timeshare Advice Centre comments that, "CLC ceasing sales operations is one more indication that the industry´s days are numbered. The timeshare system of holidaying was a great innovation a couple of decades ago, but they haven´t adapted and innovated to keep pace with the rest of the travel industry.
"The smaller, or weaker companies folded a long time ago. The last ones left are the biggest and best, but it's clear that the end is inevitable. Modern consumers no longer want the commitment of paying for a holiday every year for decades, or even indefinitely in some cases. The pandemic has sped things up as owners are rebelling against having to pay for holidays that they can´t take, while their travel-agent-using neighbours only pay for the vacations they book.
Claims unaffected
Wilson points out that people pursuing compensation claims against the timeshare giant should not be affected. "This controlled administration is to make sure that the CLC liabilities do get settled. And that includes what they may owe to clients who were issued illegal contracts. Club La Costa still has enormous revenues coming in through their real estate business, external bookings and annual fees, so at this time we believe there to be no immediate concern about them running out of money."
End of an era
Daniel Keating of the Timeshare Consumer Association adds that "Club La Costa shutting down may well be a 'bellweather' indication that other operations are facing similar difficulties. CLC were enormously successful in the past, and the reason they have stayed profitable so long is that they were very well run. If they can close, then so can anyone.
"We agree that there is no need for concern and believe the assurance that members will not be affected. Anyone wanting further advice on their situation with any timeshare membership is welcome to get in touch with us the TCA on the contact details below."
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