What is timeshare?

Original timeshare

'Timeshare' refers to a form of holiday ownership. Once acquired by a consumer, they own the right, (either directly or through a club) to use a week/weeks in a holiday resort in accordance with the contractual period which will range from an amount of years to 'in perpetuity' (forever.)

As of August 2023 there are over 20 million people who own timeshare worldwide – some of whom are genuinely satisfied with their memberships.

What’s in a name?

Over the years the word 'timeshare' has become associated with negative experiences, including high pressure sales, illegal contracts, disingenuous marketing practices and unchecked maintenance fee hikes.

To avoid that bad image, timeshare sellers often avoid using the word itself and employ other descriptors like holiday club, fractional ownership, destination club, vacation ownership or holiday ownership.

Accommodation

Accommodation ranges from studios, through to large apartments and villas and are generally of a high standard. Timeshare can also include boats, barges, motorhomes and cruises.

Timeshare competes with the holiday rental industry and in particular, the self-catering and package divisions.

Timeshare comes in two basic forms:

Fixed time.

Where the rights are owned to a contractually specified week, usually in a specific unit, which the user can either return to every year or swap through the exchange system for something similar in another part of the world and in another time period.

Floating time (which includes point clubs).

Instead of owning a specified week, the user owns a week within a seasonal band of time. Each year they have to book the specific week they want, but this is 'subject to availability.'

Provided the consumer continues to pay the contracted fees on time they are entitled to a holiday every year.

Exchange

Timeshare owners can access an exchange system which provides a choice of over 4000 resorts in popular destinations worldwide. The promise is that the other resort chosen is of a similar standard to that which the timeshare owner owns. Exchanges are based on availability and the most popular resorts are notoriously tough to get into

When a person acquires timeshare, generally a one off payment is made to the seller of the timeshare and each consecutive year of ownership, the consumer pays fees which discharges the day to day liabilities for the accommodation i.e. to be kept clean, in good order, local taxes paid etc.

These fees are payable whether or not, the consumer makes use of their ownership rights.

Committee

Sometimes resorts are administered by the owners through a club, consisting of a committee. This gives the owners the opportunity to maintain the resort in accordance with their collective wishes.

Negative sides to timeshare

Timeshare owners' main complaints are about:

• Having paid substantial sums of money to join 'exclusive' clubs that are now available to non members through regular booking sites
• Being committed to annual maintenance fees, regardless of whether they take a holiday
• Out of control maintenance fee increases
• The difficulty of escaping a no-longer-wanted timeshare
• The fact that timeshares have zero resale value
• Restricted holiday choice
• Consumer protection laws being ignored during the sales process

TCA

The Timeshare Consumer Association (TCA) website upholds the principles of its founder Sandy Grey. The TCA offers help and guidance regarding timeshare companies, memberships and related businesses.

Please contact our team for free, expert, independent advice on any timeshare related issue