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What is Vacation Ownership? Vacation Ownership "Timesharing" is the right to use specific weeks of
a resort during a specific time period. Simply put, it is the pre-purchase of future
vacation weeks. Timeshares are more deluxe than simple hotel rooms. Condominium-style
units usually feature fully-furnished kitchens, generous living areas, and ample sleeping
options for family or friends. Ownership of a timeshare is very similar to ownership of a
condominium except that your rights are limited to a certain week (or weeks, if you
purchase multiple intervals) during the year. The form of ownership can be deeded, leased
or licensed. The license is somewhat different, in that it is most commonly a membership
in a club. Providing you are a member in good standing, you have the right to use the club
and all its amenities. Be sure to read and understand all the terms and conditions of your
club membership before you make the decision to buy. Most vacation ownerships consist of
either a deeded interest or a leased interest for a specific number of years. A deeded
interest is owned outright forever. It is an absolute right that can be sold, leased, or
even willed to your heirs. The less common leased interest is much like an apartment lease
except right to use it is restricted to a specific week during the year. Upon the
expiration of the lease term your right to use it will generally terminate and return to
the resort. With a leased interest you should know the terms and conditions of the lease
prior to making the decision to buy. The time of your use can be either Fixed or Floating.
Fixed time is a specific week during the year usually defined by a number. Generally the
week will begin on a Friday, Saturday or Sunday and is given a number starting with the
first week in January and continuing through the end of December. (Example - week 14 might
be April 7 through April 13.) Floating time means you have the right to select any
available week within a certain season of the year. Therefore, if you own a summer season
week you could pick any week that falls within the defined summer months. However,
competition between existing owners for prime weeks in very desirable locations can impact
availability. It is important to find which type of use best fits your specific travel
needs. Each resort is different and offers various benefits to its owners. Many resorts
give special reduced rental rates for extra nights or use of other resorts that are owned
by the developer. This can add to your flexibility and provide substantial savings on
vacation costs. Also, consider how and where you normally vacation. This is very important
in making your decision about where you should buy and what you will have to trade. We
welcome your comments and appreciate your feedback.
The History of Vacation Ownership The
vacation ownership (timesharing) industry can be traced back to its European origin in the
1960s. Superdevoluy, a ski resort in the French Alps, is the first known vacation
ownership program in the world. The ownership of individual weeks guaranteed reservations
for those who wanted to ski the area every year. It was an immediate success. By the
1970s, some faltering condominium projects on St. Thomas and in Fort Lauderdale and Puerto
Rico were converted over to vacation ownership. Thereafter, timesharing became an
increasingly popular vacation alternative. Once the United States embraced the concept of
vacation ownership, it began to gain wide acceptance worldwide. Sales jumped to over 50
million by the mid- 1970s and have climbed to 6 billion annually today. Vacation ownership
has enjoyed substantial growth over the years with approximately 5 million timeshares sold
since 1980. Currently, there are over 5,000 vacation ownership resorts in 90 countries
around the world. Exchanging a vacation ownership week in one resort for that of another
resort was introduced in 1974 and brought new elements of variety and flexibility to the
vacation experience. Although there are many exchange companies available that provide
excellent service, the two major players are Resort Condominiums International (RCI),
which has approximately 3,500 member resorts, and Interval International (II) with
approximately 1,800 member resorts. Combined, these two companies provided over 1,600,000
exchanges last year. During a 30-year span, the industry has grown from small (15-20 unit)
hotel conversions to the high-quality condominium resorts of today. The evolution of the
industry from scattered entrepreneurs to well managed professional development companies
has brought with it a noticeable change for the better. Definitive leaders have emerged
and created standards and ethics for management, marketing and sales practices. One such
organization is the American Resort Development Association (ARDA) whose members are
required to comply with an established "Code of Ethics." The recent entrance
into the marketplace by major hospitality chains such as Disney, Hilton, Ramada, and
Marriott has greatly enhanced the quality and image of the industry. Vacation ownership
resorts today are luxurious, have a wide array of amenities, and are well located. With
the advent of these stronger and more professional development and management companies,
and with the weeding-out the less desirable developers and marketers, the industry is now
experiencing a very positive public image. One of the industry's leading analysts (Ragatz
and Associates) concluded that the majority of timeshare owners are pleased with their
purchase and, in fact, many now own multiple weeks. The future of vacation ownership is
very bright and has tremendous potential.
How to Buy a Vacation Ownership Interest Is
Buying a Timeshare Right for You? Looking across the vacation spectrum, we find those
who enjoy returning each year to a familiar spot as well as those who look to visit a new
destination every year. Many fall somewhere in between. No matter where you are on the
spectrum, timesharing can meet your travel desires. When you buy a timeshare, you are
making a commitment--to yourself. This commitment involves your desire to vacation every
year. While you often may choose to go to the same resort, you can also use an exchange
network to go elsewhere when the mood strikes. Certain features may be extraneous if
your only purpose is to use the resort for your own enjoyment. If you plan to trade your
interval, however, for other timeshares throughout the world, a resort unit with more
features will fetch a better trade, or a higher price, should you decide to sell the
interval down the road. Keep in mind that you do get what you pay for. Although there are
bargains out there to be found, this is still an emerging market. As a prospective buyer,
you must also ask yourself, "What are my vacation criteria?" Some primary
considerations are family, airfare, recreation, meals, etc. "Do I want to guarantee a
certain week every year? Can I only travel when the kids are out of school?" Find a
resort that fits your vacation style. The Dollar Value Consideration Above all
else, take into account the ever-present effect of inflation. Since the 1950s, the travel
industry has noticed an approximate 5% annual increase in dollars spent on vacations. With
the acquisition of a timeshare unit, you can start to curtail those costs. An annual
maintenance fee of $250 to $450 ensures a week of vacation that has a fixed accommodation
price per visit. I'm Ready to Buy a Timeshare After all the initial considerations
and deciding to purchase, it is time to start looking for a resort that fits your
criteria. To start narrowing down your resort choices, take a look at our online listings or at a timeshare
catalogue. Everyone who is a member of an exchange organization gets a catalogue each
year. It holds up to 3,500 developments throughout the world. Unfortunately these
catalogues are not available in your local library. You must borrow one from someone who
is already a timeshare owner. Our ResortBase.com index of listings, however, is always
available for review. Let's say you've gotten to the point where you have two or three
really attractive resorts in mind. They all have the features you're looking for, they are
in your price range and you can see yourself committing at least 10 years of vacationing
there. If at all possible, visit the sites. Start getting some feedback from unit owners
and other sources; see what they say about the resort and the price you've been quoted. If
your chosen site is still under development, there are sure to be on-site sales people who
will enthusiastically give you a one- to two-hour tour of the whole facility. Be aware!
They are there to give you a thorough sales pitch. If you have low sales resistance, it
may be better for you to look around on your own and ask questions on your own terms. Be
sure and pick up all available literature and to get all terms and conditions before
finalizing a sale or rental. The Cost of Ownership When comparing the cost of a
timeshare to that of a condominium, it is misleading to see that the condo costs thousands
less than the timeshare. You'll find that timeshares sold in off-peak seasons are much
less costly and that the condos often are developed on land of inferior value. Condos are
usually located in a residential surrounding while a timeshare resort may be nestled in a
forested valley or along a private beach. Where would you rather be? Check to see if the
resorts that interest you have resale programs, instead of purchasing directly from the
developer. This is the best route for the thrift-minded buyer who can purchase a choice
unit with discounts of up to half of a developer's asking price. The third way to buy is
through a private purchase. Any of these methods deal with the underlying factors of
interest on your original purchase price and with the loss of capital after the purchase
through a lower resale price. Two pointers when dealing with agents: first, they are
agents of the vendor (a resort or owner) and are obligated to maximize the vendor's return
of investment. Second, never be afraid to submit a lower asking price than what the agent
recommends. The seller may agree to the lower price anyway. In some circumstances, your
resort of choice maybe so new that there are no resale units yet. It is possible that the
developer's asking price is still within your budget. In that case, go for it! It is
within your right to submit a lower bid for a new unit to the developer. They may accept
as well. As for the private purchase, although going through the process of contact and
final negotiations may be much more informal, you must still deal with all the problems of
legally "closing" a sale. We recommend using a qualified resale agent or
attorney who can expedite the whole affair. Other Costs After a deal is made, the
buyer incurs certain "closing costs" ($300 to $500 for escrow, title, insurance
and recording fees). These are not included in the selling price and are a one-time
expenditure for the buyer. In addition to the resort's annual maintenance fee, also figure
on about $60 a year for membership with an exchange company, and $90 to $125 for each
exchange you do, depending whether you trade a domestic or international timeshare. For
more information on exchanges, please see our expanded section on Exchanging Your Vacation Ownership. Good luck
in finding just the right vacation ownership!
Exchanging Your Vacation Ownership Now that
you have become the owner of a vacation interval you can start enjoying the use of it. You
may find that using your home resort is very convenient but don't forget about the endless
opportunities of the exchange system. Chances are, your resort is affiliated with one or
maybe two exchange companies. You can become a member of your home resort exchange company
or use any of the another independent exchange companies which may provide special
services to meet your travel needs. Either way, exchanging is one of the major reasons
many people purchase a timeshare.
For More Information Contact:
Vacation Register
P.O.Box 86282 Madeira Bch. FL. 33708
Tel: 1-800-000-0000
FAX: 727-391-0582
Internet:
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