These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week, and almost always the same time every year) In which they may use the property Units may be on a part-ownership or lease/”relight to use” basis. In which the sharer holds no claim to ownership of the property. This concept has attracted many resort developers and prominent hoteliers, such as Stardom, Yamaha, Accord, Hyatt, Hilton,Marriott, and Disney.
Vacation ownership has proven to be lucrative for stakeholders in these major resort families, due to its popularity with vacation-goers. This form of lodging has spawned a variety of products sold on similar occupancy schemes; cars, planes, boats, condo-hotel units ND luxury fractional properties (at which affluent guests may stay for as long as a quarter of a year, and which often command a six-figure price tag) The Industry claims that over six million families own timeshare worldwide – some well satisfied with their ownership.
Timeshare accommodation can be of a higher standard than hotel or rented accommodation. And most resorts have extensive leisure facilities (generally free to use). All timeshare is self catering. Accommodation ranges from a modest studio (a single bedroom) to apartments and villas with three bedroom, three bathrooms, lounge, dining etc. Tit appointments to a very high standard. Timeshare competes with package holidays (where timeshare offers higher standards of accommodation) and villa rental (where timeshare may offer better long term value-for-money).
Timeshare comes In two basic forms: Fixed week. Where you own rights to a specific week, usually in a specific apartment/ villa which you can either return to every year or swoop through the exchange system for something similar in another part of the world and in another time period. You own a week (or a time period which may be longer than a week) within a seasonal and of time. Each year you have to book the specific week that you want – but this is “subject to availability”. A major strength of timeshare is the certainty that it provides.
Accommodation (and often leisure facilities) being held in trust (or registered in a public register) for the lifetime of the right to use. So, provided that you continue to pay the annual fees on time, you are reasonably certain of getting your holidays every year. And when you tire of timeshare you can, in theory, sell your rights on to someone else. But see here Most timeshare owners use the exchange yester which provides a large choice (nearly 6,000 resorts in all the popular destinations worldwide) to swoop to – knowing that the place you are going to is of a similar standard to that which you own.
When you buy timeshare you pay a once off payment for the right to use and, each year, a fee which pays for the accommodation etc. To be kept clean, in good order, local taxes paid etc.. This fee is payable whether or not you make use of your ownership rights. The best resorts are run by the owners through a club (and a committee). This ensures that owners get what they are remised and annual fees are kept to a reasonable minimum.
Unfortunately, because of the activities of a number of dishonest traders in the industry, the word “timeshare” has lost credibility with the general public resulting in both the honest and the dishonest traders claiming that their product is “not timeshare” and claiming that it is one of the following: Vacation Club Holiday Club Multi ownership Holiday ownership Fractional Ownership. Which confuses consumers and claiming membership of organizations such as ATRIA, TOE, ROD, TACO, ARAB and the Timeshare Council is no help to safe purchasing.
This website is dedicated to helping consumers get the best out of timeshare and to avoid the pitfalls – please read How to Buy Safely The new Timeshare Regulations 2010 came into force in most EX. countries on 23 February 2011. 1. 2 History The term Timeshare was coined in Great Britain in the early sass; expanding on a vacation system that became popular after World War II in Europe. Vacation Home Sharing, also known as Holiday Home Sharing, involved four European families that would purchase a vacation cottage Jointly; and each would have exclusive use of the property for one of the four seasons.
They rotated seasons each year, so each family enjoyed the prime seasons equally. This concept was mostly utilized by families related to each other because of the trust factor involved in Joint ownership, and no property manager. However, few families vacation for an entire season at a time; so the Vacation Home Sharing properties were often vacant for long periods. Enterprising minds in England decided to go one step further, and divide a resort room into 10th ownership, have two weeks each year for repairs and upgrades, and Europe to evolve to a smoothly run successful business venture.
The first timeshare in the United States was started in 1974 by “Caribbean International Corp.. ” based in Fort Lauderdale, Florida. It offered what it called a 25 year “Vacation License” rather than ownership. The company owned two other resorts the “Vacation License Holder” could alternate their vacation weeks with, one in SST. Choir and one in SST. Thomas; both in the Virgin Islands. The Virgin Islands properties began their timeshare sales in 1973 with owners Hillier Meyers, Don Saunders and Arthur Simian.
The contract was simple and straightforward. The Company, C. I. C. (Caribbean International Corporation), promised to maintain and provide the specified accommodation type (Studio – One bedroom – Two Bedroom) for use by the “License Owner” for a period of 25 years in the Specified Season and number of weeks agreed upon; with only two extra charges. A $15. 00 Per Diem (per night), frozen at that cost for the life of the contract; and a $25. 00 switching fee, should the licensee decide to use his/her week/weeks at one of the other Resorts.
The presentation’s logic was based on the fact that the cost of the License and the small Per Diem, compared with he projected cost of Hotel rates climbing in the next 25 years to over $100. 00 per night, would save the License Owner many vacation dollars over the span of the License Agreement. The License Owner was allowed to rent or give his week away as a gift in any particular vacation year. The only stipulation was that the $15. 00 Per Diem must be paid every year whether the Unit was occupied or not. This “Must be Paid Yearly Fee”, would become the roots of what is known today as “Maintenance Fees”; once the Dept. F Real-Estate became involved in the American Timeshare concept. The Timeshare concept in the USA caught the eye of many entrepreneurs due to the enormous profits to be made by selling the same room 52 times to 52 different owners at an average price in 1974-1976 of $3,500. 00 per week. Shortly thereafter, the Real-Estate Commission stepped in, enacting legislation to regulate Florida Timeshares and make them Fee Simple Ownership transactions. This meant that in addition to the price of the owner’s vacation week, a “Maintenance Fee” and HOE management also had to be initiated.
This Fee Simple Ownership also spawned companies like RCA (a timeshare exchange company) so owners in any given area loud exchange their week with an owner in another area. Cancellations, or Rescission to the Timeshare Contact, remain the industry’s biggest hurdle to date. 1. 3 Industry quarter of a year, and which often command a six-figure price tag) 1. 4 Scope of the industry International Foundation (Alfa), which is the research arm of the American Resort Development Association (RADAR), reports there are 1 ,604 timeshare resorts, with 1 54,439 units, in the USA as of January 1, 2006 (IF 2006).
Though reportedly fewer than six percent of U. S. Households own one, the prevalence of vacation ownership continues to expand. Approximately 4. 4 million households own one or more U. S. Weekly intervals or points-equivalent as of January 1 , 2007, an increase of sixteen percent from the prior year. About half of the resorts in the USA are currently selling, generating sales of $8. 6 billion in 2005 (IF 2006). The global scope of the industry is not as readily quantified.
Interval International, one of the two major exchange companies, reports there are 1,800 resorts in nearly 80 countries, with 2004 worldwide sales estimated at nearly $1 1. 8 billion (Interval International 2006). RCA has more than 4,000 resorts in nearly 100 countries. A 2001 report estimated there to be 5,425 timeshare resorts worldwide, of which around 31% are situated in North America, 25% in Europe, 16% in Latin America (where Mexico leads with 40% in the region). Emerging resorts in Asia offers 14%, led by Japan, but with Thailand and India increasingly prominent.
Owners can: Use their usage time Rent out their owned usage Give it as a gift Donate it to a charity Exchange internally within the same resort or resort group Exchange externally into thousands of other resorts Sell it either through traditional advertising, online advertising or by using a licensed rocker Recently, with most point systems, owners may elect to: Assign their usage time to the point system to be exchanged for airline tickets, hotels, travel packages, cruises, amusement park tickets; Instead of renting all their actual usage time, rent part of their points without actually getting any usage time and use the rest of the points; Rent more points from either the internal exchange entity or another owner to get a larger unit or more vacation time or at a better location; Save or move points from one year to another. Some developers, however, may limit which of these options are available at their repertories. Owners can elect to stay at their resort during the prescribed period, which varies depending on the nature of their ownership. In many resorts, they can rent out their week or give it as a gift to friends and family. 1. Types and sizes of accommodations These properties tend to be apartment-style units ranging in size from studio units (with room for two) to three and four-bedroom units. These larger units can comfortably house large families. Units normally include fully equipped kitchens with a dining area, dishwasher, televisions, DVD Players and more. It is not uncommon to Kitchens are equipped to the size of the unit, so that a unit that sleeps four should have at least four glasses, plates, forks, knives, spoons, and bowls so that all four guests can sit and eat at once. Units are usually listed by how many the unit will sleep and how many the unit will sleep privately.
Sleeps 2/2 would normally be a one bedroom or studio Sleeps 6/4 would normally be a two bedroom with a sleeper sofa Sleep privately refers to the number of guests who will not have to walk through another guest’s sleeping area to use a restroom. These resorts tend to be strict on the number of guests per unit. Unit size can affect demand at a given resort where a two-bedroom unit may be in higher demand than a one-bedroom unit at the same resort. The same does not hold true comparing resorts in different locations. A one-bedroom with a great location may still be in higher demand than a resort with less demand. An example of this may be a one-bedroom at a great beach resort compared to a two- bedroom unit at a resort located inland from the same beach. 1. 6 Growing Timeshare Market in India The timeshare industry is one of the most controversial industries in the whole world.
There is as much people who vie for the quality and satisfaction that timeshares provide and people who swear timeshares and the ways employed in selling such packages. There are a number of timeshare owners but there are also a couple of timeshare owners who want to get rid of their timeshare. But in India, the timeshare industry is booming. The idea of shared ownership attracts the Indians, especially the rich ones. They already prefer this system because it frees them of the troubles in construction and actual maintenance of the property. That is aside from the fact that building a personal vacation site is really expensive. The status of timeshares in India is far from that.
Right now, India is taking pleasure in its timeshare industry, making it boom. They appreciate the idea of shared ownership and it has attracted many Indians, particularly the rich ones. They prefer its system because it lets them enjoy their vacations in quality resort locations with lesser expenses on their part and without the hassle of construction and actual maintenance of the property. The compound growth rate of timeshare in India is at 18 percent. The number of timeshare units is already at 4,640 and the number of timeshare owners is at 146,450. It may be more famous in the Western side, particularly in the Iambi, Pun, Metadata, Sugar areas but it is already exploring the Southern side at Coors and Unarm.
The demand rate for timeshares in India is already at 16 percent per annum from 2006 to 2015. This picture of the timeshare market in India is really promising. Hopefully, this will not be tainted with the same problems that timeshare owners from other countries experienced. May India benefit from the good marketing strategy of timeshares are unhappy with their timeshares. Companies in timeshare industry Maidenhair Holidays & resorts India. Ltd Panchromatic Holidays Resorts Ltd. Sterling Holidays Resorts India Ltd. Magic Holidays. Ltd. Holiday Inn Club Vacation. 1. 7 Market Share of the Players: 1. 8 Target Audience of the timeshare industries: l. Age- 25 to 45 yr. II. Married Ill. Car owners 1. Requirements to be in a timeshare industry: In order to go on a timeshare tour, each timeshare resort has a different set of qualifications, usually consisting of: Age and income and occasionally, but rarely, Must be citizens of the country where the resort is located. If married or cohabiting as a couple, both spouses or partners must attend. Singles are less desirable, and are qualified differently. Men must usually be married, while single women can often attend the presentation; because statistics have shown that they are more prone to purchase than a single male. Timeshare Resorts typically allow one tour per guest per year. Mechanics of timeshare tours: 1.
Booking a tour: Most guests attend sales presentations as a result of either being booked for an appointment by a representative in the area of the resort, or as a result of direct mail, call center contact, or internet response. Many offer “off-site reservations” to preview ownership in a sales gallery in the prospect’s home town, while some offer “preview getaways” or mini vacation packages to preview the resort. Creditable timeshare companies and marketing vendors provide accurate and complete disclosure of all terms, conditions, and costs of a timeshare tour. This “tour” will include a sales presentation. Timeshare tour durations are usually advertised as 90 minute to two hour sessions based on interest. 2.
Length of Tour time: Most tours are advertised as being very brief, but in reality the time taken depends on several factors: How quick the salesman is at aging his/her presentation presentation How quickly the prospects answer the salesman’s questions during the presentation How long a particular prospect allows himself [herself to sit and allow the timeshare sales team to pitch them. How long it takes to fill out and sign all necessary documents and contracts; should the prospect decide to purchase 3. Timeshare Mini Vacation Package Incentives: A Timeshare Tour is required in order to receive any gifts offered in a Promotional Timeshare Vacation Package.
Most Timeshare Mini Vacation promotions involving timeshare tours have inoculation and/or reschedule fees based on the how far in advance the cancellation or reschedule is requested. Cancellation with refund is usually only allowed for a short period of time after the package is purchased. The amount of time is regulated by the State or Country where the purchaser lives. Most companies offering these packages have some rescheduling provisions if the traveler requests the change with ample advance notice. RCA: Timeshare exchange is often confused with timeshare sales. RCA is in the business of timeshare exchanges. It does not develop or sell timeshares, although it does sell a
Points Program and a Weeks Program to use in the RCA affiliate resorts network. In the Points program, members receive an allotment of points that can be applied to different factors, such as room type, resort quality, location, and time of year. In the Weeks program, members may exchange their property’s shared time for another week at an equivalent or lower value property. Members may Join one program or the other, or both. Annual membership fees are required. Customers who buy a timeshare with an RCA-affiliate developer have the option to become a paid member of RCA. Such membership entitles them to exchange (swap) their timeshare with other members. RCA facilitates and fulfills the exchange.
Also, Yamaha Worldwide (Arc’s parent company) does develop and sell timeshares having several resorts around US which are listed in Arc’s resort directory. RCA has resort affiliates in over 100 countries around the world on every continent. The company recently announced a few relationships with the Huntsman Grenadier Resorts Hotel in Huntsman, China. Arc’s role in the history of timeshare For more than 35 years, RCA has been at the forefront of the industry, transforming he holiday experience for shared holiday owners. As the global leader in holiday exchange, RCA is known industry-wide for being a trusted associate as well as a full- service, single source service provider for our clients’ needs.
We strive to make dream holidays a reality for our subscribing members, and to work with developers to help enhance their sales and profits by expanding the use and enjoyment of their leisure real estate products. We help affiliates to move their business forward, and together, we continue to advance the timeshare industry as a whole. Since timeshare started n 1963, the concept of owning your holiday has evolved to meet the ever-changing purchaser would buy one week of holidays at a particular resort and return to that resort and unit the same time each year. As the consumer demanded more flexibility, the floating week was introduced, allowing owners to request to use their week during the season they purchased. Many potential and current owners felt their holiday opportunities were restricted by having to return to the same resort every year.
In 1974, RCA revolutionized the timeshare industry, becoming the first company to offer an exchange program that allowed owners to deposit their week of holiday for the opportunity to experience a new destination. As the timeshare industry continued to grow, so did the needs of the consumer. Many timeshare companies created holiday clubs, which utilize points systems in place of the traditional week, to fulfill the need for more flexibility. With a points system, owners can buy the amount of points they want, which can be applied to resort stays within their vacation club. Depending on the number of points they own, they will be able to apply those points to their resort stay at a time convenient for them.