Timeshare FAQ's
What are the demographics of Timeshare owners these days?
- The median timeshare owner is 49 years of age
- More than 8 of 10 owners are married, 80% of which
have 2 to 4 children
- More than 1/3 work in a professional occupation,
+10% work in managerial positions
- Over 65% of the Timeshare owners have incomes between
$50,000 and $150,000
- The average home value for primary residents is
approximately $250,000
- Over 40% of Timeshare owners own more than one interval
- Almost 90% of Timeshare owners own a home computer
and have internet access
- In 2001 approximately 300,000 intervals were sold
to 200,000 consumers in the U.S.
- Up to 27% of the current Timeshare purchases are
made in the secondary market
- The most popular vacation activities in order are:
Shopping, site seeing, swimming, workout, golfing,
hiking, spa, snorkeling, biking, fishing, sailing,
horseback, snow skiing, tennis, other.
- 60% of all Timeshare owners are associated with
beach resorts, with 20% associated with snow skiing
resorts.
Are there trends emerging in the Timesharing Industry today?
- Timeshare Points - a vacation currency with
flexibility. To split week usage, borrow, save, bank,
and\or trade for airline tickets, cruises, rental
cars.
- Fractional Timeshares - 2 to 12 week periods
of ownership sometimes associated with Private Residence
Clubs.
What are the different types of timeshares
available?
There are several different types of timeshares available
to choose from:
- Deeded Ownership - True property
ownership with deed recorded in the county where the
property exists. This type of property has the same
rights of ownership accorded to it as other deeded
real estate. The owner may sell timeshare, rent, bequeath, or
giveaway the property.
- RTU (Right-To-Use) -
Occupancy rights for a specified number of years,
with no ownership interest in the property. Some states
and some foreign countries do not allow deeded ownership
of timeshares. Alternatively, a lease ownership or
Right-To-Use ownership grants the leaser the right
to use the property for a specified period of time;
usually from 20 to 99 years. The resort developer
or Management Company holds ownership of the physical
property. However, during the right-to-use period,
the owner may rent, transfer, or bequeath the remaining
years of their right-to-use property.
- Points - This third option is a
system where the consumer purchases an interest, shares,
or “points” in a Vacation Club membership
in lieu of (or sometimes in conjunction with) deeded
ownership or right-to-use. The point-based system
is neither solely time-based nor real estate-based
-- it is initially described as “value-based.”
Many methods are used to determine points valuations.
All are under the sole control and at the complete
discretion of the company running the program. For
example, the developer or RCI places a specific “points
value” on: (1) the season of the year (high
to low demand periods); (2) the size of the unit (from
an efficiency or studio to a 3-bedroom villa); (3)
length of stay (from one night to a full week or longer);
and various other factors.
- Floating Time/Floating Unit
Which is the most popular type of timeshare purchased today?
When people buy timeshares or rent timeshare, which type is most popular? Deeded ownership remains the most popular choice but
club and points are growing rapidly.
What do RCI and Interval International exchange systems offer timeshare
owners?
Exchange systems offer the flexibility to exchange
timeshare to destinations worldwide, bonus vacations, and rentals.
Exchanging is the process of trading an interval week at one resort
for an interval week at another resort or trading a specific week at
the home resort for another week at the same resort. The exchange system
allows an interval owner to trade their week with other interval owners
thereby allowing each owner to travel and vacation throughout the world
subject to quality of banked week and availability of desired location.
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