What is Timeshare? Learn How Timeshares Work!
What is timeshare? Simply put, a timeshare is an ownership to a resort property or unit that is shared by more than one person. Each owner has their own time period, which is typically one week, in which they can utilize the resort's facilities, amenities, accommodations and all of the other attributes associated with the resort. A timeshare is also known as a second home.
What is Vacation Ownership?
Vacation ownership is the same thing as a timeshare. The
Travel and Tourism industry says the timeshare industry it is the fastest growing segment of
the industry experiencing a 900% growth since 1980. Over three quarters
of the owners surveyed say they had their "expectations matched
or exceeded" in regards to the vacation ownership purchase according
to the American Resort Development Association's (ARDA) National Survey
of Timeshare Owners.
What does that say about the industry?
Related Links for How Timeshares Work:
General Timeshare Info
How Timeshares Work: The Early Days
Dangerfield on several occasions has been quoted as saying, "I
get no respect." At one time this same quote applied to the timeshare
industry, however the vacation ownership industry has simultaneously
experienced a rebirth and completed a maturation process. Over a period
of the last few years, there has been a flurry of activity, which began
a new era for this once credibility lacking industry.
Initially, timeshare properties were marketed as real estate investments.
Timeshares are not in fact a real estate investment in the sense that
one would buy a timeshare with the intention of reselling it for a profit.
One might purchase a timeshare property to make an investment in a lifestyle.
During the 1970's and 80's timeshares earned a less than positive reputation.
However, because of the natural growth cycles of the industry, these
negative entities have, one way or another, been eliminated from the
industry. The increasing positive image of the timeshare industry is
due to two main influences. One of which is the recent influx of major
players into the primary market such as Marriott timeshare resales,
Westgate Timeshares, Wyndham Timeshare,
Hyatt Vacation Club timeshares and Hilton Grand Vacation Club timeshare.
These corporations have spent a large amount of resources on informing
the public about the many benefits of timeshare and counteracting the
poor reputation that surfaced in the early days of the industry.
The timeshare resale (secondary) market has also become a viable option for smart
consumers through established timeshare brokers. The second factor is that people
are beginning to realize that the concept of timeshares is a solid one.
More and more people are giving the idea of timeshare the credit it
deserves as opposed to discrediting the concept because of early, poor
sales techniques and marketing.
Why Timeshare? Timeshare Offers Quality, Diversity and Flexibility
When the industry was in its youth, timeshare resorts where converted
from old hotels, condominiums and apartment complexes. Today, conversions
include the above plus the recent participation of large hotel chains.
However not all timeshare resorts are converted or adapted from other
types of real estate. Many resorts are being designed and engineered
specifically for a vacation ownership property. Most vacation ownership
units have two bedrooms and two full baths however three bedroom/three
bath and one bedroom/one bath units are also available. These resorts
and units usually include all of the amenities and facilities of a full
service resort as well as large refrigerators, dishwashers, microwaves,
terraces, balconies, hot tubs, VCR's, stereos and the list keeps on
going. Just compare the difference between a basic Hotel
vs. Timeshare Resort. This is essentially how timeshares work.
Diversity and Flexibility
The timeshare resales industry encompasses various
classes and sub-classes of products. Primarily,
timesharing refers a method of use and ownership
of a titled/deeded piece of real estate for a
period of time. Also available is a vacation club
membership, which refers to a travel and use product.
Consumers basically purchase timeshare points that represent
an "exchange of value" to the resort. This type
of membership is flexible because of the fact
that it is not tied to a specific week, unit,
season or unit size. But many point plans sacrifice
deeded real estate protections for the owner.
Another popular feature regarding vacation ownership
products is the option to exchange a week at your
home resort with a week at a different resort.
This allows you to vary your vacation from year
to year. There is also the option for an internal
exchange, which allows a vacationer to exchange
a week at the home resort for another week at
their home resort.
How Timeshares Work in the United States
American's interest in vacation ownership property
is on the rise. According to ARDA's survey of
1,000 US households, 60.3 % of Americans believe
they have a chance of purchasing recreational
property of some type in the next ten years. This
survey determined that age was the most significant
factor in establishing rates of optimism regarding
The second factor was household income. The final
demographic variable which affect attitudes toward
purchasing recreational property was marital status
A Concluding Note
The timeshare market seems to fit well into the desires and dreams
of the American public. If there was ever a time when the future of
the timeshare industry was in question, it certainly survived whatever
issues plagued it. The industry is alive, well and experiencing growth
beyond what could have been imagined. Timeshare Resale Broker can help you buy timeshares for sale or if you are a timeshare owner, we can help you sell timeshares.