What is Timeshare? Learn How Timeshares Work!

What is timeshare imageWhat 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?

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General Timeshare Info

How Timeshares Work: The Early Days

how timeshares work imageRodney 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 buying timeshares. The second factor was household income. The final demographic variable which affect attitudes toward purchasing recreational property was marital status and gender.

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.

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