Author: Nathaniel Horn
In the realm of vacation planning, timeshares have consistently offered an appealing solution for holiday-goers searching for a home away from home. Since the 1970s, timeshares have evolved significantly. Originally conceived as a response to failed condominium projects, they have shifted towards a “fee for services” model.
However, despite their longevity and widespread use, the timeshare industry continues to be overshadowed by controversy. Accusations of scams and misleading practices have followed persistently, trapping people into a deal they cannot escape, leading many potential buyers to avoid the idea.
In this post, I aim to share my experience with timeshares and the insights I’ve gathered. We’ll explore how timeshare plans have converted to attract today’s vacationers, delve into the persistent controversy surrounding their legitimacy, and provide you with the knowledge you need to safeguard yourself from potential scams. Whether you’re a seasoned timeshare owner or a cautious onlooker, this article aspires to offer a clearer understanding of the contemporary timeshare landscape.
Originally, timeshares were conceived as a means of “part-owning” a single vacation property alongside a group of unrelated individuals. Each co-owner was responsible for a portion of the maintenance, cleaning, and other financial requirements associated with the property.
However, timeshares have evolved to appear more appealing. One significant change was when Wyndham acquired RCI in 2007. RCI had previously been facilitating timeshare exchanges among its members, enabling them to vacation at various timeshare locations that were also part of the RCI agreement. Removing the limitation of only vacationing at your timeshare and exchanging your timeshare with others.
In the wake of this acquisition, Wyndham changed their traditional timeshare model, giving birth to the point-based system known as Club Wyndham. Rather than owning a specific timeshare, members now accumulate points that can be redeemed at any Wyndham location or any timeshare within the RCI network. Whether these points relate to partial ownership of a timeshare or just an investment of goods and services is still being determined. Club Wyndham offers several points-based contracts, including undivided interest (UDI), converted fixed week, converted floating/flex week, and affiliate contracts, which set the terms for when you receive your points and your Advance Reservation Priority (ARP) window.
However, it’s essential to note that this modern iteration of the timeshare model doesn’t absolve owners of maintenance fees or other financial obligations. It has become evident among the timeshare community that depending on the contract and the area assigned, maintenance fees can fluctuate, either gradually or suddenly, depending on various factors. Owners also have no say on what gets replaced, upgraded, or installed within the properties. Wyndham does assert that these fees are directly used for property upkeep, but this claim has stirred debate among owners.
Additionally, exiting the point system once you’ve signed up can be as challenging as leaving a traditional timeshare agreement. A few options, such as reselling, give-back programs, and continuing traveling without maintenance fees, are available. Wyndham has recently rolled out an initiative known as ‘Ovation by Wyndham,’ which purportedly provides ways for owners to sell, donate, or return their timeshares. However, the program has been met with skepticism by some owners due to a lack of transparency and previous negative experiences with similar initiatives. Despite these concerns, Wyndham insists that the exit program has no hidden costs, but it is only available to specific users.
The pitfalls remain Despite introducing new concepts such as point-based timeshares. Often, hotels may offer you a “free” vacation, or you may receive a call claiming, “You’ve won a vacation!” These are typically timeshare sales tactics. Avoid these “deals” by politely declining their offer. If you accept a discounted vacation tied to a timeshare presentation, follow these guidelines to avoid potential pitfalls.
Steps to Avoid being forced to Buy a Timeshare
- Attend the timeshare event, but be aware:
While it’s necessary to attend to qualify for your discounted vacation, remember that failure to go can result in significant additional fees being added to your vacation cost. - Keep track of time:
Set a timer right when the presentation starts. Most timeshare events are scheduled for 90 minutes to 2 hours. Once your time is up, feel free to leave. - Maintain control of your belongings:
The event staff may sometimes ask to see your credit card or ID. While showing them these items is okay, do not let them hold onto them. If you see staff taking others’ IDs, present your ID and other information, but keep them in your possession. This will limit their leverage over you and prevent any obstacles when you decide to leave. - Be Cautious with Your Personal Information:
At most timeshare events, you will be asked to fill out a form providing personal details such as your income, email, phone number, and address. I strongly recommend against sharing your primary contact information. Instead, consider setting up an alternative (or ‘burner’) phone number and a separate email address for these events. This allows you to access any information sent without clogging up your personal channels. If you decide not to proceed with a timeshare, these secondary contact points can quickly be discontinued, protecting your privacy and preventing unwanted communications. - Listen, ask, and say NO:
Some events require you to collect pamphlets or listen to a full sales pitch, which can start from the presentation and last until you receive a price. Play along, listen attentively, but do not commit to anything. Question all the details, ask for a fee, and say NO once you receive a price. Firmly state that you are not interested in buying into a timeshare.
Remember, it’s your vacation. The key to avoiding timeshare traps is being firm, staying informed, and knowing it’s okay to say no.
In conclusion, despite the controversy surrounding them, timeshares are a significant player in the vacation industry. With the introduction of points-based systems and exchange networks, the face of timeshare ownership has changed drastically. The transition has offered more flexibility and options to holiday-goers, yet the financial obligations and tricky exit strategies still pose significant challenges.
The key to navigating this landscape is staying informed. By understanding how timeshares have evolved and the practices used to sell them, you can better protect yourself from potential traps and make a decision that suits your lifestyle and budget. Should you explore the world of timeshares, whether in the traditional sense or through modern iterations like points-based systems, it’s best to research before attending and understand that it’s okay to say no. The goal is to enjoy your vacation, which should never come at the cost of financial stress or unwanted obligations.
Timeshares can offer a comfortable and convenient way to secure a vacation, providing the perks of a home away from home. However, like any significant financial commitment, you must do your homework, understand the terms, and be comfortable with your decision. Whether you’re a current owner, a potential buyer, or simply curious about timeshares, this article has provided valuable insights into the dynamic landscape of timeshare ownership in the modern era. As with all things in life, knowledge is power – use it wisely as you navigate your journey through the world of timeshares.
