People love to vacation. Time off from work, travel to new places, a temporary reprieve from the stresses of home – all are inherently appealing, especially if you’re a hard worker. But for some people, being out of town for a week isn’t enough; they want to own the experience.
Timeshare properties are one solution to satisfy the urge to repeat a grand vacation and secure next year’s escape from daily life. At the same time, many people find themselves buying time in resort properties they can ill afford. Even worse, long and complicated contracts may present new timeshare owners with responsibilities and fees they don’t fully understand.
Given the number of problems owners face, it’s natural to question why they would continue to keep their timeshares. One might assume that over time, the vacation industry as a whole would suffer from timeshare owners purging themselves of their properties. Surprisingly, though, timeshare ownership is going up, not down.
The Numbers Don’t Lie
Since the year 2000, consumers have more than doubled the amount of money they spend for timeshare intervals. While there was a sharp decline in revenue following the 2008 recession, profits have been steadily creeping back up ever since. As of 2015, timeshare sales peaked at $8.6 billion, up from $6.3 billion in earnings from 2009 and $4.1 billion in 2000 (Source: Deloitte & Touche Industry Survey, December 2018 American Resort Development Association Timeshare Data).
Why People Want Resort Properties
There are dozens of reasons why people purchase timeshares. Some are looking for a reliable solo destination to visit year after year, while others want a place to get together with family members they rarely see. But some individuals mistakenly confuse timeshare ownership with property ownership. Unfortunately, a vacation interval is a far cry from purchasing a home in a resort town – and comes with none of the long term worth.
People often discover too late that the initial purchase price for their vacation property will never be recaptured. The reason for this is that the resale value for a timeshare is notoriously low, with owners willing to sell their property for as little as a dollar. A quick search on an auction website such as Ebay will quickly illustrate a vast and congested secondary market for timeshares.
One of the most common reasons people get into a resort property is because they heard a strongly persuasive sales pitch. Resorts spend billions in labor and have an aggressive sales force to attract new owners (Source: American Resort Development Association, U.S. Timeshare Industry: By the Numbers). Unfortunately, sales agents often focus on the perks of property ownership rather than the fine print found in the contracts.
Why People Keep Timeshares
Resorts work hard at not only selling timeshare intervals, but ensuring that the owners keep their properties. One way that do this is by enforcing an owner’s contract, which often contains stipulations that were glossed over at the time of signing. It’s not uncommon for a person to discover that virtually none of the incentives they enjoy will transfer to a new owner if they decide to sell.
If an owner has the ability to use an alternate property as part of their agreement, for instance, it’s likely this perk will be invalidated should the timeshare be sold. The restrictive nature of the contract, coupled with a flooded secondary market, is often all the discouragement a timeshare owner needs from attempting to sell. Owners often believe there’s no good solution beyond simply making the best of their situation.
While the industry makes it difficult for a person to release a timeshare, it’s not impossible to find an exit. Property owners seeking timeshare relief are encouraged to do ample research on available exit solutions and, if necessary, speak with a release consultant. Celebration Resort Relief offers no-cost consultations to help owners find a responsible solution to the problem of releasing their timeshare. Affordable resolutions are available to qualified clients eager to make a change, rather than contributing any more to the growing timeshare industry.