Everything You Always Wanted to Know About Timesharing, But Were Afraid to Attend a Sales Presentation to Ask

Part Six: Lifestyles and Lifecycles: The Evolving Vacation Experience

Once upon a time, timesharing came in one flavor: vanilla. But just as Baskin & Robins offers over thirty-wonderful flavors to cater to anyone’s taste, timeshare developers have created a wide-range of timeshare products to fit everyone’s lifestyle in every stage of life.

The knowledge you have acquired in the first five parts on how to evaluate a timeshare to determine its trading power has given you an open invitation to the world. But the world is changing. And timeshare is changing right along with it.

Now we’ll take a look at how timesharing is evolving to meet the vacation lifestyle of today. And while everything you’ve learned thus far is still valid in today’s market, there are some exciting new trends that may offer you a better value and a more flexible vacation experience.

The Public’s Changing Vacation Needs

From 1969, when timeshare first came to America, until about 2002, timeshares were sold in weekly increments. The average timeshare buyer was a young family, and they bought one week’s worth of time.

But over the years, many of us have become too busy at work to take a full week of vacation. Even if the parents can take a week off, the kids’ schedules are booked solid with sports, music lessons, achievement classes, and more.

Plus there have been more changes. The aftermath of 9/11 brought a new emphasis on drive-to timeshare resorts and the ever-tightening belt on the economy gave renewed interest in a Club Med-type all-in-one-price resort.  Added to these changes is the fact that there no longer is a typical buyer. Buyers range from singles to married with kids to empty nesters.

Fractionals: Too much of a good thing?

Fractional ownerships first appeared in the mid-1990s. Unlike traditional timeshare resorts offering a weekly membership, fractional ownerships (also known as private residence clubs) are sold as multi-week blocks of time. These fractions of a 52-week year are offered at a private residence featuring designer decors and posh club amenities. Purchases typically range from a 1/21 (two-week) to a 1/4 (three-month) interest in a residence, though even larger fractions are not uncommon.

Fractionals represent the fastest-growing and most lucrative segment of the timeshare market today, with thousands of units available. But wait. Do you really want to spend all your vacation time in the same place? Rather than a wave of the future, fractional may be an expensive trend (high-end fractionals go for about $50,000 a week) that, like the vacation home sitting vacant most of the year, hold more empty promises than precious memories.
Vacation Clubs–What Are They?

Members can choose between any one of several resorts owned by the vacation club.

Advantages: More vacationing options than with owning at just one resort.

Disadvantages: Usage rules can be complicated. Enrollment with some clubs is quite high, which may limit availability during peak seasons.

Bottom Line: Many vacation clubs operate on a floating points system, so the same advantages and disadvantages that apply to floating week ownerships and can also apply to these. Other clubs offer different levels of membership, with those purchasing the highest priced memberships receiving the most benefits. While most vacation clubs are right-to-use, some offer deeded ownerships. Disney, Marriott, Fairfield, and Sunterra are a few of the more popular vacation clubs.

Points Programs–What Are They?

Members receive a certain number of points, or credits, which are then used to purchase vacation time at participating resorts. Maintenance fees and reservation fees still apply. While Fairfield, Marriott, and Disney offer their own points program, the largest program is offered by RCI (see below).

Advantages: More flexible than fixed weeks. Many points programs allow for stays of less than one week and allow you to change your level of accommodation with every stay from a studio to a three-bedroom unit. Plus, if you don’t mind vacationing during off-peak seasons or less popular weeks, you can stretch your purchasing power, since fewer points are required during these times.

Disadvantages: You may not have enough points to get the week, resort, or unit type you want. As with floating week memberships, it may be difficult to reserve a unit at a popular resort in high season.

Bottom Line: Points are like money. The more you have, the more you can do. As a rule, the more popular the location, resort, or week, and the larger the unit, the more points you’ll be charged. Make sure your membership comes with enough points to allow for the kind of vacation you expect. Otherwise, you’ll need to either settle for what you can afford, or purchase more points. There are dozens of points programs available, and no two are the same. Depending on your needs, some programs will prove to be a better fit than others.

RCI Points
RCI Points is a vacation points program offered by the exchange company Resort Condominiums International.

Advantages: Total flexibility in scheduling vacation time (from one night to a several week stay) at over 3500 resorts worldwide. Plus, as RCI tends to accept only the more popular and well-managed resorts into their points inventory system, you are assured of a pleasant vacation experience. In addition, RCI Points are accepted like cash by hundreds of travel partners around the globe and can be used to purchase admission to theme parks, car rentals, airline tickets, helicopter sightseeing rides, cruises, and more.

Disadvantages: RCI Points tend to be pricier than other points programs when purchased at the retail rate. Hint: if you can find RCI Points on the reseller market, buy them up!

Bottom Line: The number of points you initially receive is based on RCI’s valuation of your resort. Owners of more highly rated resorts tend to receive more points. You may purchase more points if you wish, but you’ll start with no more points than what RCI considers your resort to be worth. If the relative value or popularity of your home resort increases, RCI will increase your point total to reflect the change.

All-Inclusive Programs

One price pays for everything. This concept has been around since the 1950s when Gerard Blitz founded Club Med. A recent study revealed 60% of vacationers now look for all-inclusive packages when shopping for a vacation resort. Expect more resorts to follow this trend in the near future.

Advantages: Eliminates wallet-dipping. Can be cost-effective if you’re on a strict budget, are taking the whole family, or like the idea of having everything right at hand.

Disadvantages: It discourages off-site travel, which means you don’t get to discover the true experience of the region. Also, an all-inclusive resort may not be cost-effective for those who don’t eat or drink much, or for those who prefer relaxing by the pool or playing tennis to more expensive activities such as water sports or golf (for which the cost has already been included in the price of membership).

Bottom Line: If you and your traveling partners are content to enjoy a leisurely vacation within the confines of the resort, then go for it. As you’ve already paid upfront for your drinks and meals, it’s a very cost-effective vacation as long as you eat your meals on-site.

Before purchasing, be sure to determine what the all-inclusive fee covers. For example, while food, beverages, and tips are usually covered, alcoholic drinks, sightseeing tours, and use of water sports equipment off-site probably are not covered. Some resorts are mandatory all-inclusive, others offer optional programs. The rule: ask before you buy!

Your Timeshare IQ: Are you content to spend the majority  of your vacation right on the resort property or would you rather use the resort as a base camp to return to after taking in the sights and activities of the surrounding area?

Coming Up in Part Seven next week, learn how to go bargain hunting for luxury timeshares.

–Gillian Armstrong

Back Home