Your Chosen Article
The Concepts And History Of Timeshare
The Concepts And History Of Timeshare
The vacation ownership (Timesharing) industry can be traced back
to its European origin in the 1960's. A ski resort in the French
Alps know as "Superdevoluy" is the first know vacation ownership
program in the world. The multiple ownership of individual weeks
brought with it the guarantee of reservations for those who
wanted to ski in the area. It was an immediate success. By the
1970's some faltering condominium projects in St. Thomas, Fort
Lauderdale and Puerto Rico were converted over to vacation
ownership and thereafter timesharing became a viable vacation
alternative.
Once the concept of vacation ownership was embraced by the
United States it began to gain wide acceptance by the public.
Sales jumped to over 50 million by the mid 1970's and has
climbed to more than 2 billion annually today. Vacation
ownership has enjoyed substantial growth over the years with
approximately 3.3 million timeshares sold since 1980. Currently
there are over 5,000 vacation ownership resorts in over 75
countries around the world.
Exchanging a vacation ownership week in one resort for that of
another resort was introduced in 1974 and thereafter timesharing
offered variety and flexibility in the vacation experience.
Although there are many exchange companies available which
provide excellent service, the two major forces are Resort
Condominiums International (RCI) which has approximately 3,250
member resorts and Interval International (II) with
approximately 1,600 member resorts. Combined, these two
companies provided over 1,600,000 exchanges last year.
During a 30 year span, the industry has grown from small (15-20
unit ) hotel conversions to the high quality condominium resorts
of today. The evolution of the industry from scattered
entrepreneurs to well managed professional development companies
has brought with it a noticeable change for the better.
Definitive leaders have emerged and created standards and ethics
for management, marketing and sales practices. One such
organization is the American Resort Development Association
(ARDA) who's members are required to comply with the established
"Code of Ethics." The recent entrance into the marketplace by
major hospitality chains such as Disney, Hilton, Ramada, and
Marriott has greatly enhanced the quality and image of the
industry. Vacation ownership resorts of today are luxurious,
spacious and well located.
By the advent of these stronger and more professional
development and management companies along with the weeding out
the less desirable developers and marketers, the industry is
experiencing a noticeable swing from a historically negative to
a very positive public image. One of the industry's leading
analysts (Ragatz and Associates) concluded that the majority of
timeshare owners are very satisfied with their purchase and in
fact, many own multiple weeks. The future of vacation ownership
is very optimistic and has tremendous potential.
What Is Vacation Ownership ?
Vacation Ownership "Timesharing" is the right to use specific
weeks of a resort during a specific time period. Simply put, it
is the pre-purchase of a vacation. It is important to understand
that vacation ownership is a commodity which is purchased to be
enjoyed and used over the years. One should never purchase a
timeshare with the intent of reselling it for a profit.
Vacations are holidays for which we spend money to relax and
rejuvenate; they are not investments.
Ownership of a timeshare is very similar to ownership of a
condominium except that your rights are limited to a certain
week during the year. The form of ownership can be Deeded,
Leased or a License.
The License is somewhat different in that it is most commonly a
membership in a club. Providing you are a member in good
standing, you have the right to use the club and all it's
amenities. Be sure to read and understand all the terms and
conditions of your club membership before you make the decision
to buy. Most vacation ownership consists of either a deeded
interest or a leased interest for a specific number of years.
A Deeded interest is owned outright forever. It an absolute
right which can be sold, leased, or even willed to your heirs.
Most timeshares which exist today are deeded ownership.
The Leased interest is much like an apartment lease except right
to use it is restricted to a specific week during the year. Upon
the expiration of the lease term your right to use will
generally terminate and return to the resort. With a leased
interest you should know the terms and conditions of the lease
prior to making the decision to buy.
The time of your use can be either Fixed or Floating. Fixed time
is a specific week during the year usually defined by a number.
Generally the week will begin on a Friday, Saturday or Sunday
and is given a number starting with the first week in January an
run through the end of December. (Example - week 14 might be
April 7 through April 13.)
Floating time means you have the right to select any available
week within a certain season of the year. Therefore, if you own
a summer season week you could pick any week which falls within
the defined summer months. However, competition between existing
owners for prime weeks in very desirable location can impact
availability. It is important to find which type of use best
fits your specific travel needs.
Each resort is different and you should ask if there are other
benefits which are available to its owners. Many resorts offer
special reduced rental rates for extra nights or us of other
resorts which are owned by the developer. This can add to you
flexibility and provide substantial saving on vacation costs.
Additionally, consider carefully how and where you normally
vacation. This is very important in making your decision about
where you should buy and what you will be trading.
Important Facts About Vacation Ownership
- Timeshare is one of the fastest growing areas of the travel
and tourism industry.
- Timeshare owners live in more than 200 countries around the
world.
- Major brands now involved in timeshare internationally include
Hilton, Hyatt, Four Seasons, Sheraton, Ramada and De Vere.
- On a worldwide basis, more than 12 million people took a
timeshare vacation in 1999
- There are around 5,500 timeshare resorts throughout the world
in more than 90 countries.
- The industry is worth in excess of $6 billion annually. The
top 10 timeshare companies alone reported combined sales in
excess of $2.64 billion in 1999.
- During 1999 each of the top 10 performing timeshare companies
worldwide recorded sales in excess of $100 million.
- RCI, the world's leading timeshare exchange organization,
arranged vacations for seven million people worldwide in 2000,
making it one of the world's largest travel companies.
Timeshare Today And In The Future
The modern timeshare industry continues to expand at a rapid
rate, with new markets opening up in Asia and Eastern Europe and
consolidation prevalent in the established markets of Western
Europe and North America.
Firmly established as a key sector of the mainstream vacation
market, the multi-billion dollar timeshare industry now embraces
modest entrepreneurs and mighty corporations. Its global reach
with close to 6,000 resorts in more than 90 countries extends
from Spain to China, Mexico to South Africa.
Some of the world's biggest names in the hospitality and leisure
sector now have timeshare interests - Hilton, Sheraton, Disney,
Ramada, Four Seasons, Hyatt, Westin, Ritz-Carlton and Radisson.
At the same time, the list of well-known European companies with
timeshare interests continues to grow - RIU Hotels (50% owned by
TUI - Touristik Union International, Europe's largest tour
operator), Sol Melia, De Vere, Macdonald Hotels in partnership
with Barratts (the UK's Number One house builder), Mondi
Ferienclub in Germany.
Quality developments around the world are enjoyed by millions of
owners, their families and friends, making the phenomenon of
timeshare a success story without equal. In 1999 over 12 million
people took a timeshare vacation.
Timeshare owners come from over 190 countries but more of them
live in the United States than anywhere else in the world - 47%!
In fact the US has the lion's share of timeshare resorts - over
1,500. And that accounts for more than 37% of the total
worldwide. In the western world, timeshare is now a highly
organized and regulated industry. Trade bodies such as the
American Resort Development Association (ARDA) and the
Organisation for Timeshare in Europe (OTE) work to apply codes
of conduct and ensure that expansion is based on sound
commercial practice and ethical standards.
There is also considerable regional, national and international
legislation in place which aims to help protect the rights of
potential purchasers and discourage the use of high-pressure
sales tactics.
Timeshare in the future The worldwide timeshare industry looks
set to grow in popularity and log record sales in the months and
years ahead. Social trends mean more people have more time and
money to devote to travel and the concept of vacation ownership.
In many parts of the world, regulation has given timeshare a
firm footing, helping to reassure and protect purchasers with a
series of consumer protection measures.
Since its inception, timeshare has undergone a metamorphosis,
according to Timeshare: Coming of Age, an independent report
published in October, 1999. With the advent of the points-based
system, the original real estate concept has been transformed
into "a flexible, pre-paid vacation membership concept, placing
timeshare where it belongs - in the mainstream of travel,
tourism, hospitality and leisure".
In 10 years time who knows where the next development will be?
About the author:
Paul Anderson is the owner of Timesharetalk. Timesharetalk is
Europes largest timeshare forum on the internet run by timeshare
owners, for timeshare owners, covering all aspects of timeshare
from the good through to the bad. Two years later, with over
half a million visitors a month, we are now known as the leading
timeshare forum in Europe.
For More Timeshares Information:
Exchange International Interval Time Share
What Is A Timeshare
Crystal Lodge Timeshare For Sale
Grand Mayan Timeshare Trading