Timeshare news covers developments in the vacation industry. It may include the latest changes to a resort’s rules or fees, as well as industry events and conferences.
Timeshares are a type of vacation ownership that offers owners the right to use a specific resort property every year for a fixed period of time. However, they don’t offer the same rights as a condominium or piece of real estate. The industry attempts to make this clear by using language like “vacation ownership” or “timeshare,” but it’s not always clear what buyers should expect from these deals.
More than $8.1bn in timeshares is sold to Americans each year. It’s a growing problem, with many people being duped by salespeople and then trapped in expensive and often unusable vacation contracts.
Those who are stuck in timeshares often turn to timeshare exit companies, which promise to help customers escape complicated contracts and pay back hefty debts. But Oliver says that these companies are as much a scam as the timeshare industry itself.
On Sunday night’s Last Week Tonight, talk show host John Oliver dug into the $8.1bn predatory timeshare industry and the equally troublesome industry of helping people escape them. Despite being long lampooned as a scam on various TV shows, timeshares have been on the rise in recent years.
As hotel prices continue to rise, many timeshare owners are finding their monthly payments are becoming more expensive, despite the fact that they are paying for their vacations up front. Those that own timeshares can also be forced to pay higher assessments in order to cover the costs of renovations and repairs that are not covered by the reserve funds set aside for them.
One company, Timeshare Compliance, recently secured a large settlement in which it helped more than 800 U.S. timeshare owners release their contracts owed to resort operators. The company is expected to work with each of its clients post-settlement, as well as help them file and secure their individual releases and continue to ensure that their credit reports show that they are owing zero debts to the resorts.
The timeshare sector may face some challenges if the economy goes into a recession. For example, analysts at Jefferies have argued that consumers would cut discretionary spending as the economy slows down. But the company’s wealthier customer base could provide some reassurance in such times.
A possible downturn would affect the price of timeshares and the demand for them. The repercussions could be tough on timeshare companies, which generate most of their revenue through financing and fees.
As interest rates rise, it will become more difficult to keep the costs of timeshares low enough to entice new owners. It will also be more difficult to maintain margins and keep the interest on timeshare loans at a reasonable level, which helps to drive the company’s sales.
The timeshare industry can be a great way to save money on travel. But it’s important to be aware of the risks before making a purchase. The best way to avoid the risk is to do your research and ask questions. You should also be sure to read the fine print, and cross-check what you’re being offered with what you would typically spend on an annual vacation.
