Timeshare news is an essential source of information about how the industry operates and what’s happening in the business. It also provides insight into trends and how they may impact the timeshare sector as a whole.
Timeshares Are About More Than Vacations
If you’re considering purchasing a timeshare, it’s important to understand what you’re getting into. A timeshare is a legal contract that grants you the right to use a property for an extended period of time. It’s similar to owning a piece of real estate, but there are many more costs involved. For instance, you may be required to pay special assessments for maintenance and repairs that can add up quickly. Moreover, timeshare contracts can also be restructured or canceled by your resort’s management.
While a timeshare can be beneficial, it’s not always a smart investment. Consumers should read all of the fine print before signing a contract. They should also do their research online before touring the property, to get an idea of how much it will cost to rent or stay there.
Some timeshare owners have a tough time getting out of their contracts, even when they want to. They’ve often been pressured by salespeople into buying a timeshare that they later regretted. They’ve also paid hefty fees for “exit” services that were never delivered.
Earlier this year, John Oliver devoted an episode of his HBO show “Last Week Tonight” to the timeshare industry and the companies that help people escape them. He pointed out that timeshare ownership grew in recent years, with nearly 10m US households owning one of the increasingly popular “vacation clubs” or “vacation ownership plans.”
The problem is that some timeshares require an expensive annual “dues” to cover their maintenance and repairs, plus additional fees for upgrades. These costs can quickly eat into any savings you had from owning a timeshare.
There are plenty of other options, including renting a home or staying at a hotel. In fact, a recent survey by the Travel + Leisure Group found that hotels are booming as consumers flock to them for vacations.
While hotels have a lower margin than timeshares, they’re more likely to be profitable during economic downturns. This is because they can generate revenue from interest rates on their loans as well as from sales and fees.
As prices of vacations continue to climb, however, it will be harder for timeshare owners to beat the rate hikes. A recession could make it harder for people to find the money to pay for their vacations, putting a dent in timeshare sales.
The good news is that there’s a solution: Tug, a website where timeshare owners trade their units for other properties on the market. In addition to trading units, Tug members can access a wealth of helpful information and advice about owning and using their timeshares.
Besides giving timeshare owners access to a variety of useful tools and resources, Tug also offers a free listing platform where timeshares are available for exchange. The platform also helps members connect with potential new owners.