Asked and Answered By ARDA: Five Great Questions For Vacation Enthusiasts to Ask Before Purchasing A Timeshare

Thinking about upping your vacation game with the purchase of a timeshare? You aren’t alone. According to the American Resort Development Association (ARDA), the timeshare industry sees approximately $10.5 billion sales annually, with nearly 10 million U.S. households owning at least one if not more types of timeshare product, including timeshare weeks and/or points in a private vacation club.

“One of the most important things for people to recognize is that a timeshare is not a real estate investment, but a commitment to vacationing and time with family and friends, and that there are many ways to enjoy it beyond an annual stay,” says Jason Gamel, President and CEO of ARDA, which advocates for the industry while working to protect and educate consumers to get the most out of their timeshares. “The idea of a timeshare as something that binds owners to a unit for one week a year is so outdated. People buy into timeshare vacation clubs for the same reason they belong to country clubs: For a sense of belonging and a feeling of family that grows and grows.”

Following are five great questions for consumers to ask to be as informed as possible as they contemplate the purchase of a timeshare, and to get the most out of their vacation purchase for years to come: 

What are My Options if a Timeshare No Longer Fits My Lifestyle? – Under leadership of ARDA, the timeshare industry has seen success in developing programming to benefit owners that either want to sell their units or take a break for a few years by renting them. Owners inclined to move on can start by visiting the Coalition for Responsible Exit, an online resource created by ARDA with background and links to resources offering information on how to sell, rent, and exit timeshares via developer-generated no- and low-cost programs designed to make the process safe and secure.Want to keep your piece of vacation heaven in the family or with friends? Timeshares are transferable, typically for a nominal fee, with online services available to guide owners in the process. There is also a huge secondary market for timeshares, though be aware that developers do not partner with “timeshare exit companies” and have even filed lawsuits against such firms. As such, owners should reach out directly to their resort management company or developer first to enquire about negotiating an exit in the most financially beneficial way possible. Such programs may require prepayment of maintenance or fees, and administrative charges may also apply.Stay up to date on the latest timeshare news and developments at www.arda.org.

How Do I Make Certain I’m Buying the Right Timeshare for Me? – Do you pine for the seashore or ski mountains, proximity to culture or your alma mater’s sports teams? Whatever drives your passion for vacationing, there is much for timeshare purchasers to consider to find the best vacation property to suit their lifestyles and needs. Start by sizing up your goals as a vacationer, especially where and with whom you envision traveling. Next, consider the developers behind vacation clubs: Allegiance to a particular resort brand, for instance, can pay benefits from points on loyalty programs to peace of mind that the hospitality you relish will be part of your experience. Finally, consider the access available from the timeshare system you buy into, whether it’s a standalone resort with a single address or a major network with properties in multiple destinations.  Onsite visits are great for getting a feel for the quality, amenities and services a vacation club provides, especially through short-stay “mini-vacation” programming offered by many resort developers. Talking with other owners about their experiences and the quality of management is also beneficial, as is examining a resort’s annual budget, typically accessible through the Home Owners Association. Be sure to read all documents carefully to understand the vacation product you’re purchasing, request explanations of mystifying details or terminology, and enquire if the resort is a part of ARDA, whose members adhere to a strict Code of Ethics.

How Much Can I Expect to Spend on a Timeshare? – The cost of a timeshare varies unit to unit, resort to resort, time of year, and even owner to owner depending on how often they vacation. According to the ARDA International Foundation (AIF), the average price of a timeshare transaction is $23,940, a figure that has remained relatively consistent for the past five years, with variance depending on levels of luxury from single to multiple bedrooms, say, or Formica to granite kitchen countertops. In addition to the purchase cost, owners will also pay annual maintenance fees which help in keeping the accommodations and amenities up to date. For the five years ending in 2021, annual maintenance fees paid by timeshare owners rose only 15% to $1,120, while the annual cost of a seven-night hotel stay before fees and taxes jumped 24% to $1,756.“When you spread the average cost and maintenance fees over 20 or 30 years, the economics are very compelling,” notes Gamel.

Once I Purchase, How Do I Get the Most Out of My Timeshare? – “I can’t emphasize it enough: Start by doing your research,” says Gamel, who notes that member developers of ARDA have robust websites to inform about their vacation clubs and locations, as well as tutorials to educate new and prospective owners on making reservations and using timeshares to the fullest. There are also online forums and bloggers that share timeshare hacks, and be sure to visit #LoveMyTimeshare, a social community for enthusiasts and insiders dedicated to correcting misconceptions and trumpeting the many “people, places, and things” to love about timeshares.Most vacation clubs located in resort areas such as Orlando or Vegas offer an abundance of onsite activities from golf courses to swimming pools to cultural centers with hands-on activities to delight all ages. And what of city-center vacation clubs? Think of them as launch pads for time on the town. (Should mention something here about the spacious accommodations) Indeed, according to AIF, in 2022 timeshare owners and guests spent some $1.57 billion onsite at vacation clubs and another $4.56 billion offsite in the communities around them.“The beautiful thing about timeshares is that you get the option to enjoy yourself on and offsite, with a comfortable, fully furnished, well-maintained space to return to at the end of the day,” adds Gamel. “There are so many things built into the typical resort experience, that you are going to be engaged however you spend your time.”  

What are My Options if I Don’t Want to Stay at My Timeshare Every Year? If you think you’re bound to visiting your vacation club like clockwork, think again. “Timeshare exchanges” are systems that enable owners to trade “points” for comparable accommodations or travel-related services and experiences. The first option for exchange is to use an internal network through your developer that allows you to book properties within their existing portfolio. The second option is to use an external exchange company – the largest are RCI and Interval International –to open another network of resorts. Points can also be exchanged to book cruises, car rentals, sporting events, and more.