Timeshare Vacations

FOR

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‰

1ST EDITION

by Lisa Ann Schreier

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Timeshare Vacations
FOR

DUMmIES
‰

1ST EDITION

by Lisa Ann Schreier

Timeshare Vacations For Dummies®, 1st Edition
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About the Author
Lisa Ann Schreier is the founder of Timeshare Insights, an
independent and unbiased organization dedicated to guiding
consumers through the often mysterious and sometimes
tedious world of timeshare. Before moving to the Orlando,
Florida, area in 1997, she worked in the advertising and media
industry in Chicago, becoming a media buyer for major clients.
She formed GRQ Enterprises, an advertising and consulting
business providing one-stop marketing expertise for clients.
Since moving to central Florida, she has worked for several
timeshare resorts in the Orlando area, as a salesperson, a
sales manager, and a trainer. Seeing firsthand the good, the
bad, and the ugly in the industry, she first became a contribut-
ing columnist to The Timeshare Beat, the industry’s most widely
read publication, where she blended her advertising expertise
with her timeshare experience. In 2003, she formed Timeshare
Insights, where her focus has been on educating potential and
current timeshare owners, believing that an educated con-
sumer can bring about necessary changes to the industry.
Ms. Schreier has been featured on WOR-AM in New York City,
the Chicago Tribune, the Los Angeles Times, the Baltimore Sun,
Hiatus Magazine, and both WLS-TV and WGN-TV in Chicago.
She is a frequent guest speaker at timeshare owners’ groups,
consumer travel shows, and timeshare management university
classes. She is also the author of Surviving a Timeshare
Presentation . . . Confessions from the Sales Table (Oct. 2004).
You can contact Lisa at www.timeshareinsights.com,
or through her agent, Ibach and Associates, at www.ibach
sportspr.com.
Author’s Acknowledgments
Thanks to my immediate and extended family and a special
“thank you” to those family members who stood by me,
encouraged me, and supported me through this project
and everything else.
Thanks to my friends, although most of them were mildly
bemused by the whole process.
Thanks to my publicist, Bob Ibach, who continually encour-
ages me to strive for the best.
Many thanks to everyone at Wiley: Mike Spring for seeing the
need for this book; Kelly Regan for holding my hand through
the initial stages; Amy Lyons for being there in the beginning;
Lindsay, Ensley, Heather, and April for getting the word out
and being so receptive to my media and publicity ideas; and
especially Alexis Lipsitz Flippin for taking my sometimes
random notes, scribbles, and innumerable e-mails and making
a wonderful book out of them. Thanks, too, to Tere Stouffer for
her expert Dummies touch and eternal optimism.
Although I contacted, interviewed, and attempted to interview
as many people within the industry as possible in order to pre-
sent the clearest and most independent outlook on timeshare,
there are a few people that deserve to be singled out for going
above and beyond the call of duty:
David Jimenez of RCI and Christine Boesch of II for providing
me with all the information I asked for and helping me learn a
great deal about timeshare in the process.
Gregory Coots of Disney Vacation Club who was especially
generous with his time and extraordinarily open with the
DVC materials and information.
Richard L. Ragatz, PhD, of Ragatz Associates who provided me
with many of the research findings.
Antoine Dagot, K. Robert Kreiger, Dennis DeLorenzo, and Elena
Norman of Hilton Grand Vacations Club for their time and their
candidness.
Jean Kilani of the Berkeley Group for his support and his many
thought-provoking discussions with me.
Edward F. Kinney of Marriott Vacation Club International who
answered most of my e-mails in record time.
As a last note, both RCI and II were very open with me as I wrote
this book, and both shared with me exactly how their resorts
are rated.
Thanks, also, to the timeshare owners who shared their expe-
riences with me for the book.
Thanks to Barbara Corcoran for writing me an e-mail that
allowed me to take a chance, expand my horizons, and
proceed with confidence.
Thanks to Julian, my helpful and always faithful typist.
I could not have written this book and achieved so much
without all those people in the timeshare industry who gave
me grief, laughed at me, and continually tried to discourage
me from doing anything outside the box. With that much resis-
tance, I figured that the book had to be written. And it was.
Publisher’s Acknowledgments
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Editors: Tere Stouffer, Project Coordinator:
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Michelle Hacker
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Publishing and Editorial for Consumer Dummies

Diane Graves Steele, Vice President and Publisher, Consumer Dummies
Joyce Pepple, Acquisitions Director, Consumer Dummies
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Publishing for Technology Dummies
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Composition Services
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Debbie Stailey, Director of Composition Services
 Contents at a Glance
Introduction ..................................................1
Part I: Understanding Timeshare .....................5
Chapter 1: Best of Timeshare Vacations..................................7
Chapter 2: Digging Deeper into Timeshare ..........................17
Chapter 3: Understanding the Basic
Economics of Timeshare ..................................................25
Chapter 4: Is Timeshare Right for You? ................................35
Part II: Buying Timeshare.............................43
Chapter 5: How Timeshare Is Marketed ................................45
Chapter 6: The Timeshare Sales Presentation......................53
Chapter 7: You’re Interested: Asking the Right Questions ....63
Chapter 8: Financing Your Timeshare....................................75
Chapter 9: Buying Resale and through Referral Programs....79
Chapter 10: Buying International Timeshare ........................89
Part III: Discovering a World of Timeshare .....95
Chapter 11: Location, Location, Location:
Where the Timeshares Are ..............................................97
Chapter 12: Exchanging: Playing the Trading Game ..........127
Chapter 13: The Brand Names of Timeshare ......................151
Part IV: Using Your Timeshare ....................165
Chapter 14: Getting to Know Your Resort ..........................167
Chapter 15: Renting, Selling, or Willing Your Timeshare ....177
Chapter 16: Looking Beyond Traditional Timeshare ........185
Part V: The Part of Tens..............................195
Chapter 17: Ten Timeshare Sales Situations
You Should Run, Not Walk, Away From ........................197
Chapter 18: Ten Timeshares You May Not
Have Thought of As Timeshare ......................................201
Chapter 19: Ten Things About Timeshare
Every Consumer Should Know ......................................205
Appendix A: Quick Concierge ......................209
Appendix B: Timeshare Glossary..................213
Appendix C: Timeshare Around the World.....217
Index.........................................................221
 Maps at a Glance
Florida Timeshare ............................................................................101
California Timeshare ........................................................................103
Caribbean Timeshare ......................................................................104
Mexico Timeshare ............................................................................107
Great Britain and Ireland Timeshare ..............................................109
Italy Timeshare ................................................................................111
Australia Timeshare ........................................................................112
Southern Africa Timeshare..............................................................115
Timeshare Around the World..........................................................218
 Table of Contents
Introduction..................................................1
About This Book...............................................................2
Conventions Used in This Book .....................................2
What You’re Not to Read .................................................2
Foolish Assumptions .......................................................2
How This Book Is Organized...........................................3
Part I: Understanding Timeshare .........................3
Part II: Buying Timeshare......................................3
Part III: Discovering a World of Timeshare .........3
Part IV: Using Your Timeshare .............................3
Part V: The Part of Tens ........................................3
Appendixes .............................................................4
Icons Used in This Book ..................................................4
Where to Go from Here....................................................4

Part I: Understanding Timeshare ....................5

Chapter 1: Best of Timeshare Vacations ..................7
Exploring the Best Reasons to Buy Timeshare ............7
Examining the Best Reasons
Not to Buy Timeshare ..................................................8
Homing in on the Top Timeshare Resorts ....................9
Timeshare Users Group (TUG)...........................10
TimeSharing Today ..............................................10
Hiatus Magazine ...................................................11
Feeling the Heat of the Hottest
Timeshare Destinations.............................................12
Paying Attention to Up-and-Coming
Timeshare Destinations.............................................13
Budgeting for Good-Value Timeshare Destinations ...14
Taking the Kids to Family-Friendly
Timeshare Destinations.............................................15
Finding the Top Timeshare Destinations
for Retirees..................................................................15
xvi Timeshare Vacations For Dummies, 1st Edition

Chapter 2: Digging Deeper into Timeshare............17

What Is Timeshare?........................................................17
Discovering the Types of Timeshare Ownerships .....19
Using Your Timeshare....................................................20
Exchanging Your Timeshare .........................................22
Sizing Up Your Options..................................................22
Chapter 3: Understanding the Basic
Economics of Timeshare........................................25
Buying Timeshare: Making an Informed Choice.........25
Example #1: One week of vacation per year.....25
Example #2: Two weeks of vacation per year ...26
Breaking Down the Costs ..............................................28
Purchase price......................................................28
Down payment .....................................................29
Interest ..................................................................29
First-day incentives..............................................29
Uncovering Additional Fees..........................................29
Maintenance fees .................................................29
Property taxes ......................................................31
Miscellaneous fees...............................................31
Looking for Ways to Cut Costs or Find Bargains........32
Cutting costs.........................................................32
Finding resale bargains .......................................33
Chapter 4: Is Timeshare Right for You?...................35
Answering the Most Frequently Asked
Questions about Timeshare......................................35
What is timeshare? ..............................................35
What’s the difference between timeshare
and vacation ownership? ................................36
Can I sell my timeshare if I
don’t want it anymore?....................................36
How much should I pay for timeshare? ............36
Where should I buy timeshare?..........................37
What is the difference between
a fixed week, a floating week,
and a points-based system?............................38
Can I (and/or should I) buy resale? ...................38
Do I have to go to the same timeshare
resort every year? ............................................39
Making Foolish Assumptions........................................39
Getting More Information..............................................41
 Table of Contents xvii
Part II: Buying Timeshare ............................43
Chapter 5: How Timeshare Is Marketed.................45
The Art of the Lure.........................................................45
Marketing Companies and Their Tactics ....................48
Marketing timeshare by phone,
fax, and e-mail...................................................49
Getting wise to OPCs ...........................................50
The Biggest Secret about Timeshare That
Developers Don’t Want You to Know .......................51
Chapter 6: The Timeshare Sales Presentation......53
Before You Go .................................................................53
The Sales Presentation: What to Expect .....................54
Greeting .................................................................54
Warm-up ................................................................54
Intent statement ...................................................55
Discovery ..............................................................55
Replay....................................................................55
Company credibility ............................................55
Financial logic/solution .......................................56
Product options ...................................................56
Model tour ............................................................56
Closing...................................................................57
Buying Timeshare Today . . . Or Not............................57
Why today? ...........................................................58
The vacation factor..............................................59
You like it, but . . ..................................................59
Handling the Sales Pitch................................................61
Oops! What Was I Thinking? .........................................62
Chapter 7: You’re Interested: Asking
the Right Questions.................................................63
The First-Tier Questions................................................63
Is the timeshare a deeded ownership,
a right-to-use system, or
a points-based system? ...................................63
If the timeshare is deeded, is it transferable? ...64
If the timeshare is a points-based system,
can the points change?....................................64
Is the timeshare a fixed week
or a floating week? ...........................................64
Why buy at this particular resort? ....................66
xviii Timeshare Vacations For Dummies, 1st Edition

What are the maintenance fees? ........................66

How much did the maintenance
fees go up last year? ........................................67
Who votes on what happens with
the maintenance fees? .....................................67
Is the salesperson you’re dealing with
licensed by the state or country? ..................67
Will the salesperson be “showing”
more than one price?.......................................68
Is the property I am being shown the
same one I am asked to purchase? ................68
What are the fees — all of the fees?...................69
When should I make reservations
to use my timeshare?.......................................69
Second-Tier Questions ..................................................70
Will I own a specific unit or “a” unit?.................70
What is included in the condo?..........................70
Does the resort supply a starter
package of kitchen supplies?..........................72
Do I have to use the same towels in the room
and at the pool(s) or beach(es)? ...................72
What is the housekeeping policy? .....................72
Does the resort offer rental
services for extra days? ..................................72
Will the resort offer to rent my week out
if I decide not to use it that year? ..................72
What are the meal or dining
options at the resort? ......................................72
Are the resort’s facilities open to nonowners? ...73
Are phone, fax, and Internet services
available? What are the fees
for using them?.................................................73
What are the hours of the front desk?...............73
What are the hours of the maintenance
department?......................................................73
What sort of transportation is available? .........73
How close are the nearest stores, restaurants,
banks and/or ATMs? ........................................74
What extra services does the resort offer? ......74
Chapter 8: Financing Your Timeshare.....................75
Coming Up with a Financing Plan.................................76
The Down Payment ........................................................78
Getting an Instant Credit Card......................................78
 Table of Contents xix
Chapter 9: Buying Resale and
through Referral Programs....................................79
Buying Secondary Market Timeshares........................79
Factoring in exchange power .............................80
Uncovering bargains that
may not be bargains ........................................81
Asking the right questions..................................82
Where to Find Resale Timeshare..................................83
Timeshare publications.......................................83
eBay and other online auctions .........................84
Buying through Referral Programs ..............................86
Referrals: A win-win situation.............................86
The benefits of referral programs......................86
Chapter 10: Buying International Timeshare.........89
Buying to Stay versus Buying to Trade .......................90
Asking the Right Questions...........................................91
Buying Wrong: A Cautionary Tale ................................93
Buying Right: A Happy Tale...........................................93

Part III: Discovering a World of Timeshare ....95

Chapter 11: Location, Location, Location:
Where the Timeshares Are....................................97
Choosing the Right Location for You...........................97
Discovering the Power of Location............................102
Chapter 12: Exchanging: Playing
the Trading Game ..................................................127
The Big Two and Other Exchange Companies .........128
The Rules of Exchanging: Determining
Trading Power...........................................................132
Point 1: Supply and demand.............................133
Point 2: Resort location.....................................134
Point 3: Resort quality.......................................135
Point 4: Sleeping capacity .................................135
Point 5: Color codes...........................................135
Point 6: Travel Demand Index ..........................136
Point 7: Customer feedback..............................136
Searching for an Exchange Online .............................137
RCI online ............................................................137
II online................................................................139
xx Timeshare Vacations For Dummies, 1st Edition

The Nitty-Gritty of Exchanging ...................................140

Deposit first ........................................................141
Request first .......................................................141
The points-based system ..................................142
If It’s September, It’s High Season in . . . ....................146
Trading: Reading the Fine Print..................................149
Chapter 13: The Brand Names of Timeshare .......151
The Pros and Cons of Branded Timeshare ...............152
Brand Names at a Glance ............................................153
Disney ..................................................................153
Hilton ...................................................................154
Hyatt ....................................................................156
Marriott ...............................................................157
Starwood .............................................................160
All About All-Inclusive Resorts...................................162

Part IV: Using Your Timeshare....................165

Chapter 14: Getting to Know Your Resort .............167
Checking In — and Checking It All Out......................167
Checking out check-in .......................................169
Checking out your room ...................................170
Rating the Resorts: Member Comment Cards ..........172
Rating the resorts: RCI ......................................172
Rating the resorts: II ..........................................175
Packing for a Timeshare Vacation..............................175
Chapter 15: Renting, Selling, or
Willing Your Timeshare .......................................177
Renting Your Timeshare ..............................................177
Getting compensated for your rental ..............178
Finding renters ...................................................178
The nitty-gritty of renting timeshare ...............179
Selling Your Timeshare................................................181
Determining the types of ownership ...............181
The nitty-gritty of selling timeshare ................182
Willing Your Timeshare ...............................................183
Chapter 16: Looking Beyond
Traditional Timeshare ..........................................185
Buying into Vacation Clubs .........................................185
The nitty-gritty of vacation clubs ....................185
Assessing the value of vacation clubs.............186
Asking the right questions................................187
 Table of Contents xxi
Discovering Urban Timeshare ....................................188
Exploring Fractionals and Private Residence Clubs ...190
The nitty-gritty of fractionals ...........................191
What to expect of a fractional ..........................193

Part V: The Part of Tens .............................195

Chapter 17: Ten Timeshare Sales Situations
You Should Run, Not Walk, Away From ............197
Free Vacation! Er . . . Uh, Except For . . . ....................197
You Can’t Afford Not to Buy It! ...................................197
Shaquille O’Neal Practices on
Our Basketball Court! ..............................................198
They Do Look Awfully Familiar...................................198
Give Us Money So We Can
Give You More Money ..............................................198
After You Pay Off Your Timeshare,
You Vacation for Free ...............................................198
For You, We Cut the Price in Half! ..............................198
Your Timeshare Hasn’t Been Built Yet.......................199
Free Tequila!..................................................................199
Versailles Is on the Brochure Cover...........................199
You’ll Make It All Back in Rentals ...............................199
You’re Wasting My Time Here! ....................................200
Chapter 18: Ten Timeshares You May Not
Have Thought of As Timeshare...........................201
Canal Boats in England ................................................201
Sailboats in St. Vincent ................................................201
Forest Chalets in Georgia ............................................202
Cabins in New Mexico..................................................202
Rooms in a 17th-Century French Castle ....................202
Private Cruising in Antigua .........................................202
Thatch-Roofed Cottages in Belize ..............................202
Villas in The Gambia ....................................................202
Terraced Apartments in South Africa........................202
Country Lodges in New Zealand ................................202
Golf Resorts in China ...................................................202
Ski Parks in Switzerland ..............................................203
Beach Clubs in Hawaii .................................................203
Garden Villas in Italy ....................................................203
Country Clubs in England ...........................................203
xxii Timeshare Vacations For Dummies, 1st Edition

Chapter 19: Ten Things About Timeshare

Every Consumer Should Know............................205
Understand Why the Price Is What It Is ....................205
Define “Best” for Yourself............................................205
Timeshare Isn’t a Real Estate Investment .................206
Get the Lowdown on Maintenance Fees....................206
Remember What Happens When You Assume .........206
Never Buy Because of Incentives ...............................206
You Can — and Should — Negotiate..........................207
You Can’t Believe Everything You Hear.....................207
Free, Perfect, Always, and Never Don’t Exist............207
You Don’t Have to Sit through the Pitch ...................207

Appendix A: Quick Concierge .....................209

Appendix B: Timeshare Glossary .................213
Appendix C: Timeshare Around the World ....217
Index........................................................221
 Introduction

I magine a man in a polyester leisure suit, sporting a white belt, white

shoes, and a big gold chain; smelling of cheap cologne; and flashing a
gleaming gold-toothed smile. Imagine the scene as he sweeps his beefy
hand over a weed-choked expanse of undeveloped land that smells
faintly of peat bogs, and then points proudly to a drawing of a megaluxe
condo. Imagine him forcing a pen into some poor unsuspecting con-
sumer’s hand as the deal is sealed.

When you imagine this scene, does it say “timeshare” to you? Exagger-
ated as it may be, it had some semblance to the truth not so long ago.
Unfortunately, as good as the product often was, timeshare developed
a snake-oil-salesman reputation over the years for its aggressive sales
techniques, bait-and-switch schemes, and sleazy profiteers.

The good news is that today timeshare has cleaned up its act consider-
ably and in large part is a respectable and desirable way to increase
your vacation and lifestyle quality for years to come. But I still feel
there’s room for improvement.

Many people ask me, “Do you make money selling timeshare?” The
answer is yes. Quite frankly, if I’d never sold timeshare, I wouldn’t be
in a position to inform consumers about the pros and cons of buying
timeshare. My experiences in selling timeshare have allowed me to see
where the timeshare industry has failed consumers and failed itself. But
I also wouldn’t be in the timeshare business if I didn’t believe that the
product itself — in its many new and wonderful incarnations, whether a
simple two-bedroom unit, a bunk on a yacht, a perch in a treehouse, a
room in a castle — is quite often superlative and worth every penny.

My problem is not with the product; it’s with how timeshare is sold and
marketed. I believe that the high-pressure hard sell should be a thing of
the past. I always maintain that I never try to sell someone timeshare;
I prefer to let a person buy — or not buy — as the case may be.

I wrote this book because of what I see as the lack of solid, reliable,
no-nonsense information available to consumers interested in buying
timeshare. I wrote it to clear up some misconceptions, to help you under-
stand what you’re buying, and to steer you clear of buying if that’s just not
the right choice for you.

This book is neither pro-timeshare nor anti-timeshare. It’s just the facts,
ma’am, with a sprinkling of my own unvarnished, insider’s opinion. Read
it, use it, and bring it with you when you view timeshare. Bring it with
2 Timeshare Vacations For Dummies, 1st Edition

you when you go to a timeshare sales presentation. Bring it with you so

that you know that whatever decision you make, it will be the right deci-
sion for you.

About This Book

This book offers an in-depth look at the timeshare industry, including
how to buy timeshare, how to use and exchange timeshare, and how to
sell timeshare, even an international one.

If you plan to attend a timeshare presentation, I strongly encourage you to

read this book before you go, and by all means, bring it with you for the
presentation. It’ll help keep the salespeople on their toes and keep the
sales presentation from veering off into hard-sell, high-pressure tactics.

Conventions Used in This Book

Timeshare Vacations For Dummies, 1st Edition, is, first and foremost, a
reference guide, and as such provides helpful, easy-to-follow conven-
tions. For example, any new terms are italicized, Web addresses are
shown in a special font (like this), and icons draw your attention to
particularly useful text. In addition, both the singular and plural uses of
the word “timeshare” are employed throughout the book.

What You’re Not to Read

This book is not meant to be a chronological read; you can skip around
to the stuff you’re really interested in and get all the information you
need. Skip the sidebars, too, if you want — but I’ll bet if you glance at a
couple, you’ll find yourself devouring the rest.

Foolish Assumptions
This book is written with you, the average vacationer, in mind. (By aver-
age, I mean someone who likes to go on vacation.) You’ll find this book
useful if you already own timeshare, if you’ve never heard of timeshare,
or if you fall somewhere in-between.

In this book, I make some of the following assumptions about you and
what your needs may be:

You’ve heard about timeshare but never really bothered to investi-

gate whether it was for you.

You’ve suffered through one or more tedious timeshare presenta-
tions (called pitches), only to come out more confused than when
you went in.
 Introduction 3

You’ve thought about purchasing a timeshare, but didn’t know
where to go for unbiased, independent information before making
a purchase.

You’ve already purchased a timeshare and want to find out more
about the product and see what’s new in the industry.

You’re in the timeshare industry and want to help make the indus-
try better by helping to educate the consumer.

How This Book Is Organized

Timeshare Vacations For Dummies, 1st Edition, is organized into five
parts. The following sections describe the five parts and an overview
of what they contain.

Part I: Understanding Timeshare

This part gives you a general definition of what timeshare is, the basic
economics of timeshare, information on the types of timeshares out
there for purchase, most frequently asked questions about timeshare,
and top consumer issues.

Part II: Buying Timeshare

Part II addresses the marketing of timeshares, those infamous timeshare
sales presentations, financing timeshare, buying resale and international
timeshare, the top questions you want ask when buying timeshare, and
the biggest secrets about timeshares that developers and the marketing
companies don’t want you to know.

Part III: Discovering a World of Timeshare

This part addresses the locations of timeshare around the world,
describes the different brands and big names in the timeshare business,
and discusses exchanging — that is, playing the trading game.

Part IV: Using Your Timeshare

This part includes pertinent information on settling in at your home
resort, and how to rent, sell, or will your timeshare. You also discover
the popular new variations on timeshare, including fractionals, condo
hotels, vacation clubs, and urban interval ownership.

Part V: The Part of Tens

In this section, I discuss timeshare sales pitches you want to run from,
some unusual timeshares you may not have thought of as timeshare,
and important timeshare issues every consumer should know.
4 Timeshare Vacations For Dummies, 1st Edition

Appendixes
Appendix A (Quick Concierge) provides contact information for the
largest timeshare exchange companies and brand resorts. It’s also where
you get information on who to contact if you have legal issues regarding
timeshare. Appendix B offers you a timeshare glossary, so that you can
go head to head with timeshare gurus and hold your own. Appendix C
shows the locations of timeshare resorts around the world.

Icons Used in This Book

Icons — little pictures in the margins — are meant to draw your atten-
tion to especially useful text. Explanations of what each icon means
follow.

Watch for this icon to help you identify annoying or potentially dangerous
situations, such as rip-offs, the proverbial if-it-sounds-too-good-to-be-true-
it-is situations, and other deceptions to avoid.

This icon points out useful advice on timeshare, including ways to save
time and avoid headaches.

This icon alerts you to important things and facts and figures to keep
in mind.

This icon alerts you to money-saving timeshare tips.

This icon is used whenever I hear from a timeshare owner who has been
generous enough to offer advice on a specific aspect of timeshare.

Where to Go from Here

Any way you look at it, timeshare is a compelling concept and a fast-
growing phenomenon. In this book, you’ll find out which destinations
are the best for families (Chapter 11), where the brand names have set
up shop (Chapter 13), and how to make the best of a timeshare presen-
tation (Chapter 6). Timeshare Vacations For Dummies, 1st Edition, is
meant to be fun to read and informative throughout, so I say jump right
in anywhere.

As you peruse this book, check out two special sidebars. The ones
marked with the Timeshare Talk icon offer good advice from actual time-
share owners. Those titled “Snapshot: [Destination]” provide practical
information and personal thoughts on particular timeshare locations,
such as Orlando, Las Vegas, and even Fiji.
 Part I
Understanding
Timeshare
 In this part . . .
T imeshare is a young concept, having been invented by
entrepreneurs looking for creative ways to resell con-
dominiums. I discuss the basic principles of timeshare and
provide lists of the best timeshare resorts, the hottest desti-
nations, the best reasons to buy a timeshare — and the best
reasons not to buy a timeshare.
 Chapter 1

Best of Timeshare
Vacations
In This Chapter

Discovering the best reasons to buy timeshare — and the best reasons not to

Choosing the best resorts

Finding the hottest locations

Uncovering the up-and-coming destinations

Finding the best-value destinations

Exploring the top family-friendly destinations

Getting wise to the top destinations for retirees

W ith more than 5,700 timeshare resorts around the world, and
some 100 new resorts added each year, the timeshare industry
continues to thrive and branch out in new directions. Everyone has his
or her own favorite location, resort, and criteria for choosing a place to
vacation. In this chapter, I give you my personal (and highly unscientific)
recommendations for the hottest timeshare locations, top up-and-coming
destinations, good-value spots, best family-friendly destinations, and
popular places for retirees to vacation. I advise you on the best resorts,
based on the annual top selections made by three separate (and highly
recommended) timeshare consumer sources. Plus, I also help you under-
stand the best reasons to buy timeshare in the first place — and the best
reasons not to buy timeshare.

Exploring the Best Reasons to Buy Timeshare

Buying timeshare is an entirely personal choice. For many people, it
makes good sense, both budget-wise and as a lifestyle choice. For others,
it’s simply the wrong option. To see where you stand on the issue, take
out a pencil and note “yes” or “no” next to the following scenarios:

 You like to plan in the long term. You want more security and
peace of mind about your vacations and vacation accommoda-
tions in specific.
8 Part I: Understanding Timeshare

 You love going back to the same place every year to vacation.
 You can’t afford to buy a complete condo, home, or other property,
but you can afford to own a week or so of vacation time in a partic-
ular property.
 You like the idea of owning as opposed to renting, and see the value
in such — whether using it for potential rental income or simply
not having to book hotel rooms or rental units for each vacation.
 You like the idea of owning property that you don’t have to person-
ally maintain.
 Where costs are concerned, you like having few surprises. You like
the fact that you’re helping offset future vacation inflation. You like
knowing what your vacation will cost, unlike quotes for hotel rates
that often don’t include extra fees and taxes (as high as 19% in
some locales).
 You like having room enough to share your vacation space with
family and friends.
Timeshare comes in all shapes, sizes, and costs, but the typical
timeshare is a two-bedroom, two-bath unit with a living/dining
room, full kitchen facilities, and a washer/dryer.
 You like the amenities that many timeshare resorts offer: complete
recreational facilities (including golf courses, pools, tennis courts,
gyms, and spas), maid service, laundry facilities, activities centers,
shops, and restaurants.
 You love the idea of being able to exchange vacation weeks to desti-
nations around the world.
 You want to leave a vacation legacy. Because the majority of time-
shares in the United States are deeded and, therefore, willable,
timeshare offers you the unique benefit of leaving this important
legacy behind.

Examining the Best Reasons

Not to Buy Timeshare
If you answer “yes” to more than a few of the following, timeshare may
not be for you:

 You’re pressured into buying or you don’t understand what you’re

buying.
 Your salesperson insults you. Unfortunately, this still happens
in some resorts. I once overheard a salesperson ask his client,
“Don’t you feel stupid for spending $37,000 in hotels over the past
20 years?” I’ve heard sales managers from the old school of “sales
via intimidation” make snide comments about the client’s ability to
 Chapter 1: Best of Timeshare Vacations 9
afford the timeshare or the client’s lack of understanding. My
advice: If a salesperson or the sales manager insults you, find the
person in charge and report it, and then leave.
 You prefer more flexibility in timing your vacations and choosing
locations.
 You spend less than $500 per person per year on your vacations.
Realistically, if you’re spending less than $500 a year per person on
vacations, it makes little economic sense to buy timeshare.
 You’re buying it solely as a real estate investment. Even deeded in
perpetuity, timeshare should not be bought as a real estate invest-
ment or under any other kind of investment strategy. It’s an
investment in your future vacations — period. And don’t kid your-
self into thinking that in ten years you will be able to sell your
timeshare for substantially more than what you paid for it. You
may be able to do that, but keep in mind that timeshare is not
what I call “Donald Trump–style” real estate.
 You prefer to have your vacation property available for your use
year-round.
 You love staying in hotels and trying out different hotels.
 You don’t think you’ll use it enough to make it worth the money. No
matter what the price, no matter how desirable the property is, and
no matter what the salesperson says, if you don’t have the time to
use it, don’t buy it.
 You don’t think it provides value in comparison with other vacations.
 You’re not aware that maintenance fees can go up annually, and the
resort may impose “special assessment” fees on occasion.
 You prefer to rent rather than own.
 You don’t really have the money to spare. Buying timeshare shouldn’t
take food off your table, force you into mortgage foreclosure, stop
you from paying your kid’s college education, or in any way, shape, or
form take away from the quality of your life.

Homing in on the Top Timeshare Resorts

With more than 5,700 resorts worldwide, it can be difficult to say which
timeshare resorts are the “best.” But you can get a good indication of
the gold standards of timeshare resorts from the lists made by the fol-
lowing three independent timeshare groups, who annually select what
they consider to be the world’s best timeshare resorts.
10 Part I: Understanding Timeshare

Timeshare Users Group (TUG)

Timeshare Users Group, or TUG, as it is known (www.tug2.net), was
founded in 1981 and is an online community of timeshare owners from
around the world, with a heavy concentration of American owners. This
independent consumer group collects reviews and ratings on timeshare
resorts from members who’ve been there.

For 2004, TUG gave its best ratings to the resorts in Table 1-1.

Table 1-1 Timeshare Users Group’s Top Choices

Rating Resort Location
10 The Four Seasons Scottsdale, Arizona
10 Residence Clubs at Troon North Scottsdale, Arizona
9.91 The Four Seasons Resort Aviara Carlsbad, California
9.68 Disney’s Villas at the Orlando (Disney
Wilderness Lodge World), Florida
9.68 Royal Caribbean Cancun, Mexico
9.64 Disney’s Boardwalk Villas Orlando (Disney
World), Florida
9.64 Royal Islander Cancun, Mexico
9.60 Royal Sands Cancun, Mexico
9.58 Royal Mayan Cancun, Mexico
9.56 Disney’s Villas at Old Key West Orlando (Disney
World), Florida
9.56 St. James Place Beaver Creek,
Colorado

TimeSharing Today
TimeSharing Today (http://tstoday.com) is full of useful information
on virtually all aspects of timesharing. Published every two months since
1991, TimeSharing Today isn’t meant for the timeshare novice. Its reader-
ship and editorial staff are timeshare savvy, and the articles are well
written and usually come directly from owners with solid, no-nonsense
experience.

TimeSharing Today has been rating resorts since 1991, and all of its
reviews are available online to subscribers of the magazine. The criteria
for ratings include amenities and activities at the resort; amenities and
 Chapter 1: Best of Timeshare Vacations 11
activities nearby; the quality of the timeshare unit; its suitability for
adults, kids, seniors, and physically disabled; and the quality of the
resort facilities, security, and staff.

The resorts in Table 1-2 are the timeshare resorts receiving the highest
scores from TimeSharing Today:

Table 1-2 Timesharing Today’s Top Choices

Rating Resort Location
9.9 The Four Seasons Residence Carlsbad, California
Club Aviara
9.6 Royal Islander Cancun, Mexico
9.6 Chetola Resort Blowing Rock,
North Carolina
9.6 Fairfield Resort Branson, Missouri
9.5 Marriott’s Marbella Marbella, Spain
Beach Resort
9.5 Kona Coast Resort II Kailua-Kona, Hawaii
9.5 Fairfield Resort Nashville, Tennessee
9.5 Fairfield Resort Old Town Alexandria,
Virginia
9.4 Bay Club at Waikoloa Beach Kamuela, Hawaii
9.4 Marriott’s Custom House Boston, Massachusetts
9.4 Marriott’s Manor Club Williamsburg, Virginia
9.4 Embassy Vacation Club Poipu, Hawaii

Hiatus Magazine
This relatively new publication bills itself as a “Travel Magazine for
Vacation & Timeshare Enthusiasts.” Hiatus awards an “Editor’s Choice
Award” based on research and on-site reviews. Hiatus believes in main-
taining a high degree of integrity by not mixing editorial (including
reviews) with advertising. Basically that means that a resort doesn’t
have to spend any advertising dollars with the magazine in order to be
reviewed and/or receive an “Editor’s Choice Award.”

Currently, Hiatus has evaluated timeshare resorts located only in

Las Vegas, Orlando, Hawaii, Missouri, Arizona, and Spain. Those in
Table 1-3 won its Editor’s Choice Awards in 2004.
12 Part I: Understanding Timeshare

Table 1-3 Hiatus Magazine’s Top Choices

Resort Location
Cancun Resort–Monarch Grand Vacations Las Vegas
Fairfield Grand Desert Las Vegas
Disney’s Beach Club Villas Orlando, Florida
Disney’s Boardwalk Villas Orlando, Florida
Disney’s Saratoga Springs Resort and Spa Orlando, Florida
Fairfield Bonnet Creed Orlando, Florida
Hilton Grand Vacations Club on International Drive Orlando, Florida
Orange Lake Country Club Orlando, Florida
Embassy Suites at Poipu Point Kauai, Hawaii
Fairfield Kona Hawaiian Resort Big Island, Hawaii
Hilton Grand Vacations Club at Hilton Hawaiian Village Oahu, Hawaii
Marriott’s Ko Olina Beach Club Oahu, Hawaii
Marriott’s Ocean Club Maui, Hawaii
Marriott’s Waiohai Beach Club Kauai, Hawaii
Westin Ocean Villas Maui, Hawaii
Worldmark by Trendwest Maui, Hawaii
Big Cedar Wilderness Club Branson, Missouri
Hyatt Pinon Pointe Sedona, Arizona
California Beach Resort at Club La Costa Malaga, Spain

Feeling the Heat of the Hottest

Timeshare Destinations
Popular timeshare destinations tend to mirror popular hotel destina-
tions. In the United States, Florida, California, and South Carolina have
the most timeshare resorts — warm weather, beaches, and plenty of
attractions make them obvious choices.

In Florida, Orlando has about 50% of the state’s timeshare resorts, a

constellation of rooms that revolve around that sun called Disney World.
Las Vegas is getting bigger all the time, as evidenced by the number and
 Chapter 1: Best of Timeshare Vacations 13
size of the timeshare projects already there, as well as those in the
works — including a massive project by Vegas entrepreneur Steve Wynn.
Europeans, who take more (and longer) vacations than Americans, favor
warm, sunny places that are easy to get to, like the Canary Islands. All in
all, here are the hottest timeshare destinations at the moment:

 Orlando, Florida
 Hilton Head Island, South Carolina
 Myrtle Beach, South Carolina
 Las Vegas
 Florida coasts (both East and West)
 California (especially Southern California)
 Hawaii
 Mexico (Cancun and Puerto Vallarta, in particular)
 Southern coast of Spain and the Canary Islands
 Southern Africa
 Rocky Mountain states (Colorado and Utah, in particular)

Paying Attention to Up-and-Coming

Timeshare Destinations
In growing destinations, where demand for hotel rooms goes up, so does
demand for timeshare. Here are some of the places where the market for
timeshare is heating up:

 U.S. Virgin Islands: Unlike in some other Caribbean destinations,

demand for timeshare in the Virgin Islands has been low until now,
with timeshares popping up on the islands of St. Thomas and
St. John.
 The less popular Hawaiian Islands: Timeshare is firmly entrenched
in Maui and the Big Island, but now the smaller islands of Oahu and
Molokai are getting in on the act.
 Urban areas (United States and Europe): Cities have one big
obstacle when it comes to timeshare — limited space — but
urban interval ownership is becoming increasingly popular in
places like San Francisco, Boston, and New York (see Chapter 16).
14 Part I: Understanding Timeshare

 India and China: As these countries have become hot-ticket desti-

nations, timeshare has followed, with units opening up in places
like Bangalore and Goa (in India) and Shanghai and Hong Kong
(in China).
 Napa Valley: Timeshare is growing in this haven of spa resorts and
boutique inns.
 British Columbia/Vancouver: This photogenic region is increas-
ingly a destination for timeshare buyers.

Budgeting for Good-Value

Timeshare Destinations
It’s almost sacrilege for a timeshare salesperson like me to say, but if
you’re looking for bargain timeshare, buying resale is often your best
bet. Still, you can often find good value in new timeshares that are
located in destinations that have the following characteristics:

 The industry is just getting off the ground in a particular location.

 The timeshare is located in an off-the-beaten-path spot where
demand is relatively low.
 The timeshare is in a place with a glut of timeshare offerings (such
as Cancun).
 The location has favorable exchange rates, inexpensive land costs,
and/or low property taxes.

Getting “good value” is also about what matters to you. For some con-
sumers, it may mean a $60,000 three-bedroom condo used during
Christmas week (high season) in Vail, Colorado. For others, it may mean
a week in a $10,000 two-bedroom condo in the middle of Minnesota in
October (low season). Good value has more to do with what you intend
to do with your timeshare than with the price you pay. For more on
determining good value when buying timeshare, go to Chapter 4.

If you’re looking for destinations where deals are still to be had, check
out the following:

 South Africa
 Beaches on the Florida Panhandle
 South Carolina inland
 Minnesota (during nonski season)
 Cancun
 Chapter 1: Best of Timeshare Vacations 15
Taking the Kids to Family-Friendly
Timeshare Destinations
Orlando, Florida, leads the list of family-friendly vacation destinations
for the sheer number of things to do with the family while on vacation.
There are approximately 90 timeshare resorts within the Orlando area.
Beach areas are extremely popular with families as well, although areas
such as Hilton Head Island are less popular with families and more popu-
lar among adults, particularly adults who golf.
 Orlando, Florida
 Florida coasts (both East and West)
 Colorado and other Rockies ski destinations
 Missouri
 Urban areas, such as New York City and San Francisco (although
urban areas have a smaller number of timeshare resorts — see
Chapter 16)
 Texas (especially beach areas like Galveston)
 Williamsburg, Virginia
 The Caribbean (for families who can afford the airfare, or for those
families adding a week of timeshare to a cruise vacation)

Finding the Top Timeshare

Destinations for Retirees
Although no one actually uses their timeshare(s) for strictly retirement
living, an increasing number of consumers are able to vacation more
in their retirement, particularly if they purchase their timeshare when
they’re still working, when they can more easily afford the payments.

Most retirees are looking for quiet, less crowded destinations, like the
little out-of-the-way cabins found in the Wisconsin Dells, or a beachfront
condo during the relatively low-key months of May or September.

Some of the most popular choices for retirees include

 Arizona
 Marco Island, Florida
 Upper Midwest
 England and Italy (both of which have a high number of timeshare
destinations)
 Colorado (except during ski season)
 Pacific Northwest and Canada (except during ski season)
16 Part I: Understanding Timeshare
 Chapter 2

Digging Deeper
into Timeshare
In This Chapter

Discovering the meaning of “timeshare”

Discussing the types of timeshare ownerships and uses

Exchanging your timeshare

I n writing Timeshare For Dummies, 1st Edition, it’s my utmost goal to

present both the pros and the cons of buying timeshare. In this chap-
ter, I lay out the basic principles of timeshare: What is timeshare? What
types of properties are out there? How you can use and exchange yours?

What Is Timeshare?
Timeshare, in its simplest definition, is a joint ownership or lease of
vacation property by several people who take turns occupying the
premises for fixed periods. In other words, timeshare is nothing more
than a group of people sharing the cost of a vacation place. Think of it
as buying your future vacations at today’s prices.

In the old days, timeshare product generally consisted of condominium

units. These days, timeshare are that and more: a hotel room, a cabin, a
house, a castle, a treehouse, a chalet, a boat, a yacht, and even a jet.

Timeshare is sold in many ways: by referral, by resale, over the Internet,

even on eBay. But the main way timeshare is still sold and marketed is
through on-site sales presentations.

In the interest of full disclosure, let me say this: I am a timeshare

salesperson. I know what you’ll hear from the staff at a timeshare sales
presentation. In introducing the concept of timeshare to clients, time-
share salespeople typically present the following chart, asking, “Which
makes more sense for you?”
18 Part I: Understanding Timeshare

You say it’s vacation ownership,

I say it’s timeshare
Many timeshare resorts and operators feel that the word “timeshare” still conjures
up a sleazy image to many consumers. I can’t tell you how many timeshare operations
don’t even mention the word “timeshare” anymore — and I’m talking even the giant
companies. The major brands try their mightiest to distance themselves from the term.
Disney Vacation Club never uses the word timeshare in its printed materials or during
its sales presentations. A spokesperson for Hyatt said, “When you’re spending
$130,000 [for one of its luxury fractional timeshare products], you don’t want to call it
timeshare.” A salesperson at a Sheraton timeshare property even told me, “I own
timeshare, and our product is not timeshare.”
What you hear instead are so-called softer terms, such as “vacation ownership” and
“vacation clubs.”

Renting Owning
Rent receipts Deed and title
No equity Equity
No tax advantages Possible tax advantages
Basic 350-square-foot hotel room Large space with kitchen
facilities
Nothing to pass on in your will Vacation legacy to pass on
Less control of vacation costs More control of vacation
costs

Looks like a no-brainer, right? Before you jump into buying on the spot,
however, read on as I break down the many variables that may arise
from that simple comparison chart. Obviously, not all hotel rooms are
only 350 square feet, and not all timeshares are more spacious than all
hotel rooms. Not all timeshares come with a deed. And yes, although
your costs are largely fixed when you buy timeshare, maintenance costs
and taxes can go up annually, and you may be hit with special assess-
ment fees from time to time.

Pitting timeshares against hotel rooms or full ownership property is not

the issue. It’s really all about how you prefer to vacation. If you don’t
think you’re going to use timeshare, don’t buy it, no matter what the
price, no matter how desirable the property is, and no matter what the
salesperson says.
 Chapter 2: Digging Deeper into Timeshare 19

The art of the scam

Timeshare may have cleaned up its act considerably, but it is still a business, and in
any business where big money is involved, creative crooks are on the scene with new
twists on old scams. Fortunately, their mischief is usually short-lived, thanks to tighter
regulations, watchdog groups, and increasingly savvier consumers. Check out Chapter
17 for examples of timeshare hustles and hucksterisms.

Suppose you want to vacation in the south of France next year for one
week. What are your choices? Here are several vacation options:

 Rent a hotel room for a week. Simple. You’ve rented hotel rooms
your whole life, and so have your parents. You pay money and
room tax to rent the hotel room. Out of this money, the hotel pays
for the room, the labor, and the maintenance and derives a profit.
 Rent a condo or house for a week. Pretty much the same premise
as renting a hotel room: You pay to rent, and the owner of the
condo or house recoups his cost, pays for the labor and the main-
tenance, and derives a profit.
 Buy a house outright. You pay the cost of the complete house and
any taxes, as well as all the maintenance and labor on the house.
Plus, if you intend to use it only sporadically, you have the added
responsibility of finding someone to rent it the remaining weeks of the
year. This may turn out to be a smart investment, but it requires a lot
of money upfront — an option many vacationers simply can’t afford.

Or . . .

 Buy a week of timeshare at a vacation spot that allows you to go

to the south of France this year, Gatlinburg, Tennessee, the next
year, and somewhere else the year after that. Yes, you’re paying
the cost of the room, as well as the labor to maintain it, and the
owner of the resort is making a profit. But you don’t have to pay
exorbitant upfront costs, you have a deed rather than a rental
receipt, and you’re guaranteed a week of vacation at your home
resort or exchange resort every year. And if you have a large family,
buying timeshare with more than one bedroom is a smart way to
offset the costs of shelling out for multiple hotel rooms.

Discovering the Types of Timeshare Ownerships

Timeshare is not whole ownership, like a vacation or second home.
There are three basic types of timeshare ownership scenarios:
20 Part I: Understanding Timeshare

 Fee-simple: In fee-simple, or deeded timeshare, you purchase an

actual deeded interest in real estate that is then recorded with the
court or other authorities in the place where you purchased. You
receive a title in perpetuity, which means you should have the
rights to use, rent, lend, will, and sell your share of the property as
you see fit. It’s always a good idea to ask before signing whether
you’re getting the full bundle of rights.
 Leasehold: A leasehold timeshare (a type of nondeeded timeshare
property) is very similar to a fee-simple timeshare; the major differ-
ence is that a leasehold is not in perpetuity. Rather, a leasehold has
a specified expiration date that may be at the end of a given year
or a given number of usages.
 Right-to-use: A right-to-use timeshare (another type of nondeeded
timeshare property) gives you the right to use a particular unit or
unit size each year, but you have no actual real estate interest.
Most right-to-use timeshares are similar to leasehold timeshares in
that the majority have a stated expiration date. Generally, these
types of timeshares are held by a trust company; many timeshares
outside the United States are typically right-to-use.

Confused? Fee-simple, or deeded timeshare property, is similar in many

ways to deeded property in anything else. You own it; it’s yours. The
vast majority of deeded property is deeded in perpetuity — that is, for-
ever. However, because of legal restrictions in some areas, some deeded
timeshare is deeded for only 99 years.

Leasehold and right-to-use timeshare are examples of nondeeded time-

share property. This type of timeshare is owned not in perpetuity but for
a specific number or years or a specific number of uses.

One is not necessarily better than the other. For example, the Disney
Vacation Club (DVC) is nondeeded. This is a specific-number-of-years,
right-to-use product. You may, however, sell, rent, or will your DVC usage
just as you would your deeded timeshare, but keep in mind that any
usages expire at the designated time. On the other hand, the Manhattan
Club in New York City is fully deeded. You own your share of the prop-
erty (your unit) forever. Of course, timeshare is still relatively new. What
will happen to that one-bedroom suite at the Manhattan Club in the year
2042 remains to be seen.

Using Your Timeshare

Within the three basic types of timeshare ownership, there are four ways
to use your timeshare. For more using your timeshare, go to Chapter 16.

 Fixed week: This is the simplest type of timeshare. It gives you

rights to a specific week of the year, for a specific room size, more
likely than not at a specific resort that you return to year after
year (defined as your home resort), or trade or exchange using
 Chapter 2: Digging Deeper into Timeshare 21
whichever trading company your home resort is affiliated with,
for a similar room in a similarly rated resort (generally for a fee).
Sometimes you may be able to exchange for a different week of the
year, for yet another fee.
The greatest advantage to the fixed week system is that if you know
you will be going to use your home resort during a specific week of
the year, your condo will be there for you at your home resort, no
reservations necessary.
 Floating week: Also referred to as flex week. Buying a floating week
gives you rights to one week during the year to be used at your home
resort or an affiliated resort (generally for a fee). Note that floating
or flex weeks are usually allocated by season at your home resort.
Having floating week timeshare gives you more flexibility in terms
of using it but places greater responsibilities on you, because you
must always reserve your week ahead of time, sometimes months
in advance.
 Points: In a points-based system, each week of timeshare owned is
allocated a specific number of points, based on such criteria as size
of condo, rating of resort, and the like. Although there are excep-
tions, the majority of points-based timeshares have their deeds
held in trust by the developer, not the owner.
The greatest advantage to points is that the owner is not locked
into a full week; more often than not, two- and three-day stays are
permissible. For example, if it requires 1,000 points to stay the full
week, it may require only 350 points to stay on a Monday and
Tuesday, leaving 650 points to be used at a later date. Some, but
not all, points-based systems can be used to round out your vaca-
tion, meaning they can be used for airline tickets, car rentals,
hotels, cruises, and even some theme-park tickets.
The greatest disadvantage (and it’s a big one) to a points-based
system is that more often than not, the points are not inflation
proof. What does that mean? Say your two-bedroom timeshare
is worth 100,000 points. This year, it may take 100,000 points to
trade or exchange for a two-bedroom condo in the south of France.
Then next year comes around, and the trading company requires
150,000 points for the same condo. It’s no wonder that some skep-
tics have posited that the points-based system was designed solely
to consistently require consumers to spend more money to pur-
chase more points.
Always ask whether points are inflation-proof points before signing
paperwork. For more on points, see Chapter 12.
 Fractionals/private residence clubs (PRC): Fractionals are the
fastest-growing segment of the timeshare industry, and the most
costly. In fractionals, the purchaser owns a large number of weeks
(typically 1⁄4, 1⁄8, or 1⁄13 of the year, which is how “fractionals” got their
name). Timeshares that operate as fractionals are typically run by
22 Part I: Understanding Timeshare

management companies and have sizeable annual maintenance

fees as well as membership fees.
Private residence clubs (PRC) are usually ultraluxurious properties
found in the most desired locations around the world. They may
come complete with automobiles, private chefs, and full-time per-
sonal assistants and offer many of the same amenities as country
clubs. People with cash to burn are gobbling up fractionals and
PRCs rapidly. For more on fractionals, go to Chapter 16.

Exchanging Your Timeshare

Your home resort is the destination you return to year after year. Some
people prefer to vacation only in their home resort with no variation.
But for many other people, timeshare is especially attractive because of
the exchange factor: You have the chance to stay in a different place in
the world every year. Timeshare exchange companies allow timeshare
owners to trade their week with a timeshare week in a different location.

Keep in mind that exchange companies prefer that trades are generally
“like for like,” and rank high demand/low demand destinations with
devices like color codes and industry ratings. It may be hard to trade
your week in a low-demand resort during the low season for a high-
demand resort in high season, although it can happen — and it’s all a
matter of personal preference and flexibility anyway. Orlando, Florida,
may be as high demand as a destination can be (and it doesn’t get any
hotter), but that doesn’t necessarily mean you want to vacation there.

Even though you may be purchasing your timeshare with the express
purpose of trading or exchanging, the mantra in timeshare is this:

The power of your exchange is dependent solely on what you put into the
system, not what you take out.

In other words, the power of your exchange is dependent on how desir-

able your timeshare week is to other traders. For more on exchanging and
the two major exchange companies, Resort Condominiums International
(RCI) and Interval International (II), turn to Chapter 12.

Sizing Up Your Options

One big determination for potential timeshare buyers is making sure the
timeshare unit is large enough to accommodate your needs — or, para-
doxically, making sure you don’t buy more space than you actually plan
to use. Timeshare units range from efficiencies or studios that sleep two
people to houses with four or more bedrooms that can comfortably
sleep 12 or more people. The resort directories for both II and RCI
exchange companies differentiate between private sleeping capacity and
total sleeping capacity.
 Chapter 2: Digging Deeper into Timeshare 23
 Total sleeping capacity is the number of people than the timeshare
unit can sleep in total, meaning that someone may be sleeping on a
sleeper sofa in the living room, which is not private.
 Private sleeping capacity is just that: separate sleeping rooms. II
uses icons to show that the unit in question is, for example, a two-
bedroom that sleeps four privately and six in total. RCI simply uses
a slash: 6/4.

Another feature about timeshare unit size is whether the unit can be
split up. The common term for a timeshare unit that can be split into
separate usages is a lockout or a lock-off unit. Lock-off units are units that
can be split into two or more separate units or combined into one large
unit. For example, a two-bedroom unit can be used for either one week
every year in a two-bedroom unit or two weeks every year each in a one-
bedroom unit.

Some units are actual physical lockouts. For example, a two-bedroom

unit may consist of two separate one-bedrooms, connected by a door
that can be locked out (hence the terms lock-off or lockout). Other units
are one unit consisting of two bedrooms (and generally two baths) and
one living/eating area. Those units may not be physical lock-offs, but the
resort may still allow you to convert a two-bedroom into two separate
one-bedroom units.

Always ask whether you’ll need to pay a fee to split up your weeks, no
matter what the physical unit looks like. Make sure to also ask whether
a two-bedroom unit will split or convert into two full one-bedrooms.
Often, resorts will allow a split, but what the owner ends up with is a
one-bedroom one week and a studio the next, not two weeks of full one-
bedroom units.

Most resorts offer timeshare purchases on an annual or biannual (every

other year) basis. Some resorts even offer triannual ownership.

In most cases, the cost of a three-bedroom timeshare will be lower than

the cost of buying three separate one-bedroom timeshare units, and the
cost per week will be even lower if you have full lockout capabilities. For
example, Sue and Doug vacation three weeks each year by themselves.
If they purchase three separate one-bedroom timeshare units, their
expenses might look like this:

Timeshare #1: $9,000 + Annual maintenance and taxes ($350)

Timeshare #2: $9,000 + Annual maintenance and taxes ($350)
Timeshare #3: $9,000 + Annual maintenance and taxes ($350)

Effective cost per week: $9,350

24 Part I: Understanding Timeshare

But if Sue and Doug purchase one three-bedroom timeshare unit with
full lockout capability (meaning it could be used for three separate one-
bedroom stays each year), their expenses might look like this:

Timeshare #1 $20,000 + Annual Maintenance and Taxes ($700)

Effective cost per week: $6,900

Never buy more than you think you’re going to use, unless money is of
no concern to you. The best value is often a three-bedroom lockout
annual that can be used for three weeks each in a one-bedroom condo.
But if you aren’t going to need three weeks a year, don’t buy it!

History 101: The main events

Of the two once-upon-a-time versions of the story of timeshare, Version One goes some-
thing like this: In September 1963, in Baar, Switzerland, Alexander Nette and his colleague
Guido M. Fenggli came up with a way to give vacationers access to rent-free holidays
every year. They set up a company called Hapimag (Hotel und Appartementhaus
Immobilient Aniage AG), the members of which could spend time in their own vacation
property without being tied down to a single destination or having to invest a large sum
of money. Soon after, Mr. Nette began to acquire properties in various resorts through-
out Europe, in countries like Italy, Spain, and Switzerland. These properties were made
available to the public on a right-to-use basis — that is, no deeds were made available
and no one had full ownership.
Forty years later, Hapimag (www.hapimag.com/wps/portal) continues to thrive
as an independent company, with more than 60 holiday resorts in 18 European coun-
tries, the United States, and Egypt.
Version Two of the story is that sometime between 1964 and 1968, Paul Doumier of the
Societe des Grandes Travaux de Marseille, a development company in France, created
the concept for a ski resort located in the French Alps. Mr. Doumier was the person
who came up with the timeshare selling pitch, still in widespread use today, that says
that it is cheaper “to buy the hotel than rent the room.”
Skip ahead to 1969 when the first timeshare was sold in the United States. It was sold
as a leasehold (again, no full ownership) on Kauai in Hawaii. These units were sold as
a 40-year lease, in one-week increments, a practice that has not varied considerably
in more than 30 years.
In 1973, timeshare came of age and entered the deeded era — wherein buyers have
legal ownership of the timeshare property, giving them the same rights of ownership
as other deeded real estate (they are entitled to sell, rent, will, or give away the prop-
erty). Brockway Springs in Lake Tahoe, California, claims that it sold the first fully
deeded timeshare. More important, the gentlemen behind this deal — Carl Berry, Paul
Gray, Greg Bright, Doug Murdock, and Dave Irmer — brought the concept of time-
sharing to the financial world and also labeled the product timeshare.
 Chapter 3

Understanding the Basic

Economics of Timeshare
In This Chapter

Breaking down the costs of timeshare

Adding up the extra fees

Finding ways to cut costs or actually snag a bargain

T his chapter looks at the basic economics of timeshare. Keep in mind

that timesharing is nothing more than an alternative to spending
money on renting a hotel, motel, condo, cabin, or house. Owning time-
share, however, gives you equity and the ability to purchase additional
weeks of vacation (starting at around $149 a week) to exchange for like
properties around the world, and to rent, sell, or have something to
leave to your grandchildren.

Timeshare is never free; don’t ever get into timeshare hoping you’ll be
able to vacation for free at some point.

Buying Timeshare: Making

an Informed Choice
At its best, timeshare is a reallocation of money that you would already
be spending on vacation accommodations. The two following sections
give you a couple of sample scenarios that show how buying timeshare
measures up financially in the short and long runs.

Example #1: One week of vacation per year

This is a scenario for people who use one week a year in a one-bedroom/
one-bath timeshare.
26 Part I: Understanding Timeshare

The booming business of timeshare

Timeshare continues to grow and thrive, even in rocky economic climates. The Wall
Street Journal reported that net sales of timeshares hit a record $5.5 billion in the
United States in 2003, up 34% from that sold in 2002. A timeshare week sold for an aver-
age $14,500 in the U.S., with the average maintenance fee at around $385 for each
week of use.
Timeshare is a booming business, but the good news for consumers is that it’s also a
cleaner business. These days, consumers are much more aware of what they’re getting
when they sign on the dotted line. The buzzword in timeshare contracting these days is
transparency, which means getting full disclosure of what you’re purchasing — a big pos-
itive for an industry that once operated in the murky world of smoke-and-mirrors selling.

Purchase price $10,000

Down payment $1,000
Amount financed $9,000
Interest rate 15.9%
Term 7 Years
Monthly payment $178.24 × 84 monthly payments
Amount paid $14,972.16

Remember that timeshare means you’re paying now (or for the term
of your loan) for your future vacations. So, that leaves you with the
following:

 If you use your timeshare for the one week per year for only the
seven years of the term, you pay $2,138.88 per week of vacation
accommodations, or $305.55 per night. Quite a bit more than if
you’re paying $59.99 for your vacation accommodations now.
 If you use your timeshare for the one-week per year for ten years,
you pay $1,497.21 per week of vacation accommodations, or
$213.88 per night. Again, much higher than the $59.99 you’re paying
today, but better than the first example.
 If, like most people who eventually become owners, you use
your timeshare for the one-week per year for 20 years, you end
up paying $748.60 per week of vacation accommodations, or
$106.94 per night.

Example #2: Two weeks of vacation per year

This is a scenario for people who vacation for two weeks a year, so I use
a two-bedroom/two-bath timeshare, which can be split into two weeks
each in a one-bedroom timeshare.
 Chapter 3: Understanding the Basic Economics of Timeshare 27
Purchase price $17,000
Down payment $1,700
Amount financed $15,300
Interest rate 15.9%
Term 7 Years
Monthly payment $301.01 × 84 monthly payments
Amount paid $25,284.84

 Seven years of vacation yields $3,612.12 for two weeks of vacation,

or $258.00 per night.
 Ten years of vacation yields $2,528.48 for two weeks of vacation, or
$180.60 per night.
 Twenty years of vacation yields $1,264.24 for two weeks of vaca-
tion, or $90.30 per night — a very good deal in 20 years!

A family affair
For many families, timeshare is an attractive vacation option, and often makes good eco-
nomic sense. According to AAA, the average family of four spends $244 per day for lodg-
ing, meals, taxes, and gratuities on vacation. For a one-week vacation, that can really add
up. Here are some examples of the average vacation costs for a family of four:
Hawaii: $532.66 per day
Washington, D.C.: $380.33
Rhode Island: $314.20
New York: $304.09
Massachusetts: $301.94
Florida: $283.75
Kansas: $182.55
South Dakota: $180.90
Oklahoma: $180.85
For just about the same amount of money, a family can vacation in Hawaii, California,
Florida, or even Australia and stay in a Five-Star timeshare resort with two or three
bedrooms, a full kitchen (saving money on eating out), and recreational amenities at
no extra cost. And they could do so year after year and own a deed and title as well.
28 Part I: Understanding Timeshare

The salesperson has been trained, as have all salespeople, to involve

you emotionally, often talking about the beauty of the resort, the many
amenities, and how buying timeshare has changed some people’s lives.
You, as the consumer, are in the driver’s seat, so don’t let emotion get in
the way of logic.

Sometimes, however, emotion trumps logic. I once sold a timeshare to

an 87-year-old man and his 85-year-old wife. Obviously, everyone knew
that they weren’t going to be able to get 20 years’ use out of their time-
share. Before the gentleman began to fill out the paperwork, I gently
asked him why he decided to purchase. He looked up at me and said,
“Lisa, I am 87 years old and my wife is 85. We both worked for more than
50 years and we’ve never gone on a first-class vacation. Even if we only
use this timeshare once, we deserve to go first class.” It was a romantic
notion and a bold move, and he wouldn’t be talked out of it.

Breaking Down the Costs

Costs for timeshare units run the gamut these days: Upscale “fraction-
als” have hit the high six figures, while the average cost for a timeshare
condo in 2004 is settling around $13,500. The following is a sample chart
showing the breakdown of costs for a typical timeshare transaction.

Sample Pricing for a Three-Bedroom Unit

Purchase price $21,900
First-day incentive $2,000
Closing costs $600
20% down payment $4,590
Monthly payment $386.29

(Calculated at 15.9% interest for five years)

Now I break down the elements of the preceding table.

Purchase price
Some developers and salespeople use inflated figures to start, in order
to test your temperature and your willingness to purchase. It’s unfortu-
nate, but it does happen. Then, if you’re hesitant or express concern
about the price, the salesperson leans in and says something like, “You
know, we can do better here” and a couple of thousand is lopped off the
price — a little trick known in timeshare industry as the drop. My motto
is, “the price is the price is the price”; playing price games with potential
buyers seemed like a waste of both our time. However, it never hurts to
ask whether a lower price is available.
 Chapter 3: Understanding the Basic Economics of Timeshare 29
Down payment
Many timeshares show (as does the preceding example) a down payment
of 20%. In most cases, however, the standard industry down payments are
10% — and in some cases, even lower. Financing rates are typically very
high; for example, as of the writing of this book, typical resort financing
rates are about 15.9%, when the average mortgage rates are about 6%.

Interest
What? 15.9% interest? Unfortunately, yes. The interest rate is so high
because anyone who walks into a timeshare immediately “qualifies” for
the company’s financing. So you, the consumer, pay the price for this
everyone-qualifies deal.

First-day incentives
Most timeshares offer you a first-day incentive as a bonus for making the
purchase right there on the spot. These incentives can be as varied as a
price discount, membership fees waived for the first year (or longer),
a lower financing rate, extra vacation time, additional attraction tickets,
free or deeply discounted cruises, owners’ parties, free meals while
you’re on vacation, and the like. Are these incentives legal? Yes, they are.
There is nothing to prevent a timeshare resort from offering you deals to
purchase today.

For more information, go to Chapter 8.

Being a single person who enjoys vacationing, I find that timeshare saves
me more money than it may a couple or family. Why? Simple: Most
hotels, motels, condos, and the like mark up room rates sometimes by
as much as 175% for a single supplement (the fee the lodging charges for
a single person to use a room). So by owning timeshare, I avoid having
to pay single-supplement fees.

Uncovering Additional Fees

It’s a myth to think that after the timeshare is paid off, you don’t have
to shell out any more money. This section discusses the extra fees that
most timeshare owners can expect to pay annually.

Maintenance fees
In most cases, timeshares access a monthly or yearly maintenance fee.
Maintenance fees vary quite a bit by region, type of resort, type of own-
ership, and brand of timeshare, but this fee averages $500 per year for a
two-bedroom timeshare in the United States.

Owners share both the use and the operating costs of the upkeep of their
unit and the common grounds. These fees usually cover such expenses
as resort management, upkeep and refurbishing of the individual rooms
30 Part I: Understanding Timeshare

or condos, utilities, maintenance and upkeep of the common areas of the

resort (swimming pools, tennis courts, and golf courses), and, in the case
of deeded timeshare, real estate taxes.

Individual maintenance fees quoted may or may not include real estate
taxes, so be sure to check with the resort policy. Also expect maintenance
fees to go up periodically throughout the lifetime of the timeshare. Just as
you pay more to maintain your house year after year, the older a resort
gets, the more it costs to keep up the maintenance. Find out what the fees
are this year, what they were the previous year, and what, if any, is the
cap, or the legal limit, that they can be raised. What seems like a bargain
at $350 a year may not be such a bargain in ten years if there is no cap and
the fees go up 15% per year!

Keep in mind that a higher maintenance fee does not always translate
into a better timeshare resort. If you aren’t a golfer, for example, why
buy at a resort that has a golf course, especially if you’ll be staying in
your home resort more than exchanging it?

Yes, maintenance fees can and do increase over the years. But they can
also decrease at times, although this is rare and can sometimes signal
problems with the resort.

Generally, maintenance fees at timeshare resorts cover:

 Normal wear and tear

 Upkeep of units and grounds
 Periodic painting
 Furniture and fixture repair and/or replacement
 Property insurance
 Liability insurance
 Minimum housekeeping of each occupied unit

Generally, maintenance fees at timeshare resorts do not cover:

 Abuse of property and/or fixtures

 Additions to units and/or grounds
 Extraordinary repairs due to weather

Although some timeshares allow you to roll maintenance fees into your
monthly payment, rather than present you with a bill once a year, I
strongly advise you to ask to see these fees separately from your
monthly payment, so you know exactly how they break down.

Before you consider buying at a timeshare resort, ask the following ques-
tions about the types of fees you will be accessed:
Chapter 3: Understanding the Basic Economics of Timeshare 31
 What is covered and what is not covered?
 What is the total amount?
 What were the fees last year and the year before that?
 Is there a limit, or cap, on these fees?
 Who, if anyone, votes on these fees? Are timeshare owners
included on the voting board?
 Are these fees charged every year even though you, for example,
own the timeshare only every other year?

I’ve read articles that advise potential owners to ask for and read the
entire operating-expenses report for the resort before purchasing any-
thing. This is not necessary. While you should always get straightforward
answers to the questions listed, it’s simply not necessary to go over the
books with a fine-tooth comb.

Property taxes
In cases where you actually own deeded property, you may also have
to pay property taxes. Sometimes, these fees are called annual dues or
yearly upkeep. Whatever they’re called, ask questions about these fees
and consider the long-term implications of paying them.

Laws governing these taxes vary from state to state and jurisdiction to
jurisdiction. However, the issue most consumers are most interested in is
the potential deductibility of the property taxes. Unfortunately, there is
no easy or one-size-fits-all answer to this question.

The answer depends on such variables as:

 Whether you own a home

 What state you live in
 How many weeks of timeshare you currently own
 How much you currently earn
 Whether you’re putting the deed in your name or in a company’s
name

Property taxes on a deeded timeshare are tax deductible provided you

already own a home and you’re not already taking a similar deduction on
more than three weeks of timeshare.

Miscellaneous fees
In addition to maintenance fees and property taxes, timeshare owners
may face the possibility of having to pay one or more of the following
fees at some point.
32 Part I: Understanding Timeshare

 Special assessments: Resort operators sometimes require owners to

pay special assessment fees to offset the costs of major maintenance
overhauls. Also note that in most seaside, beachside, or lakeside
resorts, as well as in golf resorts, an annual or periodic special
assessment is assessed to cover natural beach erosion, higher-than-
average upkeep, damage from storms, and the like. Always ask —
and if you’re concerned about special assessments, a waterfront or
golf resort may not be the best buy for you.
 Activity or service fees: These are fees associated with various
activities at or services offered by the resort. For example: You may
get free tennis court time, but you may have to rent equipment, like
rackets. Always find out exactly what amenities are available to you
at no cost and what extra costs may be involved.
 Utility surcharges: This is a potential charge for electricity, water,
gas, and phone, and it’s pretty rare. Most resorts include all but
phone charges in the annual maintenance fees. Utility surcharges
are applied when a particular utility (for example, electricity in
California several years ago) experiences a sharp hike in price.
 Bed tax: This is another rarely applied fee. The fee that RCI and
Interval International (known as II) charge to exchange is inclusive
of taxes, unlike a hotel, which will charge not only the room fee but
a hotel/bed tax (19% in Manhattan) to boot. The resort may even
try to impose a bed tax for extras like rollaway beds and cribs. I
don’t like these fees. Owners and exchangers should not be
charged any tax on the exchange fee.

Looking for Ways to Cut Costs

or Find Bargains
If you’re a creative type, you can probably find ways to chip away at
the cost of timeshare. The following savvy cost-cutting tips come from
TimeSharing Today (www.timesharingtoday.com), a solid, independent
online timeshare magazine with more than two million subscribers (see
Chapter 1).

Cutting costs
During your time at development sales centers or after sales presenta-
tions, ask your salesperson about discounts for:

 A special first-day incentive if you buy immediately following the

initial presentation.
 An all-cash payment.
 A down payment larger than the standard 10%.
Chapter 3: Understanding the Basic Economics of Timeshare 33
 A quantity discount if you buy more than one unit-week, or more
than a certain number of points in a vacation club.
 Electronic funds transfer of monthly payments from your checking
account or credit card.
 Resale of a previously owned product.
As a courtesy to owners who want or need to sell, some developers
operate a resale program. At a resort being built in phases over a
period of years, you may pay less for a resale unit-week in an older
section of the resort, where your accommodations won’t be brand-
new and may lack certain amenities and refinements present in the
newer units.
 Resorts with unsold units in less-than-prime locations.
Instead of a golf course or ocean view, you may be looking out at
an interior courtyard — or the garbage dumpster. Your salesper-
son should be especially flexible in negotiating prices for such
accommodations.
 Purchase of a new unit-week in a phase or at a resort approaching
sellout. With just a scattering of unsold unit-weeks remaining
in units of varying sizes, sales become more difficult, so many
developers offer discounts to move the remaining inventory
quickly.

Finding resale bargains

In addition to developers’ sales centers, you may also be able to find
bargains by looking into resale. Check out the following and flip to
Chapter 9 for more information on buying resale.

 Classified advertising: Look in newspapers and timeshare-related

consumer publications, such as TimeSharing Today (www.time
sharingtoday.com), and on Web sites, including Timeshare
Resale Alliance (www.resaletimeshare.com) and Timeshare
Tips (www.tstips.com).
 Mature resorts with resales: The owners’ association may be
assisting owners who want to resell and/or trying to sell timeshares
it acquired through foreclosure from owners who failed to pay
maintenance fees and property taxes.
 Independent real-estate brokers: In some resort areas, certain
brokers specialize in timeshare resales.
 Timeshare auctions: TRI West Timeshare in Los Angeles (www.
triwest-timeshare.com) sells close to a hundred resale time-
shares a year at an annual auction. Online, timeshares also may be
available at auction sites such as eBay (see Chapter 9) and Yahoo!.
34 Part I: Understanding Timeshare

Do the split
Lock-off units are units that can be split into two or more separate units or combined
into one large unit. Owning a lock-off unit is like getting two weeks for one. Generally
speaking, if you own a lock-off unit, you can use that unit for two weeks of vacation-
ing. You can, for example, use a week at the resort and exchange a week someplace
else. If you own a two-bedroom lock-off, it may also be divided into a one bedroom
and a studio, or some other configuration. A lock-off unit can increase the trading
power of the unit. For more on lock-offs, see Chapter 2.
 Chapter 4

Is Timeshare Right for You?

In This Chapter

Discussing the most frequently asked questions about timeshare

Pinpointing foolish assumptions

Zeroing in on the issues every consumer should understand

U se this chapter as a sort of timeshare cheat sheet, where I lay out

the basic concept of timeshare, the pros and cons of buying time-
share, the foolish assumptions you never want to make about timeshare,
and the top consumer concerns.

Answering the Most Frequently Asked

Questions about Timeshare
As a timeshare salesperson, I have always strongly encouraged people
to ask questions during the presentation. I end the discovery (question-
ing) period of my presentations by asking attendees whether they have
any questions or concerns about the product, the company, or myself
that need to be answered in order to make an intelligent, educated
choice. Here, then, are the basic questions I encounter most frequently
from clients.

You have every right to have your salesperson answer any questions
you have about timeshare.

What is timeshare?
In the simplest terms, timeshare allows you to purchase, either under
deeded or nondeeded ownership (see Chapter 2), a certain amount of
time you can use to take a vacation. Generally, timeshares are purchased
and used in resort-type accommodations. Depending on the type of
timeshare, owners may exchange or trade their accommodations, split
larger accommodations into smaller accommodations for longer periods
of time, or take advantage of myriad other benefits offered by either the
resort or the exchange company with which the resort is affiliated.
36 Part I: Understanding Timeshare

What’s the difference between timeshare

and vacation ownership?
In truth, nothing. Many timeshare resorts and operators feel that for
many consumers “timeshare” still holds images of slick salesmen in lime-
green leisure suits selling swampland to innocent victims. Some timeshare
operations don’t even mention the word “timeshare” anymore — and
that includes the big names. Instead, you’ll hear softer terms such as
vacation club or vacation ownership. But a rose by any other name. . . .

Can I sell my timeshare if I don’t want it anymore?

Yes, in most cases you will be able to sell it. A word of caution here,
however: Don’t expect to make money selling your timeshare. Although
many timeshares are, in fact, real estate, it should not be thought of as
Donald Trump–type real estate. If you purchase a timeshare today for
$13,000 (the average price in the United States), you probably can’t turn
around and sell it in five years for $20,000. In fact, 99 times out of 100,
you can’t and won’t. So although you probably won’t earn a profit from
selling your timeshare, compare your possible ROI (return on invest-
ment) with any money you could make by selling your hotel and motel
receipts after ten years — which is $0.

How much should I pay for timeshare?

This is a difficult question to answer. Costs for timeshare vary widely
based on the following criteria:

 Where the timeshare is located

 Whether the timeshare is deeded in perpetuity or only for a prede-
termined number of years
 The rating of the resort
 The available amenities
 Whether the resort is part of a well-known status group of resorts
(Marriott, Disney, or Four Seasons, for example)
 The season of the week(s) in question
 The amount of money the resort can get away with charging you

The answer should be in comparison to what you would be spending on

vacation accommodations without timeshare. For example:

 The average number of nights you pay for hotel/motel accommoda-

tions per year
 The average price you pay in today’s dollars for those
accommodations
 Chapter 4: Is Timeshare Right for You? 37
 How many years can you reasonably expect to continue to vaca-
tion, barring an unforeseen circumstance like death
 The average rate of hotel/motel inflation per year

Here’s an example:

7 nights per year

$75 dollars per night
20 years
10% inflation per year
$30,071

So, anything less than $30,071 is considered a bargain if it gave you

anything more, such as more time, better and more spacious accom-
modations, more peace of mind, and more on-site amenities.

Ultimately, the question of how much to pay realistically boils down to

this: Do you have the money to make regular payments now to secure
your vacation for the rest of your life?

Where should I buy timeshare?

With almost 6,000 timeshare resorts worldwide, this is a particularly
intriguing question. It all depends on what you want to do with your
timeshare.

If you want nothing more than to vacation in the same resort every year,
then it’s a no-brainer: Purchase in that location.

Before you buy in your desired location, however, I advise you to check
out at least a handful of resorts there to choose the one you like best,
with those amenities and services that most appeal to you. This is the
place, after all, where you’ll be returning every year for your vacation,
and you want to make your best effort to ensure that few surprises or
disappointments crop up down the road.

If, however, you prefer to travel to different locations for vacation, pur-
chase in the location that has the most demand, year-round, worldwide,
in order to give you the best trading power. If you want to exchange your
timeshare week for stays in popular hot-destination areas, it’s wise to
buy a property that is equally in demand.

Currently, the hottest location is Orlando, Florida, which had more than
52 million visitors in 2004. I think it’s safe to say that Orlando is neither
the most scenic location in the world nor the most relaxing. It does,
however, have a 4-foot-tall mouse, a 7-ton whale, a red-tighted super-
hero, and seemingly endless top attractions.
38 Part I: Understanding Timeshare

According to W. Frank Gilmore, a veteran timeshare sales manager and

project director, “the power of your exchange is dependent solely on
what you put into the system, not what you take out.”

What is the difference between a fixed week,

a floating week, and a points-based system?
Two words: guarantee and flexibility.

 Fixed week: A fixed week guarantees your accommodations at the

resort for that week and that week only. In most cases, you may
exchange your accommodations for a stay in another resort, but
keep in mind that your “power” to trade for the destination (and
time) you want may be restricted by the type of week you own.
 Floating week: A floating week gives you more flexibility, especially
in trading, but no guaranteed time at any resort, including your
own.
 Points-based system: Many resorts have instituted a points-based
system, which allows owners to utilize their ownership not only for
timeshare stays but also for a variety of travel-related products and
services such as hotels, airline tickets, and car rentals.
Be aware that in some cases, points-based ownership is not owner-
ship at all. The drawback to most points-based timeshare is that the
point values may not be inflation-proof. Although your week of time-
share may be exchanged for a couple of airline tickets this year, next
year that same ownership may be good for only one ticket.

Can I (and/or should I) buy resale?

Of course you can buy resale timeshare, whether from the original
owner or a resale company. But keep in mind that it is important to find
out why the timeshare is on the resale market. Much of what is out there
on the resale market is being sold for what I consider legitimate reasons:
death, divorce, underutilization, or need for quick cash. But a good
percentage of inexpensive timeshares on the resale market are there
because they don’t work, or more to the point, don’t work as they
were promised to work. In other words, cheaper is not always better.

That said, the resale market is hot, and many people have success at the
buying-to-trade game. They look for less expensive or up-and-coming
destinations to buy — even places they have no intention of visiting —
largely for the potential trade value. It’s a bit like playing the stock
market, and some people do come out as winners.

If you’re considering buying timeshare on the resale market, I suggest

you hire someone with a legal or timeshare background to do the leg-
work for you and ensure that it’s everything it’s advertised to be.
 Chapter 4: Is Timeshare Right for You? 39

Resale: One man’s tale

I recently met a young man who crowed that, “My daddy bought three weeks of time-
share in Galveston, Texas, on the resale market for only $1,000 each” and that, “He
won’t buy in Orlando because it’s too expensive.” “Great,” I said, “and could you tell
me the locations your daddy has been able to exchange for these weeks of time-
share?” The young man admitted that actually, his daddy hasn’t been able to exchange
his Galveston timeshare with any other location so far. “So tell me,” I went on, “does
your daddy like to vacation in Galveston?” The young man looked at me glumly and
shook his head no. “But,” he said brightly, “you gotta admit, he got it cheap!”

Do I have to go to the same timeshare

resort every year?
No. There are over 5,000 timeshare resorts worldwide. The vast majority
of these timeshares belong to either Resort Condominiums International
(RCI) or Interval International (II). For a small fee (currently $121–$129),
you may trade or exchange your timeshare for comparable accommoda-
tions throughout the world.

Timeshare exchange companies operate under certain rules, so just

because you own timeshare, you’re not guaranteed to be able to trade
whenever and wherever you want to go. For more on exchanging, check
out Chapter 12.

Making Foolish Assumptions

Because only 3% of people in the United States already own timeshare, it
is likely that you’re considering buying timeshare for the very first time.
If so, be sure to ask all the pertinent questions (see Chapter 7). Even if
you’ve already attended one or more sales presentations, know that
each timeshare is different, and you should assume nothing. Be pre-
pared to ask all the pertinent questions wherever you go.

Timeshare sales-presentation veterans keep a list of the answers to their

most important questions about each timeshare so that at the end of the
day, they can compare and contrast.

Many people start off thinking that timeshare isn’t for them because, in
their words, “We don’t want to go to the same place every year.” They
assumed that the resort that they were viewing allowed them usage only
there, instead of at thousands of resorts worldwide through the beauty
of exchanging.
40 Part I: Understanding Timeshare

Although the list is endless and varies from customer to customer, here
is a list of assumptions that you shouldn’t make:

 All timeshare is deeded forever (they aren’t).

 All timeshare is located in resort areas (they aren’t).
 All damages are always covered by maintenance fees (they aren’t).
 All timeshare units come with a kitchen (some do; some don’t).
 You can let anyone use your timeshare if you’re not using it
(some resorts have restrictions and/or additional fees).
 You’ll always be able to get what you want in an exchange (you
may, depending on where you own and where you want to go).
 You have to pay to join an exchange company (many resorts pay
for this and/or you may not need to join the exchange company).
 You’ll never be able to get what you want in an exchange (you will if
you buy at the “right” resort).
 The maintenance fees will never go up (they may).
 The maintenance fees always go up (they may not).
 You can always negotiate the price (maybe you can and maybe you
can’t; see Chapter 8 for more information).
 This presentation will be the worst part of your vacation (it doesn’t
have to be).

The general rule of thumb with timeshares, as with most everything

else: The words never and always are red flags. I always insist that my
salesteam avoid using the following four words at any time during the
presentation: free, perfect, always, and never. These concepts don’t exist
in most of life, and they definitely do not exist in timeshare.

Use common sense

“You must use common sense with the product. If your salesperson leads you to believe
that you can do anything, anytime, think again! If you want to travel during a time of the
year that everyone else is, such as a holiday, Mardi Gras, or spring break, don’t make
your plans a week in advance — nobody else did. This is where common sense comes
in. Make your plans accordingly. I know you’re thinking, ‘Of course, that makes perfect
sense! Who would do something that foolish?’ and yet I sit down with people every day
who wonder why they can’t use their timeshare a certain way. And that is because they
have unreal expectations about how to use the unit they were sold.”
M. Burroughs, Davenport, Florida
 Chapter 4: Is Timeshare Right for You? 41
Also, don’t assume that your salesperson has read this book or is a mind
reader. The happiest customers I have — that is, the ones with the most
owner satisfaction — continue to be the people who asked questions
about what mattered to them, and persisted in doing so even if they
assumed they knew the answer.

Getting More Information

Keep in mind that a timeshare salesperson is but one source of informa-
tion. You can pursue any number of avenues to get more information
about a timeshare resort. Word of mouth is what may have gotten you
interested in the first place (and it certainly helps to know people who
can provide firsthand experience — and even referrals), but to get the
lowdown on what you’re getting yourself into, myriad helpful resources
are literally at your fingertips. I don’t mind tooting my own horn,
because I consider my Web site, Timeshare Insights (www.timeshare
insights.com), to be an unbiased, independent source of solid con-
sumer information. Check it out, and I hope you find it useful, too.

If your timeshare is affiliated with an exchange company (and it likely is),

you can also glean information from the rankings and ratings bestowed by
the exchange companies themselves. Both RCI and II award resorts that
consistently exceed the company standards of product quality, service
delivery, and customer satisfaction. RCI even color codes its resorts by
season, from high-demand (red) times to low-demand (blue). Check out
the latest RCI (www.rci.com) and II (www.intervalworld.com) catalogs
for the latest resort ratings and codes.

You can also find lots of sensible advice and helpful timeshare tips at the
following Web sites:

 TimeSharing Today magazine (www.tsdoday.com): In addition to

the well-written articles, fair and informational resort reviews, and
a wealth of discussion about current issues in the timeshare world,
TimeSharing Today offers a good listing of timeshare resales and
rentals in all areas.
 Timeshare Tips (www.tstips.com): Timeshare Tips has representa-
tives from four exchange companies online answering questions for
their members. In their words, “We recognize that all participants
are necessary for a healthy timeshare industry. Although most of
our members buy resale, we all recognize that without developer
sales, there would be no resales. We also believe that without the
ability to resell, developer sales would be more difficult.”
 Timeshare Users Group (www.tug2.net): This online group of
timeshare owners posts informational articles and discussions
about many subjects (some not even related to timeshares). They
also have a growing list of resale timeshares. Tuggers as they are
called, are a fiercely close, loyal bunch.
42 Part I: Understanding Timeshare

 The Timeshare Beat (www.thetimesharebeat.com): The Beat

is the timeshare industry’s most-read publication. The online
magazine has many articles about timeshare and a nice section
on frauds — this is usually the first place that negative but very
necessary information is posted for the public about timeshare in
general. The Timeshare Beat is free.

Rating the resorts

“I find the magazine TimeSharing Today, along with the Web sites tstoday.com and
tug2.net, a wealth of information. You can read reviews from people who have been
to resorts. Most of the time, these people are candid in their comments and rate the
resort on a scale of 1 to 10. You can also post on the bulletin boards and receive infor-
mation from other timeshare travelers.”
Dianne Loftis, Brentwood, Tennessee
 Part II
Buying Timeshare
 In this part . . .
I get into the nitty-gritty of buying timeshare. I discuss how
timeshare is marketed and sold, what you can expect at a
traditional timeshare presentation, and how to handle a sales
pitch. I provide you with a list of essential questions to ask
before signing on the dotted line and advise on ways to finance
your timeshare. I also give the lowdown on the pros and cons
of buying resale or through referral programs.
 Chapter 5

How Timeshare
Is Marketed
In This Chapter

Soliciting timeshare customers with free vacations, gifts, and more

Marketing timeshare through the mail and by fax and e-mail

Letting you in on the secret that developers don’t want you to know

H ave you ever wondered why you see so few advertisements or tel-
evision commercials selling timeshare? It’s because of the method
in which timeshares are marketed and sold. In this chapter, I explain why
and how timeshare uses its particular sales model — and why I think it’s
time to abandon it.

The Art of the Lure

In the early days of timeshare, when the product was relatively unknown
to the public, timeshare resorts started the practice of gifting clients to
come in and see what they had to offer. You may remember the days
when timeshare resorts were routinely giving out toasters, color televi-
sions, dinner certificates, and pretty much the kitchen sink in return for
your time listening to a sales presentation.

No one knows exactly why timeshare developers arrived at the idea that
their product was too uniquely positioned to take advantage of traditional
advertising methods.

With respect to the old-time timeshares, this type of marketing did work
to some extent. That is, it filled salesrooms day after day, and some of
the people attending the presentations did purchase the product. It also
led to the image of the hard-sell timeshare salesperson, the question-
able-at-best selling practices so prevalent in the old days, and the often
less-than-honest image that timeshare still holds for many consumers.
In fact, a recent survey revealed that 79% of consumers polled thought
that they had to endure a high-pressure sales presentation in order to
purchase a timeshare.
46 Part II: Buying Timeshare

Unfortunately, the timeshare industry is, as a whole, doing little to dis-

suade consumers from that image — because in truth, the majority of
timeshare presentations are the result of some discounted vacation
package or other gift.

It would, in my opinion, behoove the industry to wake up and notice

that timeshare is no different than any other commercial product out
there — and that the timeshare product these days is good enough to
easily sell itself without having to lure customers to presentations with
offers of free vacations or gifts. Compare the advertising and marketing
efforts of the following:

Product A: The advertising agency or the advertising department

of Product A has done its research and found that the target audience of
this product is as follows:

 Is a member of a family of four consisting of two adults (ages 38–57)

and two children (ages 5–17)
 Has a household income of $50,000+
 Is a homeowner
 Has traveled at least three times in the past five years
 Regularly subscribes to at least one travel magazine

For a fee of $13,000, the ad agency now prepares an advertising plan con-
sisting of:

 Half-page color advertisements in the top three travel magazines

 Thirty-second radio spots in the top ten markets in the country tar-
geting adults 39–54
 Half-page advertisements in the Sunday newspaper once per month
in the top ten markets in the country

The ads consist of photos of the “typical happy family” using Product A,
some basic information about Product A, a snappy headline to draw
the reader’s attention — and, of course, the name, address, and phone
number of the local retail establishment where Product A can be pur-
chased. It’s simple, basic, tried and true, and designed to get people
thinking about Product A, look at Product A at a local retailer, and
purchase Product A.

Now compare this with how timeshares advertise their product with
similar target demographics:

Product B: The timeshare will pay a marketing company upward of $350

to get a body in the door in order to sell Product B. A typical busy day in
Orlando, Myrtle Beach, Gatlinburg, or Las Vegas brings in 100 customers,
which costs the timeshare $35,000.
 Chapter 5: How Timeshare Is Marketed 47
Timeshares are paying marketing companies to sell vacation packages to
anyone, regardless of ability to purchase, tendency to purchase, or inter-
est in purchasing.

The makers of Product A are paying their advertising agency to get

people to look at and ultimately purchase the product in question,
not see or do something else.

And what’s the difference in the customers? The people who saw the ads
and heard the radio spots for Product A visit the retailer because they’re
interested in the product being advertised. They may or may not buy it,

Shedding a shady reputation

In the early days of timeshare, particularly in Florida, parts of Pennsylvania, California,
and Nevada, the timeshare industry used as it primary selling tool the practice of luring
potential buyers with vacation offers, wining and dining, and the opportunity to buy
shares in lovely resorts “soon to be built.” They promised luxury gifts that turned out
to be duds, and offered free vacation prizes that were anything but free — all to get
consumers to attend 90-minute sales presentations that often turned into daylong
marathons of hard selling. In the worst-case scenarios, as soon as the contract was
signed, the salesperson and the “developer” absconded with the money, leaving the
consumer with shoddy or third-rate property that had little in common with the land
touted at the sales presentations — or even worse, a deed to nothing.
Part of the problem was the timeshare hawkers’ propensity to play bait-and-switch
games — dangling the words “free vacation” and “no obligation” to draw people to
hard-sell timeshare presentations. They found creative ways to prey on hapless cus-
tomers looking for a little piece of paradise by promising luxury gifts, developing
Byzantine contracts, using opaque language — even pushing emotional blackmail
(“after all these years, don’t you think your wife deserves a reward?”) on a captive
audience.
As a result, some people made a lot of money. Some people were satisfied with their
purchases, but too many others got burned. The perception, fair or not, of a heartless
sales force selling mediocre product to innocent consumers began to sully the entire
industry.
The timeshare community knew that it was in its own best interests to shed its shady
image. The most egregious of the violators were run out of town. States passed laws
regulating timeshares, and the industry itself adopted provisions to weed out scam
artists and provide a template and a model code for developers and marketers alike.
Timeshare developers in Europe, where it all began nearly 50 years ago, are also
cleaning up their act. The Wall Street Journal’s RealEstate Journal reported that reg-
ulations in Europe are forcing timeshare developers to follow stricter standards of
practice. For example, in Europe, contracts are required to be written not only in the
language of the country where the timeshare is located, but in the native language of
the buyer as well.
48 Part II: Buying Timeshare

but they are motivated enough to investigate the product. The people
at the timeshare resort are there because they paid for and received an
inexpensive vacation, not because they’re interested in the product, in
this case timeshare.

The salesperson at the retail store will have an easier time selling the
product simply because the consumer has shown initiative in pursuing
the product. The timeshare salesperson has a much harder time, merely
because his customers aren’t really interested in the product — they’re
interested in a cheap vacation, which is what they signed on for. It’s no
wonder that with more than 3.5 million Americans attending timeshare
presentations each year, after some 30 years, only 6.5 million families
own timeshare. The marketing companies have been hired to sell vaca-
tion packages, not timeshare.

But wait, you may say: Isn’t the fact that they are on vacation at a
timeshare resort indicative of their interest in buying a timeshare?
Not necessarily. The key difference is that the timeshare customer has
paid his or her money for a vacation and is now being forced to listen
to a timeshare pitch. The customer in the retail establishment hasn’t
paid a dime and isn’t being forced to listen to anything. No wonder
timeshare has a reputation for the hard sell. To me, it’s completely
unnecessary because most timeshare product on the market today
is quality enough to sell without this sort of gimmickry.

Marketing Companies and Their Tactics

The vast majority of consumers are solicited to attend a timeshare pres-
entation via a vacation offer. You’ve probably received something like
this in the mail:

“Congratulations, your name, you are the official recipient of four fabu-
lous days and three nights in beautiful and sunny Orlando, Florida! Your
wonderful vacation also includes:

 Three days and two nights in beautiful Fort Lauderdale

 Seven days transportation by name of car rental company

And your name, if you call within the next 48 hours, you will also
receive:

 Four days and three nights in exciting Las Vegas

 Four days and three nights in fun-filled Gatlinburg

Call toll-free 1-800-xxx-xxxx between the hours of 8:00 a.m. and 7:00 p.m.,
Monday through Friday, to claim your exciting vacation package. Due to
the overwhelming response to this fabulous package, you are limited to
one call per package please.”
 Chapter 5: How Timeshare Is Marketed 49
Sometimes these packages have a very low price attached to them or
you may receive a voucher to cover the cost of the vacations. You
may be told that you’ll stay at a brand-name hotel (or the equivalent);
sometimes the package will include photos of well-known sights at the
destination.

And inevitably, somewhere on the solicitation, usually in 8-point type-

face, you will see something like, “THIS ADVERTISING MATERIAL IS BEING USED
FOR THE PURPOSE OF SOLICITING SALES OF A VACATION OWNERSHIP PLAN.” (The words
timeshare and vacation ownership are interchangeable.)

Marketing timeshare by phone, fax, and e-mail

Marketing companies have also routinely used phone calls, faxes, and
e-mail to attempt to snag clients for the timeshare presentation.

With the passage of the no-call legislation back in 2003, many timeshare
marketing companies were forced to look for alternative ways of market-
ing. Unfortunately, they still haven’t yet gone the traditional route,
resorting instead to offering these same types of packages via fax
machine. No-fax legislation, scheduled to go into effect in 2005, again
is going to leave marketing companies scrambling for another way to
market these packages.

If you receive one of these offers, realize that 99.9% of the time, you will
be required to take one or more timeshare presentations, even if the
telemarketer tells you that you won’t.

This type of timeshare “marketing” serves only to undermine the indus-

try and leads to the question, “If I’m being bribed, is there something
wrong with the product?”

Here are some questions to ask when you are talking with a timeshare
telemarketer. (Keep in mind that most telemarketing calls are monitored
or recorded, a practice that is usually mandated by state laws.)

 Does this package require a timeshare or vacation ownership

presentation?
 Which timeshares or resorts will I be required to visit?
 Does this package come with a rental car? If not, how will I get to
the resort or timeshare?
 What are all the costs of this package? Does this price include all
taxes? Are there surcharges?
 Is there a local number I can call if something goes wrong once I get
there?
 What are the cancellation penalties?
50 Part II: Buying Timeshare

They just won’t take no for an answer

Sometimes you have to be firm with telephone marketers. After I had signed up for the
federal do-not-call list, I received a call from a marketer for a timeshare located just
two minutes from my house. I was invited to “enjoy a complimentary one-hour visit of
our beautiful resort with no obligation to purchase anything, but your family will receive
two tickets to one of central Florida’s world-famous attractions.” I first informed the
caller that I was single and didn’t have a family. The invitation was still good, I was
told. I then politely informed the caller that I sold timeshare at another resort and simply
wasn’t interested. The invitation was cheerfully repeated, and I was told that “you are
under no obligation to purchase anything.” Finally, I told the gentleman that I was on
the do-not-call list and that this call was in violation of the law. After a pause on the
other end, he chirped, “Well, if you change your mind, this offer is valid for the next six
months!” I hung up and reported the call.

If you don’t want to be solicited for these types of promotional travel

packages, it is your responsibility to sign up for No Call and No Fax lists.
Consumers can easily do this by registering their phone number at
www.donotcall.gov or calling the toll-free number (% 888-382-1222).
If the marketing companies reach you on your phone or fax after you’ve
registered, inform them that you are on this list and that if you’re con-
tacted again, you will report the violation.

Getting wise to OPCs

Another marketing tactic still in rampant use among timeshare resorts is
the ubiquitous off-property consultants (OPCs). What are OPCs? In Orlando,
OPCs operate ticket/information booths scattered amid the high-traffic
tourist centers. In Las Vegas, OPCs are everywhere up and down the Strip.
In Mexico, OPCs come up to you on the beach and entice you with dis-
counted tickets or free dinners just for viewing their resort.

With telemarketing calls, you generally have the protection of the entire
conversation being recorded, which gives you something to fall back
on, if necessary. With OPCs, that protection has been taken away from
you. Sometimes, the offers and discounts you receive from OPCs are
legitimate — and sometimes they’re scams. Often, the OPC is simply
being paid to bring bodies into timeshare resorts, regardless of a
person’s ability or interest in the product. In this instance, who is being
scammed? Unfortunately, both the consumer and the timeshare resort.

Use this as your mantra: If it sounds too good to be true, it often is.
Go with your gut feeling. Does the OPC look reputable? Did he or she
answer your questions? Do you think the tickets or dinner coupons look
legitimate?
 Chapter 5: How Timeshare Is Marketed 51

Scam alert: Little white lies

Off-property consultants (OPCs) will convince unwitting tourists to lie about the amount
of money they earn, their employment status, and/or their marital status (sometimes going
as far as giving unmarried friends fake wedding bands) in order to get paid for delivering
bodies to the resort. The resort and the salesperson now have to spend valuable time
with these clients, when everyone involved knows that a sale is virtually impossible.

Not all OPCs are evil scam artists. Starwood has a very lovely OPC desk
right in the lobby of the luxurious Atlantis Resort in the Bahamas. If you
stop in, as I did, you may be offered two free dinners at a fine restaurant
in exchange for viewing the Starwood Vacation Ownership property,
Harborside, adjacent to the Atlantis Resort. I signed up, took a presenta-
tion that lasted about 105 minutes, didn’t buy, didn’t get pressured to
buy, and received my dinner vouchers. Everything was as promised.

The Biggest Secret about Timeshare That

Developers Don’t Want You to Know
In a recent survey, more than 79% of people surveyed thought that it
was necessary to sit through a high-pressure sales presentation in order
to purchase a timeshare.

Many consumers find themselves at a timeshare after purchasing some

sort of vacation package or obtaining discount attraction tickets or
other gifts. In those cases, it is necessary to sit through the timeshare
presentation given by the resort and the salesperson.

If, however, after reading this book you decide to visit a timeshare or
two on your own and gather some information on-site, you are under
no obligation to sit through a presentation. Although timeshares have
always hired marketing companies to go out there and snatch bodies
for them to tour, that doesn’t mean that’s the only way to gather infor-
mation about the resort. You, the informed consumer, can go into any
timeshare in the world, ask to speak with someone in sales, and inquire
about viewing a model and getting price quotes. In these instances, you
do not have to sit through any sales presentation to buy a timeshare
unit. This is a fact that the resort and marketing companies prefer to
keep under wraps.

Timeshare is a product for sale to the consumer. If you go into an auto

dealer, are you required to sit through a 90-minute presentation on the
virtues of their latest model? Of course not. You are free to come in, see
the model, ask for the price, and decide whether you want to buy.
52 Part II: Buying Timeshare

The timeshare industry and the timeshare marketing companies have

convinced themselves that you, the consumer, are not able to make the
decision to purchase timeshare on your own unless you sit through a
two-hour (and sometimes half-day) sales pitch.

If you do decide to take an independent look at a timeshare resort, know

that you may be mildly coerced into attending a sales presentation. You
are under no obligation to do so. If you’re not allowed to simply walk
into a resort and get basic information and prices, that should tell you
something — perhaps that you should stay away.

And, if, after you’re shown the property (don’t expect to walk around by
yourself, resorts are usually restricted to owners only, and that’s a good
thing), you ask the price, be prepared: More games may follow. Most
timeshare operators offer consumers a discount for buying today. If
you’ve walked in without being required to sit through a sales pitch and
aren’t prepared to buy on the spot, politely tell the salesperson or tour
guide that you understand about the discount, but you will not be pur-
chasing today and would like the price anyway.

Again, my advice to you is simple: If you aren’t given a price, just walk
away and don’t do business with them.

Many timeshares are available on the resale market, and the advantage
of this is that you bypass the sales pitch, which may or may not be high
pressure. Of course, resale has its own set of issues, which are addressed
in more detail in Chapter 9.

Although the majority of salespersons out there, timeshare or other, are

decent, hard-working, honest people, it is their goal to sell you their
product, not the competition’s. If you walk into a Ford dealership, the
salesperson is going to try to persuade you to buy a Ford, not a Chevy.

The most informative (and fairly pressure-free) way I know of buying

timeshare is to hire a timeshare consultant who merely consults and
doesn’t actually sell anything other than expertise. This way, no bias
is shown and no one timeshare or timeshare system is pushed.
 Chapter 6

The Timeshare Sales

Presentation
In This Chapter

Preparing for a timeshare presentation

Laying out the timeshare sales presentation from start to finish

Buying today versus tomorrow

Changing your mind

A s a timeshare salesperson and consultant, I have conducted many

timeshare sales presentations. When done professionally and con-
siderately, these sales presentations are entertaining, offer a positive
and productive give-and-take, and leave the participants feeling that it
was time well spent.

But the timeshare sales pitch has retained a somewhat negative image
from the days when the industry was something of an unregulated Wild
West. The image of flim-flamming salespeople furiously peddling a ques-
tionable product is one that refuses to fade away. And for good reason:
The hard sell is still around in various permutations. In this chapter,
you discover how some salespeople are trained to keep you in a highly
emotional state — and more importantly, how you can avoid being con-
trolled by a salesperson by becoming an informed consumer and asking
the right questions.

Before You Go
So you’re signed up for a timeshare sales presentation. My first rec-
ommendation? Bring a copy of Timeshare Vacations For Dummies,
1st Edition, with you when you go. Savvy salespeople appreciate the
fact that you’ve done your homework. (If they’re really savvy, they’ll
have read the book themselves!)
54 Part II: Buying Timeshare

It’s a fact: Sales presentation statistics

The timeshare industry is a $5.5 billion industry, and sales presentations are a key part of
the selling machine. It’s estimated that approximately three million people attend time-
share sales presentations a year. Of these, 10% of the attendees end up buying timeshare.

Now, I’m not asking or expecting you to just walk in, sit down in front of
the salesperson, shake his or her hand, hand over your credit card and
say “I’d like to buy a two-bedroom timeshare.” I am asking you to go
into this experience with an open mind, ask the right questions (see
Chapter 7) and decide for yourself whether the product makes sense
for you.

The Sales Presentation: What to Expect

In this section, I lay out the basic elements of the timeshare sales pres-
entation, from start to finish.

Almost all timeshare presentations have been prearranged for a specific

date and a specific time. Most are scheduled for a minimum of 90 min-
utes. This means that in order to receive any gifts (attraction tickets,
dinner vouchers, cash) or discounted or free hotel stays that were part
of whatever package or deal got you there in the first place, you must
complete the tour or presentation.

Although they vary from resort to resort, from brand name to brand
name, and from salesperson to salesperson, sales presentations follow
the same general outline. Some resorts have their salespersons conduct
the entire presentation in one place, while others move to different
locations.

Greeting
During this phase of the sales presentation, the salesperson is merely
saying hello and making introductions. It’s get-to-know-you time, where
the salesperson may ask questions like: “Where are you from?” “Is this
your first time in this area?” and “Did you have any problems finding the
resort?”

Warm-up
Although you should never underestimate the entertainment factor in a
timeshare presentation, don’t expect a song-and-dance extravaganza. In
getting the audience primed for the rest of the show, a salesperson makes
small talk and gets to know the participants better. A good salesperson
makes an effort to put everyone at ease — not to intimidate them.
 Chapter 6: The Timeshare Sales Presentation 55

The sales presentation: Your role

Here’s a checklist of your role in the sales presentation:
 Get there on time.
 Do your homework before you arrive.
 Be wary of a company or person that uses the words free, perfect, always, or
never in materials or speech.
 If you aren’t comfortable with your salesperson, it’s absolutely fine to request
another.
 Don’t drink alcohol before or during the presentation.
 Always check the salesperson’s math.

Intent statement
This is where the salesperson gets down to business and discusses why
he or she is here and what you can expect of the next 90 or so minutes.

Discovery
A discovery is just that: a way for the salesperson to discover more
about you, the way you vacation, what you like to do on vacation, why
you vacation, how much money you spend on vacation, and where you
would like to go on vacation. The salesperson will likely ask you what
types of problems you have encountered on vacations and what could
make your vacations better.

Contrary to popular belief, during the discovery period, timeshare sales-

persons are not asking trick questions, nor are there specific questions
or answers that mark or identify buyers and nonbuyers.

Replay
After the salesperson has completed asking questions, he or she will
generally replay the information back to you, in order to make sure that
what you said is what the salesperson heard and to make the rest of the
presentation interesting to you.

Company credibility
If you’re taking a timeshare presentation at a name-brand resort, a Hilton
or Marriott, for example, you will generally be shown pictures, testimo-
nials, posters, or even roomfuls of company information. If you are at a
nonbrand timeshare, the salesperson will generally tell you something
about the resort, the managing company, and the builders. Here are
some real-life examples of the variety of sales tools you may encounter:
56 Part II: Buying Timeshare

Are you hungry yet?

Most timeshare resorts offer their clients some sort of food. This ranges from bran
muffins, bagels, bananas, and coffee, to a full breakfast or lunch, sometimes miles
away from where you and your salesperson meet.

 3-D topographic maps of the property

 Huge light-up maps showing all the resort locations
 Movies
 Newspaper or magazine clippings with quotes about the company
or about timeshare in general

Financial logic/solution
The financial logic is the basis on which most standard timeshare is sold.
Some salespeople write on a simple piece of blank paper; others use
preprinted forms. A few name-brand resorts have high-tech flat-screen
computers into which the salespersons enter data. One resort uses a
hands-on approach: having the clients enter their own data on a large
touch pad, the results of which they then show on a 52-inch screen.

Product options
This, along with the property or model tour that follows, is generally the
part of the presentation that clients find the most fun.

This may be the first time that the RCI or II Directory of Resorts is shown
to you. Some resorts have elaborate rooms or hallways full of photos of
resorts. Many resorts use a film or slide show to show the various loca-
tions you can exchange with your timeshare and the activities you and
your family can enjoy.

This is also the time that the salesperson will explain the type of time-
share being offered (fixed week, floating week, points, and so on) and
how you can use what you own. For more on the specific types of time-
share, see Chapter 3.

Model tour
Whether you walk, take a golf cart, drive in your car, ride in the salesper-
son’s car, take a boat ride, or load into a van or bus, at some point you
will leave the location to actually see the property and/or the model.

At this time and during the closing (see the following section), ask your
first-tier and second-tier questions (see Chapter 7).
 Chapter 6: The Timeshare Sales Presentation 57

And here’s Petey Jr. . . .

For reasons I have yet to understand, many salespeople insist on showing pictures of
themselves and their family on vacation. Although the goal is to give you something
dynamic to look at, instead of showing pictures in a directory, I’m not sure it does any
good other than inflate the ego of the salesperson.

Closing
You either return to where you started from or move to another area
where the salesperson or sales manager asks you whether you have any
questions. They then begin the closing, or sales process. (For more infor-
mation, see Chapter 8.)

Buying Timeshare Today . . . Or Not

For many people, the most perplexing, misunderstood, and suspicious
issue about buying timeshare at a sales presentation is the issue
of buying today, on the spot, after spending only two hours with a
salesperson.

Understand that the salesperson has a job to do. Further understand

that as a salesperson, his or her aim is to sell you a timeshare that day.
And make no mistake about it; you will be asked to buy today, generally
at the end of the sales presentation.

This may sound like a paradox, but it’s really not: In the selling of most
timeshare, it is the salesperson’s job to get you to sign today — but it is
not the salesperson’s job to force a customer into buying anything they
don’t want or can’t afford. That’s just unethical and bad business to boot.
Customer satisfaction with a product is what drives any business — and
if you’re reduced to forcing people to buy something with threats or ulti-
matums, that’s an indication that the product is a lemon.

Case in point: Although the buy-today philosophy is standard practice at

most resorts around the world, it is far less prevalent with higher-end
products, such as fractionals and private residence clubs (see Chapter
16). Interestingly enough, the Disney Vacation Club (among others) does
not adhere to a strict “buy-today” policy — and has profited from it.
Since its beginnings 14 years ago, Disney Vacation Club members now
total more than 80,000.
58 Part II: Buying Timeshare

Let the client buy

“Our product has changed so much in the past 20 years. In 1980, the client was essen-
tially buying one week per year in the Poconos or Myrtle Beach. And they were on
their own from there. Today, we sell one of the most attractive leisure products in the
world — evidenced by double-digit growth, hotel-brand awareness, and Wall Street
attention. But we don’t need to sell the product the way we did 20 years ago.
Sometimes we try so hard to sell that we don’t allow people to buy. I have heard execs
in the past year still preaching the merits of high-pressure sales, but I don’t want to
know their cancellation rates. Give a presentation that highlights the value of owner-
ship so well that the client is asking you to let them buy. This is not timeshare Utopia;
it is a real place, and you can be a resident.”
Michael S. Finn, Registered Resort Professional (RRP)

Why today?
Why do timeshares insist on having you do business right there on the
spot? And should you buy right there on the spot? What are your alter-
natives? What happens if you don’t buy on the spot? Can you buy the
next day at the same price? Is it legal for timeshares to raise the price
tomorrow? What happens if you call their bluff?

To clear up some of the confusion, I start with three simple facts:

 You are under no obligation to purchase any timeshare from

anyone, at any time, today or tomorrow.
 The developer, like any good businessperson, is in business to sell
the product today rather than later.
 Despite what developers and consumers seem to think, timeshare
is like any other product, subject to supply, demand, and marketing
costs.

Before I look at the today issue as it pertains to timeshare, consider any

other consumer product — a men’s suit, for example. There you are, sit-
ting at home on a Sunday morning, leisurely reading the paper. You see a
full-page ad from your local retailer featuring a full-color photo of a dash-
ing young man in a crisply tailored suit. The headline reads:

One-Day Sale! All Suits Slashed 25% Off!

“Hmmm,” you think to yourself, “I don’t really need a new suit, but the
old one is a bit dated, and 25% off is a good savings.”
 Chapter 6: The Timeshare Sales Presentation 59
You have three options at this point:

 Get up off the couch that day, get dressed, go to the mall, find the
store, try on a suit or two, buy one or even two and save 25%.
 Don’t get up off the couch until Tuesday, get dressed, go the mall,
find the store, try on a suit or two, buy one or two and pay full price.
 Don’t get up off the couch at all, and don’t buy any suits, regardless
of the price.

Do you believe the store is being unfair, pushy, demanding, or, worse yet,
illegal by insisting that you pay full price for the suit on Tuesday that you
could have gotten for 25% off on Sunday? I doubt it. Almost all products
are advertised and marketed that way. Car manufacturers and dealers
do it all the time.

When timeshare salespersons offer you an incentive to do business

today, it’s because that’s what they are in business to do . . . make the
sale today.

The vacation factor

Like any other vacation property, timeshares are not a necessity. You
can live your entire life quite well without a timeshare. To me, however,
vacations are a necessity. And whenever I fall in love with a vacation
destination, I start looking at local real estate ads and dreaming of
having a piece of property there to come back to year after year.
Apparently, I’m not alone. And no one understands this phenomenon
better than realtors and timeshare developers.

It also explains why the vast majority of people who do eventually buy a
timeshare make the purchase while they’re on vacation. It makes sense:
You’re away from your everyday stresses; you’re relaxing and enjoying
the beauty of the place. If you could only find a reasonable way to come
back here every year to recharge your batteries. . . .

This is where timeshare and timeshare sales presentations come in.

What better place to introduce the possibility of ownership in a destina-
tion than when the potential client is falling in love with it! Because by
the time you come home from a vacation, it’s back to reality. You’re
unpacking, doing laundry, checking the mail, paying bills, going back to
work. The last thing on your mind is the timeshare you saw a week ago.

You like it, but . . .

So, you’re interested in a timeshare but you don’t have full confidence
that this particular timeshare is right for you. What do you do?

 To clear your head, ask your salesperson to leave you alone for a
bit, or if possible, ask to leave the sales area for some quiet time.
60 Part II: Buying Timeshare

 I often advise clients to go with their gut feeling. What is your

honest feeling about what you have been shown? Do you have
concerns about using the timeshare properly? Is the price of the
product an issue? Was the salesperson unclear about anything?
Did something just not add up?
 If you’re still undecided, discuss whether the discount offers or
other perks for buying right there on the spot can be extended.
If the salesperson flat-out refuses to discuss options with you,
again, my recommendation is to go with your gut feeling.
 Ask whether it’s possible to leave a 100% refundable deposit on the
timeshare for a day or two to get your own feelings sorted out.
Be realistic. You’re dealing with real estate here. Unlike traditional
retail establishments, both buyers and sellers are held to a some-
what higher standard. You wouldn’t ask a home developer to
simply hold a house for you without some sort of deposit or
earnest money, would you?

Sales presentation veterans

“Having owned a timeshare since the early 1980s, we’ve attended our share of time-
share presentations. Lately, we’ve noticed that the presentations have gotten a bit
easier on the hard-sell portion. I think it’s in reaction to the bad publicity a few rotten
apples have given the whole industry.
One facility we looked at is on the points system, which wasn’t appealing to us and
we told them so. That didn’t dampen the salesperson’s enthusiasm a bit. He proceeded
on with his pitch for 10,000 points for $29,999. He offered a five-year payment plan,
after 20% down, for only 18.9% annual interest. I expressed shock at that figure, but
the agent just brushed it aside, saying, “That’s what they’re getting these days.” Not
from me, fella!
After hearing about their facilities around the world, we let the salesperson know that
we were completely happy with our two weeks in Hawaii, and would not be buying
today. At this point, he called in his manager, who presented two more alternatives; one
5,000-point package and another 3,000-point package at somewhat reduced prices. Plus,
he threw in the requisite one-day only incentives and other minor perks designed to get
you to sign up today. After we convinced the manager that we weren’t ready to buy,
another manager came by and proceeded to present one last option: a 10,000-point deal
good for 18 months for only $1,500 and an additional discount to $1,325 — again, if we
sign up today. When we politely declined that offer, that was the end of the sell. The
manager made out our gift certificate. Everyone was very cordial and polite, and we
really didn’t feel a great deal of pressure.”
Gordon P. Cress, Carlsbad, California
 Chapter 6: The Timeshare Sales Presentation 61
For some people, shopping around at a few timeshares is worth the loss
of the first-day incentive or added perks. It’s perfectly fine to do so —
and don’t ever let the salesperson make you feel bad if you do. Ultimately,
it is your money and your choice.

Handling the Sales Pitch

The truth about most timeshare sales presentations: They last a mini-
mum of 90 minutes. Snacks and drinks may or may not be served.
Vouchers or gifts (the incentives that got you in there in the first place)
are given away last.

You may be surprised to know that although almost no one comes into
a sales presentation with buying timeshare in mind, about one in four
people do buy. Keeping an open mind doesn’t mean you have to buy
anything. Keeping an open mind merely means when the time comes to
purchase or not, you can make an intelligent, informed choice.

I’m astonished at the number of clients, buyers and nonbuyers alike,

who ask almost no questions throughout the presentation, and then
make a decision at the end. Sometimes, clients feel that it is up to the

They’ve heard it all

Much of timeshare sales training consists of ways to address (translate: overcome)
customer objections. Here are some of the most commonly heard objections from
potential buyers. Know that your salesperson has been trained to come up with a
snappy retort to:
 We need to think about it.
 We can’t make a decision today.
 We made a vow not to make hasty decisions.
 We aren’t looking for another bill to pay.
 We need to talk to our attorney.
 We don’t like paying maintenance fees.
 We would rather invest our money than spend it on a timeshare.
 The resort sure is making a lot of money.
 We only sleep in our room; we don’t need more than a bed.
 We’re campers.
 We have to consult our (children, parents, accountant, astrologer).
62 Part II: Buying Timeshare

salesperson to tell them everything. That is dangerous. Sometimes,

clients just don’t know what questions to ask. To help you, I provide
both first-tier (the most important) and second-tier (less important but
still invaluable) questions in Chapter 7.

I advise people to come to a sales presentation with a list of questions

that need answered. You have a right to expect direct answers to your
questions. If you don’t, you’re probably with the wrong salesperson.

If you’re traveling with children under the age of 2, try to leave them at
home. Babies are adorable but a distraction for both you and the sales-
person. And, if you have a tough time getting up early on vacation, don’t
schedule your presentation for 8 a.m.

One last pet peeve: A great number of people out there attend numerous
timeshare presentations each year — or worse still, each day of their
vacation — knowing perfectly well that they have no intention of buying
timeshare, today or any day. They’re just in it for the freebies or vacation
vouchers. I realize that the industry has allowed this to happen, but it’s a
bit of a reverse scam — and, frankly, a waste of everyone’s time.

Oops! What Was I Thinking?

Suppose you buy today and wake up tomorrow regretting you did.
You’re in luck: Depending on the jurisdiction that the timeshare must
adhere to, you may be legally entitled to a cancellation or cooling-off
period called a rescission period. The rescission clause states that you’re
legally entitled to all your money back (full or down payment) if you
change your mind.

Some countries like St. Martin have no rescission period: You buy it; you
own it. In Florida, state law gives consumers 10 days for rescission. Most
of Europe also has 10 days, with the exception of the United Kingdom,
which generally offers 14 days.

A rescission period is not meant to be used to hop from timeshare to

timeshare, leaving a deposit here and there and then coming back and
asking for your money back. The rescission clause was put in to protect
consumers, not penalize timeshare resorts.
 Chapter 7

You’re Interested: Asking

the Right Questions
In This Chapter

Getting answers to the primary questions

Getting answers to the secondary questions

Y ou’ve taken a tour of the timeshare facilities, and your interest is

definitely high. Now is the time to ask those essential questions
that will help you make your final decision. This chapter gives you the
lowdown on which questions to ask and the answers to look for.

The First-Tier Questions

These are the deal-breaker questions, the ones any responsible time-
share salesperson should readily have the answers to. It’s always a good
idea to take notes as you go along — and, if you decide to buy, ask that
everything be spelled out in the contract.

Is the timeshare a deeded ownership, a right-to-use

system, or a points-based system?
If you’re looking for the best type of timeshare here, there simply isn’t
one. Your choice of timeshare depends on what you want to do with it,
how much control you want, and how long you and/or your heirs plan
on using the timeshare. To help you decide, I give you the following
descriptions of each system.

Deeded ownerships
In most cases in the United States, deeded property is deeded in perpe-
tuity, which means it is willable as well as sellable. Always ask, though.
And ask whether you as the owner have the right to rent your usage if
you can’t vacation one year. You should always purchase the timeshare
that gives you the very most in flexibility and control.
64 Part II: Buying Timeshare

Right-to-use system
A right-to-use property generally indicates that the property has X
number of uses. That use number could be 20 or 100; it could mean
one use per year for 20 years or 20 uses, period. If, for example, you buy
20 uses and go on ten vacations a year, in two years, you’re finished.
Right-to-use can also expire in a certain year. Some resorts promise a
right-to-extend, although know that no resort is going to just give you
more uses without charging you for them.

Points-based system
Many timeshare resorts and many timeshare companies operate on
points-based systems. With a points-based system, you aren’t actually
buying a timeshare, you’re buying an interest in a resort or in an exchange
company. The biggest plus for a points-based system is that it generally
offers more flexibility.

The biggest minus (and it’s a big one) is that many times the points are
not inflation proof, which in my opinion is one of the major reasons for
purchasing a timeshare in the first place: to have a hedge against future
vacation costs. Again, always ask whether or not the points are inflation
proof.

If the timeshare is deeded, is it transferable?

It’s important to know whether your property can be willed, sold,
rented, or loaned. Look for a yes on each of these questions.

If the timeshare is a points-based system,

can the points change?
One of the major reasons for purchasing a timeshare is to offset future
vacation inflation — whether this inflation is estimated in dollars
or points. My advice: If the points needed to make a transaction can
increase, make sure to ask whether the value of what you own will
also increase. If the answer is no, I say stay clear.

Is the timeshare a fixed week or a floating week?

Most deeded timeshare is sold in either a fixed-week or a floating-week
system. Most points-based timeshare is, by default, floating.

Fixed week
A fixed week is just that; you have the same week of the year available
every year. There are two main benefits to a fixed week:

 If you know you’ll be going to your home resort the same week of
the year, your timeshare will be waiting for you, no reservations
necessary.
 Chapter 7: You’re Interested: Asking the Right Questions 65
 If you own an extremely high-demand fixed week (Race Week in
Daytona, Florida, for example, or Carnivale Week in Venice, Italy),
you will have maximum trading power. Although you still need
to make reservations if you wish to exchange, you’re putting an
extremely desirable week into the trading pool of available weeks —
and you will likely be rewarded with a top-demand trade.

There is a misconception that a fixed week of timeshare means that you

must go on vacation the same week every single year. In most cases, that
is not true. A fixed week simply means that the resort puts your specific
week into the trading pool every year if you choose not to use it.

Whether you’re talking about a fixed week or a floating week, unless

you’re speaking about points-based timeshare, location is the most
important criterion for determining trading power. An October week in
Orlando, Florida, will still out-trade a Christmas week in West Virginia,
simply because the demand for the latter is much lower.

Floating week
Ownership in a floating week gives you access to a week of the year, but
you need to reserve a specific time each year — and the sooner, the
better. The floating week option is good if you’re concerned about
unforeseen work or scheduling conflicts associated with a fixed week.
A floating week also gives you more opportunity to travel during your
requested time frame.

A floating week is, more often than not, a floating week within a specific
season of the year.

Timeshare resorts have come up with names for the different seasons
(for example, Diamond, Ruby, and Sapphire; Adventure, Leisure, and Value;
or High and Low), and color codes designating the trading power of your
timeshare. It’s no wonder that trading can get downright complicated.
Consider the following example:

Tim and Nancy go on vacation with Roger and Janice to Orlando,

Florida. They both decide to purchase a week of timeshare at the
same resort. Both couples purchase in the Diamond (high) season,
and both couples pay the same amount for their timeshare. In
essence, the couples have identical trading power.
The following year, Tim and Nancy want to trade their timeshare week
for a week in Kona, Hawaii, in March while Roger and Janice want to
go to Bali, Indonesia, for a week in April. Tim and Nancy make their
request a month before Roger and Jane make theirs. The resort thus
has to put a week of timeshare into the trading pool for both couples.
Although each of the couples own in the same season, Tim and Nancy’s
week has more trading power.
66 Part II: Buying Timeshare

Because the timeshares they own are in high-demand Orlando, both of

these couples are able to make solid high-season exchanges. But timing
(when the week is deposited into the system) and home resort loca-
tion are far more important to the overall trading picture than the very
small difference between weeks in a hot location like Orlando.

The problem with a floating week is that because the resort is in charge
of depositing “a” week rather than “the” week, your power can change
from year to year — it’s really about availability and timing — and, of
course, location.

Why buy at this particular resort?

With more than 6,000 timeshare resorts available worldwide, it’s impor-
tant to understand what your timeshare will get you. You’ll either use your
timeshare at your home resort or exchange it for other resorts. If you wish
to go to the same area, state, attraction, or country often (say, seven out
of ten years), purchase at the resort in that area you like best, at the place
that offers the most amenities, and at the one that is the most affordable
for you. If you prefer to visit different areas, states, attractions, or coun-
tries (say, seven out of ten years), purchase in a high-demand area, such
as Orlando, Las Vegas, or Tenerife. If you buy timeshare in Arkansas,
Alabama, or Albania, you’ll have a tough time trading your timeshare,
simply because these destinations are less in demand.

Note the old adage: The power of your exchange depends solely on what
you put into the timeshare system, not what you take out. Cheap time-
share is more often than not just cheap timeshare. Don’t sacrifice quality
or trading power just to get the least expensive product out there.

You can find out a lot about a resort through the industry’s own rankings
and ratings system. Both RCI and II, the best-known exchange companies
(see Chapter 12), award resorts that consistently exceed the company
standards of product quality, service delivery, and customer satisfaction.
The top designation for RCI resorts is the RCI Gold Crown; for II it’s Five-
Star. These awards are deemed the highest level of excellence in resort
accommodations and hospitality.

What are the maintenance fees?

Maintenance fees (and sometimes real estate taxes) are a part of time-
share life. You have to pay them, and pay them every year even after
your timeshare deed is paid off. There is no such thing as free mainte-
nance fees, although sometimes the resort pays the fees the first year
as an incentive for you to purchase.

Ask what the maintenance fees are, what they cover, and how much they
go up annually — and get it in writing. Generally, maintenance fees
should cover normal wear and tear, property insurance, liability insur-
ance, utilities (water, gas, electric, phone, cable), and repair and upkeep.
Many resorts located on a golf course or on the water also charge special
assessments to cover the cost of a system overhaul or repair.
 Chapter 7: You’re Interested: Asking the Right Questions 67

Timesharing with pets

Can’t bear the thought of leaving Zephyr the Wonder Dog behind while you explore
the French countryside? Does Sasha the cat look forlorn as you pack your beach
accessories for Florida? Both RCI and II offer timeshare resorts that have designated
pet-friendly units. Here are a few things you should know about pet-friendly timeshare
resorts:
 Many of the resorts that do accept pets tend to change their policies on a
moment’s notice. It’s wise to call the resort immediately before you make a reser-
vation to see what the pet policy is and what fees, if any, are imposed.
 Although most resorts don’t accept pets (except for assistance dogs who travel
with people with disabilities), many have arrangements with local kennels to board
animals during your vacation week.
 In general, European timeshares are more pet-friendly than American timeshares . . .
Fifi the French poodle is much more traveled than your Bowser!
 A recent search on the II Web site found 101 pet-friendly resorts; France leads
the pack with 13 pet-friendly resorts, while Florida ranks number-one in the United
States with 11.

How much did the maintenance fees go up last year?

In addition to finding out what the maintenance fees are, also ask
(because no one will offer this information) whether they have gone up
during the preceding two or three years. Never, I repeat never, buy from
a salesperson who tells you that the maintenance fees never go up. If
the maintenance fees aren’t going up every now and then, what is hap-
pening to the value of your property? It’s going down, and that’s a bad
sign. Ask, too, whether the resort has a cap on any maintenance-fee
increase. If you don’t get a clear-cut answer to these questions, don’t
buy from that resort.

Who votes on what happens with the maintenance fees?

In many resorts, a homeowners’ association (HOA) is in charge of running
the daily operations of the resort (outside of the sales department),
including voting on and allocating the maintenance fees. In the best-case
scenarios, resorts let the owners have a say in the amount and allocation
of information. You’re looking for places that give you, the owner, the
most control.

Is the salesperson you’re dealing with

licensed by the state or country?
Although having a real estate license in no way means someone is a
better or more honest salesperson than someone who doesn’t, I strongly
68 Part II: Buying Timeshare

recommend that if you’re buying deeded real estate, you work with a
salesperson who is licensed to sell timeshare.

Here’s why: Not all states require a real estate license, which requires
some level of state-certified training. I’ve found that nine times out of
ten, a licensed salesperson puts more effort into his or her ongoing edu-
cation about timeshare real estate than does a nonlicensed salesperson.
Know that you’re entitled to ask whether a license is needed in that par-
ticular state or country and are equally entitled to ask whether your
salesperson is fully accredited and licensed. If a license is required and
your salesperson doesn’t have one, you’re within your rights to politely
ask for a salesperson who is licensed. Shame on resorts who maintain
nonlicensed salespersons in states where a license is required.

Will the salesperson be “showing” more than one price?

I don’t know how you feel about this, but I want to be told the actual
price of whatever product I am considering buying. In other words, I
don’t like it when the salesperson shows me an initial figure of $40,000,
and every time I say “it’s too expensive,” $2,500 is lopped off the price
or the manager miraculously finds something I may be interested in for
significantly less money. At worst, it’s a sham; at best it’s a way of testing
you to see whether you’re interested.

Now, you may enjoy the art of the deal: negotiating the price and play-
ing the haggling game. Fine. If you don’t, you’re entitled to ask ahead of
time whether the salesperson will be showing more than one price or
whether the price stays the same.

You’re in control of what happens at this sales presentation. Until and

unless you pull out your wallet, nothing happens.

Is the property I am being shown the

same one I am asked to purchase?
Although many timeshares are still sold as dirt or pre-construction, my
advice is to purchase only a product you have actually been shown.

Timeshare developed its rather seedy reputation some 30 years ago,

when the timeshare market in the United States was young and some-
thing of a rarity. Thousands of people bought what turned out to be
swampland after being shown an artist’s rendering of the future time-
share. In many cases, nothing was built, and developers absconded
with millions of dollars.

These days, with the hotel brands and big-name resorts bringing to the
timeshare market their solid reputations and reputable business prac-
tices, the old swampland scam is fading from view. Nevertheless, when it
comes to spending thousands of dollars on a vacation product that is
still in the dirt stage, “buyer beware” is a good rule to follow.
 Chapter 7: You’re Interested: Asking the Right Questions 69
What are the fees — all of the fees?
Fees and rules vary from resort to resort. Some of the general extras
include down payment, interest rate, term of loan, monthly payment,
maintenance fees, real estate taxes, special assessments, membership
fees, upgrade fees, and automatic debit fees. Always ask to see
everything — the prices, maintenance fees, membership fees, interest
rates, prepayment penalties — in writing before signing anything.

After you have everything in writing, ask which fees are negotiable. I’m
not saying you should turn the deal down if the resort refuses to waive
the exchange company’s membership fee; I’m saying that it doesn’t hurt
to ask. Also remember that many of these fees are annual. A $99 mem-
bership fee to the exchange company may not seem like a large amount
of money, but after 20 years, you’re looking at shelling out more than
$2,000 (plus, they increase periodically).

When should I make reservations

to use my timeshare?
Timeshare works on supply and demand and timing. Common sense
rules. If you were planning to get a hotel room in New Orleans for Mardi
Gras week, how long in advance would you make your reservations? One
year? One month? One week? Walk in? I hope you said “one year.” The

Of sundries and snack bars

“We own multiple weeks at the same resort and return there year after year. Here are
some of the things we like about our timeshare, and things you may want to ask about
before buying:
 How close are the nearest restaurants, grocery stores, and hospitals?
 Does the resort have a restaurant/snack bar/bar and/or sundries shop on the property?
 Are safes available in the rooms?
 Are there shuttles to any area attractions and are they free?
 What activities are on the property and are there fees?
Our resort has activities for children as well as adults, which we never took the time
to ask about, and our salesperson never pointed out, but which we really like.
We also recommend getting to know the property manager at the resort. Because we
return year after year, it’s like coming to our second home. Everyone knows us.”
Jerry and Elaine Kleever, Curtis, Ohio
70 Part II: Buying Timeshare

same holds true for timeshare. If, on the other hand, you were looking
for a hotel in a less-popular destination in a low-demand season, how
long in advance would you make your reservations? The answer is you
probably don’t have to rush, because the demand is simply not there.

The rule in timeshare is this: Always make your reservations as far

in advance as possible to ensure that you have the widest choice of
resorts. Both of the major exchange companies advise you to provide
two or three choices of resorts and two or three choices of arrival date
to maximize your chances of getting what you want. If you own in a low-
demand area, you need to make your reservations longer in advance
than if you own in a high-demand area. Even owning a timeshare in a
high-demand destination like Orlando or Las Vegas doesn’t mean you’re
guaranteed anything. If you know where you want to be six months
ahead of time, book it! Remember also that in a fixed week system, you
generally don’t need to make reservations at your home resort — but
check in advance to make sure.

Second-Tier Questions
Although I refer to these as the non-deal-breaker questions, the following
issues can be just as important to buyers as the bigger concerns.

Will I own a specific unit or “a” unit?

At some resorts this is a very important distinction; at others, it’s not.
If, for example, you purchase at a beachfront resort in California, you
may request an oceanview unit, particularly if that’s the model you
were shown. Make sure, if you’re purchasing a timeshare unit you
haven’t been shown, that you get what you want. You don’t want to
assume you purchased oceanview and find out that your condo is
identical to the one you were shown, albeit with a view overlooking
the parking lot.

What is included in the condo?

How many televisions does the unit have? What type of furniture is there
and how many beds does it have? What are the available kitchen appli-
ances and tableware? How many sets of towels and sets of bed linens are
available? What, if any, are the fees for additional towels or additional
bed linens?

Use the checklist in Table 7-1 to see exactly what you’re getting.
 Chapter 7: You’re Interested: Asking the Right Questions 71
Table 7-1 Timeshare Amenity Checklist
Amenity  Comments
Beds ❑
King ❑
Queen ❑
Double ❑
Single ❑
Television(s) ❑
Basic ❑
Cable ❑
VCR(s) ❑
DVD(s) ❑
Stereo(s) ❑
Computer(s) ❑
Internet access ❑
Charges ❑
Telephone(s) ❑
Charges ❑
Fax machines ❑
Charges ❑
Full-size refrigerator ❑
Small-size refrigerator ❑
Toaster ❑
Blender ❑
Breadmaker ❑
Can opener ❑
Electric ❑
Manual ❑
Stove/oven ❑
Gas ❑
Electric ❑
Microwave ❑
Tableware ❑
Washing machine/dryer ❑
In room ❑
On floor ❑
On property ❑
Hair dryer ❑
Towels ❑
Linens ❑
Miscellaneous ❑
72 Part II: Buying Timeshare

Does the resort supply a starter

package of kitchen supplies?
Many resorts supply a “starter package” of supplies, which usually
includes dish soap, dishwashing detergent, laundry detergent, trash
bags, sugar/sweetener, paper towels, coffee filters, tea bags, coffee,
salt and pepper, and the like.

Do I have to use the same towels in the

room and at the pool(s) or beach(es)?
If not, is there a fee for towel usage? Is there a limit on how many towels
are allocated per guest?

What is the housekeeping policy?

Find out how often the rooms are cleaned during your stay and what a
cleaning consists of. Are the linens changed every day? Is there a house-
keeping fee? Can you decline housekeeping if you don’t want it? How are
housekeeping fees and gratuities paid? Can you use your points if you
want to?

Does the resort offer rental services for extra days?

Many resorts have specific days of the week that are referred to as
check-in days. For many, check-in days are Friday, Saturday, and/or
Sunday. If you want to pay for an extra night, does the resort allow you
to rent a room? What are the fees for renting this room? How long in
advance do you need to make rental reservations as opposed to your
regular week?

Will the resort offer to rent my week out

if I decide not to use it that year?
Many resorts offer this as a service to their owners. Be sure to find out
how much the resort rents for, and what fees, if any, the resort charges
to act as your agent. Also find out how long in advance you should let
the resort know that you want the unit rented. If they do rent it for you,
will you be paid cash or is the money applied to your account? How
soon after the rental will you receive your payment?

What are the meal or dining options at the resort?

Do they offer room service? If so, what is the fee? Does the resort have
restaurants on the property? Do you receive a discount at these restau-
rants? Are the restaurants open to the public (see the following section
for more on this)? Do you receive discounts at any nearby restaurants?
 Chapter 7: You’re Interested: Asking the Right Questions 73
Are the resort’s facilities open to nonowners?
Do nonowners (area locals) have access to resort amenities such as the
restaurants, the spa, or the golf course? (To some, this is not a good
thing, unless the nonowners are being charged to use the facilities, fees
that could possibly go toward maintenance.) In the same vein, are all the
resort amenities available to the owners or are extra fees involved?

Are phone, fax, and Internet services available?

What are the fees for using them?
Many resorts are now offering Internet-ready rooms. Be sure to ask
about the phone charges associated with this service and any other
phone or fax charges.

What are the hours of the front desk?

Surprisingly, many front desks at timeshares aren’t open 24 hours a day.
If the front desk is closed part of the day, ask for the telephone number
of the off-site contact person in the event that you need help.

What are the hours of the maintenance department?

Clogged sinks and leaky toilets rarely happen at opportune moments.
Timeshares should have 24-hour maintenance coverage; be sure to ask
whether yours does.

What sort of transportation is available?

Are there shuttles or taxis to area attractions? What is the cost? How
often do these run per day? Is pick-up and delivery to the airport avail-
able? How much does this cost? When do reservations have to be made?

Talk to the locals

"Before I consider buying a timeshare, I like to get a feel for a place, what it’s like to live
there. I do that by talking to the locals. The check-in people at the resort are usually nice
and often helpful. But the local people at the area grocery stores, shops in town, and
gas stations often give you better information about local sights and activities. Want to
know what is special about the area you are visiting? Like to go to yard sales? Into
antiques? Want to know the cheapest place to buy gas? Like to hike, bowl, roller-blade,
do needlepoint? Want the visit the best Mexican restaurant? Ask the locals. Also, check
the local newspapers. But talking to the locals is often the best bet.”
George Humfeld, Reston, Virginia
74 Part II: Buying Timeshare

How close are the nearest stores, restaurants,

banks and/or ATMs?
Are shops within walking distance or are there shuttles, buses, or taxis
available for transportation? If the resort has an ATM, is there a fee for
using your bank’s card?

What extra services does the resort offer?

Larger timeshare resorts often have a full-service concierge on the
property to assist you with car rentals, attraction ticket purchases,
sightseeing tours, and the like. Note that the resort listings in both II
and RCI directories (see Chapter 12) come with a full legend, detailing
which services and amenities that resort contains.
 Chapter 8

Financing Your Timeshare

In This Chapter

Finding ways to finance your timeshare

Discovering alternative payment methods

Y ou may be very close to buying timeshare offered by a resort devel-

opment company. Perhaps you’ve attended the sales presentation,
asked the hard questions (see Chapter 7), and gotten the right answers.
The location is just right, the condo is the perfect size, the amenities are
right up your alley. You’re ready to purchase. Now you have to determine
how you plan to pay for it all.

Make sure the price is the lowest the timeshare salesperson will go.
Some timeshares and salespeople show (offer) inflated figures to start
in order to test your willingness to purchase. I’ve seen salespeople
show a $17,900 price on a one-bedroom timeshare that I was showing
at $9,900. (Personally, I don’t believe in playing price games with the
prices; I don’t believe in wasting my time or undermining a buyer’s
intelligence.)

Should you ask for a lower price? Yes! You have nothing to lose and good
money to gain.

Never underestimate the ability of salespeople to be sloppy with math.

Ask to borrow a calculator (or bring your own) and double-check all the
figures. If you find an error or a fee you just don’t understand, politely
point out the error or discreetly ask to speak with a manager. Anyone
who is asking you to spend several thousands of dollars should be able
to show you the correct figures.

For more on understanding the basic economics of timeshare, go to

Chapter 3. For information on buying resale property, see Chapter 9.
76 Part II: Buying Timeshare

Who sells timeshare?

From “Resort Timesharing in U.S.,” prepared by market researcher Ragatz Associates,
comes the following data about the source of timeshare:
 From a developer: 73%
 Resale from a current owner: 15%
 From a property owner association: 8%
 Inherited, received as a gift, and other: 4%

Coming Up with a Financing Plan

There are several ways to go about financing your timeshare purchase.
At some point you have to come up with a down payment (see the fol-
lowing section). But before getting to that, you need to know that if you
decide to make monthly payments to the timeshare company, you’ll be
charged 15.9% interest, while average mortgage rates are about 6%. Why
is the interest rate so high? The interest rate is calculated at 15.9% basi-
cally because anyone who walks into a timeshare qualifies for financing.
Unfortunately, the consumer is the one who pays the price for this
everyone-qualifies deal.

Take a look at the average price of timeshare to give you some financing
options:

Purchase price: $13,500

10% down payment: $1,350
Closing costs: $500
Total due today: $1,850
Amount financed: $12,150
(15.9% for 84 months)
Monthly payment: $240.63
Total amount paid in 84 months: $20,212.92

You can pay the monthly payments for 84 months and make the time-
share resort very happy, because it stands to make a lot of money. But
you have other options:

 Take out a home equity loan or home equity line of credit. While
some resorts will work with you to lower the 15.9% interest rate,
in most cases, your best bet is to refinance the purchase (less the
 Chapter 8: Financing Your Timeshare 77
down payment) when you get home. Whatever amount of money
you can get from a home equity loan or line of credit will be less
than what the timeshare is charging you for interest.
Most timeshares offer what is called simple interest with no penalty
for prepayment. If you plan to refinance this way, ask the salesper-
son to delay the first monthly payment as long as possible (30 to
45 days is normal) and make sure the paperwork clearly states that
there is no penalty for paying the timeshare off early. An added
bonus of refinancing this way is that in most cases, the interest you
pay on the home equity loan or line of credit is tax deductible.
This book is not meant to represent the letter of the law in every
single jurisdiction. If you live in Texas, for example, you probably
already know that home equity loans and home equity lines of
credit can be used only for your primary residence, so a loan like
this used to finance a timeshare is not tax deductible.
 Pay more than the required amount each month. If you can’t refi-
nance the loan and still don’t want to pay the high interest rate, ask
the salesperson to verify that the loan doesn’t carry a penalty for
early payment. For example, if you pay just $25 extra each month
on the example previously shown (for a total of $265.63), and apply
the extra money to the principal amount, you reduce the term
of the loan from seven years (84 months) to about four years and
eight months (56 months) and reduce the effective interest from
15.9% to about 8.3%.

The first-hour-of-the-day payment method

No other options? Suppose you have no way of paying for the timeshare at this time
other than accepting the high interest rate. How are you going to come up with the
monthly payment without decreasing the quality of your life? You can try the first-hour-
of-the-day method.
For this example, I assume you make $17 per hour, which works out to $35,360 per year.
Take the first hour of each day you work ($17) and set aside that money to pay for your
timeshare.
$17 per day × 5 days a week × 4 weeks
$85 per week × 4 weeks = $340 per month
At this rate, you may be able to pay off your timeshare in less than seven years and at
a lower interest rate than you originally thought. Again, be sure to get in writing that
there is no penalty for early payment.
78 Part II: Buying Timeshare

 Pay in cash or by credit card. Most timeshares give you a slight

discount on the price for paying in cash. Although in most cases
you lose any tax deduction, there are cases where you benefit. For
example, if you pay for the timeshare with a credit card that gives
you double airline miles or other such perks, and your interest rate
on the credit card is less than what the timeshare is charging you,
go for it.

The Down Payment

Many timeshare salespersons show (offer) an initial down payment of
20%. In most cases, however, the standard industry down payment is
10% — and in some cases even lower. So always be sure to ask whether
the down payment is negotiable. In most instances, it is.

Getting an Instant Credit Card

At more and more resorts, the big exchange companies are offering an
“instant” credit card to use for everyday purchases to amass rewards
that are redeemable for travel, hotels, rental cars, merchandise, and
cash. You may even be able to use one, after you’re approved, for an
on-the-spot down payment on your timeshare.

 RCI Elite Awards credit card: With the Elite Awards credit card,
you earn one reward for every $1 you spend on purchases. You also
earn bonus rewards when you use the credit card for purchases at
RCI and selected partners. You can redeem your rewards for travel,
entertainment, retail, dining, and other items. Keep in mind that
RCI Elite Awards and RCI Points are two separate programs.
Rewards earned through the RCI Elite Awards program cannot be
transferred directly to your RCI Points account, and points in your
RCI Points account cannot be transferred or used within your RCI
Elite Rewards account.
 II WorldPoints Visa credit card: II has also instituted a credit card
that awards one point for every $1 in retail purchases. You can apply
for the credit card at the timeshare sales center: You fill out a credit
application, and if approved, the down payment is put directly on
the card. You can redeem your points for travel, hotels, rental cars,
cruises, merchandise, and cash.

This is all very convenient, but keep in mind that instant credit or not,
you still have to pay off the credit card (including interest rates!) and
bear responsibility for the full cost of the timeshare.
 Chapter 9

Buying Resale and through

Referral Programs
In This Chapter

Discovering the pros and cons of buying resale

Finding sources for resale

Discovering the benefits of referrals

R esale is everywhere these days. Just type the word timeshare into
your computer browser’s search engine, and you come up with
numerous Web sites advertising timeshare resales. One afternoon, in
fact, I got 5,534 results advertising resale timeshare. Wow: That’s almost
more than the total number of timeshares in existence.

Timeshare is a commercial product and, as such, should be sold to con-

sumers like any other product, through not just one outlet (you know,
sales presentations) but through as many outlets as the market will bear.
I believe that you, the consumer, should be able to buy this product new
or used, in person or online, and from developers as well as from owners.

If you’re going to buy resale, first do your research. Find out exactly
what you’re getting before you take the plunge. This chapter helps you
understand the ins and outs of buying resale, find resale values, and dis-
cover the benefit of referrals.

Buying Secondary Market Timeshares

Consider a “used” or resale timeshare in much the same way as you con-
sider a used car. The car is either on the market because it didn’t work
the way the original owner needed it to, or the original owner found a
newer car on the market with more options. Should you buy the car?
If the car doesn’t shift into drive, then no matter what the price, you
shouldn’t buy it. If the car doesn’t come with power steering and you
want power steering, again, you shouldn’t buy it.
80 Part II: Buying Timeshare

A good percent of timeshare is out on the resale market for what I con-
sider to be legitimate reasons:

 Someone has died

 Someone is getting divorced
 Someone can’t make the payments
 Someone isn’t using it enough
 Someone’s needs have changed

These legitimate reasons allow you to find good deals in the timeshare
resale market, but first, you have to be willing to invest some time and
effort researching options and comparing costs.

Of course, if the price is very, very low, you may just want to take the
plunge: If you stumble across a week of timeshare just about anywhere
short of a fractious, war-torn country for, say, $1,500 — assuming the main-
tenance and taxes are up to date and the resort meets your standards —
you would have to use that timeshare only two or three times for it to
pay for itself, and you could then turn around and sell it again.

So, should you buy resale? It depends on what you want to do with it.
Some of what is out there on the resale market is for sale because
it doesn’t work, or it doesn’t work as well as other timeshares now
available.

Factoring in exchange power

If Bob and Vera bought a week of off-season timeshare in a lovely lake-
side retreat in Missouri and believed that they would be able to trade
the week anytime they wanted for a week in Hawaii, Aruba, Orlando, or
Paris, they will be understandably upset, because their timeshare does
not have the trading power of the more popular resorts. They may have
paid $8,000 for this week of timeshare, but after four years of being told
“no” by the exchange company, Bob and Vera may decide they’ve had
enough: They want to sell their two-bedroom timeshare in Missouri.
They put it on the market for only $4,000.

One day, as you’re thumbing through timeshare resale advertisements,

one ad jumps out at you: “Stunning two-bedroom timeshare located in
the heart of the Lake of the Ozarks. Sleeps six, full kitchen, six pools at
resort. Paid $8,000 originally, will sacrifice for only $4,000. Call today.”

“Wow,” you think. “Originally $8,000, now only $4,000.” You call the
resort in question, and (if they give you prices over the phone, which
most resorts will not do) they tell you that two-bedroom timeshares
are now going for $10,000. Sounds like your $4,000 timeshare is a steal.

It can be: It all depends on what you want to do with the timeshare. Do
you want to trade to be able to exchange your timeshare week to visit
 Chapter 9: Buying Resale and through Referral Programs 81
high-demand destinations like Hawaii, Aruba, Orlando, and/or Paris? It
may be very difficult to do so — and even though you paid half of what
Bob and Vera paid, buying a Missouri timeshare may not be worth the
money.

On the other hand, if you want nothing more than to visit the Lake of
the Ozarks in the off-season for the next ten years or so, this week of
timeshare becomes a bargain. Each week of vacation in a two-bedroom
condo will cost you only $400, plus maintenance fees.

Uncovering bargains that may not be bargains

Here’s another scenario: Suppose Bob and Vera haven’t used their time-
share in four years and also haven’t paid their maintenance and taxes in
that time. Now, that $4,000 bargain that you think you are getting may
end up costing you $6,000, $7,000, or more. This would be an example of
when to say “no” to buying resale. Always ask the owners and timeshare
management whether the maintenance fees are up to date.

Here’s another example of a bargain that’s not really a bargain. Shawn

and Amy bought a two-bedroom in-season week in Orlando five years
ago for $10,000. That resort is now selling those exact same timeshare
condos for $18,000. Shawn and Amy are selling their timeshare for only
$9,000. Should you buy it?

On the surface, it looks good. The timeshare is located in a high-demand

area, a two-bedroom condo is just what you need to accommodate your
family, and you would obviously rather pay $9,000 than $18,000. But here’s
the rub: Shawn and Amy have a “fixed” week, and that week is the third
week of September.

 First of all, do you want to vacation every year on the third week in
September? Can your kids take time off school then? Can you always
get that week off work?
 Second, with a fixed-week program, you have the advantage of
returning to your home resort each year with no reservations
needed for that week. But if you’re interested in trading, the resort
only has the capabilities of putting that particular week into the
reservation pool. The third week of September in Orlando is not as
high in demand as, say, the first week of July. So, your trading or
exchange power may go down considerably, and you may find out,
as Shawn and Amy did, that you don’t want a fixed week at all; you
need a floating week. For more on fixed and floating weeks, see
Chapter 7.

In almost all cases, when you purchase a points-based timeshare, or a

timeshare affiliated with a brand name (see Chapter 13) from someone
other than the developer, you can’t take advantage of the points and any
perks that come with the primary purchase. What you will own will be a
standard week(s). Always ask.
82 Part II: Buying Timeshare

Advantages of buying resale

“We’ve owned a timeshare since the early ’80s. Personally, now that we’ve had some
experience in the field, I’d certainly recommend that anyone contemplating a time-
share purchase do so on the secondhand or resale market. Almost any resort and
facility you can name has units for sale for a great deal less than the prices offered by
the resort and/or its agents. Some resorts even have a resale office on the premises.
Another good source for resales and information on timesharing in general is
TimeSharing Today magazine (www.tsdoday.com) and the Tri-West Timeshare
Auctions (www.triwest-timeshare.com), usually held every six months or so.
“And most important: Don’t buy a unit at any resort until you’ve stayed there and expe-
rienced firsthand what the facilities and amenities are.”
Gordon P. Cress, Carlsbad, California

Asking the right questions

Buying used timeshare requires just as much due diligence as buying a
timeshare from the developer. In addition to asking all the right questions
(see Chapter 7), make sure you also get the answers to the following
when buying resale:

 Are the maintenance and taxes up to date?

 Why is the timeshare being sold?
 Has the timeshare already been used this current year?
 Can the exchange company membership name be transferred or
changed?
 Do all the benefits transfer (travel discounts, bonus or getaway
weeks, and the like)?
 If the timeshare in question is points-based, does the ability to use
these points transfer?
 Am I buying this timeshare from the owner, a resale company, the
developer/resort, or a third party?
 What buying fees will I have to pay?
 If it’s deeded property, who will be paying the closing costs?
 If it’s deeded property, has a title search been done? Can a title
search be done? Who pays for the title search?
 If it is a right-to-use property, how many more uses are left in it? Are
the uses yearly as in one week for 20 years, for example, or are the
uses total, as in 20 weeks of usage before it expires?
 Chapter 9: Buying Resale and through Referral Programs 83
 Can I see the actual property and the actual condo in question?
 Is the condo in question in a newer or older section of the resort?
Are all the amenities at the resort available to all the sections?

Where to Find Resale Timeshare

These days, where there are classifieds, there is resale timeshare. I advise
turning to those consumer sources that have built a loyal following among
timeshare owners.

Timeshare publications
If you’re looking for resale timeshare, here are a few sources that I
recommend:

 TimeSharing Today magazine (www.tsdoday.com): In addition to

well-written articles, thorough resort reviews, and a wealth of infor-
mation about current issues in the timeshare world, Timesharing
Today has a good classifieds section listing timeshare resales and
rentals, both domestic and international.
 Timeshare Resale Alliance (www.resaletimeshare.com): What I
like about this group is that it deals only with those California time-
share resorts they have personal knowledge of. They operate much
like a consulting service in that they take the time to find out what
works for you, and then recommend one or more specific resales
available.
 Timeshare Tips (www.tstips.com): In addition to finding time-
shares for sale, Timeshare Tips has representatives from four
exchange companies online answering questions for their members.
In their words, “We recognize that all participants are necessary for
a healthy timeshare industry. Although most of our members buy
resale, we all recognize that without developer sales, there would be
no resales. We also believe that without the ability to resell, devel-
oper sales would be more difficult.”
 Timeshare Users Group (www.tug2.net): This online self-help
group of timeshare owners (a fiercely loyal group who call them-
selves Tuggers) was formed in 1993 to provide, as the group says,
“an unbiased source of consumer-oriented information regarding
timeshare.” It has a large classifieds section offering a growing list of
resale timeshares as well as timeshare for rent, sale, and exchange.
To join, a membership fee of $15 is required for the first 12 months,
and it’s $10 a year to renew.
 The Timeshare Beat (www.thetimesharebeat.com): The Beat is
the timeshare industry’s most-read online publication. It has many
articles about timeshare and is free. The Beat has a nice section on
frauds.
84 Part II: Buying Timeshare

eBay and other online auctions

Okay, I admit it; I’m an eBay novice. I’ve never bought or sold anything
on the wildly successful online auction marketplace — until now, when
I logged on to eBay (www.ebay.com) and typed in the word timeshare. I
was astounded by what I found.

It turns out that eBay has tons of timeshare listings. Some sound too
good to be true. Some sound so good that I’m tempted to bid. For exam-
ple, here is an actual (although now closed) listing, with the brand name
and seller information not listed:

LAS VEGAS (Name of Resort) Floating RED Timeshare

Current bid: $299.00

History: 1 bid (US $299.00 starting bid)
High bidder: Not available
Item location: Las Vegas, NV, United States

The copy read as follows:

LOOK NO FURTHER, INVEST ONCE AND VACATION FOR A LIFETIME.

Here is your chance to own a DEEDED (Does Not Expire) Property at a
bargain price. This RCI, HOSPITALITY RATED, One Bedroom, One Bath,
that sleeps Four (Terrace Bldg) is an ANNUAL FLOATING RED Week 6-17.
The (resort name) is located in Las Vegas, NV and is an RCI RESORT. The
annual maintenance fees and taxes are $395. All fees are current with the
mortgage paid in full. Your annual usages and fees starts this year’s and
the new owner will be responsible for 2005 maintenance fees at Closing.
Prime Location gives you maximum trading power with RCI, giving you
the ability to choose from over 3500 resorts worldwide, should you
decide to exchange your week. Check In Day is Sunday, NO RESERVE!!

It followed a description of the timeshare unit, amenities offered, check-

in procedures, the color code, the week, the number of bedrooms,
square footage, maintenance fees, and address. The listing ended with:

Questions gladly answered. About Closing: Closing and escrow to be

handled with (name of company), a licensed, insured, and bonded
Escrow/Title Company of Orlando, FL. A $500 deposit is due after auc-
tion ends, with balance due at closing. There is a transfer fee of $75.
Closing costs are $330, which include Escrow, Deed preparation,
recording fees, and resort notification of transfer of ownership.
Personal Checks, Money Order, or Cashier’s Check Only to open
escrow. TOTAL MONIES DUE: Bid Price + Transfer Fee $75 + Closing
Cost $330 + Maintenance Fees + $395 = TOTAL COST.
 Chapter 9: Buying Resale and through Referral Programs 85
So I thought, if I had bid $300 and won, I would have picked up a Red-
coded floating week in Las Vegas for only $1,100 — or about $8,500 less
than I would normally expect to pay. Each year I would be paying $395
for maintenance and taxes plus $139 to exchange my week somewhere
else. Was there any reason not to buy it? So I e-mailed the seller these
questions and received these answers:

Q. Why are you selling this timeshare?

A. I buy and resell timeshare.
Q. How long have you owned it?
A. I have owned this for about 3 months.
Q. The current bid is $299.00 . . . is this your minimum bid?
A. I have no reserve on this property, so the highest bidder wins the
auction.
Q. Is this RCI points, and if so, how many points would I receive
yearly?
A. This is not RCI points; it would have to be converted into RCI
points.

Now my interest was really piqued. So I printed out the eBay listing and
asked some friends of mine who sell new timeshare (that is, from a
developer) if this was indeed a legitimate offering.

Everyone responded the same way: Provided that the maintenance and
taxes are up to date, there is no good reason not to purchase this time-
share. Several people even asked for the information to bid on the unit
themselves!

The closing and escrow on this timeshare was being handled out of a
company in Orlando, Florida. I called the company and spoke with some-
one who answered all of my questions and even e-mailed me an extensive
eight-page document that went into great detail about the company’s
services. I was doing this only for research, so I didn’t put in an offer, but
I believe this would have been a good purchase.

So, why not search eBay or other online auction clearinghouse service
for timeshare when you sometimes can get them for thousands less than
buying from the developer? The answer is simple: Provided you know
the right questions to ask and understand the concept of timeshare,
there’s no reason not to use these Internet sources. Buying timeshare
online demands that you do the same basic homework you would do
when buying from a developer.
86 Part II: Buying Timeshare

Buying through Referral Programs

Many resorts offer owners the benefits of a referral program. A referral
program is what it sounds like: Owners earn certain benefits for referring
their friends, family, and co-workers to their timeshare resort.

Referrals: A win-win situation

I have only praise for referral programs. Everyone — the original owner,
the resort, the salesperson, and the referral — wins. Here’s how:

 The timeshare owner: If you’re the owner, you earn something for
merely providing the resort with names, phone numbers, addresses,
and/or e-mail addresses of other people who like to travel.
 The resort: The resort wins because it doesn’t have to spend any
money to market to these referrals. The resort doesn’t do the mar-
keting anyway; it hires marketing companies to do that, and in my
opinion the marketing companies don’t understand target marketing.
(For more on how timeshares are marketed, see Chapter 5.)
 The salesperson: The salesperson wins because he or she has a
client who has heard only good things about the resort and doesn’t
need to be sold with long sales presentations.
 The referral: If you’re the referral — that is, you have friends or
family who have referred you to a particular resort — you win
because, unlike many people who end up at the timeshare market-
ing presentation after being sold a discounted vacation package
or being bribed with free attraction tickets or dinner, you’re at
the resort to take advantage of something that friends, family, or
co-workers recommend and enjoy.

As a salesperson, my clients like me enough and trust me enough to

know that just as I don’t high-pressure them, I will not high-pressure
their referrals. I’ve even had clients invite me into their homes to pres-
ent timeshare in a Tupperware party atmosphere. The referrals are
relaxed. Come prepared with specific questions about the product, talk
to the original owners, and leave feeling good about the entire process,
regardless of whether they bought timeshare or not.

Bad news travels further and faster than good news, so if you’re pleased
with your timeshare, have had good experiences, like and trust your
salesperson, and want to share your good experiences, use your referral
program to the maximum. If for some reason, your timeshare resort
doesn’t have a referral program, insist that it initiates one.

The benefits of referral programs

What sorts of benefits do resorts offer owners who provide referrals?
Here are some examples:
 Chapter 9: Buying Resale and through Referral Programs 87
 Discounts off the price shown. For example, a salesperson may say
“The price of the two-bedroom unit is $15,000, but if you give us
five referrals, we’ll knock $1,000 off of that.”
 Money for each referral who actually visits the resort — and more
if that person purchases.
 Free or discounted exchange company memberships.
 Vouchers in lieu of actual money, which are sent to you or put in
your account to be used for anything you can purchase at the
resort — anything from drinks at the pool bar to paying your main-
tenance fees.

The benefits for referral programs can be creative according to the

destination. For the Manhattan Club in New York, for example, some of
the referral perks offered at press time include tickets to a Broadway
show, dinner aboard a World Yacht cruise, and seven days accommo-
dations plus round-trip airfare to any RCI or II resort in the continental
United States.
88 Part II: Buying Timeshare
 Chapter 10

Buying International
Timeshare
In This Chapter

Discovering the ins and outs of buying international timeshare

Asking the right questions

Buying international: A tale of two couples

T imeshare started overseas and today remains an international phe-

nomenon: Of the more than 5,400 timeshare resorts worldwide, only
30% are located in the United States. International timeshare ranges from
Australia to Zimbabwe, Austria to Mexico, and almost every country in-
between.

Should you buy a timeshare outside the United States? With all the amaz-
ing choices, why not? You can easily trot the globe through timesharing,
or, if you prefer, stay close to home at one of the many international
choices nearby — including the Caribbean, Mexico, Central America,
and Canada. If you’re an urbanite who loves to visit the world’s great
cities, check out the growing urban interval ownership options (see
Chapter 16). If you have the travel time to go great distances and you’re
the kind of vacationer who’s interested in seeing a different part of the
world each year, a timeshare exchange may be the way to go. For more
on exchanging, see Chapter 12.

Unlike timeshares in North America, the timeshare product in many

parts of the world is a nondeeded right-to-use interest good only for a
specified number of years. In other words, you won’t actually share own-
ership of the resort’s real estate. On the plus side, a right-to-use project
may be less expensive than a deeded timeshare at a comparable resort
somewhere else. Make sure to ask whether the property is deeded or
nondeeded before you buy — and make sure you know how long it’s
yours to use.

Some people like to play the “buying to trade” game. They look for less
expensive destinations to buy — even places they have no intention
of ever visiting — largely for the trade value. At press time, companies
in South Africa, for example, was selling timeshares on the beach, in
90 Part II: Buying Timeshare

resorts, or in cities, at fairly reasonable prices. This can be fraught

with risk, because the trading power of a lesser-priced resort may not
be strong enough to get you the most desirable exchanges (exchange
companies like to match like-to-like). For more on buying to trade, see
Chapter 12.

Beware of impulse buying. As with timeshare in the United States, don’t

get caught up in the moment or seduced by the beauty of the resort.
And keep your wits about you if you’ve signed on to a timeshare presen-
tation. Weigh the pros and cons carefully before you sign anything on the
dotted line.

Buying to Stay versus Buying to Trade

Before you buy internationally in a place you plan to spend time, ask
yourself some basic questions:

 If the language is foreign to you, do you feel comfortable reading,

understanding, and speaking the language?
 Are you attuned to local culture and customs?
 Does the destination harbor potentially dangerous conditions,
whether crime, civil unrest, or an undercurrent of hostility toward
foreigners?

If you plan to use the timeshare more as an exchange property, do you

have a basic understanding of worldwide travel patterns and trading
economics? For example, Venice, Italy, is a prime place to purchase for
trading power; 23 million people visit every year, and the city has only a
handful of timeshare resorts — so its trade value is considerable. On the
other hand, a timeshare in a minor travel destination — or one in a satu-
rated timeshare market — may be less desirable as an exchange property.

Both RCI and II value trading power (see Chapter 12 for more on these
two companies). A timeshare in Paris, France, may have far more trading
power than a timeshare in Gautier, Mississippi. Does that mean you
should buy a timeshare in Paris, France? Well, on the one hand, it will
give you an excellent exchange, particularly if you own the weeks
around Bastille Day (July 14, which is almost always also smack in the
middle of the Tour de France). And if you plan to visit Paris numerous
times, buying a timeshare may save you money on hotel rooms and
restaurants in the long run.

On the other hand, your personal preferences and comfort level may
weigh more on your decision than getting prime exchange property.
Places like the Gulf Coast of Mississippi may be your idea of a great
vacation — and more affordable as well — and you’re happy to trade
for like properties.
 Chapter 10: Buying International Timeshare 91
If you’re interested in globe-trotting, look at timeshare exchange from a
global perspective. Know that Orlando, Florida, is a global destination
(drawing people from all over the world), whereas Myrtle Beach, South
Carolina, is more of a regional destination.

Asking the Right Questions

If you’re ready to start your search, don’t be afraid to ask tough ques-
tions. The savvy editors at TimeSharing Today, an independent online
timeshare magazine, recommend that potential buyers of international
property ask the following important questions:

 How stable is the government at all levels — national, regional,

and local? Be sure to go to the U.S. State Department’s Travel
Warnings Web site (http://travel.state.gov) before consid-
ering any destination. This site reports on places where health
concerns or unrest may threaten American travelers. Also contact
the U.S. embassy in the country in which you’re purchasing.
 To what extent does the government regulate the timeshare
industry? If the government has no formal registration procedures
for timeshare projects, similar to those that exist in the United
States, carefully evaluate the developer’s financial capabilities
and reputation.
 Has the government passed consumer-protection laws? If so,
do these laws cover timesharing, and what are your rights as a
timeshare buyer under those laws?
 With or without government regulation, has the industry in that
country undertaken its own program of self-regulation? Ask
whether you as a consumer have any governmental protection
against substandard construction materials and methods.
 Will you receive a contract, resort rules and regulations, and
other key documents in your own language or another language
you know very well? If not, beware of misunderstandings due to
language differences.
 Is title insurance available? The answer is almost certainly “no” in
a foreign right-to-use setting, and probably “no” even in most for-
eign deeded settings. (While many United States timeshares include
property insurance in the yearly maintenance fees, there are thou-
sands of documented cases where entire resorts in the Caribbean
were wiped out due to hurricanes, leaving owners with an unusable
deed, along with some sand and shells.)
 Does the resort have a U.S. office? If so, does it accept payments
there in U.S. currency? Does it have a domestic toll-free telephone
line on which you can discuss reservations and other aspects of
ownership with someone in English?
92 Part II: Buying Timeshare

 Even without a U.S. office, can you pay for the timeshare in your
own currency? If you must pay in a foreign currency, anticipate
currency-exchange fees, which can increase your costs signifi-
cantly. Remember, too, that fluctuations in currency values may
work in your favor or against you. A foreign timeshare purchase
can be a long-term commitment to pay maintenance fees, taxes,
and whatever personal expenses you incur while in residence
there. The positive or negative impact of dealing in a foreign cur-
rency will be with you for many years.
 What taxes will you have to pay? As a foreigner, are you being
taxed differently from citizens of the country in which the time-
share is located?
 What are your estimated maintenance fees? In foreign locations
where most foodstuffs and supplies for a resort must be imported
at considerable cost, high operating expenses are likely and will be
reflected in the maintenance fees.
 Who will manage the resort? The developer? An owners’ asso-
ciation? A management firm? A local resident manager? Although
management at the best foreign resorts meets or even exceeds the
highest U.S. standards, horror stories also exist. Especially in a for-
eign land far from home, look for some assurance of competent
management. Also, can you speak with someone at the resort at a
convenient time for you when you need to? (Remember that other
parts of the world may be many hours ahead or behind your local
time zone.)

Exchange rates and monthly payments

Anytime you’re dealing with foreign currencies, you’re taking risks with exchange
rates. For Canadian and United Kingdom residents buying U.S. property, deciding
whether to fix the monthly payments or not can make a big different in those payments.
For example, Marie and Claude live in Montreal, Quebec, and purchase a timeshare in
Daytona Beach, Florida. Their monthly payments at the time of their purchase were
US$100 per month, which translated to CA$135. However, their monthly payments are
fixed at US$100, and because of the decreasing value of the Canadian dollar, monthly
payments are now CA$185.
Shawn and Kim live in London, England, and purchase a timeshare in Las Vegas, Nevada.
The monthly payments at the time of their purchase were US$100, which translated to
£75. However, the monthly payments are not fixed at US$100, so despite the rising value
of the British pound, their monthly payments stay the same. If they had asked for and
received a fixed U.S. payment, their monthly fee would have dropped to £55 a month.
 Chapter 10: Buying International Timeshare 93
 What is the exchange affiliation? The best way to ensure decent
trading power and a receptive ear if exchange-related problems
arise is to look for a resort with a quality rating from either Interval
International or RCI. See Chapter 12 for details.

Buying Wrong: A Cautionary Tale

Toni and Allen live in Los Angeles, California. On a recent vacation to
Cancun, they were invited to view a timeshare resort. The cordial sales-
person met them, offered them a tequila drink, and proceeded to show
them an immaculate resort — complete with three swimming pools,
tennis courts, pool bars, and a luxurious one-bedroom condo with a ter-
race overlooking the water. Toni and Allen fell in love with the place as
well as with Cancun. The salesperson took them back to the salesroom
and showed them the price of the timeshare in Mexican pesos. Allen
converted the price into American dollars and found that if they worked
at it they could indeed pay for the timeshare. When they agreed to pur-
chase the timeshare, the salesperson celebrated by offering another
tequila. As they drank up, the salesperson brought out just three pieces
of paperwork for Toni and Allen to sign. The paperwork was all in
Spanish, which neither Toni nor Allen could read.

Q: Should Toni and Allen have bought this timeshare?

A: Of course not. As much as they like the resort and Cancun, one
basic rule was broken immediately: Don’t buy any timeshare if you’re
offered alcohol prior to or while signing anything.
More important, because Toni and Allen neither read nor understand
Spanish, they had no way of knowing whether their timeshare is a
deeded or a right-to-use or a fixed or floating week. They had no way
to determine any specific legalities about the property or the resort.

Buying Right: A Happy Tale

Cindi and Duane live in Cleveland, Ohio. They go on two vacations every
year: one week each summer in Chicago to visit their grown daughter
and one week each winter in the Austrian mountains to ski. On one visit
to Austria, someone convinced them to look at a timeshare. It was a
beautiful mountain retreat, with ski-in/ski-out facilities, ski instructors
on staff, a full-service spa, and a restaurant serving the finest schnitzel
they’d ever had. During the sales presentation, the salesperson spoke
English and offered no alcohol. Cindi and Duane acknowledged that they
really like the resort, felt comfortable there, understood the terms (the
documents are all written in English), and felt they were willing to fit the
expense into their budget. And even though this resort is a 20-year right-
to-use property (meaning they will own it for only 20 years), they are
tempted to sign up right then and there.
94 Part II: Buying Timeshare

Q: Should Cindi and Duane have bought this timeshare?

A: Well, here’s a summary:
• Cindi and Duane understood the terms.
• Cindi and Duane remained alcohol-free the entire time.
• Cindi and Duane planned on returning to this resort many
more times in the future.
• Cindi and Duane felt confident that they could afford the
timeshare.
Sounds like it was a great plan for Cindi and Duane to buy.
 Part III
Discovering a World
of Timeshare
 In this part . . .
T imeshare is available around the globe, and this part tells
you exactly where you can expect to find it. I discuss the
nitty-gritty of exchanging timeshare so you can visit different
destinations around the world and what you can expect at the
brand-name resorts, which have entered the timeshare industry
in a big, impressive way.
 Chapter 11

Location, Location,
Location: Where the
Timeshares Are
In This Chapter

Deciding which location is right for you

Locating timeshare around the world

Discovering the importance of location

W ith more than 5,400 timeshare resorts located in 95 countries

throughout the world, timeshare has a presence all over the
globe — and good thing, too, for even the most remote corners of the
world are getting easier and easier to reach. For people with limited
vacation time and a limited budget, timeshare offers a practical way to
see the world.

Timeshare comes in all shapes and forms, from condos to hotel suites to
yachts to rooms in a chateau (for more examples of unique timeshare,
go to Chapter 18). The same goes for locations. This chapter gives you
a glimpse at the variety of timeshare destinations around the world,
focusing on those places where the two major exchange companies, RCI
and II, offer timeshare. The maps in this chapter also reflect only those
destinations with RCI and II timeshare.

Choosing the Right Location for You

First, determine whether the timeshare serves its purpose for you at a
price you’re willing to work into your budget.
98 Part III: Discovering a World of Timeshare

Snapshot: Orlando timeshare

Many consumers have their first taste of timeshare in and around Orlando. In their
most recent catalogs, RCI listed 49 Orlando resorts, and II weighed in at 50. Some of
the oldest timeshares in the United States, such as Orange Lake Country Club and
Westgate Resorts, are located in the Orlando area. Marriott has six separate locations
here, and of course, Disney Vacation Club is based here, with five separate resorts.
The often-misleading practice of OPCing (getting approached by off-property consult-
ants who try to get you to sit through a presentation) is widespread in other areas, such
as Las Vegas, Gatlinburg (Tennessee), Cancun, and the Bahamas, but in Orlando it has
reached epidemic proportions. You simply cannot go into any retail or dining establish-
ment on International Drive, Highway 535, or the most touristy stretch of road in the area,
Highway 192, without being accosted. In Orlando, OPCs operate ticket/information
booths scattered amid high-traffic tourist centers. They may try to entice you with dis-
counted tickets or free dinners just for viewing a resort. Sometimes, the offers you receive
from OPCs are legitimate — and sometimes they’re scams. Often, the OPC is simply
being paid by the person to bring bodies into timeshare resorts, regardless of a person’s
ability or interest in the product.
My mantra is: There is no such thing as a free lunch — or a free anything else, for that
matter. At press time, the cost of a one-day admission to one of the major theme parks
in Orlando is around $60. If you pull into a gas station on Highway 192 and see a poorly
painted sign in front of a shabby booth that says, “TWO THEME PARK TICKETS $25 EACH!”,
warning bells should go off in your head. All of these places, every last one of ’em, are
trying to pull you into a timeshare presentation. Many will say that the presentation lasts
only 60 minutes, and virtually none of them will state that a timeshare presentation is
required — instead describing the experience as a “vacation resort preview” or “a tour
of our new vacation resort.” Know what you are getting into before you sign on.
For me, Orlando exemplifies the very best and the very worst of timeshare. Here’s why.
The Good
 Location: Although I’ve heard people complain that the plethora of timeshare
weeks available makes Orlando a less-than-desirable trade, I find the opposite to
be true. The reason big brands like Hilton, Marriott, Starwood, Westgate, and
Disney (among others) continue to build timeshare units here is because of the
ever-growing demand. Plus, owning in Orlando will generally get you what you
want in trades.
 Variety: Almost every type of timeshare resort you can imagine exists or will soon
exist in Orlando. Whether you want a resort with 90 holes of golf right on the prop-
erty, a stunning three-bedroom home complete with private swimming pool, a
wilderness retreat a short boat ride away from the Mouse himself, or an Italian
villa steps away from a shopping mall, Orlando has it all.
 Chapter 11: Where the Timeshares Are 99
The Not-So-Good
 People, people, and more people: Unless you come to Orlando in January, early
May, October, or the first two weeks of November, you’ll find plenty of company
at every resort. Orlando may not be the best place for a quiet, relaxing vacation,
but it’s definitely fun-filled.
 “Resorts” that aren’t close to being resorts: No standard definition exists for the
word resort — and the word is used loosely in Orlando. Some timeshare developers
seem to think that if they plop a pool down beside a concrete condo, it’s a resort,
and I’ve seen many a renovated apartment complex optimistically referred to as
a “resort.” Be sure to ask all the important questions when buying or trading into a
resort in Orlando.
 Outdated marketing and sales practices: In addition to the antiquated OPC
system, Orlando is the scene of some of the most oft-repeated horror stories about
timeshare salespersons. The cover of my first book, Surviving A Timeshare
Presentation . . . Confessions From The Sales Table, featured the stereotypical
image of a salesman with a big cigar in his mouth, wearing a tacky plaid jacket,
and bearing a contract in hand — an image that in the olden days wasn’t far from
the truth. Unfortunately, the hard sell still exists in many of the most competitive
markets, and it’s a good idea to keep a clear head when evaluating timeshare in
Orlando. Always refer to the first- and second-tier questions in Chapter 7.

Second, determine what you want your timeshare to do for you. Do you
want to exchange or trade your timeshare with other timeshares in dif-
ferent locations? If so, you’ll want to look for a timeshare in a location
that will get you solid trading power. You may have to pay a little extra
upfront to do so, but you may find that worthwhile down the road
(although a few consumers have some degree of success playing the
timeshare market like the stock market in what’s called buying to trade,
which means bagging desirable but inexpensive timeshare in little-known
or up-and-coming destinations in the hopes that its exchange value gets
more powerful over time; more about that in Chapter 12).

If, on the other hand, you plan to use your timeshare in the same loca-
tion every year, ask yourself:

 What does the timeshare in the desired location have to offer? You
may love a particular destination, but the resort you’re looking at
lacks the amenities you want and the type of timeshare you prefer.
 What features do you want your timeshare to have (how many bed-
rooms, for example, or maid service, or access to a golf course)?
 What are you willing to pay for it?
100 Part III: Discovering a World of Timeshare

Snapshot: New Orleans timeshare

If you like your vacations in places with lots of history and atmosphere, consider buying
timeshare in The Big Easy: New Orleans, Louisiana. A visit to New Orleans is a trip
back in time, where you dine alfresco in romantic antebellum courtyard restaurants,
ride vintage trolley cars, and hear the clip-clop of horses’ hooves on cobbled streets.
The major exchange companies, II and RCI, have staked out some prime Big Easy real
estate. II has seven timeshare properties in New Orleans, and RCI has 13 — the major-
ity of them are right in the middle of it the action, the French Quarter.
New Orleans properties are generally anything but the cookie-cutter high-rise condos
found in many other places in the timeshare world. Although you won’t find many two-
or three-bedroom condos here, you can end up owning timeshare in an authentic
1830s townhouse built by pirates with well-appointed rooms and your own outdoor
swimming pool with courtyard.
Note: If you plan to come to New Orleans during Mardi Gras or JazzFest, book a year
in advance.

In the United States alone, there are 1,590 timeshare resorts, containing
some 132,000 timeshare units. Table 11-1 gives you a breakdown of their
locations.

Table 11-1 Where Timeshare Is Located in the United States

State Number of Timeshares Number of Units
Florida 366 27,700
California 125 11,900
South Carolina 119 12,100
Colorado 75 6,250
Hawaii 73 4,830
Virginia (unknown) 5,560
North Carolina 59 5,360
Missouri 49 5,530
Nevada 56 5,000
Texas 49 (unknown)
Arizona 46 4,640
 Chapter 11: Where the Timeshares Are 101
Florida Timeshare
0 50 mi

0 50 km
GEORGIA i95

i10 Jacksonville
Jacksonville Jacksonville Beach
Tallahassee
i10 Ponte Vedera Beach
Lake City 1 ATLANTIC
i

St.
295
i75

John
St. Augustine OCEAN

s R.
St. George St. Augustine Beach
Island Map continues Gainesville
(see inset below) i95
OCALA Palm Coast
NATIONAL 1 Ormond Beach
FOREST
Ocala
Daytona Beach

Cedar De Land i 4 New Smyrna Beach

Key
NASA-Kennedy
Homosassa Orlando Space Center
Springs i75
Cape
Canaveral
Clearwater Kissimmee Cocoa Beach
Beach
Melbourne
Clearwater Tampa
i4
Lakeland
i95
Madiera Winter Haven
Beach St. Sebastion
Petersburg Kis
Vero
sim

Beach
Longboat Key
mee R.

Bradenton Fort Pierce

Sarasota Port St. Lucie

Jensen Beach
i75 Lake
Punta Gorde Okeechobee
Boca Grande hee R.
osahatc Palm Beach
Fort Myers Calo
Lehigh Acres
Gulf of Captiva Island Delray Beach
Sanibel Island Boca Raton
Mexico Fort Myers BIG CYPRESS
Pompano Beach
Beach SWAMP
Naples
i75 BIG CYPRESS Fort
Bonita Beach NATIONAL PRESERVE
Lauderdale
Miami
Marco
Island Ten Miami Beach
Thousand EVERGLADES
Islands NATIONAL Homestead
ALABAMA GA PARK

Flamingo Key
10
Largo
10
BISCAYNE
NATIONAL PARK
231
Pensacola 98 Florida Bay
s
Fort Destin a Key Bahia Honda
Walton Panama City Florid Big Pine Key
Beach Long Key
Key
98 1
Coppitt Marathon Key
Gulf ofMexico Key
Key West

0 50 mi

Florida Panhandle 0 50 km
102 Part III: Discovering a World of Timeshare
Discovering the Power of Location
It’s true in nearly every hospitality market in the vacation industry:
The hotter, more appealing the location, the more in demand it will
be — and, in all likelihood, the more it will cost to own. In most
instances, the most popular locations command top prices on the
timeshare market.

If you’re interested in buying timeshare that you can exchange for

other locations around the world, consider several variables before
you buy:

 Season: Trading for the location and week you desire will be
easier to do if the home resort week you own is in a high-
demand season.
 Quality: Your trading power is maximized by the basic quality of
your resort and the amenities it offers.
 Location: If you’re buying for trading power, consider owning
in a desirable destination that will prove easy to exchange. Here
are some general rules to keep in mind when choosing your
location:
• Timeshares situated on the water (ocean, lake, marinas)
will generally be more costly than timeshares situated
inland.
• Timeshares situated on golf courses will generally be higher
priced than timeshares that have no golf course.
• Higher-rated resorts (Gold Crown Resorts within RCI and
Five-Star Resorts within II) will generally be priced higher
than lower-rated resorts.
• Name-brand resorts (such as Disney) will often be priced
higher than non-brand-name resorts in the same geo-
graphic area.
• Timeshare resorts located in areas catering to affluent
tourists (Whistler, British Columbia, for example) will
generally be priced higher than timeshare resorts located
in areas catering to less affluent tourists (Cocoa Beach,
Florida).
• Just because a timeshare has a swell name like “VILLA”, or
“ROYALE”, or “GRANDE” attached to it, don’t think that makes
it better than other timeshares. Names — other than rep-
utable brands — are not an indication of quality in the
timeshare world.
 Chapter 11: Where the Timeshares Are 103
California Timeshare
CRATER LAKE 0 100 mi
NP
Upper 0 100 km
R.
REDWOOD th Klamath

ma
NP Lake

Kla Goose OREGON

Lake
Eureka LAVA BEDS
NM
Ferndale Sacr a
mento R

.
Garberville Redding

R.
nn
LASSEN

ui
VOLCANIC

Q
Eel R.

NP
Fort Bragg
Chico Hu
Mendocino Pyramid m
Lake

bo
S a cra m e n t o R .

Ukiah Nice

ldt
Clio

R.
Clear
Lake Reno
Olympic
S

POINT Windsor Valley Lake Tahoe son R

Car .
IE

REYES NS
Napa
R

Carson City
San Sacramento
R

Francisco
A

Oakland Kirkwood

R.
ese
N

Re
EV

Modesto
Angels
Camp
NEVADA
A D

June Lake
San Jose
Santa Cruz YOSEMITE Mammoth
NP
A

Pacific Grove Merced Lakes

Monterey Marina Bass Lake
Carmel
KINGS Bishop
Big Sur Fresno Kin CANYON
gs R NP
. W
h

SEQUOIA
NP
Cambria
DEATH
San Luis Obispo VALLEY
NM
Arroyo Grande R.
Kern
Santa Maria
Bakersfield
Las Vegas
Avila Beach
Pismo Beach
Avila Beach Lake Mead
Santa Barbara
LAKE MEAD
Ventura Barstow
Simi Valley NRA
CHANNEL
ISLANDS NP Oxnard Burbank
Big Bear Lake
Los Angeles San
Lake Mohave
Bernardino
Long Beach Lake
PACIFIC Anaheim Arrowhead M O J AV E
Santa Ana DESERT
OCEAN Palm Springs
Lake
Laguna Beach JOSHUA TREE Havasu
Oceanside NM
Carlsbad R.
do

Solana Beach Salton

lora

Del Mar Sea

Co

Santa AnaSan Diego

USA
MEXI Imperial
CO Mexicali Reservoir
104 Part III: Discovering a World of Timeshare
Caribbean Timeshare

FLORIDA

Miami

a THE
o rid BAHAMAS
f Fl
Straits o

Havana

CUBA

Little Cayman

Grand Cayman Cayman Brac

HAITI
CAYMAN ISLANDS
Montego Bay Port-au-Prince

G
JAMAICA Kingston
R E
A T
E R

Caribbean Sea

0 300 mi COLOMBIA
0 300 km
 Chapter 11: Where the Timeshares Are 105

NORTH
AMERICA
CARIBBEAN

SOUTH
AMERICA

ATLANTIC
OCEAN

TURKS AND CAICOS ISLANDS

LEE
DOMINICAN Tortola VIRGIN ISLANDS WA
Anegada RD
REPUBLIC San Juan Virgin Gorda IS
Anguilla
LA

St. John St. Maarten/

Santo
ND

St. Thomas Saba St. Martin

Domingo
PUERTO Barbuda
S

RICO St. Croix St. Kitts

St. Barthélemy
Nevis Antigua
Montserrat
St. Eustatius
E S
A N T I L L Guadeloupe
WI
ND

Dominica
WAR
LLES

Martinique
D ISLANDS

St. Lucia
TI

St. Vincent
N

Barbados
A

The
ER
DUTCH LEEWARD ISLANDS
Grenadines
LESS
Curaçao
Aruba Grenada
Bonaire Tobago
Isla de
Margarita
Port of Spain

Trinidad
Caracas

VENEZUELA
106 Part III: Discovering a World of Timeshare
If you wish to exchange or trade your timeshare, keep in mind that the
power of your exchange is based solely on what you put into the system,
not what you take out. In other words, what you own is the most impor-
tant factor in determining whether you will receive the exchange that
you want.

The two major exchange companies, RCI and II, have resorts worldwide.
To see the specific locations for each company, see Tables 11-2 and 11-3.
Chapter 12 goes into much more detailed information about how these
exchange companies evaluate and rank timeshare and determine the
power of your exchange.

Although timeshares are ranked and rated on their trading power,

don’t discount the power of personal preferences. A high-season week
in Orlando may be popular, but a vacation there may mean nothing
to you. Many people may prefer the solitude of a hillside retreat at a
low-demand, low-season week in Missouri, say. That’s what makes the
trading game always unpredictable and ever entertaining.

Snapshot: Venice, Italy, timeshare

The Queen of the Adriatic has fascinated visitors for hundreds of years. Venice is com-
prised of a series of more than 1,700 islands of various sizes. The city is filled with more
art, museums, good restaurants, shopping, and culture than you can probably fit into
a week.
Staying in a hotel in Venice has become very costly. Rooms average more than $200 per
night, making Venice unaffordable to many travelers. Timeshare may make a stay in
Venice a real possibility for travelers with tight budgets.
RCI has six properties in Venice, and II has three properties. RCI has a spectacular resort
located right on the Grand Canal, next to one of Venice’s most well-known and expen-
sive hotels.
Most of the timeshares are located on the Lido, a convenient 15-minute water taxi ride
away. If you want to swim, the Lido has a good swimming beach and is the perfect
location to see the magnificent skyline of one of the world’s most beautiful cities.
As with most urban timeshares, you’re unlikely to find a large number of two- or three-
bedroom timeshare units in Venice (although one II resort only has two-bedroom
units — something to keep in mind if you’re traveling with family or friends) or timeshare
properties with acres and acres of space (no golfing resorts here!).
That said, Venice is a very popular tourist destination, with some 23 million visitors
recorded every year. Don’t expect to trade your timeshare at a moment’s notice for a week
here. Venice takes some advance planning, but it’s well worth the wait.
 Palm
Los Angeles Springs
San Diego Phoenix Dallas
Tijuana Mexicali Tucson El Paso
Ciudad Ri
o
Nogales Juarez Baton Rouge

Gr
Austin

G
an d
e

ol
Hermosillo New Orleans

fo
Del Rio
Houston
Chihuahua San Antonio

de
Ca
Nuevo Laredo

lif
o
rn
ia
Juarez Santiago
Gulf
Saltillo of
La Paz Ciudad Victoria Mexico
San José
del Cabo Durango
Zacatecas
Cabo San Lucas Mazatlán
Aguascalientes
Tepic
Leon
Merida
Puerta Veracruz
Vallarta Guadalajara Morelia Campeche Cancún
PACIFIC OCEAN Mexico
Manzanillo Toluca City Chetumal
Villahermosa
Taxco
Ixtapa/Zihuatanejo Tuxtla
Oaxaca Flores
Gutierrez
Acapulco
Chapter 11: Where the Timeshares Are

0 500 mi

0 500 km
Mexico Timeshare
107
108 Part III: Discovering a World of Timeshare

Snapshot: Fiji, South Pacific, timeshare

You’re bored with Orlando and Las Vegas, the Tennessee mountains are just another
group of hills, the Grand Canyon is a large hole in the ground, Devon and Cornwall remind
you of Fawlty Towers, you’ve bought too many T-shirts in the Caribbean, grabbed enough
Mardi Gras beads in New Orleans, and sunk your last birdie in Palm Springs.
Now what? Well, perhaps you should consider Fiji. Yes, Fiji. The remote, exotic island way
out there in the Pacific Ocean has timeshare to offer, and superlative timeshare it is.
How about a stunning three-bedroom, three-bath suite, where you can rent a car to
explore the island, ride bicycles on island trails, rent a sailboat, fish, soak in a hot tub,
watch the children play in the outdoor pool, take scuba lessons, and enjoy movies on the
VCR at the end of the day. I highly recommend it.

Currently, RCI has 858 Gold Crown Resorts, 666 Resorts of International
Distinction, and 292 Hospitality Resorts (for definitions, see Chapter 12).
See Table 11-2 for RCI’s list of resort locations.

Table 11-2 Resort Condominiums International

(RCI) Resort Locations
Northeast United States
Connecticut 2
Delaware 2
Maine 11
Maryland 14
Massachusetts 33
New Hampshire 27
New Jersey 7
New York 13
Pennsylvania 21
Rhode Island 11
Vermont 14
 Chapter 11: Where the Timeshares Are 109
Great Britain and Ireland Timeshare
0 100 mi
ORKNEY
ISLANDS
0 100 km
Kirkwall
Thurso
Stornoway

Inverness
Loch Aberdeen
Ness
Fort
N O RT H HEBRIDES William North
Dundee
AT L AN T I C Perth Saint Andrews
Sea
O C E AN Stirling Kirkcaldy
Glasgow Edinburgh
Tw e e d
Ayr
No

Londonderry Newcastle
rth

Dumfries
upon Tyne
Carlisle
Ch

Stranraer
an

Durham
ne

Sligo Belfast Scarborough

l

Westport York
Dundalk Blackpool
Ir i s h Sea Grimsby
Manchester
Liverpool
Lincoln
Galway on Dublin Holyhead
nn

Nottingham
Sha

Stafford
Leicester
Limerick Aberystwyth Norwich
Tralee Wexford Cambridge
Northampton Ipswich
l
Waterford ne
h an
Oxford
Cork e' sC es
rg Tham London
eo Cardiff
S t.G Swansea Dover
Bristol Channel Bristol
ve of

Hastings
D or a i t
r

Southampton
St

Exeter Newport

Penzance Plymouth English Channel

Truro

Southeast United States

Georgia 18
North Carolina 48
South Carolina 92
(continued)
110 Part III: Discovering a World of Timeshare
Table 11-2 (continued)
Southeast United States
Virginia 29
West Virginia 2
Florida (United States)
Central 58
Eastern 113
Western 134
Gulf States (United States)
Alabama 10
Louisiana 17
Mississippi 6
Texas 46
Mid-South United States
Arkansas 14
Kentucky 3
Missouri 39
Oklahoma 1
Tennessee 24
Midwest and the Plains (United States)
Illinois 1
Indiana 2
Iowa 3
Michigan 14
Minnesota 12
Ohio 1
South Dakota 1
Wisconsin 30
(continued)
 Chapter 11: Where the Timeshares Are 111
Italy Timeshare
50° N
.
CZECH
G ERM
GER MAANY REPUBLIC
S WIT
SW ITZERL
ZERLA
AND
ND

R ANC
F RAN CE S
L P
A
Courmayeur Lake A
Maggiore
Aosta Merano L A
AUUST
TRRIA
Lake

P
Novara Como

S
S
E
Como Trent I
T Cortina d’Ampezzo
Turin Vercelli M
Bergamo Lake O Belluno
Asti
Asti Brescia Garda L
Vicenza
Milan

O
D
Cremona
Cuneo Parma Verona Udine
Treviso
Genoa Mantua Padua S L OV E
ENNIA
Savona Venice
N

Ferrara Trieste
O

Modena
R

Gulf of
T

G u l f o f Rapallo
H

San Remo Venice

E

Genoa
R

CR
CROOA
AT IA
TIA
N

La Spezia Bologna Ravenna

Ligurian Lucca
A

Sea
P

Pisa SAN
P

Florence Rimini
E

MARINO
Livorno
N

Pesaro
N

BOSNIA
I N

Siena Gubbio
Elba Ancona
E S

Corsica Perugia
(France) Orvieto Assisi 45° N
.
Ad

Viterbo
Spoleto
ri

Civitavecchia Terano
Terni L’Aquila Pescara
at

9° E. ROME
VATICAN
Chieti
ic

CITY
Ólbia
Sassari Campobasso
S
ea
T y r r

Nuoro Caserta
41° N. Gulf of Benevento Foggia
S O

Gaeta
SARDINIA Naples Mt. Vesuvius
h e

Ischia
U T

Sorrento Pompeii
Bari
H E R
ni

Cagliari
Capri Salerno
Amalfi
an

Potenza
N

Brindisi
S

Taranto
A P P E
ea

10° E. Gulf of Lecce

Taranto
N N

Cosenza

M
I N

Trapani Aeolian Islands

ed Catanzaro
E S

it Marsala Palermo
er Messina
40° N
.
ra Reggio di a
n Agrigento
Enna Taormina Calabria S e
Mt. Etna
e n
SICILY Catania i a
a

n
n

o
Ragusa Syracuse I
S
ea

0 100 mi

0 100 km 15° E.
112 Part III: Discovering a World of Timeshare
Australia Timeshare
0 500 mi
Melville
0 500 km Bathurst Island Island

Darwin
DARWIN
KAKADU
Timor SeaSea
Timor
parte NATIONAL
Bona ipelago 1
PARK
Arch
Katherine
er o
IINNDDIIAANN ne ag
c ca ipel y.
Bu rch a Hw
OOCCEEAANN A Kununurra V i c t ori KATHERINE
Lake GORGE
Argyle
NATIONAL

EY
Ord

RL
River PARK

BE
Derby

KI M
Broome PURNULULU
1 NATIONAL
PARK NORTHERN
.
wy

H TANAMI DESERT
e rn GREAT SANDY DESERT
Port Hedland No rth
Great

Ningaloo Reef
y.

WEST MACDONNELL
Hw

Marine Park
GIBSON DESERT NATIONAL PARK
al
ast

HAM
ERSL WATARRKA NATIONAL PARK
Co

EY pricorn
Tropic of Ca
Exmouth RAN (KINGS CANYON)
GE
Coral ULURU–KATA TJUTA
est

Bay NATIONAL PARK

N o r th W

95 Mt Olga
WESTERN Uluru
Shark AUSTRALIA (Ayers Rock)
Bay Monkey Mia
w y.

Denham
G reat Northern H

1 GREAT VICTORIA DESERT

Geraldton
Br a

NULLARBOR
NULLARBOR PLAIN
nd

Kalgoorlie NATIONAL PARK

Hw

y.
rn Hw
y.

a ste . 1
G r ea t E Hw y
94 E yre
Rottnest
Island Perth Esperance
Hwy.
Fremantle Great Australian Bight
wy.
a st H
Co

Esperance
th

Margaret ou
River
S Tasmania
Albany
Albany
Bass Strait

Devonport
Launceston

Hobart
 Chapter 11: Where the Timeshares Are 113
Thursday
Island

Coral

Gr
Sea

ea
t
Arnhem CAPE

Ba
Gulf
Gulf

rr
Land YORK

ie
of PENINSULA SOUTH

r
Re
Carpentaria
Carpentaria PACIFIC

ef
Cooktown

M
DAINTREE OCEAN

ar
NATIONAL

in
PARK Port Douglas

e
S t u art

Pa
rk
Cairns
Hw

Mission
y.

Beach
TERRITORY
Magnetic Island
Bar Whitsunday
kl y 66 Townsville
Tennant H w y. Islands
Creek Flinder 78 National
Mt. Isa La s Hw y.
Park
87 nd Proserpine
sbo
r ou
gh Mackay
Hw

GR
y.

MACDON N E L L R ANG
EA

ES 1
Alice Springs
T

66 Rockhampton
Longreach C a p ri c o r n Hwy.
DIV

Gladstone
SIMPSON DESERT
IDI

QUEENSLAND Bundaberg
Bru
ce
NG

Hw

15 Fraser
y.

Island
wy.

SOUTH
RANGE
ell H

AUSTRALIA Sunshine
Brisbane
Mitch

Coast

Coober Pedy Gold

LAMINGTON Coast
87 71 NATL. PK. 1
Lightning
.
Hwy

r Ridge
ua ive
St

gR
d

rt H FLINDERS RANGES l in
glan

wy. ar
NATIONAL PARK Coffs
D

En

wy. Ox l ey
y.

H Harbour
ier
Hw

Barr
Hw

Broken Hill Tamworth .

w
y

32 Dubbo
Ne

NEW BLUE MTNS. Port

ific

Port Pirie NATL. PK. Macquarie

ac

SOUTH WALES P
y.
Hw

32 Newcastle
Mildura
Sydney
ll
we

Adelaide M
ur
20
Ne
r Hume H w y .
ay
39
D u ce s H w y .

Ri
H w ce s

ke
Pr

y.

sH ve
in

Kangaroo wy. r Wodonga

P ri

Island Canberra
VICTORIA 31
Albury
8 Mt. Kosciuszko 1 A.C.T.
Mt. Gambier Ballarat Melbourne SNOWY
1 MOUNTAINS
Geelong
Tasman Sea
Apollo Bay

To
To Tasmania
Tasmania(see
(see
inset)
inset)
114 Part III: Discovering a World of Timeshare
Table 11-2 (continued)
Rocky Mountains (United States)
Arizona 35
Colorado 64
Idaho 11
Montana 13
New Mexico 19
Utah 24
Wyoming 5
Pacific Coast (United States)
Alaska 1
California 18
Nevada 33
Oregon 27
Washington 20
Hawaii (United States)
Hawaii (Big Island) 18
Kauai 23
Maui 19
Oahu 10
Canada
Alberta 9
British Columbia 48
Manitoba 2
Nova Scotia 1
Ontario 23
Quebec 15
(continued)
 MALAWI

Mongu Lusaka

el
Lubango Blantyre

n
Nampula

Za
m

an
b Lake Kariba

ez
C
Za

iR
m

.
Harare

e
Livingstone be
zi

qu
R.
Victoria Falls

bi
ma
Tsumeb Maun Antananarivo

oz
Bulawayo Beira

M
Francistown Fianarantsoa
Windhoek Limpopo R.

Walvis Bay
Gaborone Tulear
Pietersburg
Pretoria Mbabane Tolanaro
Maputo
Keetmanshoop Johannesburg
Luderitz
l R. Welkom
Vaa
Kimberley
Orange R. Maseru INDIAN
Bloemfontein
OCEAN
Durban
ATLANTIC
De Aar
OCEAN Beaufort
West Umtata
Bisho
Chapter 11: Where the Timeshares Are

Oudtshoorn East London

Cape Town 0 500 mi
Port Elizabeth
0 500 km
Southern Africa Timeshare
115
116 Part III: Discovering a World of Timeshare
Table 11-2 (continued)
Mexico
Northern/Baja 46
Northern Mazatlan 23
Southeast/Cancun 80
Southwestern 109
Bermuda, Bahamas, and the Caribbean
Antigua and Barbuda 8
Aruba 11
Bahamas 27
Barbados 10
Belize 5
Bermuda 2
Bonaire 2
British Virgin Islands 2
Cayman Islands 5
Curacao 2
Dominican Republic 51
Guadeloupe 9
Jamaica 8
Martinique 3
Puerto Rico 1
St. Kitts and Nevis 1
St. Lucia 2
St. Martin/Sint Maarten 22
St. Vincent and the Grenadines 4
Trinidad and Tobago 1
Turks and Caicos 3
U.S. Virgin Islands 14
 Chapter 11: Where the Timeshares Are 117
Central and South America
Argentina 77
Boliva 3
Brazil 84
Chile 13
Columbia 29
Costa Rica 17
Ecuador 4
El Salvador 1
Guatemala 5
Panama 4
Paraguay 2
Peru 2
Uruguay 26
Venezuela 49
Europe
Andorra 4
Austria 19
Belgium 3
Canary Islands 102
Channel Islands 1
Cyprus 11
Czech Republic 4
Denmark 13
England 172
Finland 26
France 66
Germany 14
(continued)
118 Part III: Discovering a World of Timeshare
Table 11-2 (continued)
Europe
Greece 35
Hungary 16
Ireland 4
Isle of Man 1
Italy 150
Malta 22
Netherlands 1
Norway 3
Poland 1
Portugal 76
Scotland 20
Spain 169
Sweden 9
Switzerland 17
Turkey 27
Wales 9
Africa and the Middle East
Egypt 53
Israel 9
Ivory Coast 1
Jordan 2
Kenya 8
Lebanon 5
Mauritius 2
Morocco 6
Mozambique 1
 Chapter 11: Where the Timeshares Are 119
Africa and the Middle East
Namibia 1
Senegal 1
South Africa 162
Syria 2
Tunisia 3
United Arab Emirates 3
Zimbabwe 6
Asia/Pacific
Bangladesh 2
China 26
Fiji Islands 7
French Polynesia 1
India 59
Indonesia 30
Japan 88
Malaysia 32
Pakistan 2
Philippines 19
Saipan 1
Singapore 2
South Korea 17
Sri Lanka 2
Taiwan 7
Thailand 39
Australia and New Zealand
Australia 91
New Zealand 23
120 Part III: Discovering a World of Timeshare
Currently, II has more than 2,000 resorts worldwide. See Table 11-3 for its
locations.

Table 11-3 Interval International (II) Resort Locations

New England (United States)
Connecticut 1
Maine 8
Massachusetts 24
New Hampshire 12
Rhode Island 8
Vermont 5
Middle Atlantic (United States)
Maryland 8
New Jersey 6
New York 4
Pennsylvania 19
Southern United States
Alabama 3
Arkansas 8
Georgia 2
Louisiana 8
Mississippi 1
North Carolina 30
South Carolina 67
Tennessee 14
Virginia 20
West Virginia 1
Florida (United States)
Central 56
Northeast Atlantic 21
 Chapter 11: Where the Timeshares Are 121
Florida (United States)
Central Atlantic 7
Southeast Atlantic 28
The Keys 16
Lower Gulf Coast 11
Sanibel and Captiva 12
Central Gulf 7
Upper Gulf 10
Panhandle 8
Miscellaneous 39
Midwestern United States
Indiana 3
Michigan 8
Minnesota 7
Missouri 22
Ohio 1
Wisconsin 7
Southwest and Western United States
Arizona 40
Oregon 17
New Mexico 2
Texas 10
Washington 20
Rocky Mountains (United States)
Colorado 44
Idaho 8
Lake Tahoe area 36
Las Vegas 13
Mesquite area 6
(continued)
122 Part III: Discovering a World of Timeshare
Table 11-3 (continued)
Rocky Mountains (United States)
Montana 7
Reno area 3
Utah 21
Wyoming 2
Miscellaneous 9
California (United States)
Coast 21
Desert 21
Mountains 10
Northern countryside 1
Southern countryside 4
Urban 6
Miscellaneous 19
Hawaii (United States)
Hawaii (Big Island) 19
Kauai 16
Maui 29
Molokai 1
Oahu 9
Canada
Alberta 3
British Columbia 23
Newfoundland 1
Ontario 7
Quebec 3
 Chapter 11: Where the Timeshares Are 123
Caribbean and Atlantic Islands
Antigua 2
Aruba 15
Bahamas 6
Barbados 2
Bonaire 1
Cancun 21
Cayman Islands 21
Curacao 2
Dominican Republic 21
Jamaica 3
Margarita 8
Puerto Rico 5
St. John 1
St. Kitts and Nevis 1
St. Lucia 1
St. Martin 10
St. Thomas 2
Tortola 1
Turks and Caicos 1
Mexico and Central America
Belize 2
Costa Rica 7
El Salvador 1
Guatemala 3
Mexico, Acapulco 6
Mexico, Baja North 3
(continued)
124 Part III: Discovering a World of Timeshare
Table 11-3 (continued)
Mexico and Central America
Mexico, Baja South 9
Mexico, Chihuahua 1
Mexico, Ixtapa 2
Mexico, Mazatlan 11
Mexico, Nueva Vallerta 6
Mexico, Puerto Vallarta 14
Mexico, Saltillo/Santiago 2
Mexico, San Carlos 2
Mexico, Taxco 1
Panama 3
Miscellaneous 7
South America
Argentina 39
Bolivia 4
Brazil 20
Chile 5
Columbia 10
Ecuador 4
Peru 1
Uruguay 7
Venezuela 6
United Kingdom and Ireland
England 40
Ireland 4
Scotland 10
Wales 4
 Chapter 11: Where the Timeshares Are 125
Canary Islands
Fuerteventura 1
Gran Canaria 8
Lanzarote 13
Tenerife 28
Eastern Mediterranean
Cyprus 3
Greece 9
Turkey 7
Central Europe and the Low Countries
Andorra 2
Austria 15
Czech Republic 2
France 43
Germany 5
Hungary 1
Italy 33
Malta 7
Portugal/Madeira 17
Spain 81
Switzerland 3
The Netherlands 1
Scandinavia
Finland 17
Norway 1
Sweden 1
(continued)
126 Part III: Discovering a World of Timeshare
Table 11-3 (continued)
Middle East and Africa
Egypt 12
The Gambia 1
Israel 8
Kenya 1
Lebanon 2
Morocco 4
South Africa 4
Tunisia 6
Australia, New Zealand, and the South Pacific
Australia 36
Fiji 3
New Caledonia 1
New Zealand 16
Asia
China 3
India 1
Indonesia 3
Malaysia 10
Nepal 1
Philippines 3
Singapore 1
Thailand 10
 Chapter 12

Exchanging: Playing
the Trading Game
In This Chapter

Finding out about exchange companies

Trading your timeshare, nuts to bolts

Determining peak exchange times by location

F or many people who invest in timeshare, the ability to trade weeks

to travel the globe is the biggest selling point. Buying timeshare is a
practical way to spend time in different parts of the world without having
to break the bank. By exchanging, you can trade your timeshare week
for another location and even another week of the year. The ability to do
so is influenced by several variables, including the popularity of your
own timeshare destination, whether the week you own is in high season
or low season, and the quality of your home resort and types of ameni-
ties it offers.

Prepare to hear terms like trading power, points-based system, and

reservation windows bandied about — all are defined in this chapter.
If it sounds confusing, just remember that if you buy a timeshare with
good trading power and you have some flexibility in your vacation sched-
ule, you’ll do well in the trading game. Keep in mind the following tips:

 Buy in a high-demand destination. Buying into a resort that’s pop-

ular with the rest of the world makes it easier to trade for a vacation
week in different locations every year.
 Plan as far ahead as possible. Remember that holidays and summer
vacations fill up quickly. Just as you wouldn’t call a hotel in New
Orleans the day before Mardi Gras and expect to book a room at
that time, the same is true of timeshare.
 Be flexible. Always have two or three resorts in mind and several
different arrival times when you make your plans. Make your time-
share reservations first, and then make your travel reservations.
128 Part III: Discovering a World of Timeshare
The Big Two and Other Exchange Companies
In the timeshare exchange game, two companies tower over the rest. The
two major exchange companies, Resorts Condominium International (better
known as RCI ) and Interval International (better known as II ), represent
more than 6,000 resorts around the world. Both companies make money
by charging members exchange fees every time they make a trade. Each
has its own rating system to determine a resort’s trading power.

The vast majority of timeshares are affiliated with either RCI or II,
including most, if not all, of the timeshare purchased from developers
in the United States. So if you purchase a timeshare in, say, Gatlinburg,
Tennessee, it’s pretty much a given that the resort is a member of RCI
or II. A number of smaller independents do exist, and I’ve included
their pertinent information in Table 12-1, at the end of this section.

The advantages of dealing with a larger company are obvious: more

destinations, more varied and unique choices, and a vastly bigger pool
of options. On the other hand, I hear from consumers that the smaller
independent companies often provide better and more personal cus-
tomer service than you get with the large companies. And many RCI
customers (and, to a lesser extent, II clientele) are getting tired of being
squeezed for more money here and there, hearing “We have nothing to
give you on an exchange, but how about trying one of our available get-
away or bonus weeks for only $899?” Every few months or so, there’s
talk of starting a new exchange company, one that promises to correct
all the imperfections of the behemoths — but nothing much comes of it.

What is the difference between the two largest exchange companies?

Which one is best? There is no “best.” Here is a breakdown of each of
the big-two exchange companies:

RCI
Total number of resorts 3,726
Total number of week-based resorts 3,114
Total number of points-based resorts 612
Total number of countries served 100
Types of resorts
Gold Crown 26%
Resort of International Distinction 24%
Hospitality 10%
Standard 40%
Exchange fees
Domestic (U.S. and Canada) $149
International $189 per week
Major brand names Starwood, Fairfield,
Hilton, Shell
 Chapter 12: Exchanging: Playing the Trading Game 129
Interval International (II)
Total number of resorts 2,000
Total number of countries served 80
Types of resorts
Five-Star 20%
Standard 80%
Exchange fees
Domestic (U.S. and Canada) $129 per week
International $149 per week
Major brand names Fairfield, Hyatt, Marriott,
Westin

In addition, I am aware of five other, smaller exchange companies:

Platinum Interchange, Trading Places International, Hawaii Timeshare
Exchange, Donita’s Dial Exchange, and San Francisco Exchange. Table
12-1 gives you a breakdown of each, compared with RCI and II statistics.
See Appendix A for details on how to reach these exchange companies.
Table 12-1 Exchange Companies Comparison Chart
RCI II Platinum Trading Places Hawaii Donita’s Dial San Francisco
Interchange International Timeshare An Exchange Exchange
Exchange
Initial Fee None None None None None for basic
membership membership
Resorts in More than 3,700 More than 2,000 More than 700 More than 500 More than 300
system
Exchange $139 Domestic $129 Domestic $99 Domestic $109–$159 $69 Internal $99 Domestic $99–$125
fees $179 International $149 International $119 International $89 External $125 International
Points Fees Range
from $17 to $69
Annual dues $89 for weeks; $79 None None $49 None None
$99 for points
130 Part III: Discovering a World of Timeshare

Banking Deposit first, Request first or Request first and Exchange at Request or Deposit upon Deposit or
options request exchange deposit first and deposit week time of deposit bank first, confirmation or request first
1 year before or have a 3-year when confirmed or bank and request bank for up to (depending on
2 years after date exchange window or bank week for have 2 year exchange 36 months status) or bank
None with points exchange up to window within 2 years and request
18 months after after date of within 2 years of
date of deposited deposit date of deposit
week
 RCI II Platinum Trading Places Hawaii Donita’s Dial San Francisco
Interchange International Timeshare An Exchange Exchange
Exchange
Upgrades Weeks only, sub- All exchanges For a fee based Depending on Check Web site Based on Based on
ject to availability, made less than on availability membership for availability availability availability
based on trading 60 days have no status
power restrictions
Directory Large guide with Large guide with
maps, cruises, maps, rules,
photos, vacation photos, and so on.
options, benefits,
services, and so on.
Exchanges More than 2,600,000 More than 790,000 More than 26,000 More than 28,000 More than 3,000 Not released Not released
made (2003)
Chapter 12: Exchanging: Playing the Trading Game
131
132 Part III: Discovering a World of Timeshare

The advent of exchanging

The concept of exchanging or trading your timeshare quickly followed on the heels of
the deeded era.
 RCI: The husband-and-wife entrepreneurial team of Christel and Jon DeHaan under-
stood the importance of trading or exchanging individual timeshare weeks, free-
ing the customer to go anywhere in the world with only one purchase. The idea
of exchanging timeshare condos echoed their previous efforts to revive a stagnant
RV campground industry by offering exchange memberships to camper owners.
In 1974, from the dining-room table in the couple’s home, the two created Resort
Condominiums International (RCI) (www.rci.com), the first timeshare-exchange
company. In ten years, RCI sales increased some 10,000%, from $1 million in 1979
to $100 million in 1989. Flash ahead to 1996, when the now-ex–Mrs. DeHaan sold
RCI for a cool half-billion dollars, and the Cedant Corporation was born.
Under Cedant’s umbrella, RCI has 3,700 properties, making it one of the two major
players in the vacation-exchange field; the other is Interval International (II) (see
the following bullet). It’s a big umbrella: Also owned by Cedant are Fairfield
Resorts, the largest vacation ownership company in the world, with more than
450,000 member families; and Trendwest Resorts, Inc., which offers a network of
drive-to resorts with a flexible point-based system of ownership. Trendwest cur-
rently operates 54 WorldMark vacation club condo resorts in the United States,
British Columbia, Mexico, Fiji, and Australia.
And that’s not all. Cendant is also the parent corporation of many companies in
the real estate and hospitality industries, among them Century 21, Coldwell Banker,
Days Inn, Howard Johnson, Ramada, Super 8, and Travelodge.
 II: The other big leader in timeshare exchange is Interval International, simply
referred to as II (www.intervalworld.com). It was formed in 1976 by Thomas J.
Davis, Jr., and Mario Rodriquez, II, as an upscale alternative to RCI. In 2002, II was
purchased by what is now InterActiveCorp (IAC), of which the online travel planning
site Expedia is a wholly owned subsidiary. II now has some 2,000 resorts all over the
world. IAC is headed by former media mogul Barry Diller. The company is another
behemoth, this time in travel, shopping, and media. It’s the parent company of
Expedia, Inc., Hotels.com, TV Travel Shop, Home Shopping Network, and Citysearch.

The Rules of Exchanging: Determining

Trading Power
The two primary exchange companies, RCI and II, derive the majority of
their revenues from exchange fees. These companies — not the resort
where you own timeshare nor the resort you wish to trade to — are in
charge of determining whether you receive your desired exchange. And
the bottom line for these companies is maximizing their revenues, not
necessarily sending you off on a fun vacation.
 Chapter 12: Exchanging: Playing the Trading Game 133
In 2003, RCI made approximately 2,600,000 exchanges. At an average
exchange rate of $159, that amounts to a whopping $413,400,000. In that
same year, II made approximately 790,000 exchanges, which generated
about $109,810,000.

So how do these giants generate these numbers? Simple: They look to

make trades where the chances of getting two exchange fees are greater.

Both II and RCI use a seven-point evaluation to determine the trading

power of your timeshare. But keep in mind that the most important
criteria both companies use for insuring a fair trade are supply and
demand, and how early your week is deposited.

This comparison is for “traditional” weeks of timeshare, not for RCI’s

points-based system; see below for more information.

Point 1: Supply and demand

If you own in a high-demand area, your chances of getting the exchange
you want increase. If you own in a location where demand is high but
supply is low — Venice, New York City, or Paris, you also have an excel-
lent chance of getting the trade you want. It’s all about what you bring to
the trading table. For example:

Bob and Vera purchased a two-bedroom timeshare in Branson,

Missouri, for $12,000 last year.
Mark and Jan purchased a two-bedroom timeshare in Maui, Hawaii,
for $23,000 last year.
Shawn and Amy purchased a two-bedroom timeshare in Orlando,
Florida, for $15,000 last year.

This year, independent of one another, all three couples decide to go

to Myrtle Beach, South Carolina, during Labor Day week. Assume for
a moment that the three timeshares they own are of similar quality
(see the “Point 4: Sleeping capacity” section) and that all three couples call
at exactly the same time to make the trade. If the resort in Myrtle Beach in
question has only one two-bedroom timeshare available for trade during
Labor Day weekend, which one of the three couples will get to go?

If you said Mark and Jan, because they paid more, you would have lots
of company — but you would be wrong. Shawn and Amy will get their
trade. Why? Simple. The money that the couples paid to buy the time-
share went to the timeshare developer. Who is in charge of sending the
couples on vacation? The trading company. II and RCI stand to make
$129 or $149 from each couple for the trade, but if they can only send
one couple to Myrtle Beach, both II and RCI will send the couple that
will make the most money for them. A timeshare in Orlando will have
more demand from other vacationers than a timeshare in either
Branson or Maui — and will likely be snapped up right away.
134 Part III: Discovering a World of Timeshare
Even within high-demand areas, there are higher demand times and
lower demand times. So even though you purchase your timeshare in
a high-demand area, you should also find out what week — or at least
season — you are being assigned. Don’t leave this to chance; always ask.

Point 2: Resort location

Timeshare units are not the same from country to country and even
state to state. Timeshare resorts located in areas with higher standards
of accommodations will give you better trades.

According to II, the top requested destinations in 2003 were Orlando,

Florida; Tenerife and Gomera; the California desert; the Yucatan
Peninsula, Mexico; and Aruba. Here are the actual numbers:

Rank Location Number of

Timeshare Units
1 Orlando, Florida 80,019
2 Tenerife and Gomera 18,703
3 California desert 16,623
4 Yucatan Peninsula, Mexico 14,990
5 Aruba 14,023
6 Puerto Vallarta, Mexico 12,795
7 Hilton Head, South Carolina 11,513
8 Spain, southern coast 9,838
9 Lake Tahoe 9,853
10 Broward County, Florida 9,635
11 Maui 8,775
12 Kauai 8,421
13 Lanzarote, Spain 7,737
14 Hawaii (Big Island) 7,556
15 Las Vegas 7,069
16 Vail-Avon-Beaver Creek, Colorado 6,951
17 Florida, northeast coast 6,564
18 Poconos Mountains, Pennsylvania 6,523
19 Arizona (spa destinations) 6,331
20 Austria, mountain areas 6,288
21 California, southern coast 5,598
22 Eastern British Columbia, Canada 5,302
23 Puerto Rico 5,123
24 New Orleans 5,089
25 St. Martin 5,075
 Chapter 12: Exchanging: Playing the Trading Game 135
Point 3: Resort quality
II has two types of resorts: Five-Star and standard. RCI has four types of
resorts: Gold Crown, Resort of International Distinction, Hospitality, and
Standard. All things being equal, Five-Star and Gold Crown command the
most trading power.

The lowest ranking for both companies, Standard, may meet your
personal needs just fine. You may find it unnecessary to purchase a
higher-priced unit at a higher-rated resort. But keep in mind that your
trading power with a Standard unit may be limited; it will likely be diffi-
cult to exchange your unit for a high-demand timeshare.

Both trading companies try to give fair trades. If you own in a Five-Star
resort (II) or a Gold Crown Resort (RCI), you have the trading power to
request any resort to trade into, even one of lesser quality. However, if
you own a Standard resort, you may only request a resort of the same
or lesser quality. You can always trade down, but you cannot trade up.

Point 4: Sleeping capacity

Timeshares typically come as studio, one-bedroom, two-bedroom, or
three-bedroom units. A few have four bedrooms or are actual stand-
alone houses. Timeshare units with more sleeping capacity typically
trade better than units with lesser sleeping capacity.

II and RCI both have a wide variety of timeshare sizes, ranging from
studios that sleep two persons to three-bedroom units that sleep ten
or more persons. Timeshares with the most private sleeping capacity
(not necessarily the total capacity, which includes sofa beds) are in
great demand and will generally give you more trading power.

Point 5: Color codes

All of II’s 2,000+ and RCI’s 3,726 resorts are assigned a color code to rate
the demand at the resorts:

 II uses a Red, Yellow, Green color code, from high demand to low,
respectively.
 RCI uses a Red, White, Blue color code, from high demand to low,
respectively.

Here’s what they mean:

 Red denotes periods of higher demand.

 Yellow or White denotes periods of medium demand.
 Green or Blue denotes periods of lesser demand.

The general rule is if you own in a Red season, you have greater chances
of getting your trade most anywhere you want. Resort locations like
136 Part III: Discovering a World of Timeshare
Orlando, Florida; Las Vegas, Nevada; and most urban areas (San
Francisco and Venice) are all Red, all the time. Some resort areas (like
the Pacific Northwest) have certain weeks of the year designated Red
(high demand), Yellow or White (middle demand), and Green or Blue
(low demand.)

Red weeks are region specific and not universal. The Red weeks in
Vail, Colorado, are during the prime ski season. Red weeks in places
like Devonshire, England, are during the summer.

Just as with the rankings on resort quality (see the “Point 3: Resort quality”
section), with color codes, you can trade down, but not up. If you own
in an all-Red area, like San Francisco, you may request a trade to any
resort, during any season. However, if you own a timeshare week that
has been designated Green or Blue, you may only request a trade to a
resort within the Green or Blue weeks, meaning it’s unlikely that you will
get a trade to San Francisco, which is Red all year long.

Point 6: Travel Demand Index

To drill down even deeper into the Red, Yellow, and Green system (and
to complicate matters), II has come up with the Travel Demand Index,
which consists of seasonal indexes for each of its 26 regions. Each area
in the region is assigned a numerical index for each week of the year,
with 100 representing the average travel demand for all regions. The
higher the figure, the greater the relative leisure-travel demand for the
area during the week. Numbers below 100 indicate periods where the
relative inbound leisure-travel demand is lower.

Unlike color codes, which are resort specific, the Travel Demand Index is
an analysis of an area’s peak season relative to other areas. For example,
Orlando, Florida, is Red all year long, as is Maui, Hawaii. Certain weeks in
Maui, however, outrate certain weeks in Orlando, according to the Index.

Point 7: Customer feedback

When you return from a timeshare vacation, RCI mails you a comment
card (for II it’s called an evaluation form), which asks you to rate the
resort in categories ranging from the service provided by the staff to the
quality of accommodations and maintenance. Resorts with consistently
positive comment cards maintain higher trading power.

You have to give RCI and II credit for giving so much credence to cus-
tomer feedback. Both companies place a lot of stock in what owners
have to say about their home resort and other resorts in general. Always
complete and return the comment card; it’s one way for owners to voice
their concerns and opinions.

Not only does RCI rely on comment cards to evaluate a resort’s trading
power, but if a resort consistently receives superior or inferior comments,
RCI may revisit that resort to possibly upgrade or downgrade the resort’s
rating.
 Chapter 12: Exchanging: Playing the Trading Game 137

The under-45-day rule

One particularly nice feature for RCI Points Members is the less-than-45-day rule. If
an RCI Points Member requests an exchange and is confirmed less than 45 days from
check-in, he or she needs only 9,000 points to do so, regardless of season or size of
unit. Obviously, not everything will be available, but for travelers who have flexibility
and like to experience different places and resorts, this is a great feature.

Searching for an Exchange Online

If the thought of thumbing through either of the two big directories of
resorts is overwhelming to you, you can find exactly what you’re looking
for by doing an online search of the resorts. Both RCI and II have very
user-friendly Web sites (www.rci.com and www.intervalworld.com)
that are continually upgraded.

However, I highly recommend talking to a live person the first time you
call to exchange your timeshare, just to make sure you’re comfortable
with the trade (for example, are you trading half of your two-bedroom,
only some of your points, borrowing from next year, using a week that
you saved from the previous year?).

RCI online
RCI allows you to do a search based on any number of the following
criteria:

 Gold Crown Resorts

 Resorts of International Distinction
 All-inclusive resorts
 Air-conditioned unit
 Auto rental facilities
 Beach
 Boating
 Carpet in units
 Casino
 Child care
 Children’s pool
 Conference facilities
 Cross-country skiing
138 Part III: Discovering a World of Timeshare
 Dishwasher
 Downhill skiing
 Elevator
 Exercise equipment
 Fireplace
 Fireplace in unit
 Fishing
 Games room
 Golf
 Grocery store
 Hairdresser
 Handicapped unit
 Health club
 Horseback riding
 Housekeeping
 Karaoke
 Kitchen
 Lake
 Laundry
 Live entertainment
 Medical facilities
 Microwave
 Playground area
 Racquetball
 Restaurant
 Sauna
 Scuba diving
 Shopping area
 Ski school
 Snack bar
 Spa
 Special meals (kosher, halal)
 Squash
 Chapter 12: Exchanging: Playing the Trading Game 139
 Swimming pool
 Telephone
 Tennis
 Washer/dryer
 Water-skiing
 Whirlpool/hot tub
 Windsurfing

II online
II’s Web site is just as comprehensive, allowing you to pinpoint the
resorts that you want using this list:

 Air-conditioned unit
 Auto rental
 Babysitting referral
 Bar/cocktail lounge
 Beach
 Bicycle trails
 Boat marina/launching
 Casino gambling
 Clubhouse
 Cooking facilities
 Day spa
 Entertainment, live
 Exercise room, equipped
 Fireplace
 Fishing
 Golf
 Golf program
 Grocery/convenience store
 Horseback riding
 Lake
 Laundry facilities
 Lock-off units (units that can be split or locked off into two or more
separate units or combined into one large unit)
140 Part III: Discovering a World of Timeshare

ICE, baby: Trading weeks for cruises

International Cruise & Excursions, Inc. (ICE) is a leading provider of cruise programs
for the leisure industry. ICE’s relationships with cruise lines like Carnival, Royal
Caribbean, Holland America, and Princess, as well as its partnerships with over 500
international resorts and hotels, enables it to offer customers an array of vacation
packages — and allow timeshare owners to exchange weeks for cruises. Call ICE to
see how it works (% 888-320-4234; www.icegallery.com).

 Pets allowed
 Playground
 Racquetball
 Restaurant
 Sailing, rentals
 Sauna/steam room
 Size of unit (efficiency/studio, one-, two-, three-, or four-bedroom)
 Skiing, cross country
 Skiing, downhill
 Swimming pool, indoor
 Swimming pool, outdoor
 Television, color
 Tennis
 VCR or player/video rental
 Water-skiing
 Wheelchair accessible

The Nitty-Gritty of Exchanging

In this section, I walk you through the steps of exchanging your time-
share unit with II and RCI.

II uses either the deposit first or the request first methods. RCI uses
deposit first and the RCI Points System, wherein the depositing is
automatically done for you upon purchasing. These terms are further
explained in the following sections.
 Chapter 12: Exchanging: Playing the Trading Game 141
Deposit first
Use the deposit first method if you’re sure you want to exchange your
timeshare for time at another timeshare instead of at your home resort.

If you plan to deposit (place your timeshare unit in the trading pool)
your week, do so as early as possible. When you deposit your week,
what you’re doing in effect is giving the exchange company the right to
immediately make your week available to someone else. Your chances of
getting a fair trade improve the longer in advance you have your week
available for use. Some resorts allow owners to deposit as early as two
years in advance; other resorts limit you to only one year in advance.

Request first
Use the request first method to check on availability before giving up your
rights to your week or if you haven’t made up your mind where you want
to go on your timeshare week.

If you own a particularly high-demand week, such as Christmas week in

Vail, Colorado; race week in Daytona; or Mardi Gras week in New Orleans,
use the request first method. There’s no sense giving up such a high-
demand week before you know that the exchange company can fulfill
your trade. Keep in mind that the exchange companies want your week!

Floating week versus fixed week

If you own a fixed week, you already know what week you’re putting into
the system. How do you know which week you’re giving up if you own a
floating week? Call your resort so it can assign you a week. See Chapter 7
for more on fixed and floating weeks.

Requesting your exchange

After you know exactly what you have to trade, you can call or go online
to request your exchange. Both RCI and II give members an entire direc-
tory of all their resorts each year, or you can go get information about
other resorts and make the exchange online.

Be as flexible as you can with your exchange requests. If you want a spe-
cific week, select at least three different resorts. If you want a specific
resort, select at least three different weeks in order to maximize your
chances. You’ll receive either confirmation right then and there, or you’ll
be put on a waiting list.

The entire exchange system depends on members depositing what they

own so that other members have access to them. If you and other owners
neglect to deposit your weeks into the system, exchanges will be few and
far between.
142 Part III: Discovering a World of Timeshare
The points-based system
One of the major distinctions between RCI and II is the points system,
which RCI rolled out in 2000. Currently, approximately 612 of RCI’s
3,725 resorts operate on a points system.

Think of points as vacation currency. You can spend your vacation cur-
rency for nights at a timeshare or a hotel, cruises, car rentals, airline
tickets, just about anything.

Suppose you bought a two-bedroom, two-bath timeshare for $17,000,

which gives you 100,000 RCI points annually. You can use your points
in a number of ways, including

 Seven nights at your home resort

 Two round-trip airline tickets (on selected airlines) within the
United States
 Seven nights at a (select) hotel in Orlando and two adult passes to
Universal Studios
 Seven nights at a nonpoints resort and a one-week full-size car rental

If you own at one of RCI’s points-based resorts, you can use your points
for time at any of RCI’s resorts. And if you choose to go to your or any
other points-based resort, you can stay for as few as two nights. Stays at
nonpoints resorts are for the traditional seven nights. The RCI directory
lists the exact number of points needed to make trades.

With RCI’s points, unlike traditional weeks of timeshare, it is not neces-

sary to deposit your timeshare in order to use it. An important point
(no pun intended) to remember is that when you buy your timeshare, all
your points automatically go into the RCI points bank, or pool, for what-
ever length of time your resort has agreed to be a points resort. On one
hand, this system ensures that you can’t forget to deposit your week and
potentially lose usage, something that can happen with a traditional time-
share. With points, however, there is no such thing as trading power.
Points are points are points.

Many RCI week owners report that it is has gotten more and more diffi-
cult for them to obtain a good trade lately and fear that RCI is in their
words, “saving the good trades for RCI points owners” — in effect forc-
ing them to purchase additional timeshare at a points-based resort.

Although RCI denies this, both RCI and the points-based resorts have
much to gain by selling points-based timeshare. The resorts get more
dollars by selling more and/or charging to upgrade existing weeks of
timeshare to points, and RCI gets more dollars from the associated fees.

If you own a traditional week of timeshare at a resort that is now points-

based, the resort cannot automatically change you to points, nor can
they force you to change what you own.
 Chapter 12: Exchanging: Playing the Trading Game 143
The points system: Pros
Points offer substantially more flexibility. You can stay at some resorts
for less than a week, perfect for a driving vacation or Hawaii island-
hopping exploration. Points may be saved for up to two years and
borrowed from a year ahead, allowing you to customize your vacation.
And, in most cases, your points will go further if you stay at nonpoints
resorts. Example: 100,000 points will get you either seven nights at Silver
Lake Resort (a points-based resort) or two weeks at Orange Lake Resort
(a nonpoints resort).

This is a great feature if you’re flexible: If you make your resort reserva-
tions less than 45 days out, the entire week requires only 9,000 points.
In an extreme example, your original $17,000 purchase could get you
nine weeks of vacation a year!

The points system: Cons

Points are not inflation-proof. An airline ticket this year may require
50,000 points. How many points will it require in five years? You simply
don’t know. And for many people, it can get confusing figuring out how
to use points effectively. Should you stay at a points resort or a non-
points resort? Use points to cruise or take advantage of a good deal
you find in the newspaper?

There are also fees associated with every aspect of point usage. For
example, if you use your points to get two airline tickets to Miami,
Florida, a three-night stay at a hotel in Miami, a two-night stay at a hotel
in Fort Meyers, a two-night stay at a hotel in Key Largo, and a weeklong
car rental, you incur six separate fees, ranging from $17 to $69.

Keep in mind that if you want to sell your timeshare, points don’t trans-
fer to the new owner.

Converting your timeshare to points

Converting your timeshare from the week system to a points-based system
is both a bone of contention for owners and a possible cash cow for the
resorts.

Keep in mind that it is solely up to RCI to determine whether a resort is

going to switch to a points-based system. And first and foremost, if the
resort where you own switches to points, they can’t just switch what
you own — you own what you own.

Here’s how it works. There is no standard fee that resorts charge to

switch to RCI Points. I’ve heard of resorts that charge up to $4,995 to
simply take your week and convert it into X number of points, and offer
nothing additional in terms of ownership. That’s a lot of money for just
a conversion.
144 Part III: Discovering a World of Timeshare

Defending points
“I own eight timeshares, and in my experience, there is both a misunderstanding and
a lack of knowledge about points by many owners.
“The key to purchasing a unit that either is in points or can be converted to points is
the cost of the unit, plus the cost of the points conversion, along with the number of
points you will receive per year. For example, I know someone who sells points resorts
for a total of $1,200. Yes, $1,200, and that includes the points system. The number of
points is 34,500 per year. Do the math, and you will see that for about $3,600 you can
have 103,500 points per year. Yes, you will have three annual maintenance fees, but
look how many vacations you can have with that many points! It’s the resorts that are
charging too much for the conversion, not RCI.
“Unlike trading a week for a week, and being concerned that your non–Gold Crown
Resort will not trade for the Gold Crown Resort you want; there is no such concern in the
point system. Points are like dollars. If you have enough, you get the resort you want.
“Under the week system, you may have to trade a two-bedroom two-bath unit for a
smaller unit due to availability. In other words, you have used up something more valu-
able to get something worth less. In the points system, you pay fewer points for a
smaller unit, or fewer points for a season that’s not as desirable. One of the best parts
of the points system is that you can arrange a stay for less than a full week. You simply
can’t do that with the week system. The 45-day, 9,000-point deals that RCI offer are
unbelievable. If you can go anytime within the next 45 days, RCI will give you any unit
in the inventory for just 9,000 points.
“One problem is that RCI will give away week resorts to points members. Once I called
the RCI points department and asked for a unit in Lake Tahoe. No points resorts were
available, so they took one from the weeks section. This was a Gold Crown Resort that
obviously someone with a week to trade would not be able to trade for. If I were not
in the points system, I would have been very upset at this development.
“The cost to convert from the week system to points is another area where complaints
are valid. I recently looked at a timeshare at Lake Tahoe. The price was under $4,000.
When I asked about converting this to points, I was told by the resort that to do so
would cost another $4,000. That unit would have given me about 41,000 points per year.
This is outrageous. People who are new to timesharing may not know that this is a rip-
off by the resorts.”
Jerry Nisker, Orange, California

Other resorts may try to sell you something else in addition to what
you own, and then charge little or nothing to switch the whole thing
into points. For example, you can buy another week (which is worth
X number of points), and they will convert your old ownership for only
$199 (or maybe nothing).
 Chapter 12: Exchanging: Playing the Trading Game 145
Now, if that isn’t confusing enough, suppose you own timeshare at a
resort that is still on the week system and you own a timeshare week in
another resort that is on the points system. If so, you can indeed choose
to have your week at the nonpoints resort converted into points for
that year, and you can do so through the points-based resort where you
own. This can be a tremendously flexible feature — you have the best of
both — use points when you want them for whatever you want them
for, without having to have them every year.

You may hear about RCI Master Point Brokers, companies or persons who
claim to be able to convert you to points for a fee. Keep in mind that you,
the owner, must go through a points-based resort in order to convert to
points.

Points: A tale of three couples

The following three couples want an identical trade:

 Bob and Vera purchased a two-bedroom timeshare in Branson,

Missouri, for $12,000 last year and receive 100,000 RCI points
annually.
 Mark and Jan purchased a two-bedroom timeshare in Maui, Hawaii,
for $23,000 last year and receive 93,000 RCI points annually.
 Shawn and Amy purchased a two-bedroom timeshare in Orlando,
Florida, for $15,000 last year and receive 70,000 RCI points annually.

All three couples want to go to Myrtle Beach during Labor Day weekend;
it requires 75,000 RCI points to do so. In this case, even though Shawn
and Amy own a timeshare in one of the most high-demand destinations

The early bird

“We have been timesharing for the past ten years and love it. We own two weeks, one
in Gatlinburg, Tennessee, and one in Destin, Florida.
“If you plan to exchange your week(s), it is most important to make early deposits in
the space bank with your selected exchange company. My two resorts require that
maintenance fees be paid for the year that is to be deposited. Therefore, I pay my
maintenance fees one year in advance.
“If possible when searching for an exchange, be flexible. The odds of finding the resort
or area you want are greater if you search over several weeks or months. The odds
are even better if you can travel off-season or at a time many others cannot travel (during
the school year, for example). We really prefer traveling to most places in the spring and
fall — crowds are much smaller, and you can enjoy the area that much more.”
Dianne Loftis, Brentwood, Tennessee
146 Part III: Discovering a World of Timeshare
in the world, they don’t have enough points to get the trade. If Bob and
Vera had requested this trade earlier than Mark and Jan, they would be
vacationing in Myrtle Beach, even though their home resort in Branson
has lower trading power than either Orlando or Hawaii. With RCI points,
timing is crucial.

RCI has certain reservation windows during which you must use your
points or you lose rights to them. Make sure you know what these reser-
vation windows are, or you may find yourself paying for something after
you lost the right to use it.

If It’s September, It’s High Season in . . .

The color codes that RCI and II use (see the “Point 5: Color codes” sec-
tion) are general indicators of relative exchange demand. Certain places
like Orlando, Florida; Las Vegas, Nevada; San Francisco, California;
London, England; Paris, France; the Hawaiian Islands; and Sedona,
Arizona, for example, are categorized as “all Red.”

But, as anyone who has visited Las Vegas in July when its 115 degrees in
the shade or Orlando in the third week of September can tell you, there
are different shades of red. That’s why it is vital to discover exactly
which week you’re purchasing even if the resort is designated as all Red,
all the time.

Interval International has developed a unique Travel Demand Index that

clearly represents a more comprehensive analysis of an area’s peak
season(s) relative to other vacation areas. Note the emphasis of the
word “area’s” as opposed to “resort’s”. This Travel Demand Index will
be updated at least every two years to account for worldwide travel
patterns.

Neither the color code system nor the Travel Demand Index can take
into account every conceivable situation. So, although Hawaii’s peak
demand time is listed as January through August, that certainly doesn’t
mean that Christmas week is a bad trade. My advice: If you decide a
timeshare is right for you, purchase only at a resort in a location where
you either:

 Plan on returning year after year

 Have evidence that this is a high demand area

Timeshare salespeople got a bad reputation for a reason. Many try to

convince you of the worth of something that you cannot check out while
at the sales table. If you’re looking at a timeshare in Bolivia and you
don’t plan on returning there often, nor are you sure when Bolivia is in
high demand among travelers, don’t purchase a timeshare week there,
plain and simple!

Table 12-2 gives you an idea of the peak exchange weeks by location.
 Chapter 12: Exchanging: Playing the Trading Game 147
Table 12-2 Peak Exchange Weeks by Location
Area Peak Exchange Weeks
Argentina and Chile, inland January–early March; December
Argentina and Chile, mountains January–early March; end of
June–end of August
Argentina, Brazil, and Uruguay, coasts January–early March; December
Arizona and New Mexico, mountains End of May–August
Arizona, desert January–early May
Asia January–February; end of May–end
of August; December
Australia, New South Wales, New Zealand January–March; December
Austria, Czech Republic and Hungary January–early February; end of
June–end of August
Austria, urban All year
Bolivia, Columbia, Ecuador, Peru, End of June–end of July
and Venezuela
Boston April–September
Branson End of May–September
Brazil, inland January–early March; December
California, southern January–August; December
California Bay area All year
California, inland January–March
Californian desert January–March; December
Canada End of May–August
Canary Islands and Madeira January–March; end of June–end of
August; October
Caribbean January–March; end of June–July;
December
Central America January–April
Central Florida End of January–end of March; end of
June–end of August; last two weeks
of December
(continued)
148 Part III: Discovering a World of Timeshare
Table 12-2 (continued)
Area Peak Exchange Weeks
Colorado January–March; end of June–end
of August
Cyprus and Greece End of June–August
Fiji and New Caledonia End of June–August
Florida, northern coast End of February–end of April; end of
May–end of August
Florida, southern coast and Keys January–August
France, general End of June–August
France, mountains January–March; end of June–end of
August
France, Paris All year
France, Riveria April–September
Gatlinburg/Pigeon Forge, Tennessee End of May–August
Germany May–September
Great Britian and Ireland April–September
Hawaii January–August
Idaho, Montana, and Wyoming End of May–August
Italy End of May–August
Italy, mountains January–April; end of June–end of
August
Italy, urban All year
Lake Tahoe and Reno End of January–end of March; end of
June–end of August
Las Vegas January–June; end of August–end of
December
London, England All year
Malta End of June–end of July
Mexico End of January–end of March
Mexico, Baja and western January–April; December
Mid-Atlantic End of May–August
 Chapter 12: Exchanging: Playing the Trading Game 149
Area Peak Exchange Weeks
Middle East End of June–August
Midwest End of May–August
Netherlands and Switzerland End of June–August
New England End of May–September
New Orleans End of January–end of April
North Asia, rural End of May–August; December
Oregon and Washington End of May–August
Portugal and Spain and Andorra End of June–August
Portugal and Spain, coasts End of June–August
Scandinavia and Finland End of May–August
South Africa January–early March; December
South Atlantic, coast End of May–August
Southeast Asia, rural End of May–August; end of July–end
of August; December
Southern United States May–September
Texas End of May–August
Turkey End of May–August
Utah January–March
Williamsburg, Virginia End of May–August

Trading: Reading the Fine Print

Both RCI and II strive to accommodate owners’ trade or exchange
requests based on a like-for-like basis. However, it is important to
remember that there are almost no hard and fast rules when it comes
to trading within either exchange system.

Although trading like-for-like is accepted wisdom in the timeshare

world, currently nothing in the RCI or II documentation indicates that
you must own Red time in order to get a confirmed trade in another
resort’s Red time. Nor is there anything prohibiting you from asking for
and possibly trading a Hospitality unit for a Gold Crown, or a Standard
unit for a Five-Star.
150 Part III: Discovering a World of Timeshare
Always read the fine print. For example, in thumbing through the RCI
and II directories, you may be tempted to check out other resorts within
the same geographic area. In some instances, your timeshare salesper-
son may even use this as motivation to buy, telling you that you can
trade your less costly timeshare for a more expensive timeshare in the
same city for just the exchange fee. However, both RCI and II have poten-
tial restrictions on exchanging within the same geographic area.

Other factors to consider when exchanging include the following:

 Within the RCI Points System, all trades are based on the number of
points you have and the number of points you need for a specific
reservation. Red, White, Blue, Gold Crown, Resort of International
Distinction, Hospitality, and Standard mean nothing in the points
system. Trades are made or not made based on the number of
points and reservation time: first come, first served.
 An owner of a Green Week in a low-demand area should not be able
to exchange every year for Christmas week in a 5-Star Resort.
Exceptions happen, however. But you do have a higher-percentage
chance of getting a Red week if you own a Red week.
 If you like a brand’s hotels and resorts, you’ll probably prefer the
brand’s timeshares. If you like staying in Hilton properties, you owe
it to yourself to check out the Hilton Grand Vacations Club (see
Chapter 13). If you love the resorts at Walt Disney World, you owe it
to yourself to check out Disney Vacation Club (also in Chapter 13).
 Remember that both RCI and II are owned by very large corpora-
tions, both of which are in the business of making money. Both
companies can and will set aside timeshare weeks to use for their
own purposes, which generally means for rental. They make money
primarily through exchange fees, so if they have the choice of
charging $129 to trade a week or $1,099 to rent a week — well, you
see my point here.

RCI makes it clear that member weeks that are deposited for exchange
are not included in any rental programs. Only member weeks deposited
for other services, such as cruises, are included in any rental inventory.
 Chapter 13

The Brand Names

of Timeshare
In This Chapter

Getting to know the big brands of timeshare

Discovering all-inclusive resorts

T he timeshare industry is a vastly different animal than it was even

ten years ago. In its efforts to clean itself up and banish the seedier
elements, the business attracted the attention of the megabrands of the
hospitality business. The brands came to the table in a big way: These
days almost two-thirds of new timeshare units are built or managed by
the large hotel brands, companies like Disney, Fairfield, Hilton, Hyatt,
and Marriott (including the Ritz-Carlton). In getting into the business
of timeshare, the brands brought a higher level of service and a quality
to the timeshare world. They forced timeshare resorts to be more com-
petitive, a boon to consumers. But they also did a curious thing. They
gently nudged the term timeshare out of the picture. Very few, if any, call
themselves timeshare, as evidenced by Disney, which refers to its prod-
uct as Disney Vacation Club, or DVC for short.

It would be impossible within the confines of this book to give a concise

review of all the brand-name timeshares, nor do I have the space to
describe the thousands and thousands of non-brand-name timeshares.
This chapter offers a brief look at those major companies that most con-
sumers associate with brand-name timeshare — those companies that
started in the hotel or motel industry and have since entered the time-
share (er, vacation club) market in a big way.

Four Seasons, which operates four Private Residence Clubs, asked not to
be included in this book, and we are honoring its wishes.
152 Part III: Discovering a World of Timeshare

Bringing in the brands

The industry’s attempt to purge itself of the sleaze factor worked in timeshare’s favor in
one more important aspect: It attracted brand-name hotel and resort companies like
Marriott, Hyatt, and Disney, who brought to the industry a level of quality and service —
and customer loyalty that relied on both — that forced competitors to work harder to
serve the customer, or go bust if they didn’t. The result has been a much more concerted
emphasis on providing top-notch service and amenities.
The Wall Street Journal reports that today almost two-thirds of new timeshare units
are built or managed by hotel companies — quite a leap from even ten years ago. The
brands do sell product through timeshare presentations, but they more often opt for
the softer sell.
The brands offering timeshare and other variations of interval ownership include
Disney, Marriott, Starwood, Hilton, Westin, Hyatt, and the Four Seasons.

The Pros and Cons of Branded Timeshare

Brands have been healthy for the timeshare business in general, but I do
have one caveat. Here are what I consider to be the pros and cons of the
brands in timeshare:

 Pros: In most cases, brand-name timeshares offer many perks or

values when you use their timeshares and their hotel/motel proper-
ties. For example, for every dollar you spend at a Starwood hotel,
you may earn points that you can add to the point value of your
Starwood timeshare, a plus for both you and Starwood. It’s a policy
that builds brand loyalty. For more on points, see Chapter 12.
 Cons: In most cases, brand-name timeshare is more costly than
nonbranded timeshare. However, you are getting more perks, so
as the saying goes, you get what you pay for.

Are branded timeshares the way to go? There is little doubt that the
introduction of the brand names into the timeshare arena has gone a
long way in upgrading the consumer’s view of timeshare. The brands
have enhanced timeshare’s visibility and credibility, because these are
names that you know and trust. There’s little doubt that if you pay for
a Hyatt property, timeshare, or hotel anywhere in the world you know
what to expect.

If you’re a brand-loyal consumer now, meaning you make an effort to

stay at a certain hotel chain when you vacation, it makes good sense at
the very least to check out that brand’s timeshare program. In particu-
lar, the Disney Vacation Club seems to be the timeshare of choice for
people who regularly vacation at Disney locations, especially in the
Orlando, Florida, location.
 Chapter 13: The Brand Names of Timeshare 153
Most brand-name timeshares operate in one way or another on a points-
based system. The drawback to a points-based timeshare (see Chapter 12)
is that, more often than not, no anti-inflation mechanism is built into the
systems. For example, your two-bedroom timeshare is worth 100 points
every year, and it takes 100 points to trade to another two-bedroom in Vail
this year. But that same two-bedroom unit in Vail may require 120 points
next year, 135 the following, and so on. Be sure to ask about point inflation
and the history of point inflation.

Brand Names at a Glance

Even among the brands, change is rampant. By the time you read this
book, numerous more timeshare resorts may have been gobbled up by a
brand name or some brands may have themselves been absorbed into a
larger entity. For example, Fairfield and Trendwest are now both owned
by Cendant, the parent company of Resort Condominiums International
(RCI). Marriott at one point was affiliated with RCI, but has now moved
its alliances to Interval International (II).

For now, the following comprise the major brands in timeshare.

Disney
Disney entered the timeshare (they prefer the term vacation club)
market in 1991 with the opening of Old Key West at the Walt Disney
World Resort. The people at Disney say that their vacation club was cre-
ated to meet the needs of their guests (Disney does not use the word
customer) who indicated that they enjoyed coming back to the Walt
Disney World Resort, but wanted more value for their dollar. Research
showed that many of these guests wanted to stay on Walt Disney World
Resort property, but that staying off property offered them the space
they needed. Disney looked at various options and when they added
flexibility to the product, the Disney Vacation Club was born.

Number and location of resorts

Disney Vacation Club currently consists of seven resorts:

 Disney’s Old Key West–Walt Disney World Resort

 Disney’s Boardwalk Villas–Walt Disney World Resort
 Disney’s Beach Club Villas–Walt Disney World Resort
 The Villas at Disney’s Wilderness Lodge–Walt Disney World Resort
 Disney’s Saratoga Springs and Spa–Walt Disney World Resort
 Disney’s Vero Beach Resort–Vero Beach, Florida
 Disney’s Hilton Head Island Resort–Hilton Head Island, South
Carolina
154 Part III: Discovering a World of Timeshare
Exchange company used
Disney Vacation Club is affiliated with Interval International. (Note:
According to Disney, only about 20% of their members exchange or
trade to go outside of Disney.)

Price range
$14,250–$190,000 (average of $17,000–$19,000).

Type of ownership
Currently, all locations other than Disney’s Saratoga Springs and Spa are
sold out. Ownership at Saratoga is a 50-year right-to-use, starting in the
year 2004. Purchases made in 2005 will be 49-year right-to-use. Although
ownership is not deeded in perpetuity, interests may be sold and willed,
and all interests are in fact real-estate-interest based.

What will $15,000 get you?

Disney’s basic 150-point package ($14,250) can be used for stays at
Disney resorts of as little as one night. High-demand seasons and larger
villas require more points. To exchange for a week into a non-Disney,
Interval International resort, members require a minimum of 124 points.

Points may be saved or borrowed for one year.

Pros
The Disney name is the biggest draw. Members know what they’re get-
ting and know that Disney is running the show, which provides a certain
level of trust and confidence that may be lacking in other timeshares.
The sales presentation itself is extremely informative and lacks any hint
of high-pressure selling.

Cons
This is not a program for people who vacation less than one week a year
or who aren’t already spending $150 per night in a hotel. The annual fees
are generally higher at Disney than at other timeshare companies, effec-
tively making the break-even point longer.

Hilton
Hilton Grand Vacations Company was created in 1992 as a result of a
joint venture between Hilton Hotels Corporation and Grand Vacations
Limited. Initially, Grand Vacations Limited was a joint venture between
the Mariner Group and American Resorts Development Company, which
had previously developed 16 vacation ownership resorts throughout
Florida.

In 1994, the first Hilton Grand Vacations Club opened in Las Vegas,
Nevada, at the Flamingo (adjacent to the world-famous Flamingo Hotel,
then managed by Hilton Hotels Corporation).
 Chapter 13: The Brand Names of Timeshare 155
Number and location of resorts
Currently, Hilton Grand Vacations Company manages 26 resorts, 8 of
which were developed by the company.

Hilton Grand Vacations Company developed resorts include the following:

 Oahu, Hawaii (2)

 Las Vegas, Nevada (3)
 Orlando, Florida (2)
 Miami Beach, Florida

Hilton Grand Vacations Company managed resorts include the following:

 Breckenridge, Colorado
 Island of Hawaii, Hawaii
 Sanibel Island Florida (5)
 Captiva Island, Florida (5)
 Marco Island, Florida (4)
 Estero Island, Florida
 Hutchinson Island, Florida

Exchange company used

Hilton Grand Vacations Club is affiliated with RCI.

Price range
$14,000–$50,000

Type of ownership
Deeded real estate interest.

What will $15,000 get you?

A two-bedroom timeshare in Orlando, Florida. Some options for that
usage include

 One week in that two-bedroom timeshare during the same season

 Up to 12 days in a one-bedroom timeshare

Pros
The Hilton brand is one of the most recognized lodging brands in the
world today. Hilton manages all its timeshare properties.
156 Part III: Discovering a World of Timeshare
Hilton has one of the most user-friendly points-based systems available.
For example, all two-bedroom units in the same season are 5,000 points;
only the price differs based on location and season. (See the following
section for the flip side.)

Gorgeous collateral materials include a quarterly magazine that’s informa-

tional in nature, focusing on many different vacations, Hilton destinations
or not.

Cons
As with other points-based system, fees are associated with almost
every usage.

With as many as five different seasons of timeshare ownership and seven

levels of Hilton hotels to use points at, usage with Hilton properties can
be a problem if you don’t do well with options and choices.

Hyatt
Hyatt Vacation Ownership opened its first resort in July 1994 at the Hyatt
Sunset Harbor in Key West, Florida. Although Hyatt Vacation Ownership,
Inc., is a separate company from Hyatt Hotels and Resorts, they are a sis-
terhood with the same lineage, and they share the benefits, among them
the Hyatt Gold Passport Program.

Number and location of resorts

Currently, Hyatt has 11 timeshare properties located in

 Sedona, Arizona
 Carmel, California
 Breckenridge, Colorado
 Beaver Creek, Colorado
 Key West, Florida (3)
 Naples, Florida
 Lake Tahoe, Nevada
 San Antonio, Texas
 Dorado, Puerto Rico

Exchange company used

Hyatt Vacation Ownership is affiliated with Interval International.

Price range
$15,000–$1 million
 Chapter 13: The Brand Names of Timeshare 157
Type of ownership
Deeded.

What will $15,000 get you?

Hyatt Vacation Club chose to not contribute to this section, saying that
their price lists are not considered public information.

Pros
Hyatt does have some locations that offer studio units, which require
fewer points to use than the standard one-, two-, and three-bedroom
condos, a boon to single travelers or those who don’t need a lot of
space.

Cons
As with many branded timeshares, Hyatt operates on a points-based
structure, which offers more flexibility in usage but runs the risk of point
inflation. In addition, seven distinct timeshare ownership seasons can
make matters confusing for those owners who like their usage options
simple and clear-cut.

Hyatt Vacation Club provided me with minimal written information and

turned down requests for a personal meeting. I wrote this section because
I felt strongly that their presence in the timeshare market was worth a
mention in this chapter.

Marriott
In 1984, Marriott became the first branded company within the hospi-
tality industry to enter the timeshare (vacation ownership) industry.
They purchased American Resorts with properties on Hilton Head Island,
South Carolina.

Since that time, Marriott has broadened its offerings and now has four
distinct brands: Horizons by Marriott Vacation Club, their most affordable
product line; Marriott Vacation Club International; and two “fractional”
property brands (see Chapter 16 for more on fractionals): Marriott Grand
Residence Club and The Ritz-Carlton Club.

Number and location of resorts

The portfolio of resorts current stands at 50, broken down by brands.

Marriott Vacation Club includes the following:

 Phoenix, Arizona
 South Lake Tahoe, California
 Newport Beach, California
 Palm Desert, California (3)
158 Part III: Discovering a World of Timeshare
 Breckenridge, Colorado
 Vail, Colorado
 Fort Lauderdale, Florida
 Miami, Florida
 Orlando, Florida (5)
 Palm Shores Beach, Florida
 Panama City Beach, Florida
 Maui, Hawaii
 Kauai, Hawaii (2)
 Oahu, Hawaii
 Boston, Massachusetts
 Galloway, New Jersey
 Hilton Head Island, South Carolina (8)
 Myrtle Beach, South Carolina
 Park City, Utah (2)
 Williamsburg, Virginia
 Palm Beach, Aruba (2)
 Bailly-Romainvilliers, France (Disneyland Paris)
 Estapona, Spain
 Majorca, Spain
 Marbella, Spain
 Phuket, Thailand

Horizons includes the following:

 Branson, Missouri
 Orlando, Florida

Marriott Grand Residence Club includes the following:

 South Lake Tahoe, California

 London, England

The Ritz-Carlton Club includes the following:

 St. Thomas, USVI

 Jupiter, Florida
 Chapter 13: The Brand Names of Timeshare 159
 Bachelor Gulch, Colorado
 Aspen, Colorado

Exchange company used

Marriott is affiliated with Interval International (exclusive of the Ritz-
Carlton Club).

Price range
$7,690–$85,000 (exclusive of Marriott Grand Residence Club and
The Ritz-Carlton Club).

Type of ownership
Deeded ownership, with the exception of international and metropolitan
locations, which are right-to-use ownership; all have the option to trade
for Marriott Rewards points on nonconsecutive years (except The Ritz-
Carlton Club). The number of points depends on destination, season
value, and villa type and size.

What will $20,000 get you?

Why $20,000? Well, Marriott declined the $15,000 level and provided
information on the $20,000 level.

For a a Platinum season two-bedroom villa in Orlando, Florida, with

deeded ownership, you pay $19,200 Additionally, this week has a
Marriott Rewards point value of 110,000 that can be traded in noncon-
secutive years for hotel stays, airline travel, cruises, or other options.

Points have no expiration date, and members can also earn points by
staying at Marriott hotel locations ($1 earns ten points), affinity credit
card usage, and the like.

Pros
Marriott has a 21-day preferential window over other Interval
International owners into Marriott resorts, and weeks may be banked
for up to two years.

Various levels of Marriott hotel properties are available (TownePlace

Suites, Fairfield Inn by Marriott, Residence Inn by Marriott, Marriott,
JW Marriott, and Ritz-Carlton).

Also, points may be used for airline tickets, cruises, hotel stays, and
other perks.
160 Part III: Discovering a World of Timeshare
Cons
Marriott has a number of fees:

Home resort during their week (or season) $0

Other Marriott locations $79
Out of system Interval International
fees
Change week of timeshare to points $104
Lock-off (two-bedroom to one and one) $75

Starwood
Starwood Vacation Ownership (SVO) is a subsidiary of Starwood Hotels
and Resorts Worldwide, Inc. In 2005, it is celebrating its 25th year as a
developer and operator of vacation ownership resorts.

The company is currently developing and operating vacation ownership

resorts under the Westin, Sheraton, and St. Regis brands. Through the
globalization of the company, owners have access to Starwood’s 750+
hotels and resorts around the world.

Number and location of resorts

The Starwood portfolio of resorts currently stands at 14, broken down
as follows:

 Cave Creek, Arizona

 Scottsdale, Arizona (2)
 Nassau, Bahamas
 Mission Hills, California
 Avon, Colorado (2)
 Hutchinson Island, Florida
 Orlando, Florida (2)
 Port St. Lucie, Florida
 St. John, U.S. Virgin Islands
 Maui, Hawaii
 Myrtle Beach, South Carolina

Exchange company used

Some resorts are affiliated with RCI, some are with II, and owners may
have the option of dual affiliation.
 Chapter 13: The Brand Names of Timeshare 161
Price range
Under $10,000 to over $70,000.

Type of ownership
Deeded ownership. Different-size units give members different options
and Starwood points. Options can be used to exchange to different II or
RCI locations or to customize stays (for example, less than seven nights)
at other Starwood Vacation Ownership properties. Starwood points can
be used for nights at the Starwood family of hotels. Note that members
can only convert their ownership to Starwood points every other year,
unless they own enough timeshare to qualify for elite status, which in
most cases is two weeks of timeshare.

What will $15,000 get you?

A two-bedroom in Orlando will get you 95,700 options or 56,000 Starwood
points at a cost of approximately $26,900. The same number of options
or points may cost substantially more or less at other locations, such as
Hawaii.

Weeks may be banked for up to two years. Also, points have no expira-
tion date, and members can also earn points by staying at Starwood
hotel locations ($1 earns points) or using an affinity credit card. Points
can be used for airlines, cruises, and other perks.

Pros
Starwood pros include no blackout dates, and no fee to trade into
other Starwood Vacation Ownership resorts.

Resorts are not capacity controlled. Capacity control is a system that

many hotels, cruise lines, and airlines use to restrict usage. It’s akin to
trying to use frequent-flier miles for a flight. The airline allows only x
number of seats per flight to be used for frequent flier miles or even for
persons with discounts. The plane may have unsold seats remaining,
but if the airline has filled its quota of frequent-flier seats, that’s that.
Because the Starwood system is not capacity controlled, if you have the
required number of points (or options, whichever) and any room is
available, they will give it to you, as opposed to holding the room for
someone who is paying the full rate.

As with other brand names, points may be used for airlines and cruises,
as well as stays at the various Starwood hotels (Sheraton Four Points,
Sheraton, Westin, W Hotels, St. Regis, and The Luxury Collection).
162 Part III: Discovering a World of Timeshare
Cons
Starwood’s system can be quite confusing to untangle, for example, the
difference between options, points, weeks, and the corresponding rules
that apply to each of them.

All About All-Inclusive Resorts

An increasingly popular option is all-inclusive vacations, and timeshare
resorts around the world — including those operated by the big brands —
are making this available to vacationers.

What is an all-inclusive timeshare vacation? All-inclusive plans have fees

that are over and above the normal exchange or trading fee that II and
RCI charge (currently $129–$189 per week). Although all-inclusive plans
vary from resort to resort, the packages typically cover:

 All meals for the week: Breakfast, lunch, and dinner with varying
cuisines.
 Refreshments and beverages: Although some may not include
alcoholic beverages.
 Resort activities and entertainment: Traditional dances may be
featured one night after dinner in Mexico, for example, while arts-
and-crafts lessons may be available in Panama.
 Sports and recreation equipment: Options may range from basic
beach volleyball to kayaks, snorkeling, and even scuba.

Before booking your vacation, contact the resort or your II or RCI repre-
sentative to find out what exactly is included in the package. You may
want to book only the meal package, for example, and not the entertain-
ment and activities package.

In addition, as you can see from the following list, some resorts are
mandatory all-inclusive while others are optional. Many of RCI’s
Mexican resorts are mandatory all-inclusive. This is not a bad thing,
but always ask before you go, so that you know you’re responsible for
paying all-inclusive fees. RCI offers all-inclusive resorts in the following
destinations:

Optional Locations
Bermuda, Bahamas, and Caribbean 24
Europe 1
United States Pacific Coast 2
Central and South America 14
Africa and the Middle East 1
Mexico 20
 Chapter 13: The Brand Names of Timeshare 163
Mandatory Locations
Bermuda, Bahamas, and Caribbean 41
Central and South America 14
Europe 2
Canada 3
Portugal, Spain, and the Canary Islands 4
Africa and the Middle East 1
Mexico 51
Asia/Pacific 1
164 Part III: Discovering a World of Timeshare
 Part IV
Using Your Timeshare
 In this part . . .
T imeshare is used in many different ways: as a home resort,
as an exchange property, and even as a rental property.
In this part, I discuss how to get the most out of your time-
share week; the questions to ask to ensure that the timeshare
resort you’re buying into has the service, quality, and ameni-
ties you need; and how to go about renting, selling, or willing
your timeshare. I also discuss timeshare beyond timeshare:
vacation clubs, urban interval ownership, fractionals and
condo hotels, and private residence clubs.
 Chapter 14

Getting to Know
Your Resort
In This Chapter

Finding out more about your home resort

Arriving and checking out your resort

Helping rate the resorts

Packing for your timeshare vacation

M any consumers are perfectly happy purchasing and using one

timeshare resort (the so-called home resort) year after year.
Unlike consumers who invest in a resort with the express purpose of
exchanging it for timeshare weeks at other resorts (see Chapter 12),
people who visit their home resort every year are there because they’re
satisfied with the location and happy with the resort and its amenities.

Even if you’re purchasing your timeshare with the express interest of

trading (exchanging) it, always buy with quality and value in mind.
Remember, if you’re not comfortable there, chances are other people
won’t be as well, and your trading power will decrease.

This book has a lot of information on how to look for, buy, finance, and
exchange your timeshare. But what happens when you’re ready to actu-
ally use your timeshare? In this chapter, I address those aspects of a
timeshare resort that mean the most to owners — whether it be 24-hour
concierge, maid service, fast maintenance responses, proximity to ameni-
ties and services, or all the above. I discuss those things that the most
well-run resorts — both home resorts and exchanges — do that keep
timeshare owners happy and coming back year after year.

Checking In — and Checking It All Out

You can tell a lot about a resort from the little details. A rusty tub here,
fresh flowers at the front desk there; grit and sand on the kitchen floor
versus a lightning-fast response to a maintenance request. In the hospi-
tality business, location and setting are important, but for many people,
168 Part IV: Using Your Timeshare

Before you buy: Asking the right questions

about your resort’s amenities
You’ve toured the resort and the unit available for purchase, and you and your family
are smitten. You can easily see yourself spending happy vacations here every year.
You’ve asked all the major questions (see Chapter 7) about purchasing timeshare in
general. Here is a list of questions and concerns you should ask about your home
resort’s amenities:
 Do I have day privileges here? In other words, suppose you purchase a one-bedroom
timeshare in Newport Beach, California, and live in Long Beach, California. Do you
have the right to use the resort’s amenities if you’re not staying on property?
 Does the resort have a home owners’ association (HOA)? How are owners kept
apprised of what is going on at the resort? In my opinion, you should never purchase
at a resort where owners aren’t members of the homeowners’ association; other-
wise, owners have little say in the daily operations and maintenance of the resort. For
more on HOAs, see Chapter 7.
 What are the exact names and phone numbers of the people at the resort that I
need to contact in order to . . .
. . . make a reservation at that resort
. . . get a week assigned (if you own a floating or flex week)
. . . ask questions about mortgage payments
. . . ask questions about maintenance and real estate taxes
. . . refer friends, family, and co-workers to the resort
 Does the resort offer discounts on area attractions, restaurants, and so on?
 Are there discounts for food, drinks, and shopping for owners and if so, what are
they?
 Do owners need an identification card in order to enter the resort or use the
resort amenities? How do I obtain one?
 Do guests need identification cards and how do they obtain them?
 Are there reciprocal privileges at other resorts owned by the same company in
other locations?
 What discounts are offered for other services? For example, if you purchase at an
RCI-affiliated resort, do you or can you obtain discounts for Holiday Inns? If you
purchase at an II–affiliated resort, do you or can you obtain discounts or special
offers from Expedia?
 Chapter 14: Getting to Know Your Resort 169
service is the deal-breaker. In fact, service is one of the features that
both RCI and II (the two leading exchange companies — see Chapter 12)
rely on when rating resorts. So, in this section, I give advice on what to
expect at check-in and how to ensure that you get the timeshare vaca-
tion you want.

You can get a great deal of information on a timeshare unit in the RCI
and II directories of resorts. For every member resort, their catalogs list
both the resort’s on-site amenities — from swimming pools to restau-
rants to laundries — and its unit amenities, like fireplaces, microwaves,
dishwashers, hair dryers, and washer/dryers. It describes the unit type
(two-bedroom, for example) and potential occupancy. It also says
whether a unit is wheelchair-accessible or pet-friendly.

Checking out check-in

Remember to check the check-in days. Most timeshare resorts limit
check-ins to certain dates: generally Fridays, Saturdays, and/or Sundays.
Most resorts that operate on a points-based system allow check-in every
day of the week, but call ahead to confirm.

If you’re using the timeshare on an exchange, bring a printed confirma-

tion of your exchange. In the best situation, you’ll never need it, and in
the worst situation, you have it as backup. Always carry your RCI, II, or
other membership card.

Call or e-mail the resort before you travel to find out what supplies are
already in the room. Most timeshares come equipped with starter pack-
ages: a roll of paper towels, a small supply of coffee filters and instant
coffee, and a small supply of dishwashing detergent and laundry deter-
gent. If you’re checking in to a resort that doesn’t offer this service,
remember to indicate it on the comment card; service counts!

It is during check-in that you will invariably be asked whether you would
like to schedule an informational breakfast or your resort update. These are
all polite terms for a timeshare sales presentation to determine whether
you want to purchase another week or two of timeshare. My advice: Don’t
book anything when you check in. Take a few days to decide for yourself
whether you want more information. Remember, attending a timeshare
sales presentation in this scenario is absolutely optional. This caution
about “informational breakfasts” or “resort updates” is not to be taken
as an anti in-house sales department stance. I worked very happily in an
in-house timeshare sales department for nine months and had some
very satisfied clients who went on to purchase another week or two of
timeshare. I simply suggest that you take a few days to acclimate your-
self with the resort.

Most resorts have a check-in time of 3 p.m. or 4 p.m., which more often
than not means you’ll arrive earlier than that and not have a room to
check into. When you make your call to the resort just before leaving
home, be sure to ask whether the resort has a secured, locked area
170 Part IV: Using Your Timeshare
where you can stash your luggage prior to checking in. A topnotch resort
will even have your bags taken to your room for you while you’re out
swimming, seeing the sights, or dining.

Get a parking sticker or some form of vehicle identification for each

vehicle you’re using. If the resort has a security person at the front
gate (and good resorts do), make it a point to introduce yourself and
everyone in your party. And if you’re traveling with one or more people,
get at least two room keys — and ask whether the resort charges a fee
for lost keys (they shouldn’t).

As a safety precaution, I often test resort staff for potential security

lapses. I tell him or her that I lost my room key and request another.
If the clerk does not ask for some identification and merely hands over
another key, I discreetly alert the manager.

Checking out your room

When you get to your room or villa, the first thing to do is make sure it’s
the right one. If you booked a full two-bedroom, two-bath, you shouldn’t
be in a one-bedroom with an attached studio. Alternatively, if you traded
for a one-bedroom and find yourself in a two- or three-bedroom, you
may want to find out why. Then again, maybe you don’t!

Both the RCI and II directories clearly show the types of accommodations
that are available. In some lucky instances, you may even get more than
you traded for. For example, I once traded a third of my three-bedroom
unit in Orlando (a one-bedroom) and received a two-bedroom unit in
Venice, Italy. Because the Venice timeshare had no one-bedrooms, I was
able to upgrade at no additional charge.

Some slightly confused owners fail to correctly “split” their timeshare

and lose a full week. If you own a two-bedroom that splits into two sepa-
rate one-bedrooms, make certain when you book that you are only using
a one-bedroom if that is what you want in return, and are saving the
other one-bedroom for another week. Too often, owners simply call to
make an exchange without thinking of the type of trading power they
own and what they can exchange it for.

Almost all timeshare units have a kitchen or an efficiency kitchen, usually

with a checklist posted of the kitchen inventory. Make sure that every-
thing on the checklist is accounted for and report any discrepancies to
the front desk. If the unit doesn’t have a checklist, have the front desk get
one to you within an hour so that you can make sure everything is in
order. You don’t want to be charged extra for “four sets of silverware” —
inventory you never saw in the first place — when you check out.

Check the linen and towel supply and find out what the policy is for get-
ting fresh linens and towels (especially if you don’t want to do laundry
on your vacation). Ask about the fee (if any) for laundering linens and
towels. Also be sure to find out whether the pool and/or spa have differ-
ent towels available.
 Chapter 14: Getting to Know Your Resort 171

Beefing up quality control

Tighter government regulations and reliable service from the major brands have
undoubtedly helped to raise the quality of timeshare product. So do annual rankings
and ratings — both within and outside the industry. Both RCI and II award resorts that
consistently exceed the company standards of product quality, service delivery, and
customer satisfaction. The top designation for RCI resorts is the RCI Gold Crown; for
II it’s Five-Star. These awards are deemed the highest level of excellence in resort
accommodations and hospitality. These resorts have a level of amenities rarely seen
in the early days of timesharing, offering such on-site extras as spa services, fire-
places, DVD/CD players, valet parking, and more. For specifics on RCI and II rankings,
go to Chapter 12.
In addition, independent timeshare organizations, like the online Timeshare Users
Group (TUG) (www.tug.com), not only help consumers stay informed but also give
annual awards to those timeshare resorts with consistently excellent product and
service; for a list of the latest winners, flip to Chapter 1.
Independent consumer watchdog groups such as TUG also work to offer detailed
descriptions — and gloves-off critiques — of timeshare resorts, a grass-roots effort
aimed at keeping the industry on top of any problems or issues and ensuring that con-
sumers have the best possible timeshare experience.

Also check the water pressure in the sink(s) and bathtub(s). Take a
look, too, at all the lights (ceiling, tables, floor, refrigerator). Call main-
tenance or go directly to the front desk to report that something isn’t
working properly. If repairs can’t be made before nightfall, ask to be
moved to another room — any respectable resort will be happy to
accommodate you.

Be sure to determine what the fees are for using the telephone and/or
Internet. More and more resorts (as well as hotels) are imposing a hefty
charge for toll-free and/or local calls. Ask before you dial.

It’s also a good idea to ask the following questions:

 What are the hours of the front desk?

 Who do you call with a maintenance issue, and is maintenance
available 24 hours a day?
 Is there a resort concierge? If so, it’s a good idea to introduce your-
self and see what services he or she provides.
 Is there a restaurant on property? What are the hours? Do they
have room service? Is it complimentary? Can you get items to go?
 Where are the vending machines?
172 Part IV: Using Your Timeshare
 Where are the laundry facilities (if you have a room without a
washer and dryer)? Are there certain times of the day when you
cannot use the facilities?
 Where is the ice machine (if you have a refrigerator without ice-
making capabilities)?
 Does the resort have movies for rent? Where can you rent them?
What are the fees and terms?

Rating the Resorts: Member Comment Cards

As the quality of timeshare has gone up, so have its service expecta-
tions. A resort can be set in a dreamy location, offer topflight amenities,
and boast stellar views, but if check-in takes forever, no one is around
to fix the air-conditioner, the bathroom is dirty, and the ceiling leaking,
the whole vacation experience can be a wash. These are the kind of
quality-of-life timeshare issues that can make the difference in a top-
rated timeshare resort and an also-ran.

To develop their own internal ratings systems, both RCI and II rely heavily
on member comment cards (in II’s case, they’re referred to as evaluation
forms), wherein resorts are rated by timeshare users. This is one feature
of timesharing that owners say puts it above the hotel/motel experience.
While hotels and motels are generally rated by AAA or other organiza-
tion, timeshares are rated by the people who use them. I urge you to fill
out these cards — their significance in helping the resort and exchange
companies rate member resorts cannot be overstated.

The comment cards and evaluation forms ask owners and exchangers
to rate the different aspects of their vacations, from the overall quality
of the resort to the specifics: Was the unit ready at the scheduled time?
Was the staff responsive to your needs? How clean was the unit? What was
the condition of the furnishings? The RCI and II resort ratings described
in the following section are based on both RCI comment cards and an
evaluation of resort facilities, amenities, and services.

Although one overriding feature doesn’t set an RCI Gold Crown above an
RCI Resort of International Distinction, for example, ratings for resorts
can and do change. Always check the latest RCI and II directories or go
online to ensure that the Five-Star resort you’re thinking of buying is in
fact still a Five-Star.

Rating the resorts: RCI

RCI has four internal resort ratings in their network:

RCI Gold Crown criteria

A select number of RCI resorts — judged by the most stringent standards
in the industry — are recognized as RCI Gold Crown Resorts. These resorts
 Chapter 14: Getting to Know Your Resort 173
have attained the highest level of excellence for resort accommodations
and hospitality.

Each resort receiving the RCI Gold Crown Resort designation has met
quality and service requirements based on both RCI Member Comment
Card ratings and an evaluation of resort facilities, amenities, and services.

Recipients of this award for superior quality and exceptional service have
also met standards in five RCI member comment card categories and each
resort facilities category in the evaluation. Performances in each of the
comment card categories is compiled over a 12-month period. Resorts
meeting these standards then undergo a facilities evaluation.

RCI member comment card criteria for a Gold Crown Resort includes the
following:

 Check in/check out

 Hospitality
 Resort maintenance
 Unit maintenance
 Unit housekeeping

Resort facilities criteria for a Gold Crown Resort includes the following:

 Resort amenities
 Guest services
 Unit amenities/interiors
 Resort maintenance

RCI Resort of International Distinction criteria

Resorts that have achieved excellence in providing outstanding vacation
experiences for RCI exchange guests receive the RCI Resort of International
Distinction award. Each resort receiving this designation has met exact-
ing quality and service standards. Selection is based on ratings from
RCI member comment cards submitted by members after their vaca-
tions. Resorts receiving the RCI Resort of International Distinction award
have demonstrated a consistent, impressive record of satisfying RCI guests
and have met requirements in each of five categories of evaluation. Per-
formance data in each of these categories is compiled over a 12-month
period for each affiliated resort to determine eligibility for this award.

RCI member comment card criteria for a Resort of International

Distinction includes the following:

 Check in/check out

 Hospitality
174 Part IV: Using Your Timeshare
 Resort maintenance
 Unit maintenance
 Unit housekeeping

RCI Hospitality criteria

Resorts that consistently deliver outstanding customer service and hos-
pitality to exchange guests receive the RCI Hospitality award.

Resorts achieving this designation have received consistently high

scores in two categories. (Resorts receiving RCI Gold Crown or RCI
Resort of International Distinction are not eligible for this award.)
Performance data in the two categories is compiled over a 12-month
period for each affiliated resort to determine eligibility for this award.

RCI member comment card criteria for an RCI Hospitality Resort

includes the following:

 Check in/check out

 Hospitality

Miscellaneous RCI criteria

In addition to the all-important comment cards, RCI has some fairly
strict criteria that a resort must match to even be included on its
roster of resorts.

RCI has a listing of 9 required amenities and 26 additional amenities that

resorts are required to meet (either with two of the required and three
of the additional or one of the required and six of the additional).

Required amenities include such offerings as an on-site pool, a minimum

of ten tennis -courts, a national theme park within 10 miles, and an ocean
beach within a mile.

Additional amenities include such niceties as a whirlpool or hot tub

on-site, restaurants within a mile, an on-site recreational center, a his-
toric site within 10 miles, and horseback riding within 5 miles.

When evaluating the actual rooms, RCI has even stricter requirements,
ranging from alarm clocks and clock radios to hair dryers, washer and
dryer, food processors, wet bar, room service, and can openers.

In the area of guest services, all resorts must offer all the following:

 In-room area information booklet

 24-hour-a-day nonmedical emergency service
 On-site front desk a minimum of eight hours a day
 Chapter 14: Getting to Know Your Resort 175
 On-site laundry facility/service
 On-site maintenance a minimum of eight hours a day
 Complimentary midweek housecleaning (unless the resort supplies
full cleaning amenities)

Rating the resorts: II

II has two types of internal resort ratings for its resorts. They include:

 Five-Star (the top rating)

 Standard

II measures the standards of its member resorts by reviewing the evalua-

tion forms completed by exchange guests, conducting resort inspections,
and using its own quality rating system. The quality rating system weighs
such criteria as

 The desirability of a particular resort

 The actual unit
 The destination
 The physical properties of the resort
 The quality of services and amenities

Packing for a Timeshare Vacation

Your home away from home won’t be complete without your stuff — all
of life’s little necessities that you take for granted in your own home.

Many resorts offer small starter packages of kitchen and bathroom sup-
plies, and many resorts also offer convenience stores that sell basic
supplies and food. Expect to pay a little more for convenience-store
items, as opposed to buying in bulk at your local chain or home center.
Towels, linens, serving wear (plates, glasses, cutlery), cooking pots and
pans, small appliances, TV/VCR/DVD, CD player, microwave, washer/dryer,
dishwasher, telephones, hair dryers, dataports, alarm clocks, and irons
and ironing boards are supplied in most timeshare resort units. But always
find out exactly what’s offered (and what you need to bring with you)
before you go. Of course, in addition to the suggestions in the following
list, you may want to include other essential items that you can’t live
without for a week.

 Your RCI or II membership card and your confirmation from RCI

or II: You need to present your membership card when you check
in, and it’s always smart to have your confirmation on hand in the
(unlikely) event that your reservation is lost.
176 Part IV: Using Your Timeshare
 Kitchen/laundry supplies: Laundry detergent, fabric softener, dish-
washing liquid, dishwasher detergent, kitchen sponge or dishwashing
brush, general cleaning solutions, coffee filters and coffee, paper
towels, and oven mitt.
 Cooking supplies: Salt, pepper, and any other spices you expect to
use; ketchup, mustard, mayonnaise, and any condiments you expect
to use; aluminum foil, plastic baggies, garbage bags; plastic contain-
ers; and flour, sugar, and basic nonperishable foodstuffs you plan to
cook with (pasta and rice, canned soups, canned tuna, cooking oils,
vinegar, and the like).
 Bathroom supplies: Toilet paper, tissues, soap, and shampoo.
 Paper goods: Paper plates, napkins, and cutlery for those days you
don’t want to wash dishes.
 Prescription medicines and over-the-counter medicines: First-aid
kit, aspirin, Q-tips, band-aids, antibacterial cream, and sunscreen.
 Entertainment: Music CDs or tapes and/or videotapes, DVDs, books,
magazines, card games, tennis rackets, golf clubs, swimsuits, and
other sports equipment.
 Miscellaneous: Candles/candle holders, light bulbs, corkscrew,
cocktail napkins, stamps, scissors, small sewing kit, good paring
knife, umbrella, beach towels, and a cooler.
 Chapter 15

Renting, Selling, or Willing

Your Timeshare
In This Chapter

Using your timeshare as rental property

Putting your timeshare on the market

Willing your timeshare to family or friends

Y ou may have purchased a perfectly good timeshare in a perfectly

good location for a perfectly good reason — but you can’t use it this
year or you simply aren’t interested in keeping it. What are your options?

Your timeshare salesperson, sales manager, and deeder should have the
answers to any and all of your timeshare usage questions, including
whether you can rent out your timeshare, what you need to do if you
want to sell the timeshare, and what happens if you choose to will your
timeshare.

Renting Your Timeshare

If you’re unable to use your timeshare in the short term, consider turn-
ing it into rental property until you’re ready to use it yourself.

Renting a timeshare is a good option for people who don’t own time-
share but may be interested in purchasing somewhere down the line.
Renting a fully equipped condo (with kitchen facilities) also makes eco-
nomic sense for families who don’t want to spend money on multiple
hotel rooms and who want to save money on dining out.

Before you buy timeshare, ask about the rental options, just in case. Ask
the salesperson:

 Can I rent the timeshare out if I don’t want to or can’t use it?
 Can I exchange my timeshare for somewhere else and rent it to
anyone at any place if I don’t want to or can’t use it?
 Can a two-bedroom timeshare be used for two separate weeks in a
one-bedroom timeshare?
178 Part IV: Using Your Timeshare
Getting compensated for your rental
Say you’ve bought a timeshare, and you are allowed to use it as rental
property. What can you expect to charge for the rental? Timeshare rental
prices vary widely, depending on such variables as location, demand,
season, quality of resort, on-site amenities, unit size, and in-room ameni-
ties. If you own a top-rated timeshare in a high-demand location in a
high-season resort, you can easily command top prices (and even make
money in the process — savvy owners know that with the right variables,
this is a distinct possibility).

When computing the cost of your rental, consider the cost of your
timeshare and its relation to the cost of a standard hotel room in your
location. So, for example, here is the cost of an average two-bedroom
timeshare, with average monthly payments:

Purchase price $13,500

Down payment $1,350
Amount financed $12,150
Monthly payment $240.63 (15.9% for 7 years)

If you multiply that $240.63 monthly payment by 12, you’re paying

$2,887.56 per year plus your annual maintenance fees and/or taxes.
Break that down further per bedroom-week ($2,887.56 divided by
2 weeks = $1,443.78 per week), divide by 7, and the per-night cost of
your timeshare is $206.25.

Location and demand are key factors in rental income. Suppose you own
a timeshare in a prime location in Hawaii, where you can expect to pay
at least $200 a night for a typical hotel room. So it makes sense to charge
that much (or more) to rent out a complete one-bedroom condo.

If, however, you own timeshare in rural Louisiana, where it’s reasonable
to expect that a hotel room costs much less than that in a prime location
in Hawaii, you may not be able to charge your per-night cost of roughly
$200 for your timeshare. On the other hand, you may find that any
income you can make on timeshare you’re not using is worth the rental.

Finding renters
How do you find renters for your timeshare? It’s easy.

 Advertisements: A quick glance on eBay (www.ebay.com) and

Craig’s List (www.craigslist.org) gives you an idea of how
simple this is. TimeSharing Today (www.tstoday.com) is another
good place to advertise weeks that you can’t use. Local newspa-
pers and even flyers posted on a bulletin board at work or at a local
grocery store also work well. Remember that you’re simply provid-
ing people with an alternative to a hotel.
 Chapter 15: Renting, Selling, or Willing Your Timeshare 179
Use the resources of the timeshare resort you purchased from. Many
timeshare resorts have rental programs that rent out your time at
the resort if you aren’t able to use it. Be sure to ask about the fees
(you will almost always have to pay a fee to the resort to rent out
your timeshare) before you sign away your rights for that week.
 Word of mouth: This is the simplest and, in my opinion, best way
of renting your timeshare.
Suppose you can’t use your timeshare week this year. Coincidentally,
your good friends Toni and Allen say they are thinking of going to
Branson, Missouri, around the same time for a vacation. Toni and
Allen have looked into hotels and express concern that the cost for
the hotel room alone averages $150 a night.
You own a one-bedroom condo just off the main strip with a full
kitchen, a Jacuzzi, three swimming pools, and a miniature golf
course. You offer it to your friends for $150 a night, the same price
they would pay for a hotel room, but with complete cooking facili-
ties and top-rate amenities.
In the transaction, you make $1,050 for renting your condo, per-
haps leaving you with around $400 that you paid for that year but
didn’t get compensated for. Your friends get a nice condo at a place
that they wanted to go to anyway. You’ve provided a service, gotten
something for your unused time, and everyone wins.
Toni and Allen are not required to attend any type of timeshare pres-
entation when they stay at the timeshare in Branson regardless of
whether you own at that resort or someplace else.

The nitty-gritty of renting timeshare

You can rent your time out to anyone else if you’re not using it. Keep
in mind that any time you rent out your timeshare, you have to do so
through either the resort or the exchange company. In other words, just
like you do when you are using it yourself, you must make reservations
through the resort and/or the exchange company. The exception is when
you’re using (or renting) a fixed week at your home resort (a fixed week
means that you don’t have to make reservations, whether you use it or
someone else does). Still, you should always inform the resort that some-
one will be using your week — you wouldn’t want the resort to just give
out your room to anyone claiming to be you, would you?

I highly recommend the following when renting out your timeshare:

 Purchase guest certificates from RCI and II, which work to absolve
you of any liability that happens during the renters’ stay; it puts the
burden onto the person who is renting. These certificates range from
$19 to $49, which you can and should build into the rental fee that
you charge the people staying at your timeshare.
180 Part IV: Using Your Timeshare
 Get a certified or cashier’s check from your renters three weeks in
advance of their check-in date. This is just a precaution, though,
not a hard-and-fast rule.
 Advise the resort management that you won’t be using the time-
share, and that Joe Smith will be staying instead. This can be done
via a phone call, letter, fax, or e-mail.
 Provide Joe Smith with a letter indicating that you, the owner, are
allowing Joe Smith, the renter, to use your vacation week. Include
your contact information for any questions and advise Joe to bring
that letter with him on his vacation.

How to find timeshare to rent

If you don’t own timeshare, but you’re curious about timeshare and interested in rent-
ing for a week rather than spending money on hotels or motels, you can rent time-
shares using the following scenarios:
 From the owner: Anyone who owns timeshare can rent it to you and charge what
they wish.
 From the resorts: All resorts have inventory reserved for their use as well as the
use of RCI and II (the chief exchange companies; see Chapter 12). It’s up to the
individual resort what they do with their inventory — and many times they rent it
to the public.
 From marketing companies: Some marketing companies have agreements with
resorts to put their clients in timeshare units, often as a promotion to sell timeshare.
 From the exchange companies: Exchange companies sometimes rent timeshare.
However, RCI (and II, to a lesser extent) is getting heat from owners because
oftentimes an owner will put in a request for a trade to a specific region only to be
told nothing is available or he’ll have to be put on a waiting list. The owner then
finds a week in that area or at that resort on a rental Web site for substantially
more than the $129 or so that it would have cost to exchange into it. What owners
need to know is that exchange inventory is different from developer inventory or
even RCI (or II) inventory. RCI insists, however, that member weeks that are
deposited for exchange are not included in any rental programs; instead, only
those member weeks deposited for other services, such as cruises, are available.
As a renter, are you required to attend a timeshare presentation? Renting is just like
using or exchanging. With the exception of the third bullet (when a marketing com-
pany offers promotional vacations to sell timeshare), none of the above scenarios
requires that you attend a timeshare presentation. But be assured that once you’re
on-site, you’ll almost always receive an offer — often linked to cash, meals, or other
perks — to attend a preview, resort update, or whatever they decide to call the stan-
dard timeshare sales presentation. Know, however, that it is not a requirement.
 Chapter 15: Renting, Selling, or Willing Your Timeshare 181
Selling Your Timeshare
Renting your week or weeks is a fine alternative if you find yourself with
more timeshare than you can use in any given year. But what if you feel
that the timeshare has become unnecessary, for whatever reason?

As was the case with renting, it is important to remember a few ques-

tions that you should have asked before you buy timeshare:

 Can I sell this timeshare at any time to anyone?

 Will the resort buy back my timeshare if I don’t want it any longer?
If so, for how much?
 If I sell to a private party, what paperwork do I need and what paper-
work do they need? Do I have to pay a fee to sell my timeshare?
 If I sell to someone else, does that person own exactly what I own,
with all rights and privileges?

You should never buy a timeshare with the express understanding, or

even hope, of making money. Timesharing is merely an alternative to
spending rental money. Timeshares can and do increase in value, how-
ever, but inflation may negate any gains you make.

Determining the types of ownership

It is important to know what type of ownership the timeshare is in order
to know who controls it legally. When you buy deeded timeshare, the
developer should ask you “What type of ownership would you like this
to be deeded in?”

When you purchase your timeshare originally, don’t assume that the
developer or whomever you are purchasing your timeshare from knows
the type of ownership you want or need. It is up to you, the purchaser,
to ensure you get the kind of ownership you want.

Timeshare is generally conveyed as four basic types of ownership:

 Sole owner: As a sole owner, one person enjoys title in his or her
name only.
 Joint tenancy: Joint tenancy is a way of owning property, whether
real estate or personal property, in the name of two or more people.
The most common form of joint tenancy is joint tenancy with right of
survivorship — when one person dies, the survivor(s) becomes the
sole owner.
 Tenancy in common: Similar to joint tenancy, with tenancy in
common, several owners each hold an undivided portion of the
property. Each owner may deal with his or her portion of the prop-
erty as she wishes (giving it away, mortgaging it, bequeathing it),
and, upon death, the share becomes part of his or her estate.
182 Part IV: Using Your Timeshare
 Tenancy in the entirety: Tenancy in the entirety is the same as joint
tenancy, but solely between a husband and wife.

When you sell your timeshare (or when you purchase timeshare on the
secondary market), it is vital to have the correct signatures:

 If the timeshare is held in sole ownership, obviously you signature

alone is all that’s needed to convey the title.
 If the timeshare is held in joint tenancy, each tenant’s signature is
needed. If only one person conveys his or her interest, the joint ten-
ancy will be broken and, by default, a tenant-in-common situation is
created.
 If the timeshare is held by tenants in common, again each tenant’s
signature is necessary. However, if one party signs its interest to
someone else, the new owner(s) as well as the remaining owners
still own an undivided interest together.
 If the timeshare is held by tenants in the entirety, both the husband
and wife’s signature are needed to convey title to another person(s).

The nitty-gritty of selling timeshare

How do you sell timeshare? Much like you buy timeshare on the
resale market (discussed in Chapter 9). Several publications, notably
TimeSharing Today (www.tstoday.com) have an extensive listing of
timeshare for sale.

In addition, many realty companies maintain a completely separate divi-

sion for timeshare sales. Most, if not all, of these companies charge a fee
for selling timeshare — and the fee can be quite high. Sometimes, the
resort you bought your unit from will offer to buy back your timeshare.
However, I have never heard of a timeshare resort that buys back its
property before the resort is sold out, when it stands to make a nice
profit on reselling your unit.

My advice? Advertise the timeshare yourself. This is easy to do, but it’s
also where the frustration sets in. Most people incorrectly assume that
if they purchased a timeshare for $13,500 three years ago, they’ll be able
to sell it for $15,000 today. Nine times out of ten that won’t be the case.
You should never buy timeshare as a real estate investment or as a get-
rich-quick scheme.

Hundreds of companies offering to “Buy back your timeshare!” advertise

on TV and on the Internet. Some of these companies are more legitimate
than others, but most charge a hefty upfront listing fee. Many of these
companies tell you that they need your week of timeshare in order to
show it properly to clients. Don’t fall for this scam. These companies
have no interest in selling your timeshare for you. Rather, they take your
week, rent it out to someone for perhaps $1,000 or more, and leave you
with nothing. You can easily do this yourself; and, as discussed in the
 Chapter 15: Renting, Selling, or Willing Your Timeshare 183
“Renting Your Timeshare” section, most people make their money back
quicker and with less aggravation by renting out their timeshare for a
number of years, not by selling it.

Willing Your Timeshare

What happens to your timeshare property when you or the co-owner
dies and the timeshare is to be willed?

First of all, it’s important to know the type of ownership your timeshare
is, and whether or not it can be willed (see “Determining the types of
ownership” section).

When the timeshare is deeded in perpetuity, it generally means that it

can be willed or passed on to the heirs. There are, however, exceptions
(that is, certain timeshare resorts make exceptions), so always check
the fine print before you buy anything.

Timeshares that are deeded right-to-use can also be willed, although

there is often a time or usage limit attached (see Chapter 3).

Some timeshare resorts don’t allow the property to be willed and, there-
fore, allow only the purchaser to use the timeshare and the associated
benefits. If being able to will your timeshare is important to you, stay
away from these resorts — plenty of timeshare resorts do allow you to
will the property and/or usage.

Just as the different types of ownership impact how a timeshare is sold,

they also impact what happens in the case of death:

 In the event of your death as a sole owner, the title will pass on to
your heirs or your estate either by your will or through the laws of
intestacy (that is, if you don’t have a valid will).
 In the event of your death if you’re one of the joint tenants, your
interest will pass to the surviving joint tenant.
 In the case of your death as one of the tenants in common, the title
will pass on to your heirs either by will or laws of intestacy.
 In the case of your death as one of the tenants by the entirety (that
is, if you hold the property with your spouse), your spouse will have
complete title.

The material covered in this book, including this chapter, is not intended,
nor should be construed, as the law in every case. I am merely providing
a framework. Consult your lawyer or attorney for specific questions
regarding willing or trusting timeshare or any other property or asset.
184 Part IV: Using Your Timeshare
 Chapter 16

Looking Beyond Traditional

Timeshare
In This Chapter

Signing up for vacation clubs

Doing the town with urban timeshare

Talking about fractionals, hotel condos, and private residence clubs

T imeshare has branched out into many different incarnations, from

high-end fractionals and private residence clubs to vacation clubs
to urban interval ownerships. This chapter gives you a look at each.

Buying into Vacation Clubs

Vacation clubs have been around almost as long as timeshare. For many
people, these clubs offer an alternative to hotel accommodations without
the commitment, either financially or mentally, that a timeshare generally
demands. And that’s usually the selling point that vacation clubs pitch
to potential customers. It goes something like: “We know what you like
about timeshare — the choice of high-quality resorts — and we know
what you don’t like about timeshare — the large upfront costs, the annual
maintenance fees, and the long-term commitment. So what if you could
get all the benefits without any of the drawbacks?”

The nitty-gritty of vacation clubs

Although the details may differ from one vacation club to another,
here is the basic premise: For a one-time enrollment or membership
fee, members have the opportunity to stay at a timeshare resort one or
more times a year for a fee that’s less than they would expect to pay if
they were coming in off the street. In addition, members generally have
access to a travel company or travel agency that may offer discounts on
hotel stays, cruises, airfare, package tour vacations, and the like.
186 Part IV: Using Your Timeshare
Vacation clubs often offer tremendous deals on nontimeshare vaca-
tions. In November and December 2004, for example, one club was
offering a five-day, four-night package to Amsterdam including round-
trip airfare from New York, breakfast everyday, and a sightseeing tour of
Amsterdam — for $399. In some cases, vacation clubs offer the most
value if you don’t use timeshare weeks at all, and you’re under no obli-
gation to ever use any weeks of timeshare.

All benefits of a vacation club may be used by members’ families as well

as willed.

Here is an actual example of three different packages offered by a vaca-

tion club headquartered in Florida:

 Package #1:
• Enrollment fee of $4,995
• Access to four weeks of timeshare annually
• Discounts on other vacation components
 Package #2:
• Enrollment fee of $3,995
• Access to two weeks of timeshare annually
• Discounts on other vacation components
 Package #3:
• Enrollment fee of $2,995
• Access to one week of timeshare annually
• Discounts on other vacation components
 Annual dues: $149
 Average cost of timeshare weeks: $500

Assessing the value of vacation clubs

Is a vacation club the way to go? Take a look at some numbers, based on
a $100 hotel room with 8% tax and 10% annual inflation on rooms and
timeshare weeks.

Hotel/Taxes Vacation Club/2 Weeks

Year 1 $1,400/$112 $3,995/$1,000
Year 2 $1,540/$123 0/$1,100
Year 3 $1,694/$135 0/$1,210
Year 4 $1,863/$149 0/$1,331
Year 5 $2,049/$163 0/$1,464
Year 6 $2,253/$180 0/$1,610
 Chapter 16: Looking Beyond Traditional Timeshare 187
Year 7 $2,478/$198 0/$1,771
Year 8 $2,725/$218 0/$1,948
Year 9 $2,997/$239 0/$2,143
Year 10 $3,296/$263 0/$2,357
Total spent $22,295/$1,780 $3,995/$15,934
Grand Total $24,075 $19,929

This isn’t a huge savings by any standard, and don’t forget, for your
$19,929 expenditure, you own nothing. In a reversal of the guiding eco-
nomic principles of timeshare, in this case, if you use your vacation club
lodging only for a few years, rather than for ten years, you realize more
savings.

Where do these vacation clubs get their timeshare weeks? In many

instances, they’re getting RCI Bonus weeks and/or II Getaway weeks.
These weeks from the leading exchange companies (see Chapter 12)
are generally excess weeks of timeshare that the exchange companies
cannot fill with actual members. Using these weeks, your chances are
almost nil of getting a good week in a good location.

However, some vacation clubs go a step further and actually have agree-
ments with resort developers to gain access to inventory that’s not even
available to the RCI or II pool. Needless to say, these particular vacation
clubs have better inventory, and your chances of getting a good week in
a good location increase substantially.

Asking the right questions

As with exchanging your timeshare for a week at another resort, it is
absolutely not necessary to go through a timeshare presentation if you
don’t want to. Understand that someone from the resort will contact
you, possibly several times during your stay, and offer you gifts of vari-
ous values, but you are not obligated to attend a timeshare presentation
when using timeshare weeks through a vacation club.

Just as you have a list of questions to ask when purchasing a timeshare,

here are some questions to pose when buying into a vacation club:

 Is this product willable and/or transferable?

 Where does the vacation club obtain its timeshare weeks from?
 What happens if the vacation club goes out of business?
 Is the vacation club a member of the Better Business Bureau?

Unfortunately, there are many examples of vacation clubs that promised

the moon and delivered nothing. Do your due diligence with any vacation
club — because you’re not purchasing a deed, you have fewer legal rights
than you would with a timeshare.
188 Part IV: Using Your Timeshare
Discovering Urban Timeshare
Not so long ago the word “timeshare” conjured up beachfront properties,
high-rise towers near mega attractions, or condos perched near ski slopes.

But now when you hear the word timeshare, you’re just as likely to imag-
ine the wharves of London, the hills of San Francisco, the shopping streets
of Paris, and even all that midtown Manhattan has to offer. Welcome to
the wonderful world of urban timeshares!

If you would rather attend the opera than recline on a beach chair, listen
to the symphony than brave long lines at a theme park, shop at upscale
boutiques than buy a T-shirt at a theme-park emporium, or take in the
sights from the top of the Empire State Building than dig for clams, a
timeshare in the middle of a bustling city is just the tonic.

Just like its noncity counterparts, urban timeshare offers more than a
typical hotel room; most have a kitchenette, separate living and sleeping
areas, and the most notable feature: more space than the average hotel
room. At the Manhattan Club, for example, suites sleep four people and
average about 650 square feet — nearly twice the space of an average
hotel room in New York City.

What the urban timeshares lack in terms of access to recreational activi-

ties, outdoor sports facilities, and beaches or ski lifts, they make up for
in terms of prime city locations. New York City’s Manhattan Club is just
across the street from Carnegie Hall and only three blocks from Central
Park. San Francisco’s Club Donatello is only one block from Union Square.
The Grand Residence is located in Mayfair, one of the most prestigious
(and costly) districts in London.

I had always suspected that most of the timeshares at the Manhattan

Club in New York City were owned by companies who used them for
business purposes. I was happily surprised, however, to find out that
individuals and families comprise the majority of the ownership, proving
that savvy consumers are taking advantage of the myriad vacation
options not only in timeshare but in the entire hospitality industry.

If you plan to drive to your urban timeshare, always ask whether parking
is included in the purchase price. While you wouldn’t think of asking
whether you could park your car for free at a timeshare resort in Myrtle
Beach, South Carolina, or Branson, Missouri, it’s a different story in cities
like New York City, Boston, and Paris. These are walking cities, where cars
are more of a hindrance than a help, and if you drive, you want to find
long-term parking for your car during the duration of your stay.

Although urban timeshares are often more costly than their beach,
mountain, or wilderness counterparts, they do enjoy very high trading
power. Why? The supply is low. If New York City has only one timeshare
resort with less than 400 rooms, it doesn’t take a lot of requests to over-
run supply. Remember that both RCI and II take into account supply as
well as demand when fulfilling trades.
 Chapter 16: Looking Beyond Traditional Timeshare 189

Snapshot: Las Vegas timeshare

Vegas has been a boomtown for more than 50 years and shows no sign of slowing
down. Nothing is understated or done on a small scale here.
Just as hotels keep being torn down and rebuilt bigger and brassier than before, the
timeshare market is growing at an equally rapid rate. Plans are in the works to build
at least seven or eight large-scale (more than 1,000 rooms each) timeshare resorts on
or right off the strip.
II lists 12 resorts in their latest directory, five of them right on the famed Las Vegas
Strip, (otherwise known as Las Vegas Blvd. South). RCI lists 13 properties, with five
right on the strip and three on properties that have casinos.
It stands to reason that if timeshares in Las Vegas are being built at a rapid rate, what
passes for timeshare marketing is also growing. However, some of the worst market-
ing practices are found here.
OPCs, or off-property consultants, are rife throughout the city. Everywhere you go, you
see offers for “FREE DINNER SHOW TICKETS,” “DISCOUNTED SHOW TICKETS,” “$50 GAMING
CREDITS,” and other come-ons to lure you into a timeshare presentation. One well-
known independent company hires women in low-cut, tight-fitting T-shirts and
Spandex pants to lure clients in. Once inside the timeshare resort, clients are sub-
jected to high-pressure sales tactics.
More so than in almost any other timeshare location, it’s important to maintain a clear
head when contemplating timeshare in Las Vegas. Don’t be blinded by the flashing
lights and the glitz of the place. Everything in Las Vegas has flashing lights and a high
glitz factor — it’s often there to hide what’s really going on.
That said, Las Vegas has some very fine and reputable timeshare companies doing
good business without resorting to tired, worn-out timeshare tricks.
A few pointers to keep in mind:
 Las Vegas, like Orlando, is “all red (peak season), all the time” and will generally
get you a decent exchange.
 Ask yourself whether you plan to spend a full week in Las Vegas when you visit.
If not, don’t exchange into Vegas and give up an entire week.
 Because of the short lifetime of many hotels and timeshare properties in Las
Vegas, you have to ask some very pertinent questions about what happens to your
deed, your property, your rights, and the like should the resort be sold, torn down,
or put under new management.
 If you plan a trip to Las Vegas either as your home resort or on a trade, be sure to
find out when the big conventions are in town — and try to avoid being there during
those times. Although you’ll never see Las Vegas empty — and that’s part of its lure,
right? — trying to navigate the Strip during one of the world’s largest computer con-
ferences is something you want to avoid.
190 Part IV: Using Your Timeshare
Exploring Fractionals and Private
Residence Clubs
Fractionals are the fastest-growing segment of the timeshare industry,
and without a doubt the most costly. With fractionals, the purchaser
owns a multiple number of weeks (typically a fraction of a year: one-
quarter, one-eighteenth, or one-thirteenth). Timeshares that operate
as fractionals are typically run by management companies and have
sizeable annual maintenance fees as well as membership fees.

With prices starting at $100,000 to upwards of $500,000, fractionals

can’t be considered traditional timesharing in any sense of the word.
Fractionals are financially out of reach for families who generally spend
less than $2,000 per year on vacation. For those consumers who demand
the best, want something out of the ordinary, and have the money, frac-
tionals represent the wave of the future in vacationing.

Close cousins of the fractional, condominium hotels, hotel residences

(see the “Discovering Urban Timeshare” section), and private residence
clubs (PRCs) are making a huge impact in both the vacation and real
estate arenas. Private residence clubs are ultraluxurious properties found
in the most desired locations around the world. They come complete
with automobiles, private chefs, and full-time personal assistants and
offer many of the same amenities as country clubs.

Condominium hotels are becoming a popular alternative to the tradi-

tional vacation or second home. It’s simple, really: You purchase a
luxury hotel unit for a set price, pay a monthly maintenance fee to
maintain the room and the grounds, and use it when you want to with
no need for reservations. Hotel residences and private residence clubs,
such as the Trump International Hotel and Tower scheduled to open in
Chicago in 2007 and the Mandarin Oriental in New York, are examples
of timesharing that really isn’t timesharing at all, but more like primary
(well, make that secondary) residences.

Condo hotels, hotel residences, and private residence clubs can be con-
sidered more of a real estate investment than a traditional timeshare.
One of the caveats of traditional timeshare for the buyer to realize is
that timeshare should never be purchased as a real estate or even a
rental investment.

While fractionals do allow owners to trade or exchange within a network,

most owners buy at a location that they enjoy returning to year after year,
unlike traditional timeshare, in which exchanging is one of the most pop-
ular features and among the key reasons consumers purchase.
 Chapter 16: Looking Beyond Traditional Timeshare 191
The nitty-gritty of fractionals
What is fractional? Fractionals differ from timeshare in these four
key ways:

 You own more than a week or two of vacation time a year. In a

fractional timeshare, you own anywhere from one month to four
months of the year. You generally purchase the time (or shares)
from the management company, and that company handles the
maintenance fees as well as scheduling time.
 Fractionals offer substantially higher quality amenities than even
the best traditional timeshare can offer.
 Fractionals have substantially higher prices ($100,000 and up) as
well as higher maintenance fees.
 Fractionals have substantially greater satisfaction rates (traditional
timeshare registers at a 85% to 88% satisfaction rate, while fraction-
als register at a 96% satisfaction rate).

As with timeshares, fractionals may or may not be deeded real estate.

Always ask. Just as you must ask some basic questions when consider-
ing a timeshare for $13,500, you should ask even more questions before
plopping $150,000 on the table.

Some fractionals are more like timeshare condos, albeit with more
amenities; others may be suites in a high-end, luxury hotel, generally
found in urban areas.

As of March 2004, there were 151 resorts that offered fractional owner-
ship worldwide, with the vast majority (132) in the United States. Note
that these numbers do not include single homes sold on a fractional
basis, nor properties with a small number of condominiums that are
made available on a fractional basis.

Almost 50% of the fractional resorts are located in ski areas, while beach
areas account for about 30% of the market. The remaining 20% is split
between golf and urban locations.

Average Prices Price Per Week

Traditional $123,100 $12,310
High end $165,800 $33,160
Private residence $247,000 $49,400

Table 16-1 shows you the differences between traditional timeshare and
fractionals.
192 Part IV: Using Your Timeshare
Table 16-1 Traditional Timeshare versus Fractionals
Timeshare Fractional
Cost Average of $13,500 from Generally start at
developer, often $100,000, some with
considerably less on yearly fees over
resale market. Average $10,000.
yearly maintenance fee
of about $500.
Exclusivity Not very exclusive; Very exclusive, in large
marketed and sometimes part due to the high
sold to just about anyone, cost. These are not
especially if purchased marketed to just
on the resale market. anyone and have an
Look at it this way: You and exclusive country-
roughly 51 other people club feel. At most,
own the same condo. you and 11 other people
own the same
condo/home.
Type of residence Generally more luxurious Far more luxurious than
than a traditional hotel/ even a traditional time-
motel room, offering share, most fractionals
kitchens, living rooms, look and feel more like
larger bathrooms, and a private house than
so on. an enhanced hotel
room.
Length of ownership Purchased by the week, Most fractionals start at
per year with the average owner one-twelfth of the year
owning one or two weeks (four weeks) and many
per year. go to one-quarter of the
year (three months) or
more.
Locations More than 5,700 time- Limited areas, which
shares around the world. adds to the exclusivity
factor.
Financing options Banks will not finance More and more banks
timeshares with a are treating fractionals
traditional mortgage, so as a conventional
often consumers use the second home.
developers’ extraordinarily
high financing rate: on
average 15.9%.
 Chapter 16: Looking Beyond Traditional Timeshare 193
Timeshare Fractional
Real estate appreciation Although some timeshares Significantly better than
possibilities have gone up in value, a traditional timeshare,
the general rule is that if but still less than a
you can sell it ten years single-family house.
down the road for what
you paid for it, you’ve done
extraordinarily well. Don’t
buy a timeshare as a real
estate investment; it simply
isn’t.
Services available Limited to sports facilities, The sky is the limit:
a few restaurants on-site, private dinner parties,
transportation to area butler service, personal
attractions and shopping. shopping, arranging to
have your skis waxed
and ready for your
arrival, use of private jet.
Trading Most people purchase a Most people purchase a
timeshare for the fractional for the
exchanging possibilities, location and resort
with various degrees of quality. Some exchanging
success depending on does occur, but
where they own. Even because of the very
notoriously poor locations low number of
for trading can generally fractional products
be exchanged for something, available, the
provided you aren’t that tendency is to purchase
picky about where you end where you want to
up, due to the sheer number vacation. A typical
of timeshare locations fractional owner is
available. simply not going to want
to trade one of his or her
$20,000+ weeks for a
week in a traditional
timeshare on a crowded
beach next to everyone
and their mothers-in-law.

What to expect of a fractional

What kind of services and amenities can you expect with fractionals?
Although the list varies from property to property, the following gives
you a good idea of the type of high-end features available. Of course,
most of these extra services come with extra fees.
194 Part IV: Using Your Timeshare
 Airport pickup
 Groceries and toiletries supplied before arrival
 Clothing (sent ahead) unpacked and put away before arrival
 Arrangement of complete leisure or business itinerary, complete
with luxury car rental or chauffeured limousine
 24-hour room service
 Daily housekeeping including laundry
 Butler service
 Private chefs and personalized menus
 Childcare

Fractional timeshares are for the most part more cost advantageous for
the developer than traditional timeshare, so it was only a matter of time
before other luxury products and services were thrown into the fray.
Some of the latest perks include

 Jets and other planes

 Recreational vehicles
 Yachts and other boats

When you aren’t using your fractional, you can generally rent it out
yourself, or for a fee, the management company will rent it for you. But
renting your hotel property when you aren’t using it may not be cost
effective — some management fees are as much as 50%.

Purchasing one of these properties should be handled with the same

degree of preparation, use of professionals (lawyers, real estate agents,
and so on), and care that you handle your primary residence with.
 Part V
The Part of Tens
 In this part . . .
I list several timeshare sales pitches you should run,
not walk, away from and show you how timeshare has
branched out to become much more than just a condominium
unit. I also tell you ten things to keep in mind before buying
timeshare.
 Chapter 17

Ten Timeshare Sales

Situations You Should Run,
Not Walk, Away From
In This Chapter

Picking up on sleazy timeshare sales tactics

Finding out there’s no free lunch

Dealing with aggressive timeshare salespersons

T he sleazy days of timeshare fraud are largely fading from view,

although you can be sure that wherever money is involved, scam
artists will find creative ways to take yours. It’s sad but true: Year after
year, some timeshare salespersons continue to pitch heat. Here are ten . . .
er, make that twelve . . . timeshare sales pitches and situations that should
have you heading for the door, checkbook firmly tucked away.

Free Vacation! Er . . . Uh, Except For . . .

The fine print for your free timeshare vacation states that the receipt of
one portion of the offer (the airline ticket) is dependent on the purchase
of something else (hotel accommodations).

You Can’t Afford Not to Buy It!

High-pressure sales presentations often reach this arm-twisting conclu-
sion at some point in the pitch — or some variation of it, such as “Only a
fool would walk away from this deal!” or “You have to do this now!” Then
there’s “You owe it to your children” — a bottom-of-the-barrel ploy that is
aimed directly at the heartstrings. A variation on the latter is “You owe it”
to a long-suffering spouse, for whom a life reward is evidently due.
198 Part V: The Part of Tens
Shaquille O’Neal Practices
on Our Basketball Court!
Oh and he’s even looking to start a pickup game with the local timeshare
owners. If you think that Shaquille O’Neal

 Doesn’t own his own basketball court

 Needs to use the half-court at a timeshare to hone his game

have I got a bridge in Brooklyn for you!

They Do Look Awfully Familiar

The happy couple enjoying an exotic vacation in the sales brochure
bears a distinct resemblance to the timeshare salesperson and his
assistant.

Give Us Money So We Can Give

You More Money
You may receive a postcard or fax of promotional mailings that require
you to pay a fee or to purchase membership in a travel club in order to
claim a vacation or travel prize.

If someone asks you for money in advance to pay for a special vacation —
whether by phone, fax, or snail mail — don’t do it. And don’t under any
circumstances give your credit card number out to anyone offering a free
vacation.

After You Pay Off Your Timeshare,

You Vacation for Free
This is simply not true. You have to pay maintenance fees and/or taxes,
exchange fees, special assessments, and of course transportation, food,
shopping, and the like. Vacations are never free.

For You, We Cut the Price in Half!

You are special, it’s true, but if you hear these words: “Normally we
charge $28,000 for a two-bedroom timeshare, but because you’re here
with us today, you can have the exact same thing for only $14,000,” head
 Chapter 17: Ten Timeshare Sales Situations to Run From 199
for the door. Car dealers are infamous for the same silly pitch. Do you
really think that a timeshare developer is going to give you a $14,000 dis-
count simply because they like you? Always ask upfront whether you’ll
be given more than one price. And know that in 2004, the average price
of a two-bedroom timeshare in the United States was $13,500.

Your Timeshare Hasn’t Been Built Yet

You’re shown a beachfront timeshare unit that’s spacious, good-quality,
and just right for you. You get back to the sales tent, ready to buy.
“By the way,” the salesperson says, “the timeshare we showed you is
not the one for sale — your timeshare hasn’t been built yet.” See ya.

Free Tequila!
When a timeshare salesperson reaches for the alcohol, it’s time to
take cover. This is a fairly common sales ploy among unsavory time-
share operators in places like Mexico and the Caribbean, where a few
glasses of tequila work to loosen your inhibitions — and your purse
strings.

Versailles Is on the Brochure Cover

No kidding: I once saw a timeshare company brochure that showed King
Ludwig’s 19th-century fairy-tale palace, Neuschwanstein, in Bavaria on
the cover as a timeshare property. Now that’s taking bait-and-switch to
another level.

You’ll Make It All Back in Rentals

You’re at a timeshare presentation in Cancun and the salesperson tells
you that the timeshare you are about to purchase will rent for lots of
money and that you can count on this money to pay for the down pay-
ment or the full purchase of the timeshare membership. I first heard about
this one in the helpful Web site The Timeshare Beat (www.thetimeshare
beat.com). Salespeople even go so far as to have the resort “owner”
talk to you on the phone while you’re still in the sales room in Mexico
or fax you a document guaranteeing that rental. As the good people at
The Timeshare Beat advise: Beware of any promises made to you about
rental or resale value.
200 Part V: The Part of Tens
You’re Wasting My Time Here!
Timeshare presentations can stretch into hours of high-pressure tactics,
with salespersons handing off potential customers to sales staff who
ratchet up the hard sell. One final tactic — that, sadly, works in some
situations — is when a salesperson pretends to get angry and even
insults the buyer by questioning his or her intelligence for balking
at the deal. Fortunately, this tactic is generally used by second- and
third-rate companies only; the established brands rarely apply this
sort of hard-sell to selling timeshare anymore.
 Chapter 18

Ten Timeshares You May

Not Have Thought
of As Timeshare
In This Chapter

Discovering a world of timeshare destinations

Exploring the many types of timeshare

M any people who hear the word “timeshare” envision a monotonous

series of concrete condos shadowing a beach. But the staying
power of timeshare is a direct result of the industry’s efforts to stay
fresh and competitive and give consumers more, better choices. Sure,
dull cookie-cutter timeshares are still around, but so is a growing vari-
ety of novel timeshares around the world. Open an RCI or II directory
(those are the leading timeshare exchange companies — see Chapter 12)
to virtually any page, and you can see how varied the options are. Here
are ten — well, really fifteen, but who’s counting? — timeshare offerings
you may never have thought of as timeshare.

Canal Boats in England

Cruise through the English countryside in a fully equipped canal boat.

Sailboats in St. Vincent

Spend your timeshare week of sailing and swimming in the Caribbean on
your own private boat.
202 Part V: The Part of Tens
Forest Chalets in Georgia
Three-bedroom chalets are available in the forested mountains of
Georgia.

Cabins in New Mexico

Fully equipped cabins with decks are within view of hot-air balloonists.

Rooms in a 17th-Century French Castle

Stay in a towered and turreted castle in the Loire Valley with panoramic
views of the French countryside.

Private Cruising in Antigua

Spend a week sailing your own yacht, stopping for picnics and swims on
the island’s hundreds of private beaches.

Thatch-Roofed Cottages in Belize

These jungle homes let you watch monkeys swinging just outside your
bedroom window.

Villas in The Gambia

Stay in cottage villas on stilts within view of African wildlife reserves.

Terraced Apartments in South Africa

Apartments with sea views are available in both Cape Town and Durban.

Country Lodges in New Zealand

Spend a week in a rustic New Zealand lodge with two swimming pools,
a spa, and a gourmet restaurant.

Golf Resorts in China

Enjoy a suite overlooking uniquely landscaped Chinese courses.
 Chapter 18: Ten Timeshares You May Not Have Thought Of 203
Ski Parks in Switzerland
Learn to ski some of the finest mountains in the world, and have your
après-ski at home in your timeshare, in front of your own fireplace.

Beach Clubs in Hawaii

Stay in a beachfront bungalow set inside a multi-million-dollar club.

Garden Villas in Italy

Spend your timeshare week in a historic garden villa just minutes by
water taxi from St. Mark’s Square.

Country Clubs in England

Enjoy tea with other guests in the main room of a Tudor manse.
204 Part V: The Part of Tens
 Chapter 19

Ten Things About

Timeshare Every Consumer
Should Know
In This Chapter

Getting savvy about timeshare

Knowing when to buy and when not to buy

T imeshare is a commodity and a business, and anyone thinking of

buying timeshare should do his or her best to become a thoroughly
informed consumer before signing anything. Here are ten issues you
should know about buying timeshare.

Understand Why the Price Is What It Is

The average cost of a two-bedroom timeshare in 2004 was $13,500.
Anything substantially higher or lower than that, and you should be
asking, “Why?”

Define “Best” for Yourself

There is no such thing as the “best” timeshare. It’s imperative to pur-
chase the timeshare that will allow you to use it for what you need.
For some people, Orlando is best; for others, Orlando would be a
waste of money.
206 Part V: The Part of Tens
Timeshare Isn’t a Real Estate Investment
Never buy timeshare as a real estate investment. It isn’t. Look at the
long-term picture. Sure, for many people, $13,500 is a lot of money, but
if you’re shelling out $100 for hotel rooms ten nights a year anyway, it
would take only 13 years to break even versus hotel costs. And that’s
before you factor in the inevitable hotel inflation. And anything after
13 years is gravy.

Get the Lowdown on Maintenance Fees

Ask about the maintenance fees. More than likely, you will be charged
annual maintenance fees. Questions to ask include

 How much are they?

 How much did they go up from last year to this year?
 Who controls them? (In other words, are owners included on the
resort’s controlling board?)

Remember What Happens When You Assume

Assume nothing. A lot of timeshare are deeded in perpetuity. Many are
not. Most timeshare operates on a points-based system (see Chapter 7).
Often, those points are not inflation-proof. Always ask and don’t be
afraid to say “no” if the product doesn’t suit your needs or wants.

Never Buy Because of Incentives

Although it may be high-pressure, low-pressure, or (I hope) no-pressure,
you will be asked to buy right there on the spot, and you’ll be offered
incentives to do so. Never buy because of the incentives. Buy only if you
answer “yes” to these three questions:

 Do you like the product and/or the particular resort?

 If you owned it, would you use it? This means that you plan or
intend to spend that amount of money anyway, renting hotels/
motels/condos on vacation. (Note the word “plan.” To quote the
advertisement, “You can’t predict; you can plan.”)
 Are you willing to fit the monthly payment into your budget?
 Chapter 19: Ten Things Every Consumer Should Know 207
You Can — and Should — Negotiate
Almost everything is negotiable, if you ask. It’s true. Price, interest rates
(most timeshare offer in-house financing), and perks (such as first-year
membership dues or first-year maintenance fees) are often negotiable.

You Can’t Believe Everything You Hear

Don’t believe everything you hear. That goes from Uncle Paul telling you
that timeshare doesn’t work because he was never able to trade to go
anywhere else to the salesperson telling you that you’ll always be able
to trade at any time for any place.

Free, Perfect, Always, and Never Don’t Exist

In general, stay clear of anyone, especially timeshare salespersons, that
use the words free, perfect, always, and/or never. These absolutes don’t
exist.

You Don’t Have to Sit through the Pitch

You’re free to ask to see any timeshare resort and get pricing infor-
mation without having to sit through a monotonous, tedious, and
time-consuming sales pitch.
208 Part V: The Part of Tens
 Appendix A

Quick Concierge
Exchange Companies
Vacation Packages
Interval International (II) % 800-772-1861
World Headquarters: P.O. Box 41920 305-666-1884, ext. 7519
6262 Sunset Dr., Miami, FL 33243-1920 Getaway Availability
Web site: www.intervalworld.com % 800-722-1860
General information: % 800-843-8843 24 hours a day
Getaway Reservations
Deposit and/or Exchange Weeks % 800-772-1880
% 800-634-3415 305-666-1884, ext. 7504
305-666-1884 Mon–Fri 9 a.m.–11 p.m.
305-665-1918 (Spanish) Sat, Sun, and holidays:
305-667-5321 (fax) 10 a.m.– 8 p.m.
% 800-822-6522 (TDD), Mon–Fri Tours/Adventure Travel
9 a.m.–5 p.m. % 800-949-2222
305-668-3465
Interval Travel Services 305-598-4093 (fax)
P.O. Box 431920 Cruises
Miami, FL 33243-1920 % 800-622-1540
Mon–Fri 9 a.m.–11 p.m. 305-668-3496
Sat, Sun, and holidays: 305-598-4093 (fax)
10 a.m.–8 p.m.
Airline, Hotel, Car Rental
% 800-235-4000
305-666-4063
305-667-5272 (fax)

Overseas Offices % 44-870-744-222

United Kingdom 44-870-7444-217 (fax)
Interval International Limited
Languages Spoken: English, Arabic,
Coombe Hill House
Dutch, French, Greek
Beverley Way
London SW20 0AR
210 Timeshare Vacations For Dummies, 1st Edition
Singapore Mexico
Interval International Singapore Intercambios Internacionales de
(Pte) Ltd. Vacaciones S.A de C.V
One Phillip Street Edificio Torre Caballito
#09-00 Paseo de la Reforma No. 10, Piso 9
Singapore 048692 Colonia Centro, Delegación
Cuauhtémoc
% 65-6318-2500 06300 Mexico, D.F.
65-6318-2511 (fax)
% 52-5-627-7300
Languages spoken: English, Bahasa 52-5-627-7310 (fax)
Indonesian, Cantonese, Malay,
Mandarin, Thai Languages spoken: English, Spanish

Note: Additionally, Interval International member services are also available in

Argentina, Australia, Boliva, Brazil, Chile, Columbia, Costa Rica, Czech Republic,
Denmark, Egypt, Finland, France, Germany, Greece, Guatamala, Hong Kong,
Hungary, India, Indonesia, Israel, Italy, Japan, Malaysia, The Netherlands, New
Zealand, Norway, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Russia,
Spain, Sweden, Taiwan, Thailand, Turkey, Uruguay, and Venezuela.

Resort Condominiums RCI Points

International (RCI) P.O. Box 80600
Indianapolis, IN 46280
Member Services (reservations,
information, points partners program RCI Travel
or cruises)
% 800-654-5817
% 877-969-7476 Mon–Fri 7 a.m.–7 p.m., Sat 7 a.m.–
317-805-9335 (fax)
3:30 p.m.
Mon–Fri 8 a.m. to midnight, Sat
9 a.m.–5:30 p.m., Sun 10 a.m.–6:30 p.m. Platinum Interchange
Memorial Day, Independence Day, 1300 North Kellogg Dr., Suite B
Labor Day, Christmas Eve, and Anaheim, CA 92807
New Year’s Day: 9 a.m.–6 p.m.
Closed: Easter, Thanksgiving Day, % 800-854-2324 or 714-779-7900
and Christmas Day 714-970-0273 (fax)

Web site: www.rci.com Web site: www.platinum

interchange.com

fun@platinuminterchange.com
 Appendix A: Quick Concierge 211
Trading Places American Resort
International Development Association
23807 Aliso Creek Rd. (ARDA)
Laguna Niguel, CA 92656
1201 15th St. N.W., Suite 400
Washington, D.C. 20005
% 800-365-1048 or 949-448-5150
949-448-5140 (fax)
% 202-371-6700
202-289-8544 (fax)
Web site: www.tradingplaces.com
E-mail: info@tradingplaces.com
Web site: www.arda.org

Hawaii Timeshare Exchange Marriott Vacation Club

P.O. Box 1077 International
Koloa, HI 96756
6649 Westwood Blvd., Suite 500
% 866-860-4873 or 808-240-5316 Orlando, FL 32821-6090
808-742-0128 (fax)
% 407-206-6000
Web site: www.htse.net 407-513-6941 (fax)
E-mail: skunz@htse.net
Web site: www.vacationclub.com

Donita’s Dial an Exchange

Hyatt Vacation Club
2845 Nimitz Blvd., Suite E
San Diego, CA 92106 450 Carillon Parkway
Suite 210
% 800-468-1799 or 619-226-2776 St. Petersburg, FL 33716
619-226-2555 (fax)
% 727-803-9400
Web site: www.dialanexchange.us
E-mail: info@dialanexchange.us Web site: www.hyattvacationclub.
com

San Francisco Exchange

Starwood Vacation
185 Berry St., Suite 5411
San Francisco, CA 94107 Ownership, Inc.
9002 San Marco Court
% 800-739-9969 or 415-979-0870 Orlando, FL 32819
415-979-0880 (fax)
% 800-869-1166, ext. 6828
Web site: www.sfx-resorts.com
E-mail: vacations@sfx-resorts.com Web site: www.starwoodvo.com
212 Timeshare Vacations For Dummies, 1st Edition
Fairfield Shell Vacations LLC/Shell
% 800-786-4476 Vacations Club
40 Skokie Blvd.
Web site: www.fairfield
Suite 350
resorts.com
Northbrook, IL 60062

Disney Vacation Club % 847-564-4600

% 800-500-3990 Web site: www.shellvacations
club.com
Web site: www.disneyvacation
club.com

Legal Issues/Complaints
For information on timeshare issues that have been or are being addressed
by the Federal Trade Commission in the USA, go to www.ftc.gov/search.
Type the word timeshare in the search box. (Note: The information that will
be retrieved goes back to the mid 1980s.)

You may file a complaint with the FTC by going to www.ftc.gov.

If you have a complaint about a company that offers to resell timeshares,

write to:

Correspondence Branch
Federal Trade Commission
Washington, D.C. 20580

Although the FTC cannot intervene in individual disputes, the infor-

mation you provide may indicate a pattern of possible law violations
requiring action by the commission.
 Appendix B

Timeshare Glossary
Timeshare, like any other industry, deeded property: Deeded property
has developed its own lingo. In this in timeshare is similar in many ways
appendix, I define the terms that to deeded property in anything
you need to know. else: It gives the buyer ownership
rights of the property. Most deeded
alternate year (EOY): A purchase or timeshare is deeded in perpetuity,
membership option whereby the but some is deeded for 99 years
owner or member has use of the due to such legal issues as land
purchase every other year. Typically, restrictions. See also nondeeded
these products are at a lower cost property.
and are used as an entry level or
starter program. They may be exchange: The ability of the owner or
upgraded to an annual product if member to use his or her product at
the seller allows. Always inquire another place and/or at another time.
what the fee is to upgrade. Typically, there is a fee assessed
each time an exchange takes place.
American Resort Development See also exchange fee.
Association (ARDA): The profes-
sional regulator association for exchange company: The company
the timeshare industry. that does the exchanging or trading
of timeshare. Generally this com-
down payment: The amount of pany is RCI (Resort Condominiums
money that the owner is required International) or II (Interval Inter-
to tender to purchase the product. national). Ask whether there is a
Typically, down payments range membership fee and whether you
from 10% to 20% of the purchase (or the resort) are responsible for
price. Be sure to ask if the entire the fee.
down payment is refunded, should
you cancel the contract. See also exchange fee: The fee that an
recession period. exchange company charges the
owner to exchange or trade a
deed: A legal document providing week/unit for another week/unit
title to your property, giving you at another time and/or place.
ownership rights.
214 Timeshare Vacations For Dummies, 1st Edition
financing terms: The terms of the maintenance fees: The amount of
loan and the annual percentage of money that the owner is charged
interest that the seller offers you in every year to maintain the property.
order to purchase the product. Be certain to ask what is covered in
Typically, timeshare is offered at the maintenance fees, how often the
extraordinarily high interest rates fees have gone up in the past five
(roughly 16%). Be sure to ask what years, whether there is a legal cap
your options are in lowering these to how much they can be raised,
high interest rates. and whether you have a vote in the
issuance of these fees. Note that if
fixed week: A type of ownership in your maintenance fees (and taxes)
which the owner has access to a spe- are not current, you will not be able
cific week of the year. to use your timeshare either at the
place of purchase or to exchange.
floating week: A type of ownership in
which the owner has access to a week monthly payment: The amount of
of the year, but needs to reserve a money that the owner is required to
specific week each year. tender each month to the seller to
use the product. Many resorts offer
fractional: A type of ownership you a choice of a coupon book or
in which the owner has access to an automatic debit. If you choose a
more than one or two weeks a year. coupon book, there is likely to be an
Typically, fractionals are periods of additional bank fee. On a humorous
four weeks to four months. note, many salespeople and sales
managers prefer to use the term
Homeowners’ association (HOA): monthly investment or monthly
The membership of a resort’s home- savings. Don’t be misled — it’s a
owners’ association is comprised monthly payment.
of the timeshare owners, who elect
a board to administer rules and nondeeded property: This is time-
regulations. share property that’s yours to own
for a set number of years or set
Interval International (II): One of the number of uses. See also deeded
two major timeshare exchange compa- property.
nies. See also Resort Condominiums
International (RCI). points: A type of ownership or
membership in which the owner pur-
leasehold: A contract in which all or chases an allotment of points that
a portion of the real estate is subject can be spent to obtain lodging or
to the lease, the expiration or end of other benefits such as airline tickets,
which will terminate the use. This is car rentals, and so on.
not the same as a deed, which is in
effect until sold.
 Appendix B: Timeshare Glossary 215
real estate license: The legal license price of the unit and the availability
issued to the person selling you time- or flexibility in trading or exchanging
share. In the case of deeded property, the unit. Seasons generally reflect the
most states require the seller to have demand at that resort.
this legal license, although some do
not. It’s a good idea to ask whether simple interest no prepayment
your salesperson is licensed by the penalty: Although the interest rate
state. This keeps them on their toes, charged by the seller may be very
in any event! high, the seller may allow you to
pay more than your monthly pay-
referral program: A program that ment, thus reducing the length of the
many resorts offer that remunerates loan and the effective interest rate
you if you provide referrals (names (although not the interest rate on
of potential buyers) who may want to the loan). Be sure to ask for details
purchase a similar product. Be wary and be sure that these details are
of any resort that promises you a cash outlined on any financing papers
payment for these referrals, because you sign. See also financing terms.
this may be illegal.
special assessments: The amount of
rescission period: The legal period of money that the owner is charged to
time that you have to cancel the own- cover items that are not covered by
ership after signing papers and get all regular maintenance fees. Typically,
your money back. These periods vary resorts with ownership or member-
from no days to ten days depending ship on golf courses and waterfront
on local laws. It’s also referred to as assess special assessments. Be certain
the cooling-off period. to ask about the history of assessment
fees at your property and whether you
Resort Condominiums International have a vote in the issuance of these
(RCI): One of the two major exchange assessments.
companies. See also Interval
International (II). special warranty deed: Includes a
warranty of title and an agreement to
right to use: A license or contractual defend claims against title arising
membership right of occupancy in a during the company’s ownership of
timeshare or other common interest the property. With this type of deed,
subdivision that’s not coupled with you’re protected by title insurance
an estate in real property. This is not from the time the timeshare is first
the same as a deed, which in most purchased.
cases is in effect until sold.
taxes: The amount of money the
season: The time of year that the owner will be charged every year to
owner has a right to use his or her pay for property taxes. This money
week. Seasons often determine the may be tax deductible.
216 Timeshare Vacations For Dummies, 1st Edition
trading power: The value of a time- a floating week, there must be an
share week in regard to trading actual unit assigned to your pur-
or exchanging for another week, chase to prevent overselling.
whether at the same resort or at See also floating week.
another resort.
week: The week or weeks that you
unit: The specific room in a specific purchase which will be recorded on
building (for example, unit 105, build- your deed. Although you may have
ing 3, which is a one-bedroom unit purchased a floating week, there
that sleeps four people) that you pur- must be an actual week assigned to
chase and is recorded on your deed. your purchase to prevent overselling.
Although you may have purchased See also fixed week, floating week.
 Appendix C

Timeshare Around
the World
C urrently, Resort Condominiums International (RCI) has
4,000 resorts around the world. See Table C-1 for RCI’s list
of resort locations.

Table C-1 RCI Resort Locations

Area/Country Number of RCI Locations
United States 1,212
Canada 98
Mexico 258
Bermuda, Bahamas, and the Caribbean 193
Central and South America 316
Europe 995
Africa and the Middle East 265
Asia/Pacific 334
Australia and New Zealand 114

Currently, Interval International (II) has roughly 2,000 resorts world-

wide. See Table C-2 for its locations.

Table C-2 II Resort Locations

Area/Country Number of II Locations
United States 906
Canada 37
(continued)
218 Timeshare Vacations For Dummies, 1st Edition
Timeshare Around the World

ARCTIC
OCEAN

Arctic Circle

P A C IPFAICCI F I C
ATL ANTIC

Tropic of Cancer Caribbean

Sea
HAWAIIAN
ISLANDS

Equator

OCEAN

OCEAN
Tropic of Capricorn

Scale at Equator
0 5000 mi

0 5000 km
 Appendix C: Timeshare Around the World 219

ARCTIC OCEAN

PACIFIC

Tropic of Cancer

OCEAN

Equator

INDIAN

Tropic of Capricorn

OCEAN
220 Timeshare Vacations For Dummies, 1st Edition
Table C-2 (continued)
Area/Country Number of II Locations
Caribbean and Atlantic Islands 124
Mexico and Central America 80
South America 96
Europe 375
Africa and the Middle East 38
Asia 32
Australia, New Zealand, 56
and the South Pacific
 Index
Argentina, 117, 124, 147
• Numerics • Arizona
$15,000 sample purchase II locations, 121
Disney Vacation Club, 154 number of timeshare and
Hilton Grand Vacations units, 100
Company, 155 peak exchange weeks, 147
Hyatt Vacation Ownership, 157 RCI locations, 114
SVO (Starwood Vacation top resorts in, 11, 13
Ownership), 161 Arkansas, 110, 120
$20,000 sample purchase, arm-twisting, 197
Marriott, 159 Aruba, 116, 123
Asia
II locations, 126
•A• peak exchange weeks, 147, 149
activity or service fees, 32 RCI locations, 119
advertising assumptions, foolish, 39–40, 206
finding renters, 178 Atlantis Resort, 51
marketing versus, 46 ATMs, proximity to, 74
selling timeshare, 182 auctions, timeshare, 33
Africa, 118–119, 126 Australia
Alabama, 110, 120 II locations, 126
Alaska, 114 maps, timeshare location, 112–113
Alberta, 114, 122 peak exchange weeks, 147
alcohol, caution about, 93, 199 RCI locations, 119
Alexandria, Virginia, 12 Austria, 117, 125, 147
all-inclusive resorts, 162–163
alternate year (EOY), 213
always, use of word, 40, 207
•B•
amenities The Bahamas
fractionals, 193–194 II locations, 123
nonowners, open to, 73 OPC desk, 51
questions to ask, 70–74, 167–169 RCI locations, 116
RCI required and additional, 174 timeshare location map, 104
Andorra, 117, 125, 149 bait-and-switch games, 47
annual dues, 31 Bangladesh, 119
Antigua, 116, 123, 202 banking exchange points, 130, 142
ARDA (American Resort banks, proximity to, 74
Development Association), Barbados, 116, 123
211, 213 Bay Club at Waikoloa Beach, 12
222 Timeshare Vacations For Dummies, 1st Edition

bed tax, 32 reasons behind, 57–59

Belgium, 117 vacation factor, 59
Belize, 116, 123, 202
Bermuda, 116
Berry, Carl (timeshare pioneer), 24 •C•
best timeshare, 205 calculator, 75
Big Cedar Wilderness Club, 13 California
big companies, benefits of, 128–131 growing popularity, 15
Blue season, 135–136 history of timeshare, 24
Bolivia, 117, 123, 147 II locations, 122
Bonaire, 116, 123 number of timeshare and
book, bringing along, 53 units, 100
Boston, 12, 147 peak exchange weeks, 147
branded timeshare RCI locations, 114
company credibility, 55–56 shady reputation, 47
Disney Vacation Club, 153–154 timeshare location map, 103
evolution of, 151–152 top resorts in, 11, 12
Hilton Grand Vacations Company, California Beach Resort at Club La
154–156 Costa, 13
Hyatt Vacation Ownership, Canada
156–157 exchange rate and monthly
Marriott, 157–160 payments, 92
pros and cons, 152–153 growing popularity of locations
resale, 81 in, 15
SVO (Starwood Vacation II locations, 122
Ownership), 160–162 peak exchange weeks, 147
Branson. See Missouri RCI locations, 114
Brazil, 117, 123, 147 Canary Islands, 117, 124, 147
Bright, Greg (timeshare canceling purchase, 62
pioneer), 24 Cancun, 123
British Columbia Cancun Resort–Monarch Grand
growing destinations, 15 Vacations, 13
II locations, 122 capacity control, 161
popularity of, 15 Caribbean
RCI locations, 114 II locations, 123
British Virgin Islands, 116 peak exchange weeks, 147
Brockway Springs resort, 24 RCI locations, 116
built properties, 68, 199 timeshare location map, 104–105
Burroughs, M. (common sense cash discount, 32, 78
quotation), 40 cautionary tales
business, timeshare, 26 international timeshare, 93
“buyer beware,” 68 salesmen’s tactics, 197–200
buying same day Cayman Islands, 104, 116, 123
canceling, 62 Cedant Corporation (vacation
putting it off, 59–61 exchange), 132
 Index 223
Central America, 117, 147 fractional versus traditional
Channel Islands, 117 timeshare, 192
check-in days, 169–170 interest, 29
Chetola Resort, 12 maintenance fees, 29–31
children miscellaneous fees, 31–32
presentations, attending, 62 property taxes, 31
resorts friendly to, 16 purchase price, 28
vacation costs, 27, 46 to rent property, 178
Chile, 117, 123, 147 resale bargains, 33
China special vacation, paying for, 198
golf resorts in, 202 three-bedroom unit sample
II locations, 126 pricing, 28
popularity of, 15 timeshare, 36–37
RCI locations, 119 Craig’s List, 178
cities. See urban timeshare credit card
classified advertising, 33 electronic funds transfer
closing presentation, 57 payment, 33
Colorado instant, obtaining, 78
II locations, 121 Cress, Gordon P. (sales presentation
number of timeshare and veteran), 60, 82
units, 100 cribs, 32
peak exchange weeks, 148 cruises, exchange weeks for, 140
RCI locations, 114 Curacao, 116, 123
top resorts in, 11 currency issues, 91–92
color-coded demand customer feedback, 136
exchanges and, 135–136 customer objections, common, 61
Travel Demand Index, 146 cutting costs, 32–33
Columbia, 117, 123, 147 Cyprus, 117, 124, 148
comment cards, 136, 172 Czech Republic, 117, 125, 147
common sense, 40
companies buying timeshares, 182
company credibility, 48–51, 55–56 •D•
company financing, 76 damages, 40
condominium hotels, 190 Davis, Thomas J. Jr. (founder II), 132
Connecticut, 108, 120 day privileges, 168
consultant, timeshare, 52 deal-breaker questions, 63–70
converting weeks to points, decreases, maintenance fee, 30
144–145 deed, 213
cooking supplies, 176 deeded property
Costa Rica, 117, 123 described, 63, 213
costs fixed week, 64–65
cutting, 32–33 floating week, 65–66
down payment, 29 fractionals, 191
first-day incentive, 9
224 Timeshare Vacations For Dummies, 1st Edition

deeded property (continued) down payment

history of, 24 described, 29
limited length, 40 discount for higher-than-
real estate broker, working standard, 32
with, 68 financing, 78
resale, 82 dues, annual, 31, 130
transferable, 64
using, 20
DeHaan, Christel and Jon •E•
(RCI founders), 132 eBay
Delaware, 108 renters, 178
demand resale timeshares, 33, 84–85
choosing resort, 37 Ecuador, 117, 123, 147
exchange power, 133–134 Egypt, 118, 126
request first method, 141 El Salvador, 117, 123
Denmark, 117 electronic funds transfer
deposit versus request first payment, 33
exchange systems, 140–141 e-mail marketing, 49–50
deposit weeks, 209 Embassy Suites at Poipu Point, 13
developer’s credibility, 48–51, 55–56 Embassy Vacation Club, 12
directory emotions, 28
amenities, information on, 169 England
exchange company, 131 II locations, 123
fine print, 150 peak exchange weeks, 148
discounts, 33 RCI locations, 117
discovery, presentation, 55 timeshare varieties, 201, 203
Disney Vacation Club entertainment factor,
described, 153–154 presentation, 54
exchange companies, 212 EOY (alternate year), 213
ownership, 20 Europe
semantics, 18 history of timeshare, 24
today policy and, 57 II locations, 124–125
Disney’s Beach Club Villas, 13 pet-friendly units, 67
Disney’s Boardwalk Villas, 11, 13 RCI locations, 117–118
Disney’s Saratoga Springs Resort reputation of timeshare, 47
and Spa, 13 rescission period, 62
Disney’s Villas at Old Key West, 11 evaluation forms, 172
Disney’s Villas at the Wilderness exchange
Lodge, 11 assumptions, inaccurate, 40
Dominican Republic, 105, 116, 123 big companies, benefits of,
Donita’s Dial an Exchange, 128–131
130–131, 211 buying for, 37, 38, 90–91
do-not-call list, 49–50 color coded demand, 135–136
Doumier, Paul (timeshare cruises, weeks for, 140
pioneer), 24
 Index 225
customer feedback, 136 Shell Vacations LLC/Shell
deposit versus request first Vacations Club, 212
systems, 140–141 SVO (Starwood Vacation
described, 213 Ownership), 160, 211
documentation, providing at Trading Places International, 211
check-in, 169 exchange rates, currency, 92
fees, 132–133, 213 exclusivity, fractionals, 192
fine print, 149–150 expenses. See costs
fixed week, desirability of, 65
flexibility and, 145
fractional versus traditional •F•
timeshare, 193 Fairfield Bonnet Creed, 13
international purchases, 90, 93 Fairfield exchange company, 212
less-than-45-day rule, 137, 143 Fairfield Grand Desert
online searches, 137–140 resort, 13
origins, 132 Fairfield Kona Hawaiian
points-based system, 142–143 Resort, 13
renting timeshares, 180 Fairfield Resort, 12
resale, considering power, 80–81 family
reservation windows, 146 advertising geared to, 46
resort location, 134 resorts friendly to, 16
resort quality, 135 vacation costs, 27
sleeping capacity, 135 fax marketing, 49–50
supply and demand, 133–134 fax services, 73
timeshare, 22, 39 Federal Trade Commission
Travel Demand Index, (FTC), 212
136, 146–149 fees
vacation clubs using, 187 exchange, 39, 132–133, 213
weeks, 209 learning about, 69
exchange company limitations, 40
ARDA, 211 splitting units, 23
described, 213 telephone calls, 171
Disney Vacation Club, 154, 212 fee-simple, 20
Donita’s Dial an Exchange, 211 Fenggli, Guido M. (timeshare
Fairfield, 212 pioneer), 24
Hawaii Timeshare Exchange, 211 $15,000 sample purchase
Hilton Grand Vacations Disney Vacation Club, 154
Company, 155 Hilton Grand Vacations
Hyatt Vacation Club, 156, 211 Company, 155
II, 209–210 Hyatt Vacation Ownership, 157
Marriott, 159, 211 SVO (Starwood Vacation
Platinum Interchange, 210 Ownership), 161
RCI, 210 Fiji Islands, 108, 119, 126, 148
San Francisco Exchange, 211 financial logic/solution, 56
226 Timeshare Vacations For Dummies, 1st Edition

financing The Four Seasons Resort

alternatives, 77–78 Aviara, 11
down payment, 78 fractionals
fractional versus traditional described, 190, 214
timeshare, 192 services and amenities, 193–194
instant credit card, 78 timeshare versus, 191–193
interest rates, 29 using, 21–22
price, negotiating, 75 France
terms, 214 castle in, 202
timeshare company, 76 II locations, 125
Finland, 117, 125 peak exchange weeks, 147–148
Finn, Michael S. (Registered Resort RCI locations, 117
Professional), 58 free, use of word, 40, 47, 207
first-day incentive, 9, 29 free vacations, 48, 198
fixed week timeshare French Polynesia, 119
deeded ownerships, 64–65 front desk hours, 73
described, 38, 214 FTC (Federal Trade
exchanges, request first Commission), 212
method, 141
resale, 81
using, 20–21 •G•
flexibility, exchange, 127, 141 The Gambia, 126, 202
floating/flex week generalized unit, 70
deeded ownerships, 65–66 Georgia, 109, 120, 202
described, 214 Germany, 118, 125, 148
exchanges, request first Gilmore, W. Frank (timeshare sales
method, 141 manager and project
timeshare, 38 director), 38
using, 21 Gold Crown criteria, 172–173
Florida. See also Orlando good-value destinations, 15
II locations, 120–121 government stability, international
number of timeshare and purchases, 91
units, 100 Gray, Paul (timeshare
peak exchange weeks, 147–148 pioneer), 24
RCI locations, 110 Great Britain, 109, 148
rescission period, 62 Greece, 118, 124, 148
shady reputation, 47 Green season, 135–136
timeshare location map, 101 greeting, presentation, 54
top resorts in, 11, 13 growing destinations, 14–15
food during presentation, 56 Guadeloupe, 116
foreclosure resales, 33 Guatemala, 117, 123
Four Seasons, 11, 151 guest certificates, 179
The Four Seasons Residence Club gut feeling, 60
Aviara, 12
 Index 227
Hotel und Appartementhaus
•H• Immobilient Aniage AG
Hapimag (Hotel und Appartement- (Hapimag), 24
haus Immobilient Aniage hotel/motel accommodations
AG), 24 timeshare costs versus, 36–37
hard sell, 200 vacation club value versus,
Hawaii 186–187
beach clubs in, 203 housekeeping policies, 72
early timeshare, 24 Humfeld, George (locals, quote
II locations, 122 about), 73
number of timeshare and Hungary, 118, 125, 147
units, 100 Hyatt Pinon Pointe, 13
peak exchange weeks, 148 Hyatt Vacation Club, 18, 211
RCI locations, 114
top resorts in, 13
up-and-coming destinations, 14
•I•
Hawaii Timeshare Exchange, ICE exchange week for cruises, 140
130–131, 211 Idaho, 114, 148
Hiatus magazine, 12, 13 II (Interval International)
Hilton Grand Vacations Club at credit card, 78
Hilton Hawaiian Village, 13 deposit and/or exchange
Hilton Grand Vacations Club on weeks, 209
International Drive, 13 described, 214
Hilton Grand Vacations Company, exchange tips, 150
154–156 international ratings, 90
HOA (homeowners’ association), location, 120–126
67, 168, 214 online search, 139–140
home equity loan/line of credit, options, 56
76–77 overseas offices, 209–210
home resort pet-friendly units, 67
amenities, asking questions prevalence of, 39
about, 167–169 ratings, 66
check-in days, 169–170 travel services, 209
fixed week, benefits of, 64 Venice, Italy, timeshare, 106
packing for vacation, 175–176 Illinois, 110
quality control, 171 incentives
rating, 172–175 assumptions, foolish, 206
resale, 81 down payment, 29
room, checking, 170–172 first-day, 9
using fixed week, 20–21 giving out, 61
homeowners’ association (HOA), higher-than-standard down
67, 168, 214 payment, 32
Hospitality criteria, RCI, 174 presentation, obligation
hotel companies. See branded to attend, 54
timeshare increases, maintenance fee, 30, 67
228 Timeshare Vacations For Dummies, 1st Edition

India, 15, 119, 126 peak exchange weeks, 148

Indiana, 110, 121 RCI locations, 118
Indonesia, 119, 126 timeshare location map, 111
inflation items included in property, 70–71
branded timeshare, 153 Ivory Coast, 118
hotel/motel costs, 37
points-based timeshare, drawback
of, 21, 64 •J•
selling timeshare, 181 Jamaica, 104, 116, 123
information, finding additional, Japan, 119
41–42 joint tenancy, 181, 182
informational breakfast, 169 Jordan, 118
instant credit card financing, 78
insults, fielding, 8–9
insurance, international •K•
purchases, 91 Kailua-Kona, Hawaii, 12
intent statement, 55 Kamuela, Hawaii, 12
interest rate, 29, 76–77 Kauai, Hawaii, 13
internal ratings, RCI, 175 Kentucky, 110
international timeshare Kenya, 118, 126
buying to stay versus buying to kitchen supply starter package,
trade, 90–91 72, 175–176
cautionary tale, 93 Kleever, Jerry and Elaine (quote on
described, 89–90 sundries and snack bars), 69
exchange rates and monthly Kona Coast Resort II, 12
payments, 92
good experience, 93–94
questions to ask, 91–93 •L•
Internet services, 73
Lake Tahoe, 24, 121, 148
Interval International. See II
language, international purchases,
investment limitations, 9, 36,
90, 91, 93
192, 206
Las Vegas
Iowa, 110
II locations, 121
Ireland
OPCs, 189
II locations, 123
peak exchange weeks, 148
peak exchange weeks, 148
popularity of, 14
RCI locations, 108, 118
resale sample, 84–85
timeshare location map, 109
season code, 136
Irmer, Dave (timeshare pioneer), 24
top resorts in, 13
Isle of Man, 118
leasehold, 20, 24, 214
Israel, 118, 126
Lebanon, 118, 126
Italy
legal issues/complaints, 212
garden villas, 203
length of time, presentation, 61
II locations, 125
 Index 229
less-than-45-day rule, 137, 143 Italy, 111
liability, rental, 179 Mexico, 107
license, real estate, 67–68, 215 South Africa, 115
like-for-like trading, 149 Marbella, Spain, 12
linens, 170 marketing. See also presentation
listing fee, 182 companies and tactics, 48–51
local residents, consulting, 73 old versus new methods, 45–48
location reputation, 47
choosing, 97–101 Marriott Vacation Club
II resorts, 120–126 International, 211
power, 102, 106 Marriott’s Custom House, 12
RCI resorts, 108, 110, 114, 116–119 Marriott’s Ko Olina Beach Club, 13
timeshare, 37–38 Marriott’s Manor Club, 12
lock-off units, 23–24, 34 Marriott’s Marbella Beach
Loftis, Dianne (timeshare tale Resort, 12
teller), 42, 145 Marriott’s Ocean Club, 13
London, 148, 188 Marriott’s Waiohai Beach Club, 13
Louisiana, 110, 120 Martinique, 116
luggage, checking in early, 170 Maryland, 108, 120
Massachusetts, 12, 108, 120
•M• Mauritius, 118
meal or dining options, 72, 162
Madeira, 125, 147 member comment cards, 172–175
Maine, 108, 120 Mexico
maintenance department hours, 73 all-inclusive resorts, 162
maintenance fees II locations, 123–124
described, 29–31, 66, 214 II offices, 210
increases, 67 peak exchange weeks, 148
questions, 206 RCI locations, 116
vote on, 67 timeshare location map, 107
Malaga, Spain, 13 top resorts in, 12
Malaysia, 119, 126 Michigan, 110, 121
Malta, 118, 125, 148 Middle East, 118, 149
management, international Minnesota, 110, 121
resorts, 92 miscellaneous fees, 31–32
Manhattan Club, 87, 188 Mississippi, 110, 120
Manitoba, 114 Missouri
maps, timeshare location II locations, 121
Australia, 112–113 number of timeshare and
California, 103 units, 100
Caribbean, 104–105 peak exchange weeks, 147
Florida, 101 RCI locations, 110
Great Britain, 109 top resorts in, 12, 13
Ireland, 109 model tour, 56
230 Timeshare Vacations For Dummies, 1st Edition

money. See costs; financing new unit discount, 33

Montana, 114, 122, 148 New York, 108, 120, 188
monthly payments New Zealand, 119, 126, 147
described, 214 Newfoundland, 122
fees, rolling into, 30 Nisker, Jerry (points defense
international timeshare, 92 quote), 144
Morocco, 118, 126 no obligation lures, 47
motel/hotel accommodations no-call legislation, 49–50
timeshare costs versus, 36–37 no-fax legislation, 49
vacation club value versus, non-bargains, resale, 81
186–187 nondeeded property, 20, 214
Mozambique, 118 nonowners, amenities open
multi-level pricing, 68 to, 73
Murdock, Doug (timeshare North Carolina
pioneer), 24 II locations, 120
number of timeshare and
•N• units, 100
RCI locations, 109
Namibia, 119 top resorts in, 12
Napa Valley, 15 Norway, 118, 125
Nashville, Tennessee, 12 Nova Scotia, 114
negotiating, 68, 207
Nepal, 126
The Netherlands, 118, 125, 149
•O•
Nette, Alexander (timeshare Oahu, Hawaii, 13
pioneer), 24 off-property consultants (OPCs),
Nevada 50–51, 189
exchange rate and monthly Ohio, 110, 121
payments, 92 Oklahoma, 110
number of timeshare and Old Town Alexandria, Virginia, 12
units, 100 one week per year, 25–26
RCI locations, 114 O’Neal, Shaquille example, 198
shady reputation, 47 online auctions, 33, 84–85
never, use of word, 40, 207 online exchange search
New Caledonia, 126, 148 II, 139–140
New England, 120, 149 RCI, 137–139
New Hampshire, 108, 120 online resources, 41–42
New Jersey, 108, 120 Ontario, 114, 122
New Mexico OPCs (off-property consultants),
cabins in, 202 50–51, 189
II locations, 121 operating-expenses report, 31
peak exchange weeks, 147 options, 161
RCI locations, 114 Orange Lake Country Club, 13
New Orleans, 100, 149 Oregon, 114, 121, 149
 Index 231
Orlando timeshare, 38
described, 98–99 under-45-day rule, 137
exchange power, 37 using, 21
popularity of, 14, 16 Poipu, Hawaii, 12
season code, 135–136 Poland, 118
top resorts in, 11, 13 popular destinations, 13–14
overseas offices, 209–210 Portugal, 118, 125, 149
owner referrals, providing, 86 PRCs (private residence clubs),
ownership type 21–22, 190
described, 19–20 presentation
Disney Vacation Club, 154 buying same day, 57–61
fixed week, floating week, and closing, 57
points-based, 38 company credibility, 55–56
fractional versus traditional described, 17
timeshare, 192 discovery, 55
Hilton Grand Vacations financial logic/solution, 56
Company, 155 food, 56
Hyatt Vacation Ownership, 157 greeting, 54
Marriott, 159 informational breakfast or resort
selling, 181–182 update, 169
SVO (Starwood Vacation intent statement, 55
Ownership), 161 model tour, 56
negative image, 53
•P• obligation to hear, 51–52, 54
old-style marketing, 45
package trips, vacation club, 186 problem, 40
packing for vacation, 175–176 product options, 56
Pakistan, 119 questions, answers to, 39
Panama, 117 replay, 55
Paraguay, 117 sales pitch, handling, 61–62
Pennsylvania, 47, 108, 120 warm-up, 54
perfect, use of word, 40, 207 your role, 55
Peru, 117, 123, 147 price
pets, 67 average, 205
Philippines, 119, 126 criteria, 36
phone services, 73 huge reductions, 198–199
pitch, need for, 207 negotiating, 40, 52, 75
Platinum Interchange exchange purchase, negotiating, 28
company, 130–131, 210 sample three-bedroom unit, 28
points-based system price range
credit cards, 78 Disney Vacation Club, 154
described, 64, 214 Hilton Grand Vacations
RCI, 142–143, 150 Company, 155
resale, 81 Hyatt Vacation Ownership, 156
232 Timeshare Vacations For Dummies, 1st Edition

price range (continued)

Marriott, 159 •R•
SVO (Starwood Vacation rating resorts
Ownership), 161 exchange power, judging, 66
Private Residence Clubs, 151 member comment cards,
private residence clubs (PRCs), 172–175
21–22, 190 outside groups, 42
private sleeping capacity, 22–23 trading power, 102
product options, in RCI (Resort Condominiums
presentation, 56 International)
property all-inclusive resorts, 162–163
built, buying only, 68 contact information, 210
items included, 70–71 credit card, 78
kitchen supply starter described, 215
package, 72 exchange companies, 210
specific or generalized unit, 70 international ratings, 90
property taxes, 30, 31 location, 108, 110, 114, 116–119
Puerto Rico, 105, 116, 123 online search, 137–139
purchase price, 28 options, 56
purchasing same day pet-friendly units, 67
canceling, 62 points-based system, 142–143,
putting it off, 59–61 144, 150
reasons behind, 57–59 prevalence of, 39
vacation factor, 59 ratings, 66, 172–175
putting it off, 59–61 Venice, Italy, timeshare, 106
real estate brokers, 33
•Q• real estate investment, 9, 36,
192, 206
quality control, 171 real estate license, 67–68, 215
quality, trading, 102 real estate taxes, 30
quantity discount, 33 Red season, 135–136
Quebec, 114, 122 referral programs, 86–87, 215
questions to ask regulations, international, 91
amenities, 70–74 rentals
deal-breaker, 63–70 extra days, 72
discovery period, 55 member weeks, omitting, 150
international timeshare, 91–93 sales pitch, 199
maintenance fees, 206 renting
during model tour, 56 cost, computing, 178
renting your timeshare, 177 details, 179–180
resale sellers, 82–83, 85 finding renters, 178–179
during sales pitch, 61–62 finding timeshare, 180
selling timeshare, 181 fractionals, 194
vacation clubs, 187 options, learning, 177
 Index 233
timeshare versus, 18–19 Marriott, 157–159
unit, 72 popular destinations, 13–14
replay presentation, 55 quality, 135
reputation, marketing, 47 ratings, 42
request first exchange systems, referrals, providing, 86
deposit versus, 140–141 retirees, popular with, 16
resale sundries and snack bars, 69
advantages, 82 SVO (Starwood Vacation
costs, 33 Ownership), 160
exchange power, considering, top, 9–13
80–81 restaurants, proximity to, 74
legitimate, 80 retirees, resorts popular with, 16
non-bargains, 81 Rhode island, 108, 120
online auctions, 84–85 right-to-use timeshare
points, losing, 143 described, 215
prevalence of, 79 early days, 24
questions to ask, 82–83 outside North America, 89
referral programs, 86–87 pros and cons of, 64
sales pitch, avoiding, 52 resale, 82
timeshare publications, 83 using, 20
timeshare, purchasing, 38–39 Rodriquez, Mario II (founder II), 132
value in sales pitch, 199 rollaway beds, 32
rescission period, 62, 215 room, checking, 170–172
reservations Royal Caribbean resort, 11
exchange flexibility, 127 Royal Islander resort, 11, 12
timing, 69–70 Royal Mayan resort, 11
windows, 146 Royal Sands resort, 11
Residence Clubs at Troon North, 11 rumors, not believing, 207
Resort Condominiums International.
See RCI
Resort of International Distinction •S•
criteria, RCI, 173–174 Saipan, 119
resort update, 169 sales methods, 17
resorts sales pitch, 61–62, 199
benefits of specific, 66 salespeople’s family photos, 57
choosing location, 37–38 salespersons
Disney Vacation Club, 153 author’s disclosure, 17
family-friendly, 16 on brochure, 197
good-value destinations, 15 insults, 8–9
growing destinations, 14–15 job of, 57
Hilton Grand Vacations licensing, 67–68
Company, 155 multi-level pricing, 68
Hyatt Vacation Ownership, 156 referrals, providing, 86
location, 134
234 Timeshare Vacations For Dummies, 1st Edition

same day purchase RCI locations, 119

canceling, 62 timeshare location map, 115
putting it off, 59–61 South America, 117, 123
reasons behind, 57–59 South Carolina, 100, 109, 120
vacation factor, 59 South Dakota, 110
San Francisco, 136, 188 South Korea, 119
San Francisco Exchange company, South Pacific, 108
130–131, 211 Spain
scams, 19, 62 II locations, 125
scheduling non-bargain peak exchange weeks, 149
timeshares, 81 RCI locations, 118
Scotland, 118, 123 top resorts in, 12, 13
season special assessments, 32, 66, 215
color codes, 135–136 special warranty deed, 215
described, 215 specific unit, 70
floating/flex week, 65–66 Sri Lanka, 119
trading, 102 St. James Place resort, 11
security lapses, 170 St. John, 123
Sedona, Arizona, 13 St. Kitts and Nevis, 116, 123
selling St. Lucia, 116, 123
details, 182–183 St. Martin
options, learning, 181 II locations, 123
ownership type, determining, RCI locations, 116
181–182 rescission period, 62
timeshare, 36 St. Thomas, 123
sellout discount, 33 St. Vincent, 116, 201
Senegal, 119 starter packages, 175
services Starwood points, 161
extra offered, 74 Starwood Vacation Ownership
fractionals, 193–194 (SVO), 51, 160–162, 211
Shell Vacations LLC/Shell Vacations stay, buying to, 90–91
Club, 212 stores, proximity to, 74
Sheraton timeshare property, 18 sundries and snack bars, 69
simple interest no prepayment supply and demand, 133–134
penalty, 77, 215 survivorship, joint tenancy with
Singapore, 119, 126, 210 right of, 181
single person, savings for, 29 SVO (Starwood Vacation
size, typical timeshare unit, 8 Ownership), 51, 160–162, 211
sleeping capacity, 22–23, 135 Sweden, 118, 125
Societe des Grandes Travaux de Switzerland
Marseille, 24 early timeshare, 24
sole owner, 181, 182 II locations, 125
South Africa peak exchange weeks, 149
apartments in, 202 RCI locations, 118
II locations, 126 ski parks in, 203
Syria, 119
 Index 235
timeshare company financing, 76
•T• Timeshare Resale Alliance, 33, 83
tactics, marketing, 48–51 Timeshare Tips, 33, 41, 83
Taiwan, 119 Timeshare Users Group. See TUG
tax deduction, 31 TimeSharing Today magazine
taxes cost-cutting tips, 32–33
bed, 32 described, 11, 41
described, 215 renters, finding, 178
international purchases, 92 resales, finding, 33, 83, 182
property, 30, 31 top resort choices, 12
telephone fees, 171 top timeshare resorts, 9–13
telephone marketing, 49–50 Tortola, 123
tenancy in common, 181, 182 total sleeping capacity, 22–23
tenancy in the entirety, 182 towels, 72, 170
Tennessee, 110, 120, 148 trading. See exchange.
terms, financing, 214 Trading Places International
Texas exchange company,
financing law, 77 130–131, 211
II locations, 121 trading power, 216
number of timeshare and transferable deeded ownerships, 64
units, 100 transportation, 73, 74
peak exchange weeks, 149 Travel Demand Index, 136, 146–149
RCI locations, 110 travel services, II, 209
Thailand, 119, 126 TRI West Timeshare, 33
three-bedroom unit, 23–24, 28 Trinidad and Tobago, 116
time periods, right-to-use TUG (Timeshare Users Group)
system, 64 described, 41
timeshare quality control, 171
assumptions, foolish, 39–40 resales, finding, 83
costs, 36–37 top resorts listed, 11
defined, 17, 35 Tunisia, 119, 126
exchanging, 22, 39 Turkey, 118, 124, 149
fixed week, floating week, and Turks and Caicos, 116, 123
points-based systems, 38 $20,000 sample purchase,
location, 37–38 Marriott, 159
origins, 24 two weeks per year, 26–28
ownership methods, 19–20
renting versus, 18–19
resale, purchasing, 38–39
•U•
sales methods, 17 unbuilt properties, 68, 199
selling, 36 unit
using, 20–22 assessing needs, 22–24
vacation ownership versus, 36 described, 216
The Timeshare Beat, 42, 83 typical size, 8
236 Timeshare Vacations For Dummies, 1st Edition

United Arab Emirates, 119 Virginia

United Kingdom II locations, 120
exchange rate and monthly number of timeshare and units, 100
payments, 92 peak exchange weeks, 149
II locations, 123 RCI locations, 110
II offices, 209 voting on maintenance fees, 67
rescission period, 62
upgrades, exchange company
comparisons, 131 •W•
urban timeshare Wales, 118, 123
described, 188–189 warm-up, presentation, 54
popularity of, 14 Washington, 114, 149
season codes, 136 water-front location, 102
Uruguay week, 216
II locations, 123 week system, converting to points,
peak exchange weeks, 147 143–145
RCI locations, 117 weeks for cruise exchange (ICE), 140
U.S., timeshare locations in, 100. West Virginia, 110, 120
See also specific location listed Westin Ocean Villas, 13
by state or city White season, 135–136
U.S. Virgin Islands, 14, 105, 116 Williamsburg, Virginia, 12, 149
using timeshare, 20–22 willing
Utah, 114, 122, 149 timeshare, 8, 183
utility surcharges, 32 vacation clubs, 186
Wisconsin, 110, 121
•V• word of mouth renting, 179
Worldmark by Trendwest, 13
vacation clubs Wynn, Steve (Las Vegas
details, 185–186 entrepreneur), 14
questions, asking right, 187 Wyoming, 114, 122, 148
value, assessing, 186–187
vacation factor, 59
vacation ownership, 18, 36 •Y•
value, assessing, 186–187 yearly upkeep, 31
Vancouver, 15 Yellow season, 135–136
Venezuela, 117, 123, 147 your role in presentation, 55
Venice, Italy, 106
Vermont, 108, 120
views, discounted, 33 •Z•
Virgin Islands, 14, 105, 116 Zimbabwe, 119
Notes
Notes
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