Timeshare Evolution

The following article on the evolution of timeshare or timesharing, was written by a friend of mine, Monica Stephens. Monica is a licensed sales agent, and owner of a brokerage where she focuses her years of timeshare experience in helping timeshare owners sell their timeshares on the resale market.. She works on a commission basis. To reach her, contact information is..


Monica Stephens
Phone: (540) 476-1350
Fax: (866) 855-8615
Email: Monica@VacationTimeshareResidential.Com



Timeshare Evolution

Timesharing first began in Europe in the 1960’s when people simply wanted a way to reduce hotel rental costs by purchasing their share in a hotel instead of renting. The costs of operating the timeshare are shared by each of the resort owners, creating vacation affordability for nearly everyone. These shared costs, are called maintenance fees. Depending upon the resort, maintenance fees are paid monthly, quarterly, or annually. Typically, maintenance fees are well below what the average consumer would pay for a comparable rental, thus saving the timeshare owner money in the long run.
In the early days of timeshare, owners owned a fixed week in a fixed unit at their resort, and this is where owners vacationed year after year. If the owners wished to vacation somewhere differently, and they weren’t able to rent out or gift their unit, or find another timeshare owner to swap with, they lost their week. Realizing timeshare owners needed more flexibility and variety; Resort Condominiums International (RCI) opened their doors in 1974 as the first company to offer timeshare exchanges. Interval International (II) followed suit soon thereafter. For a small fee, timeshare owners could join one of these companies in order to exchange their timeshare week for someone else’s week. In the beginning, there weren’t many resorts to choose from. As the timeshare industry grew, so did the exchange companies. While RCI and II are still the predominant exchange companies, numerous other exchange companies have emerged. Today there are over 6,500 resorts affiliated with RCI in over 100 different countries, and over 2,500 resorts affiliated with II in over 75 countries. Nowadays the exchange companies not only help their members exchange their week, but can also provide assistance with scheduling airfare, car rentals, and even suggest the area’s finest restaurants, shopping, and entertainment.
For those whose schedule won’t allow them the luxury of vacationing for an entire week at a time, point type ownerships are on the rise. Resort based point ownerships allow owners to book the unit size they need for the night, the week, or the month, depending on how many points they have at their disposal. And best of all, they can use their points at multiple affiliated resorts, all without having to pay exchange fees. Most resorts that offer point type ownerships are affiliated with a large resort group offering an almost endless array of destinations. Even if owners are lucky enough to visit all of the areas within the resort group, most owners can still venture to other areas by converting their points to a week, then depositing their week with an exchange company.
Because point type ownerships became so popular, even RCI has gotten in on the action. In 2000, RCI launched the world’s first global points-based exchange system. RCI aligned itself with various timeshare resorts worldwide to offer owners more flexibility and options for vacation travel. Like the resort based point ownerships, RCI point members can choose from various accommodation types, the unit size they need, and how many nights they wish to travel. These owners can choose to visit any of RCI’s affiliated resorts. However, RCI points are not limited to accommodations at timeshare resorts. The points may also be used for rental cars, cruises, hotels, golf lessons, and more. Owners can also borrow points from the following year if needed, or save their unused points for next year’s vacation.
The forms of interval ownership have also evolved over the years. When timesharing first began, there was only one type of ownership available, referred to as a lease hold or right-to-use property. People owned their timeshare for a designated period of time, typically for 20-40 years. While this practice is still in use, most timeshares in the US are deeded properties. A deeded timeshare property is considered real estate, you essentially own it forever. However, regardless of which type of ownership is owned, all owners have the ability to use their time, rent it, give it away, exchange it, and will it to their children.
In addition to fixed week ownership, many resorts now offer floating weeks. In this scenario, the owners do not own a particular week or unit; they own a season and unit size. They simply decide when they want to vacation during their designated season. This works out very well for owners at a four season resort as they can go skiing in the winter, site seeing in the fall when the leaves change, swimming and boating in the summer, and golfing in the spring. When owners tire of vacationing at the same resort, they can join an exchange company to broaden their vacation horizons.
Over the last 50 years, the timeshare industry has evolved in order to fit everyone’s needs. No longer do you have to vacation at the same resort year after year, or the same country for that matter. With so many options available to timeshare owners there’s no wonder why a large number of owners never go back to their home resort. It will be intriguing to see what may come of this industry in the next 50 years.