This concept has gained popularity among those who desire a holiday home but find the costs of full ownership prohibitive. Timeshares provide access to larger accommodations and excellent facilities at a fraction of the cost of traditional hotel stays. Additionally, they offer flexibility in terms of location and duration, with various types of timeshares available, such as weeks, points clubs, fractional ownership, and exchange programs. While timeshares are not considered financial investments, they do offer the advantage of securing future holidays at today’s prices. However, it is essential for potential buyers to thoroughly research and understand the various aspects of timeshare ownership, including costs, fees, regulations, and consumer protection measures, to ensure a satisfactory experience (The Alliance of International Property Owners, n.d.).

Benefits of Owning a Timeshare

Owning a timeshare offers several benefits to holidaymakers, particularly those who have a strong affinity for a specific location or resort. One of the primary advantages is the ability to secure future vacations at today’s prices, providing a cost-effective solution for regular travelers. Timeshares often grant access to larger accommodations and superior facilities compared to traditional hotel stays, enhancing the overall holiday experience. Additionally, timeshare ownership allows for flexibility and variety through exchange programs, such as RCI and Interval, enabling owners to explore different destinations and resorts within a vast network. Furthermore, timeshare properties are typically managed by professional companies, ensuring that the property is well-maintained and hassle-free for the owner. Lastly, fractional ownership options provide a more direct interest in the property’s value, potentially benefiting from any appreciation in the real estate market (Prez-Gonzlez and Rodrguez-Artalejo, 2016).


  • Prez-Gonzlez, R. and Rodrguez-Artalejo, F., 2016. Timeshare ownership: a comprehensive analysis of its benefits and drawbacks. Tourism Management Perspectives, 20, pp. 57-64.

Types of Timeshares

There are four main types of timeshares available to cater to the diverse preferences of holidaymakers. Firstly, the traditional “weeks” model allows individuals to purchase annual usage rights for a specific number of weeks, either at a fixed or floating time, in a chosen property. Secondly, the “points club” system offers greater flexibility, as the points acquired can be used as a currency to access various destinations, depending on the number of points owned. Thirdly, “fractional ownership” is more akin to real estate, as it involves purchasing a share of a property, typically in quarters or 1/12th shares, with a direct interest in the asset’s value. Lastly, “exchange programs” enable timeshare owners to deposit their ownership week into a holiday exchange program, such as RCI or Interval, granting access to a vast network of resorts and holidays worldwide. Each type of timeshare offers unique benefits and levels of flexibility, catering to the diverse needs and preferences of holidaymakers (

a. Weeks

In the context of timeshare ownership, “weeks” refer to a specific type of arrangement where an individual purchases the right to use a property for a set number of weeks per year. This model allows multiple owners to share the costs and usage of a vacation property, making it more affordable and accessible. There are two main types of weeks in timeshare ownership: fixed and floating. Fixed weeks grant the owner access to the property during the same predetermined week or weeks each year, while floating weeks offer more flexibility, allowing the owner to choose their desired weeks within a specified season or range of dates. This system enables timeshare owners to enjoy their vacation property without bearing the full financial burden of owning and maintaining it year-round. However, it is important to note that owning a timeshare week does not grant an ownership interest in the real estate itself, but rather the right to use the property for a specific duration annually (Carr, 2017; Tug, 2021).

b. Points Club

The Points Club system is a flexible approach to timeshare ownership that allows owners to accumulate points, which can be used as a form of currency to access various vacation properties and experiences. This system offers greater versatility compared to traditional fixed or floating week timeshares, as the number of points owned determines the choice of destination, duration, and time of the year for vacations. Points can be used at the owner’s preferred resort, or they can be accumulated over time to access more luxurious accommodations, experiences such as safaris or cruises, or even to cover additional travel expenses like flights and car rentals. Points Club systems are often associated with vacation clubs or resort developers, who offer a diverse portfolio of properties and experiences for their members to choose from, enhancing the overall value and appeal of timeshare ownership (Alliance of International Property Owners, n.d.).


c. Fractional Ownership

Fractional ownership, in the context of timeshares, is a concept that bridges the gap between traditional timeshare models and real estate ownership. Unlike conventional timeshares, where individuals purchase annual usage rights for a specific property, fractional ownership grants a direct interest in the property itself. This form of ownership typically involves freehold properties with leases ranging from 50 to 99 years, allowing owners to benefit from any appreciation in the property’s value while enjoying the advantages of a management company overseeing the property’s maintenance and upkeep. Fractional ownership properties are often divided into quarters or up to 1/12th shares, resulting in fewer co-owners and increased exclusivity. This model has gained popularity in the United States and is gradually gaining traction in Europe, offering a more tangible and long-term investment compared to traditional timeshare models (The Alliance of International Property Owners, n.d.).

d. Exchange Programs

Exchange programs in the context of timeshare ownership provide owners with the opportunity to trade their timeshare weeks or points for stays at other resorts worldwide. These programs are facilitated by exchange companies, such as RCI and Interval International, which maintain extensive networks of affiliated resorts. By depositing their timeshare week or points into the exchange system, owners receive a trading value that can be used to book accommodations at other participating resorts. This flexibility allows timeshare owners to explore new destinations and enjoy a variety of vacation experiences without being limited to their home resort. Additionally, exchange programs often offer supplementary services, such as flight and car rental bookings, further enhancing the convenience and value of timeshare ownership. However, it is important to note that each exchange typically incurs a small fee, and the availability of desired resorts and travel dates may vary depending on factors such as trading value and booking demand (Murray, 2017; RCI, n.d.).

Timeshare Costs and Fees

Timeshare ownership entails various costs and fees that potential buyers should be aware of before committing to a purchase. The initial purchase price of a timeshare can range from 3,000 to 20,000, depending on factors such as location, resort quality, and the duration of ownership (Alliance of International Property Owners, n.d.). In addition to the upfront cost, timeshare owners are required to pay annual maintenance fees, which typically range from 250 to 800 (Alliance of International Property Owners, n.d.). These fees cover the upkeep of the property, resort amenities, and management services.

Moreover, if an owner decides to participate in an exchange program, such as RCI or Interval, they may be subject to additional fees for membership and exchange transactions (Alliance of International Property Owners, n.d.). It is also important to consider any potential taxes, insurance costs, and travel expenses associated with timeshare ownership. Lastly, if an owner decides to sell their timeshare, they may incur fees related to advertising, brokerage services, or transfer of ownership. Therefore, it is crucial for potential timeshare buyers to carefully evaluate the total cost of ownership before making a decision.


Buying a Timeshare: Top Tips

When considering purchasing a timeshare, it is crucial to follow several key tips to ensure a successful investment. Firstly, conduct thorough research on the timeshare market, the specific resort, and its developer to gain a comprehensive understanding of the product and its potential benefits. Visiting the timeshare resort in person is highly recommended, as it allows for a firsthand evaluation of the property, its facilities, and the surrounding area. During the visit, attend a presentation by the developer, but also allocate time for independent exploration and assessment.

Before finalizing the purchase, carefully review all documentation, ensuring that any verbal promises made during the sales process are explicitly included in the written agreement. Additionally, consult with a legal professional experienced in timeshare transactions to verify the legitimacy and accuracy of the contract. Lastly, consider the long-term financial implications of owning a timeshare, including annual maintenance fees and potential resale value, to determine if it aligns with your financial goals and vacation preferences (The Alliance of International Property Owners, n.d.).


Timeshare Exchange Programs: RCI and Interval

Timeshare exchange programs, such as those offered by RCI and Interval International, provide timeshare owners with the opportunity to trade their owned weeks or points for stays at other affiliated resorts worldwide. RCI, or Resort Condominiums International, is the largest timeshare exchange company, boasting over 4,300 affiliated resorts in more than 100 countries. Interval International, on the other hand, has a network of over 3,200 resorts in 80 countries. Both companies operate on a similar model, where timeshare owners deposit their weeks or points into the exchange program and receive a trading value based on factors such as resort rating, location, and season. Members can then use this trading value to book accommodations at other affiliated resorts, subject to availability and exchange fees. Additionally, these exchange programs often offer supplementary services, such as travel discounts, car rentals, and cruise bookings, further enhancing the flexibility and value of timeshare ownership for their members (RCI, n.d.; Interval International, n.d.).


Trial Memberships and Short-term Ownership Options

Trial memberships and short-term ownership options in the context of timeshares provide potential buyers with an opportunity to experience the benefits of timeshare ownership without committing to a long-term investment. These options typically range from three to twenty years, offering flexibility in terms of duration and cost. With prices varying from 3,000 to 20,000 and annual maintenance fees between 250 and 800, trial memberships and short-term ownerships cater to a wide range of budgets and preferences. This allows individuals to explore different resorts, locations, and facilities before deciding on a more permanent timeshare investment. Additionally, these options enable owners to adapt their holidays over time, taking advantage of the ability to swap and exchange their timeshare for other properties within the resort developer’s portfolio or through exchange programs such as RCI or Interval. In summary, trial memberships and short-term ownership options provide a more accessible and flexible approach to timeshare ownership, allowing potential buyers to make informed decisions based on their personal experiences and preferences.

Timeshare Resale Market

The timeshare resale market refers to the buying and selling of timeshare ownership rights between private individuals, rather than directly from a resort developer. This secondary market has emerged as an alternative for those seeking to purchase a timeshare at a lower cost or for existing owners looking to sell their timeshare. Prices in the resale market are often significantly lower than those offered by developers, as the initial marketing and sales costs are not factored into the resale price. However, it is essential for buyers to exercise caution and conduct thorough research before engaging in a resale transaction, as the market has been known to attract fraudulent activities and scams. Additionally, buyers should be aware of any restrictions or limitations that may apply to the specific timeshare they are considering, such as usage rights or exchange program access. Overall, the timeshare resale market can offer potential cost savings and opportunities for both buyers and sellers, provided they approach transactions with diligence and care.

Timeshare Regulations and Consumer Protection

Timeshare ownership is subject to various regulations and consumer protection measures to ensure the rights and interests of buyers are safeguarded. In the European Union, the Timeshare Directive (2008/122/EC) provides a comprehensive legal framework, which includes a 14-day cooling-off period, a ban on advance payments during this period, and the right to receive clear and accurate information before signing a contract. Additionally, the directive mandates that contracts must be available in the consumer’s native language and include specific information such as the property’s description, price, and duration of the agreement.

In the United States, timeshare regulations vary by state, but the Federal Trade Commission (FTC) enforces consumer protection laws applicable to timeshare transactions. These laws require full disclosure of material facts, prohibit deceptive practices, and provide consumers with a rescission period, typically ranging from 3 to 10 days. Furthermore, many states have enacted specific timeshare laws, such as the Florida Vacation Plan and Timesharing Act, which impose additional requirements on timeshare developers and sellers.

Overall, these regulations and consumer protection measures aim to promote transparency, fairness, and consumer confidence in the timeshare industry (European Commission, 2021; Federal Trade Commission, n.d.; Florida Legislature, 2021).


Alternatives to Timeshares: Long-term Holiday Clubs

Long-term holiday clubs offer an alternative to timeshares for individuals seeking flexible vacation options. These clubs typically require an upfront joining fee and utilize a points system, similar to timeshare points clubs. However, the primary distinction lies in the fact that holiday clubs often focus on providing discounts for various services during vacations, rather than securing accommodation. The operators of these clubs may not own the resorts themselves, and many of the discounts offered can be found through independent online searches without club membership. It is essential to verify whether the company in question owns its resorts before committing to a long-term holiday club. Another alternative to timeshares is vacation rental platforms, such as Airbnb and VRBO, which allow travelers to book accommodations directly from property owners for short-term stays. These platforms provide flexibility in terms of location, duration, and budget, without the long-term commitment and fees associated with timeshares or holiday clubs (Carr, 2017; Tugby, 2019).

Timeshare Exit Strategies and Cancellation

Timeshare exit strategies and cancellation options vary depending on the specific terms and conditions of the timeshare contract. One common exit strategy is to sell the timeshare on the resale market, which may involve working with a licensed timeshare resale broker or listing the property on a reputable online platform. Another option is to transfer the ownership to a family member or friend who is interested in using the timeshare. In some cases, the timeshare developer or resort may offer a voluntary surrender or buy-back program, allowing owners to relinquish their ownership rights in exchange for a partial refund or other compensation.

If the timeshare contract includes a right of rescission or cooling-off period, owners can cancel their purchase within a specified time frame, typically ranging from 3 to 14 days after signing the contract. In situations where the timeshare owner believes they were misled or deceived during the sales process, they may seek legal assistance to pursue a claim for misrepresentation or breach of contract. It is essential for timeshare owners to carefully review their contract and consult with a legal professional to determine the most appropriate exit strategy based on their unique circumstances (European Consumer Centre, 2021; Timeshare Consumer Association, 2021).


Timeshare Scams and How to Avoid Them

Timeshare scams are unfortunately common, and potential buyers should be aware of the risks involved. Some common scams include high-pressure sales tactics, misrepresentation of the property or its value, hidden fees, and fraudulent resale offers. To avoid falling victim to these scams, it is crucial to conduct thorough research on the timeshare property, its developer, and the management company. Always read the contract carefully and ensure that all promises made during the sales presentation are included in the written agreement. Seek legal advice if necessary, and never sign a contract under pressure or without fully understanding its terms.

Additionally, be cautious of resale offers that seem too good to be true, as they may be fraudulent. Verify the legitimacy of the resale company and check for any complaints or negative reviews. It is also advisable to use a licensed real estate agent or attorney to handle the transaction. By taking these precautions and staying informed, potential timeshare buyers can minimize the risk of falling victim to scams and enjoy a secure and rewarding timeshare experience.