Timeshare Points Programs Are Probably Not The Answer For Most Buyers
In the bustling world of timeshare, a relatively new approach to selling vacation offerings is appearing in many older venues.
Called “Points” this sales concept is being used by many locations with near sold out vacation weeks as a way of continuing to sell timeshare offerings.
Essentially, buyers do not purchase a specific week but rather “Points” that allow them to come during the year on an “as available basis.”
The usual sales pitch states that more than 40% of timeshare week owners do not use their specific week at that particular location.
Therefore, the purchaser has flexibility and is not tied to one particular week.
If he wants to go to that particular location, there are always weeks available.
These points can also be “banked” with timeshare groups such as RCI and used at other locations.
Unfortunately, the reality is much different.
Many timeshare owners of points are reporting difficulty in getting weeks they want at the places they desire.
More than 25% of timeshare sites responding to the survey said they are also actively selling these points to current owners seeking to free up weeks in desirable vacation periods.
Often, these locations are giving bonuses to owners of specific weeks in the form of incentives, usually 10% above the standard points offered for that particular season.
Surveys by this newsletters found that of 120 locations contacted, more than 80 were offering points in lieu of specific weeks.
In discussions with timeshare owners and industry experts, it is evident that this trend is more beneficial to the property owner than the timeshare owner.
As one timeshare owner who traded a specific week in San Francisco for the points said, “before I controlled the situation, now the resort does.”
This owner went on to say that he was not able to get a week in the location, since he shifted to points.
Many other timeshare owners reported the same trend and indicated they regretted the change.
He and others pointed out that they needed to ask for a specific week as much as 13 months in advance.
Timeshare property owners contacted said the flexibility of having points rather than being tied to the one week was the main attraction for shifting.
However, many resorts are fully booked for the most desirable times and getting a week when demand is high becomes a problem.
RCI, the largest exchange program, is under fire for failing to offer the best locations to people trading their weeks and a class action suit has been filed.
Experts say that when considering a timeshare, individuals and families must ask themselves these three questions:
- Do I want to be in this location year-after-year?
- Does the facility have an ongoing budget for repairs and maintenance?
- Do I want to be in a different place each year and have to worry about finding a place each time?
If the answers to the first two questions are “yes” than buying a specific week makes sense. A “yes” to the last question makes points a viable option but you should understand the risks.
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