Timeshare Companies Seek Relief for Massive Sales Losses

Timeshare owners today are taking advantage of any form of timeshare relief just to be free from their timeshares. The economic crisis which hit the United States in the latter part of the year 2008 caused dire effects on the timeshare industry. Leading luxury vacation conglomerates report massive losses on sales and revenue on their timeshare divisions. More and more owners today are getting rid of their timeshares as they can no longer sustain its continued expenses.

A lot of owners today are getting rid of their timeshares by selling. As a consequence, timeshares literally flood the market today. The oversupply of timeshares for sale in the market has increased the competition between and among timeshare developers and owners. Classical economic theory is given credence as the oversupply of timeshares drive timeshare prices down to record lows. Timeshare prices of 1 dollar per timeshare unit now proliferate in online auctions such as eBay.

The widespread sentiment of discontent among many timeshare owners today has caused lowered consumer confidence on the timeshare industry. Vacationers today are less likely to purchase timeshares compared to consumers several years ago. Worse, the economic crisis also affected timeshare consumerism as more and more parties are hesitant to spend substantial sums for luxury vacations. This has resulted in heavy losses on timeshare sales for timeshare companies and has stalled the timeshares for resale of many timeshare owners. Thus, it is highly recommended that owners, who are getting rid of their timeshares by selling, should rather avail of other forms of timeshare relief.

Timeshare Rental Provides Temporary Relief to Owners

Today, there is an increasing demand for timeshare relief among many timeshare owners. The recent downturn in the global economy has affected the budget of many timeshare owners for their luxury vacation lifestyle. A lot of timeshare owners today are more hesitant to shell out considerable sums of their money for the continued support of their timeshares. However, timeshares are also contracts, hence, existing owners have no choice but to continue paying their timeshare bills as the health of their credit is in line upon default in payment.

One of the more common ways to offset timeshare costs until a more permanent form of timeshare relief is available is to rent timeshares out. By renting their timeshares out, owners can profit from their timeshare properties to compensate for some of their expenses on it such as timeshare maintenance fees. Even if the profits of timeshare rental is not enough to make up for all the costs suffered by the owner in the acquisition and maintenance of his timeshare, renting timeshares out is a temporary remedy for the financial woes of many timeshare owners.

Nonetheless, renting timeshares out requires substantial acumen for timeshare owners. This is because renting timeshares out entails the prior promotion of their timeshare wares as well as the execution of legal requirements to streamline the whole rental process. In most cases, the timeshare owner himself would have to exert the effort and resources needed in order to find a timeshare renter. However, all the effort and resources by timeshare owners is well spent as a successful timeshare rental will bring temporary timeshare relief until a more permanent means of getting rid of their timeshares is available.

Points-Based Timeshare Business Models Provide Limited Relief to Vacationers

Many potential timeshare owners today are having second thoughts in purchasing brand new timeshare vacation packages. The countless comments of a lot of disappointed owners in timeshare relief forum discussions have discouraged a lot of prospective timeshare buyers. Still, new timeshare buyers are now a severe need for the timeshare industry. The huge drop in timeshare sales in recent years has caused massive revenue losses for many timeshare companies. This is on top of the fact that more and more owners are wishing to be free of their timeshare vacation packages.

New timeshare buyers are now at a loss as there are now several varieties of the original timeshare model. One of the most popular timeshare programs in the industry today is the points-based timeshare system. The original timeshare business model allows owners to purchase ownership from the timeshare developer for a specific period in time. Shares are usually composed of weeks where each timeshare unit can have up to 52 shares in any given year.

The points-based timeshare system differs largely from the traditional timeshare model, as consumers purchase points instead of specific timeshares in a resort. Timeshare patrons can purchase as many points as they wish as points are cumulative. These points can then be spent on any of the timeshare resorts or hotels owned or under the control of the timeshare company. However, points-system timeshares still requires their patrons to pay yearly maintenance fees as well as other timeshare charges. Thus, points-system timeshare still possess the same characteristic which causes many timeshare owners to get rid of their timeshares.