How timeshare point system works.
How timeshare point system works.
Over the years timeshare management has taken different turns. It is a little more complicated than it is meant to be. When you wish to purchase a timeshare, proper research must be done so you have a clear understanding of the commitment you are making.
Timeshare sales persons might not explain fully to you how the point system works. Or maybe you just don’t understand how it works. This article would shed a little more light on how resorts and vacation club use the point system for their timeshares.
The point system can get really confusing. This is because it does not have a particular way in which it runs. Different resorts and vacation clubs have different ways of running their point systems. Vacation clubs have points values which they use as currencies. Different vacation clubs have different point values and how they are used.
A point system or club system consist of a number of timeshare resorts and hotels that have grouped together to provide a range of accommodation in different location around the world. Every resort that joins the point system has it weeks valued and expressed in common currency (point system). These timeshare points are purchased. They can also be sold. Points are obtained according to holiday needs and value of unit desired. A points system is more flexible. Each share owner has a certain number of points that can be used for different types of accommodations at different times of the year. If you want a large suite at peak tourist season, it might cost you more points than a small hotel room during the slow season. This allows owners to alter their vacation plans from year to year, although early booking is still a good idea.
A misconception people have about points is that you don’t have a deeded property. This is not true. You can have what is called an undivided interest which means you share the overall property with everyone else who owns a property at the resort you are a part of. If you own a particular unit, you share ownership with everyone who has every other week in that year for that unit only. So, an undivided interest is the same as a deeded timeshare except on a broader scale.
Say a one bedroom takes 100,000 each week (12,000 each weeknight and 20,000 each weekend night). A two bedroom takes 140,000 for the week (18,000 each weeknight and 25,000 for each weekend night). You have a choice of how many points you wish to purchase. But they will only go so far in this type of system. If you own 280,000 points, you can get two whole weeks in a two bedroom each year. Or you can get a one bedroom for a week, plus two 5 day excursions taking only weekdays in a one bedroom, plus have 60,000 points still left over for a weekend and another night. If you go during less than peak times, your points go even further because the same units go for far less points per night..
Points systems do have some potential disadvantages. If you wish to reserve a high demand period ( e.g. Christmas, President’s week), you need to call on the earliest possible date. You need to confirm at some resort from which you own points 13 months in advance. All others must wait until the 10 month opening reservation date, and by then the week you want may be unavailable.
The points must be paid for and used in the year received, or otherwise deposited with one of the exchange companies, thus incurring additional fees and rules governing usage.
There are many Points-based systems including Marriott, Starwood, RCI, Hilton, Disney, Interval International, Diamond, Wyndham, Worldmark, Royal Holiday Club, etc… Each has their own distinct rules, fees, options, etc…The learning curve can be steep! Sometimes the Customer Service representatives of the program don’t even know the rules, and can give you contradictory or misleading or just plain false information. And if/when you finally learn, some companies can and do change the rules.
Points based systems may not allow you to rent out the weeks or nights you have reserved. You may obtain “guest certificates” (usually for a fee of $49. to $59.) but in many cases their rules forbid you to do so for profit. People who have posted rental ads on web sites have been “caught” and have had the week cancelled. This can result in a lawsuit from the renter who does not get to use the week agreed upon.
If you need help leaving the complex world of timeshare, contact the experts at TS Elimiantion, LLC at 888-559-5660 (www.tselimination.com)