Exchange Company Awards Can Increase Timeshare Value

RCI and Interval International are the 2 largest timeshare exchange companies in the world. Almost always, when a timeshare resort is newly developed, its developer will choose to affiliate the new resort with either RCI (Resort Condominiums International), or II (Interval International). Both exchange companies have a similar system in which they recognize the outstanding resorts affiliated with their exchange network, for standards of excellence in important categories, but there are a few slight differences in how each exchange company bestows an award.

RCI designates their superlative timeshares as Gold Crown Resorts. Interval International lavishes its Five Star Award on their premier timeshares. What does it mean when an exchange company bestows such a recognition award on a timeshare? Does it compare to the vaunted Michelin Guide's 4-star rating? Or is it just a lot of meaningless hype?

Actually, a Gold Crown Resort or Five Star Award rating is as coveted in the timeshare industry as those Michelin stars are by restaurants and hotels. A premier designation is an outside validation a resort's claim to quality, boosting the prestige of the resort. It assures both buyers and existing owners that the timeshare management is committed to providing high quality amenities, superior service and excellent maintenance. Also, because exchange systems trade accommodations of similar quality, owning a timeshare that has received a recognition award gives you an entree into other award-winning resorts.

Unfortunately, recognition awards do not always guarantee similarly luxurious accommodations and amenities. Here's how the awards stack up:

• Interval International's Five Star Award is the only level of award an affiliated resort can obtain. There is no 4, 3, 2, or 1-Star rating. The 5-Star rating is based on its own Quality Rating Survey which rates five general criteria: area, site, amenities, units and guest services. "Scores are weighted according to the type of vacation experience," explains II spokesman Chris Boesch. "For example, a resort in an urban area may not be required to have a full-size kitchen but may offer more in the way of guest services." Once a Five Star Award is given, II monitors continued quality via guest comment cards. (This is why it's so important to keep II informed by completing your guest comment card at the end of your vacation.)



• RCI's Gold Crown Resort is based on a detailed list of specific criteria that a resort must meet to be recognized. Two lesser levels of recognition are also offered: the Silver Crown Resort designation for resorts that come close but not quite up to the gold standard and the RCI Hospitality award for resorts that meet a minimum standard of excellence. RCI also uses guest comment cards to monitor continued quality. To maintain a Gold Crown Award, however, a resort must also continue to meet specific requirements for resort amenities, guest services, unit amenities/interiors and resort maintenance.
  

You'll note that RCI uses a rating system with a hierarchy of benchmarks while II uses more of a checklist. Without a lesser number of stars to denote various levels of quality, II's Five Star Award can be a bit misleading. Not all II resorts receive a Five Star Award, of course, but neither does the award guarantee quite as discernible a standard of quality as RCI's Gold Crown award. You can't necessarily assume that an II Five Star Award resort will be comparable to hotel that receives a AAA 5-diamond or Mobil 5-star rating.

In 2006, rating organizations in the United Kingdom imposed a new program that rates all of the nation's accommodations by a common set of standards. The same rating criteria and guidelines are now used by VisitBritain, VisitEngland, VisitScotland, VisitWales, the Automobile Association and the Royal Automobile Club to determine the number of stars to award a hotel or resort. Each organization accepts the others' ratings and ratings are jointly published.

While this won't change II or RCI timeshare ratings, it will provide consumers with a more exact idea of a timeshare resort's quality. Consumers might demand more details about an II Five Star Award resort that only receives a 3-star rating on the UK's national rating system. While hotels and resorts are not required to participate in the national rating system, those that don't are prohibited from being promoted by UK tourist boards or journalists. The system doesn't have a specific category for timeshares, but will evaluate them if the property is mixed-use or offers rentals. Properties pay an assessment fee to be evaluated.

A program similar to the UK's national ratings system may never "cross the pond," but some standardization would certainly benefit consumers and timeshare owners.

Timeshare Exchanges Increase Vacation Options

Some people buy a timeshare because they want to vacation in the same spot every year. Others buy a timeshare for its exchange value. They're investing in the opportunity to vacation at luxurious resorts all over the world. As they say, variety is the spice of life! Even if you primarily enjoy vacations in your own timeshare, owning a timeshare gives you the ability to easily vacation anywhere in the world.

The two giants in the timeshare exchange industry are RCI and II. Together they handle most of the world's timeshare exchange business.

Commonly referred by as RCI, Resort Condominiums International was founded in 1974 and quickly became a driving force in timeshare growth. The leader in the vacation ownership industry, RCI has more than 4,000 affiliated resorts located in 100 countries. More than 3 million members in 200 countries subscribe to the exchange service. In the three decades since its inception, RCI has arranged exchange vacations for 54 million people worldwide.

To become a subscribing member of RCI, you must own vacation time at an RCI-affiliated resort, complete an application form and pay an annual fee. For a limited time, RCI has waived the one-time $200 initiation fee and new members may join by paying only the $89 annual fee. For more information, visit the RCI website at http://www.rci.com/ or call RCI Member Services at 800-338-7777.

Interval International, or II, bills itself as the quality exchange network. Founded in 1976, II is an exchange network of 2,200 resorts serving 2 million members worldwide. Participating members must own a timeshare property in the II network. While II does not own properties, exchange properties must meet its criteria for quality. II is perhaps best known for its affiliations with Disney Vacation Club, Marriott Vacation Club and Westgate Resorts.

Like RCI, to become an II member, you must own a timeshare within the family of Interval International-affiliated resorts, complete an application and pay an annual membership fee. A standard membership currently costs $84 per year with discounts for three and five-year memberships. A Gold Upgrade is also available for $138 which provides premium exchange and vacation opportunities. For more information, visit II's website or contact customer service at 888-784-3447 or via email to customerservice@intervalintl.com.

There are other timeshare exchanges, but RCI and II handle the bulk of the timeshare exchange business. If you're interested in purchasing a timeshare, whether for personal enjoyment or its exchange value, click the post title to go to Timeshare Giant. You'll find timeshares for sale (and rent) everywhere in the U.S. and all over the world at Timeshare Giant.

What Is a Fractional Timeshare?

Fractional timeshare ownership guarantees you the use of a timeshare property or resort during several weeks of the year -- that is, for a fraction of the year. Typically, fractional interests range from a minimum of 2 to 13 or more weeks per year, far more than the one week per year common in most timeshare plans.

Many owners choose to purchase a fractional timeshare as opposed to a second or vacation home. With fractional ownership, you need only pay for the time you actually plan to be in residence, a considerable savings over purchasing a second home, which generally goes unused for a considerable portion of the year. Whether you're in residence or not, you pay to maintain, heat, insure and provide utility services for a second home. With a second home, you also pay for mortgage and taxes for a full year. With a fractional interest in a timeshare, you share all those expenses with other owners, prorated to reflect the actual fraction of the year the timeshare is available for your exclusive use.

Fractional ownership originated in the U.S. in 1994 with groups of family members or close friends pooling their resources to buy vacation properties. The average fractional owners are married empty-nesters in their mid-50s with an average household income of $500,000. Generally, ownership is divided into fourths, eighths or 13ths with each owner enjoying an equal number of weeks at the property. With fewer restrictions than most timeshares, fractionals can be rented out, shared with family and friends, sold or left to your heir in your will. Like timeshares, fractionals can be exchanged, allowing owners to vacation in other locales.

Fractional ownership offers vacationers some distinct advantages, including the opportunity to vacation longer and more often and the opportunity to vacation in multiple seasons. Many fractional owners enjoy the seasonal delights of both summer and winter at their timeshare.

Fixed or Flex: What Timeshare Plan Is Best?

Timeshare ownership plans come in two basic flavors: fixed weeks or flex (floating) weeks. Which type is best? It depends on your vacation preferences.

Fixed Weeks: You are permanently assigned ownership of a specific unit and reserved a specific week during the year when the timeshare will be available for your exclusive use. The advantage of owning a fixed week is that you always know when and where you will be vacationing. When you want a bit of variety or can't use your week, you can deposit it into an exchange system.

Fixed weeks give you and your family the opportunity to lay down some vacation roots. You can start building vacation traditions, activities your family will look forward to year after year. You may develop friendships with other couples and families that vacation during the same week you do and plan joint events for your annual get-togethers.

Vacationing in the same spot at the same time year after year can provide the foundation for building wonderful family memories. When my friend was a child, every year her family spent the last two weeks in July at her grandmother's cottage on Lake Michigan. She tells grand stories of blueberry picking with friends, everyone trooping over the next morning for a gut-busting blueberry pancake feast. She remembers with fondness lazy days swimming in the lake and building sandcastles on the beach with her sisters. Her grandmother's cottage in Michigan was the site of many early life adventures: learning to sail (and dunking her dad in the process), her first kiss (stolen under the creek bridge), weekly treks to Sherman's for homemade ice cream (and the best chocolate sodas this side of heaven), and long explores back into the sand dunes searching for the elusive deer herd (many hoof prints followed, no deer sighted).

Returning to the same spot every year adds a cozy comfortableness to your vacation. You know what to bring, where things are, what there is to do. Each year new people and new activities will add a little pizazz to your vacation, but you'll find yourself looking forward most to your traditional activities. My friend remembers her childhood vacations with such fondness that she and her husband recently decided to buy a timeshare and start building their own family memories.

Flex (Floating) Weeks: Flex or floating weeks allow you varying degrees of flexibility in selecting the week you use your timeshare property. At some resorts you can schedule your week at any time during the year; others restrict flexibility to certain seasons. Scheduling is based on availability. Be prepared to vacation in a different unit each year. While you may be able to request a particular unit, assignments are based on availability. Resorts with similar seasons such as Hawaii or the Caribbean are more likely to offer the flex system.

If you have a hectic work or family schedule or aren't able to vacation at the same time every year, a flex system is more apt to fit into your lifestyle. A flex timeshare allows you to fit your vacation into your life at your convenience.

If you purchase a timeshare primarily for its exchange value, the flex system facilitates easy exchanges. If you find variety the spice of life, through the exchange system you can vacation in a different exotic locale every year. One year you can ski the slopes of Switzerland; the next, you can bask on the white sands of the Caribbean.

I read about a couple who upon retirement decided to shuck off the shackles of their staid and ordinary life and travel the world -- one timeshare at a time. They became quite adventuresome travelers, eagerly planning each vacation with an eye toward soaking up as much of the local culture as possible. Using a timeshare as their home base, they have snorkeled along Australia's Great Barrier Reef, taken cooking classes in Thailand, cruised the fjords of Norway, and bicycled through France's wine country. With the advantage of timeshare exchanges, the world is now their oyster.

Timeshare Purchase Tips

If you've decided to join the throngs of vacation goers who have discovered the delights of vacationing in timeshares, you should be aware that there are two basic types of purchase plans: deeded and non-deeded.

• In a deeded plan, you purchase an ownership interest in a piece of real estate. You actually own a portion of the property and structure.
• In a non-deeded plan, you purchase a lease, license or club membership that lets you use the property for a specified time period each year for a specific number of years. While what you own is a piece of paper, that paper gives you the legal use of the property.

In both types of purchases the cost of the unit will depend on the season and length of time you wish to purchase. For example, a week in Aspen during January ski season is worth more than a week in July.

As with any home purchase, read contract papers carefully and make sure you understand what you are buying. You may want your attorney to review any documents you will be asked to sign. Consider these points when buying a timeshare:

• Practicality. People buy timeshares for the convenience of pre-arranged vacation facilities. Make sure you'll be able to use your timeshare every year. Some questions to ask yourself: Are your vacation plans subject to last minute changes? Do they vary in length or season each year? Will you be physically and financially healthy enough to travel to your timeshare?
• Investment. A timeshare is an investment in leisure time and quality of life. You are unlikely to gain financially from the resale of your timeshare and will probably not recoup your initial investment.
• Cost. In determining whether to invest in a timeshare, make sure you factor in all the costs of purchase, including: mortgage payments, closing costs, broker commission, finance charges, annual maintenance fees, taxes, travel costs.
• Documents. Thoroughly read and make sure you understand your purchase documents. Ask your attorney to check over any contracts or agreements you will be asked to sign. Ask if there is a cooling-off period during which you can cancel and get a refund. If not, ask to have it included in the contract. If the seller tries to rush you or won't let you take the documents home for review, walk away.
• Promises. Oral promises are worthless. Make sure all oral promises made by the salesperson are written into the contract.
• Exchanges. Find out if you can arrange trades with other resort units in different locations. Ask about fees and limits. Some programs will not allow you to trade up to a peak time or more exotic location.
• Reputation. You want to ensure that your timeshare will be properly maintained and managed. Research the track record of the seller, developer and management company before you buy. Ask for a copy of the maintenance budget and find out how the property is maintained. Visit the timeshare and talk to current owners. Check with the Better Business Bureau and consumer protection agencies to see if any complaints have been filed.
• Default. Make sure you know your rights if the management company has financial problems or defaults. Make sure your contract contains a non-disturbance provision clause guaranteeing your continued use in the event of default. It should also have a non-performance protection clause guaranteeing your ownership rights.

Timeshare Term Glossary

Accrual Program, A.R.D.A., Blue Weeks, Day Use, Fractional Interest, Lock-off unit, White Weeks... If you don't know what these terms mean, then let me invite you to check out our Timeshare Glossary of terms at our main website http://www.timesharegiant.com/. You'll be speaking like an expert after you peruse our online glossary.

In our Timeshare Glossary we list definitions of over 69 different important terms that are common in the timeshare industry and in the timeshare resale marketplace. Here are the definitions of a few that you may find interesting to pique your curiosity further:

Accrual Program: Some resorts offer their owners the ability to move unused weeks from the previous year, for use in the current year.

Day Use: If a resort offers day use, a timeshare owner can access the resort’s services and amenities 365 days per year, such as the pool or health club, even while not in residency.

White Weeks: A color-code designation used by R.C.I., indicating moderate demand weeks at a resort. R.C.I.’s color-coding is as follows: Red = High Demand, White = Moderate Demand, Blue = Low Demand.

Lock-off unit: Also known as a lockout unit, a type of timeshare unit consisting of multiple living and sleeping quarters designed to function as two discrete units for purposes of occupancy and exchange. The unit can be combined to form one large unit or can be split or "locked-off" into two or more separate units, allowing the owner to split the vacation into multiple stays or bank all or a portion for exchange purposes.

These are just a few of the terms that you will find in our glossary. We invite you to learn more about timeshares and to identify if buying a timeshare is right for you. Buying a time share may just be the perfect alternative to buying a vacation home. Visit http://www.timesharegiant.com/ now for information on vacationing in a timeshare resort or for more information on buying or selling your timeshare.