Timeshares have become increasingly common and are now more expensive than ever. According to the American Resort Development Association, around 10 million U.S. households own a timeshare, with the average price soaring to $23,940 in 2023. This reflects a significant increase of over 30% since 2018. However, as the industry gains popularity, it has also faced criticism and scrutiny due to the difficulties owners encounter when trying to exit their contracts. Sheila Wagner, a timeshare owner, expressed her frustrations by stating, “I could have retired if I had my money back from this, but I can’t retire right now because of this situation that I’m in.”
While the timeshare industry boasts a value of over $10 billion, a striking study reveals that up to 85% of buyers regret their purchase. Seeking an escape from their agreements, many owners turn to the resale market. Sadly, even the most desirable properties suffer a loss in value after the initial purchase. Brian Rogers, owner of Timeshare Users Group, an influential consumer advocacy and timeshare resale website, explains the grim reality, stating, “Our general rule of thumb is most timeshares sell for between 0% and 10% of their original retail purchase price, and the majority of that focus is unfortunately on the 0%.”
Although some timeshare companies allow owners to relinquish their ownership once the contract is paid in full, this option is not always available. Moreover, even when the timeshare is fully paid off, owners remain responsible for the ongoing annual maintenance costs. In 2022, the national average maintenance fee was $1,170, as reported by the ARDA. Jeff Weir, an independent timeshare journalist and former RedWeek chief correspondent, emphasizes the struggle owners face, saying, “There are a lot of timeshares where the maintenance fee is $1,200 and the people can’t rent them for $100 a night.”
The Better Business Bureau indicates a concerning trend with approximately 3,000 complaints filed against two of the largest timeshare companies, Wyndham Destinations (under Travel + Leisure) and Hilton Grand Vacations, within the past three years. These complaints shed light on the ongoing issues faced by timeshare owners. From deceptive sales tactics to difficulty in canceling contracts, the industry’s reputation has been tarnished.
The exorbitant costs, regrettable statistics, and countless complaints surrounding the timeshare industry suggest the urgent need for reform. To protect consumers, greater transparency and clarity in sales practices should be enforced. Additionally, options for easy contract cancellations should be made readily available. Authorities and industry leaders must come together to establish safeguards, ensuring that timeshare owners are not trapped in financial burdens. Until these changes occur, potential buyers should approach timeshare purchases with caution, weighing the risks against the purported benefits. Ultimately, it is crucial for the industry to address these shortcomings and prioritize the well-being of its customers.
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