As the war in Eastern Europe continues and the economic effects spread, many people are asking: “What will this mean for me?” Below, we look at how rising fuel and energy costs could affect timeshare owners and the real cost of using a timeshare.
Global shockwaves and knock-on costs
Just as many countries were beginning to recover after two difficult years of COVID-related uncertainty and financial strain, another major crisis has taken hold. The Ukraine/Russia war is already sending shockwaves through energy and commodity markets, and in an interconnected global economy those impacts rarely stay local.
Those facing violence, displacement and loss deserve our immediate empathy and support. This article does not seek to diminish that suffering. However, it is sensible for everyone else to consider what may be coming next and how it could affect household budgets and long-term commitments.
So what changes could the Ukraine/Russia conflict bring for people committed to timeshare memberships?
Fuel and oil prices: the impact on timeshare travel and running costs
Russia is one of the world’s largest producers of oil and natural gas. Disruption to supply, and wider market instability, can push up the cost of petrol, jet fuel and household gas.
For timeshare owners, there are two direct pressure points:
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Higher travel costs to reach your resort: When fuel prices rise, the cost of driving or flying to your timeshare can increase quickly—whether your resort is in the UK or overseas. Many owners pay annual fees regardless of whether they travel; if the trip becomes unaffordable, they may still lose the value of those fees by not using their allocated time.
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Timeshare maintenance fees may increase: Higher gas and oil prices can feed into the annual running costs of resort properties, from heating and hot water to transport and supply chains. If operating costs rise, owners often expect maintenance fees to follow. During the pandemic, many owners reported that maintenance fees largely stayed the same even when resorts were quiet—an approach that attracted criticism. As Andrew Cooper, CEO of European Consumer Claims (ECC) explains, “Traditional businesses are motivated to keep customers happy so they don’t take their business elsewhere. Resorts don’t have that problem, because their clients are legally obligated to pay whatever they are charged every single year whether they want to or not, whether they use the product or not. So Resorts unfortunately have no incentive to be fair or reasonable.”
Wider economic effects: energy bills, inflation and household budgets
Rising oil and gas costs do not just affect holidays—they affect most areas of daily life. Household gas in the UK has already gone up by 54%, and this can also push up electricity costs, as up to a third of electricity is produced by burning gas. On top of energy bills and travel, transportation costs can increase the price of everyday goods. The global economy was already trying to rebound after the pandemic, and prolonged conflict makes that recovery harder.
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Will your job be safe? No one can predict exactly how a downturn might affect individual employment. Businesses are linked: if demand falls in one area, it can quickly spread to others. When people feel uncertain, they often cut back on non-essential spending such as holidays. Some roles may be more resilient, but increased competition for jobs can still suppress wage growth.
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Inflation: Living costs are already rising. Shortages of food, fuel and other essentials, alongside broader monetary pressures and depreciation of the Euro, can add to inflation. If wages do not keep pace, real income falls—and savings can also lose value in real terms over time.
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Interest rate rises: With inflation at a 30-year high, banks may raise interest rates. Higher rates increase the cost of borrowing, which can reduce spending in the wider economy. That squeeze can put additional pressure on firms and households alike.
These drivers are simplified here, but the practical outcome is familiar: many households have less disposable income for “nice-to-haves”. For many people, holidays are one of the biggest annual discretionary expenses.
Most travellers can respond by choosing a cheaper break, holidaying closer to home, or not travelling at all. Timeshare owners, however, are typically committed to paying yearly fees regardless of the economic climate. Often the only remaining choice is whether to use the holiday they have already paid for.
Is it time to move on from a timeshare?
The above is educated speculation. Some of it may happen, or none of it might. People will plan in different ways to manage risk and rising costs. One point is clear: being tied to an expensive, dated timeshare contract during an unpredictable period is far from ideal.
“At one time, timeshare ownership was the only way a holidaymaker could avoid being disappointed by unexpected low standards,” explains Andrew Cooper. “Nowadays the rest of the travel industry has overtaken timeshare clubs. Anyone can guarantee themselves the standards they want by checking review sites like TripAdvisor. Non members have the same annual expenses as timeshare members, but they have the flexibility to choose exactly what they want every year, or even to not go at all.”
Relinquishment and compensation claims
For members who feel trapped in an unwanted commitment, there may be options.
“The contracts might seem iron clad, but with expert help there is usually a way to be free from the expense,” reassures Cooper. “And for members who bought in Spain, on or after the 5th January 1999 it is likely that their contracts are actually illegal. If so, then they are entitled to often substantial compensation.”
To protect consumers from high-pressure timeshare sales operations, Spain enacted strict laws 23 years ago. Many timeshare companies ignored those requirements, and claims firms like ECC can pursue legal action on behalf of consumers whose timeshare was sold illegally.
“Not only does the claim free the member from the contract, the average compensation award is around £20,000,” explains Andrew Cooper. “Timeshare memberships don’t work. It’s an annual expense people don’t want to be tied into. Right now ECC’s success rate is 98.6%, so if one of our advisors confirms you have a valid claim you can not only be free of the membership, you are statistically also in line for compensation worth tens of thousands of pounds.”
“If this kind of freedom and financial bonus sounds interesting, we are a phone call or email away.”
Thank you for taking the time to read this article. For anyone wishing to help the Ukrainian people suffering due to the crisis, here is a list of top rated charities who would welcome your donations.
For a free, confidential, no obligation chat about options regarding your timeshare membership, get in touch with our team at Timeshare Advice Centre.
