Timeshare maintenance fees are already expensive, but many owners are facing even higher bills in 2023
Predicted rises
Industry experts at European Consumer Claims ("ECC") have published articles warning that many resorts are likely to push through further annual increases, adding to the concern around timeshare maintenance fees increasing.
In difficult economic periods, it is not unusual for timeshare operators to use tough conditions to boost profits.
During the pandemic, for instance, many resorts continued charging members full maintenance fees. This happened even though government furlough schemes often contributed towards staff wages and other operating costs were reduced.
At the time, many resorts were accused of profiteering, particularly when other travel businesses took extra steps to support customers.
Macdonald Resorts – the first of many
In recent weeks, one of our clients contacted us after being told that Macdonald Resorts in Scotland is planning a 30% timeshare maintenance fee increase.
Here is an excerpt from the email sent to the customer:
The email also states that other managed clubs in the UK and Spain will see similar increases, adding to reports of a wider Macdonald Resorts maintenance fees increase.
More on the way?
Macdonald Resorts may be first to announce a major rise, but industry commentators believe it is unlikely to be the last. This has led many owners to ask: can timeshare maintenance fees be increased – and, if so, by how much?
Andrew Cooper, CEO of European Consumer Claims (ECC), explains that timeshare companies historically relied on two main income streams.
The first was their high pressure sales and marketing operations, generating significant revenue by signing up holidaymakers.
According to Mr Cooper, much of that revenue was profit, contributing to rapid growth for parts of the industry in the 1980s and 1990s.
The second income stream came from annual maintenance fees.
These fees were intended to "keep the resorts in pristine condition". However, Mr Cooper states that members were often charged "way more than was required for maintenance".
He also notes that timeshare contracts frequently did not include clear limits on how much fees could rise each year. That contractual detail is central to why many owners feel trapped and to the ongoing question: why are timeshare maintenance fees so high?
As timeshare became viewed as outdated and sales reduced, some resorts began to become more brazen about maintenance fee increases.
In some cases, it can now be cheaper to book a week in a resort via Booking.com than to pay the annual maintenance fee.
With general inflation at around 10%, a reported rise of over 30% has also raised concerns about timeshare maintenance fees inflation and whether increases are proportionate. Many owners searching for information about a timeshare maintenance fee rise 2023 are worried that similar hikes may follow elsewhere.
Given the pressures across the sector, and the attitudes shown by some operators, the increase reported at Macdonald Resorts could be the first of many.
What can customers do?
Timeshare agreements are often designed to be difficult to exit.
Many people signed up after a flashy presentation while on holiday, and only later discovered there was no clear restriction in their contract on annual fee rises.
In practice, some resorts raise fees by as much as they think owners will accept. When increases happen gradually, customers may tolerate them for years – until the cost becomes unmanageable. This is usually the point people start looking for guidance on what to do if timeshare fees go up and how to stop timeshare maintenance fee increases.
If you no longer want to continue paying, and you want to be free of the ongoing liability, help may be available.
With the right support, many timeshare contracts can be relinquished.
If you would like a free, no-obligation consultation, contact our team at the Timeshare Advice Centre today to discuss your options for relinquishing your timeshare contract or claiming compensation.
