Timeshare owners are often sold the idea of luxury, exclusivity and guaranteed quality. But with the European timeshare boom long past, many people now question what they actually get in return for annual maintenance fees — and whether those rising charges are still justified.
Holiday nightmares
In the 1980s and 1990s, before the internet made it easy to compare trips, finding accurate, independent information about holidays was much more difficult.
When booking a holiday, many people relied on a physical brochure with its glossy photographs.
Brits were drawn in by dreamy hotels on picturesque beaches, only to arrive and discover the reality was nothing like what was promised in the pictures.
These “holidays from hell” became regular tabloid headlines as more holidaymakers shared their nightmare experiences.
A solution emerges
That wave of disappointment helped fuel a new business model: timeshare.
Holidaymakers became targets of aggressive sales operations, where they were shown high-quality accommodation in “exclusive” resorts.
Many people paid a premium — often thousands of pounds to join — plus ongoing maintenance fees, believing it would protect them from another holiday from hell.
Maintenance fees and resort profiteering
From the outset, these fees raised questions.
It has long been said they were higher than the true cost of upkeep. Even so, in the early years they could still look good value compared with booking an equivalent high-standard holiday each year (setting aside the upfront joining fee).
Timeshare resorts expanded across Europe and worked to keep standards high. The property had to look premium during sales tours to convince new customers to sign up.
What has changed — and why fees keep rising
Fast-forward to 2022 and the picture looks very different.
New member sales have either stopped altogether or slowed significantly. For many timeshare companies, maintenance fees are now the main source of income.
Over time, annual charges have been heavily inflated. In many cases, they are now comparable to — and sometimes higher than — the cost of booking regular holidays.
And with sales operations winding down, resorts have far less incentive to maintain superior standards.
Owners commonly complain about cuts to facilities, reductions in services and dated apartments.
Here is one example from Playa Real, a timeshare resort in Marbella, Spain:
Drab: Playa Real apartment living room
Tired: Playa Real apartment bathroom
Uninspired: Playa Real apartment bedroom
Meanwhile, today’s holidaymakers can often book apartments that match or beat timeshare standards — frequently for less than the annual fees owners pay.
For example, the Romana Playa complex, close to the Playa Real timeshare resort, was available at £519 per week, including cleaning and beach access — arguably a better standard than nearby timeshare complexes.
Timeshare resorts are also no longer truly “exclusive”. Many can now be booked via travel websites such as Booking.com, meaning holidaymakers can stay without paying a joining fee and simply pay for the time they are there.
A poor attitude towards owners
Andrew Cooper, the CEO of European Consumer Claims (ECC), says that "customers are contractually obliged to pay whatever the timeshare company decides," while the resort has "no motivation to provide high standards in return."
"To maximise profits, a timeshare company's logical course is to minimise expenditure wherever possible on resort standards. And to increase the annual charges the maximum they believe they can get away with".
Over recent decades the travel industry has changed dramatically, driven by competition and consumer expectations. However, Mr Cooper says "timeshare owners are being left behind, without the standards, choice and flexibility enjoyed by regular holidaymakers".
"Ironically the expensive memberships that once shielded timeshare owners from 'holidays from hell' have trapped them in some of the least acceptable holiday conditions available in modern times."
Do you want to leave your timeshare membership?
If you are considering your timeshare options, speak with one of our specialists at the Timeshare Advice Centre.
It may be possible to relinquish your timeshare membership, and you may even find out that you are entitled to compensation.
Get in touch today to find out more.
