In the early days, timeshare was typically sold as “fixed weeks”: you returned to the same resort, the same apartment, in the same week every year. Timeshare exchange programmes were introduced to add choice and flexibility. In practice, however, timeshare owners—often even those content with other parts of their membership—regularly tell TAC helpline operatives they are dissatisfied with how exchanges work.
So where did timeshare exchange systems go wrong?
Over-promised
There are three main active timeshare exchange companies: Interval International (II), Resort Condominiums International (RCI) and 7 Across (formerly Dial an Exchange). II has been bought by Marriott Vacation Club (MVC). RCI and 7 Across are both owned by hotel and timeshare giant Wyndham.
A major reason for disappointment is how exchange systems are first explained. For many people, the introduction comes from a timeshare salesperson focused on closing a deal. That salesperson will not be the one delivering the holiday the buyer expects—and owners may not discover any exaggerations until they try to exchange, often a year later.
This structure suits everyone involved—except the customer. The resort signs up a new member, the salesperson is paid, and RCI gets talked up to the point where most new members are unlikely to refuse to join. RCI retains plausible deniability because it did not make the promises directly.
Expensive to use
Another detail rarely emphasised by commission-driven timeshare reps is the sheer cost of using exchange systems.
There are joining costs, plus annual membership fees whether you exchange or not. You can be charged extra to exchange into a different country or a different time of year. There are also fees to “bank” (save) a week for a later year, or to borrow from a future year.
These fees simply do not apply to most mainstream holiday bookings. If a holidaymaker took a £1,000 week in Spain last year and then chose a £1,000 week in Portugal this year, there would be no extra charge for changing the plan. In this sense, a timeshare exchange user can end up paying more money to have more restrictions placed on their holidays.
Limited availability at the resorts people actually want
Popular destinations and resorts are booked first: ski resorts in winter, Disney, and luxury Spanish resorts such as Anfi in summer. Put simply, if a resort is attractive to you, the odds are it is attractive to many other owners as well.
Many people who bought into lower-standard resorts did so after being told they could exchange into the best ones. But owners at the top-end resorts are typically reluctant to give up high-quality accommodation for anything other than a comparable standard.
The result is predictable: even after providing first, second and third choices, an owner’s first-choice exchange is unlikely to be granted.
Long booking windows (with no guarantee)
For in-demand resorts and dates, owners may be told to book up to two years ahead. Even then, there is still no guarantee of securing your first choice.
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Owners also complain that they often do not know what they will be doing two years in advance, or even what kind of holiday they will want.
Points owners unable to book the weeks they need
Many owners were “upgraded” to points on the promise of more flexibility. In reality, unlike owning a week that fits their needs (for example around school holidays or annual workplace shutdowns), they now have to take a chance on securing the dates they want through the exchange system.
Moving to points also allowed resorts to sell far more memberships to people who needed specific times of year than they were able to accommodate. Points owners regularly report calling at 9:00am on the day their year-long booking window opens to request the week they need—only to be told they are already too late and the resort is full.
Weeks rented to non-owners
RCI being owned by Wyndham, and Marriott owning Interval International, is seen by many experts as a conflict of interest. These exchange companies are believed to allow users from other client bases to access timeshare units, which can make availability even scarcer for actual owners.
Because many timeshare resorts now advertise units on mainstream booking sites to increase revenue, the paying member can sometimes find they can only access their “home” resort by booking through those sites.
Complicated and inflexible
A regular holidaymaker has the world at their fingertips. If they want a weekend break in two weeks’ time, ten days at the beach in June, a week skiing in December, or to rent an RV and drive through stunning countryside, they can search, click and book. It is that straightforward.
And if they do not want to go away at all this year, they book nothing and pay nothing.
Compare that with the reality for many timeshare owners. They often have to choose far in advance and follow a long list of rules: depositing their own week on time, submitting first/second/third choices, registering within strict timeframes, and paying all the associated add-on fees.
Changes can be so difficult that owners often do not even try—and they still pay every year whether they travel or not.
Shocking customer reputation
Online reviews of RCI and II are best described as grim. On Trustpilot, the Better Business Bureau and Consumer Affairs, they repeatedly receive the lowest rating: one star out of five. Many comments say they only selected one star because it is not possible to give zero.
Common themes include: a lack of support to secure a trade (this customer says they had been waiting for over two years); allegations of rudeness and dishonesty (this reviewer cites “fraud and consumer abuse and stealing from hard working taxpayers”); and complaints about repeated attempts to extract more money (or, as one poster puts it, “constant new ways to screw customers”).
“Take your chances”
Finally, one aspect of exchanging shocks many owners the first time they try to holiday elsewhere: you often have to deposit your week before you even request (let alone confirm) the new destination.
Yes—your week may need to be given up first, before you have confirmation of any of your exchange choices. If you do not get your preferred destination, you may no longer have access to your own week, because it has already been deposited into the system.
This can leave the unlucky owner forced to accept whatever is available, rather than the destination they actually wanted.
At that point, the only way to get back into their own resort may be via an external exchange—meaning another significant fee for the privilege.
Fed up with failed timeshare holidays?
If you are a timeshare owner who feels trapped in an expensive holiday system, get in touch with our team at the Timeshare Advice Centre (the marketing arm of European Consumer Claims). In most cases, we can help you exit your timeshare contract and, depending on the circumstances, may be able to claim compensation if you were mis-sold.
