27 August 2008

Time to beat the credit crunch with timeshare?

More than half of people in the UK plan to forgo an overseas holiday, new research shows

The ongoing global credit crunch, a cooling property market and inflation have resulted in the majority of people viewing holidays as a luxury purchase, with only 17% of the population seeing them as a ââ¬Ëœnecessaryââ¬â¢ spend, according to the study.

The findings from timeshare company RCI and Mintel suggest worrying times ahead for the travel industry.

The poll of more than 2,000 people to find the ââ¬ËœLifetime Value of a British Travellerââ¬â¢ showed that the average person went on two holidays a year, each lasting one week. This generated a total spend of Ã&#pound;665 on accommodation - equating to Ã&#pound;39,900 across a lifetime.

On average, Britons spend 840 days holidaying abroad.

But RCI claims that it can deliver the same holiday time to its members at a saving of more than Ã&#pound;23,000 on average per person.

A timeshare owner will spend an average of Ã&#pound;15,175 on holidays of the same duration in their lifetime.

The companyââ¬â¢s exchange network may allow members to exchange their RCI Points or Weeks for holidays at over 4,000 affiliated resorts worldwide.

Business development senior vice president Brett Archibald said: ââ¬ÅâœDuring the credit crunch, timeshare represents increasingly good holiday value and although many Brits may be forced to cut back, members can rest assured that they have budgeted in advance for a well-earned holiday.ââ¬~

by Phil Davies

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• RCI DISTORTS MATH
  
  

  As is the custom at RCI presentations, it would again appear that RCI has distorted their math. An average Timeshare owner pays annual maintenance of GBP350 per week. At 2 weeks holiday per year GBP700. The average Briton spends 840 days = 120 weeks at 2 per year = 60 years of maintenance = GBP42000 + capital outlay to buy the timeshare, say GBP10000 = GBP52000 and thats without considering lost interest on capital or any inflation to maintenance fees. And please, RCI, don't tell me I can sell my timeshare to recover capital, as I've tried. It's virually impossible at any price.

  By Simon Garrison, Thursday, August 28, 2008
• Difficulty in obtaining RCI exchanges
  
  

  As a long-time owner of two weeks in a prime property, we share the complaints of hundreds of timeshare owners - RCI exchanges are few and far between. They prefer SELLING their weeks to the military, large corporations and others. It has become almost impossible to get an exchange - especially in Europe.

  By Nancie Ligon, Wednesday, August 27, 2008