What is a timeshare? What is a timeshare in tourism - the pros and cons of the system. Timeshare sounds great

Russians are accustomed to the fact that they can only vacation according to the principle of package holidays. A package holiday is a system in which you buy a full tour including flights, meals, accommodation and transfers. And many do not even imagine that there may be any other form of leisure management. The seemingly ease of use actually costs large overpayments for vacations. If someone is developing a tour for you, he naturally wants money for it. You have to pay for this work, and we pay money for convenience. Yes it is. How much do you pay for this convenience? Have you ever asked yourself this question? And admit it to yourself honestly: the package holiday market can be called convenient, but it definitely cannot be called safe. Why?

You will receive the answer to this question on the TV screens of Russian channels. If companies that operated under the USSR go bankrupt, then what can we say about small travel agencies that are not even licensed in Russia. When it comes to Western operators, these are completely different organizations: they have their own hotels, their own aircraft fleet, a fleet of transfer vehicles, so they make a profit from their tourism infrastructure. As for the operating model of the domestic tourism market for package holidays, it is a tandem of tour operators and banks.

Tour operators are trying to compensate for their costs through bank loans and from year to year they are increasingly getting into credit bondage. And what happens to them next, you have repeatedly seen on TV. As for the convenience of a package holiday, one more fact should be noted here. Package holidays were convenient once upon a time, but not anymore. It was convenient at a time when modern communications, such as the Internet, for example, were not yet so developed. With the help of a smartphone and a credit card, you are able to become a tour operator yourself, and you will not need to pay extra money to someone for what you can easily do yourself, and your partner will not be a domestic company, but a hotel with assets, because Collection companies are starting to arrive in the Russian tourist market. These are the companies that collect debts. Collector in this case from the word – collect, collect. These are various kinds of sites that offer hotel reservations or the purchase of air tickets. You've heard of them BOOKING, AIRBNB. Now this is still the lot of tourism gourmets who want to manage their holidays themselves and are taking their first steps from the package holiday market. Anyone who rejects the idea that a tour operator is safe, that this idea is absurd, will understand that the days of the package holiday market are becoming a thing of the past.

And against the backdrop of these two models, the collection market and the package holiday market, Timeshare is, indeed, an island of stability and reliability in the ocean of world tourism. And this island has remained modern since 1964, where BOOKING and AIRBNB took its first steps. Timeshare created the expressway back in 1974. The stability and reliability of this system is embedded in the principle of the economic model, which forms the basis of Timeshare. Why is timeshare so good? It is a system that can satisfy the interests of all target audiences interested in tourism, those who do not want to make unnecessary moves when booking a vacation, and gourmets who want to travel to the farthest corners of the world.

There is a joke that a timeshare is a house on wheels. And if you read this phrase literally, then this is true. Because this is really a house, and we’ll tell you why it’s on wheels a little later, but for now let’s figure out why it’s a house. Imagine a summer house that you share with your relatives or friends and use it in turns at some time: for example, one week you use it, and the other week your friends use it. But the question is: who is the owner of this dacha if everyone takes turns relaxing in it? You may object: what difference does it make who is the owner if we have access to this dacha? The difference is that you can somehow come to the dacha, but it simply isn’t there, because the owner, for example, decided to demolish the house or sell it to someone else who will no longer have the desire to let you into this dacha, and then you will need to look for a new dacha.

And whether it will be good or not is still a question. But if you are the owner of a dacha, other problems arise: it needs to be maintained, cleaned, and repaired. Therefore, it causes a lot of trouble, but in reality we use it twice a week in the summer. The rest of the time she stands idle. How nice it would be if you owned the dacha only when you were on vacation, and the rest of the time it wouldn’t be yours. A magical option for ownership. And this magic is the basis of Timeshare. You are offered to buy not the dacha itself, but the time on it, say, two weeks a year - the property. Many people will think: what kind of property is this - it's a rental? And we will object; The rented premises cannot be sold, donated, bequeathed, much less rented out: you rent it yourself, the property can only be used.

The timeshare system allows you to do this. The word Timeshare itself is English and is translated as time - time, share - share, that is, a share of time. You buy ownership of a piece of real estate for a share of time, and that share is usually one calendar week. In total, from a timeshare point of view, there are 52 weeks a year, and there are 53 technical weeks, when the resort administration carries out maintenance work on the premises. And you buy this share of time for a certain period: from 1 year to 79 years. For 79 years, you can use one week a year, or maybe two or more, or buy all 52 weeks a year and then your dacha will be yours all year round. The most important factor: you buy time as your property, and you have the opportunity to dispose of this time as you wish: donate it, bequeath it, rent it out and receive money for it, sell it and make a profit. If you rent this premises, you will not be able to do this. Think about it: you bought a timeshare, used it about five years ago, and then sold it. It turns out that the entire time you were resting on it, you were doing it for free.

Agree, it is illogical, after living in a hotel, to ask him for money back for his stay. In the timeshare economic model, this is possible. And most importantly: all those who share time with you in the apartments at the resort will take care of it, because all of them, like you, are owners, and a good owner always takes care of his property. There is another important factor - risks. We often see beautiful photographs of rooms on hotel brochures, but upon arrival we discover that everything is actually not so beautiful, and the quality of the rooms is not that high. A hotel is always a Russian roulette: we don’t know where we will end up: in a good hotel or not, whether there will be decent rooms there or not.

Owning a timeshare, you will always know where you are going and what the apartments look like, what quality they are, and there will be no surprises. They will also be of really good quality. At a hotel, you can pay $200 a night and put up with some inconvenience. But when you need to pay $20,000 for a timeshare interval, the buyer will not put up with the poor quality of the apartments. The price of a timeshare is the key to its quality. Some timeshare owners complain that European resorts are not as good as Asian or Middle Eastern resorts. But you remember in what years they were built. Where new timeshare resorts are now being built, for example in Dubai, palaces are already being built. However, European timeshares have more trading power.

Trading power is the “weight” of a certificate in the global timeshare market based on consumer demand. Trading power is a shorthand term that determines the value of each timeshare. Based on consumer demand, the trading power of a timeshare determines how successfully a given timeshare can be exchanged, leased, or sold on the secondary market. But the most important thing is that at timeshare resorts an apartment is not a hotel room, it is an apartment, a full-fledged apartment, it has a kitchen equipped with the latest technology, utility rooms, a bathroom and many bedrooms. This is not only convenient household infrastructure, compared to a hotel room it is space, a lot of space. That is, there is always a place where you can retire and drink tea. Many people worry: will they really need to cook it themselves? But first of all, maybe it's not so bad.

In addition to saving on food, you have the opportunity to eat whatever you want and the opportunity to cook for small children, which is basically impossible in a hotel room. And sometimes this can be a decisive factor for a family with small children. It's also a matter of choice. Of course, there are restaurants at the resort, and if you don’t want to cook yourself, you can get meals in restaurants, it’s a matter of choice. In a hotel you have no choice whether to cook or not. The apartments have this choice because they have a kitchen. But there are still skeptics who will say that going to the same place is not interesting, you want to see the world. And they will be right: that’s why tourism was given to people, to see the world. But, if you remember, at the very beginning we said: A timeshare is a house on wheels, it’s time to talk about these same wheels.

As for management fees, they come in several types:

The annual management fee, common in most clubs as a mandatory financial burden, you must pay annually whether you use a timeshare or not, and this is an important aspect. For failure to pay annual maintenance, membership may even be suspended. This is an analogue of a payment for utility bills, i.e. it is not even an analogue, it is a payment for utility bills.

For some, this may seem like a negative factor, bondage. But, if you use a timeshare, 300 euros per year is not that much money for real savings on vacation. If you carefully monitor your payments in the same way as you monitor your rent, there will be no problems.

For use, pay a management fee charged per year of use of the interval. This is a fairly new system for collecting management fees, it is certainly more interesting from an economic point of view, but it is not present in all resort systems, and is only now being gradually introduced at resorts.

For a point. There are timeshare systems in which there is a system of points, with the help of which you can form the housing stock you require. We'll talk about this later. Now it is important to know that there is such a fee, and if you own a points system, for each point you will have to pay a fee, and it is also annual.

Full timeshares themselves also have several forms of ownership. These forms regulate the frequency of access to the resort's guestrooms.

"Fixed"

At first, most developers sold "fixed" weekly slots, which meant that the owner occupied a specific apartment during a specific week, such as apartment #103, week 27. This is the simplest type of timeshare. It entitles you to a specific week and specific suite, usually at a specific resort, to which the owner returns again and again unless he exchanges with a resort-affiliated exchange company. This type of resort is called a “home resort.” The first advantage of a fixed timeshare is that if you know that you will use the home resort year after year on a specific week, it will always be available to you without having to make a reservation in advance.

Another advantage is that if you own a highly sought-after slot (race week in Florida, Carnival week in Venice, etc.), your timeshare will have the highest trading power. All that remains to be done is to place your Timeshare in the exchange pool and you will certainly get a great alternative. There is a misconception about fixed intervals. Some people think that if you buy such a product, you will have to go to the same place year after year. This is often not the case. But regardless of the product: fixed, floating or points, location remains the most important criterion that determines the trading strength of each specific timeshare.

"floating"

The product (or also called “flex”) allows owners to choose their week at the resort from year to year, but usually within a specific season. The owners annually reserve a time to arrive at the resort on the principle of “first come first”. At some resorts, the apartments remain unchanged, and only the dates of stay change; at others, both dates and rooms may “float”. This product is more flexible in terms of use. The floating product, like the fixed product, gives rights to one week per year, but the time of visiting the resort can be adjusted within one season. The downside to this product is that you have to book your week in advance to get what you want.

"Biennale" (every two years)

This ownership is not every year, but every other year. Basically, the cost of such a product is not 50%, but 60% of the cost of a traditional annual timeshare. 10% in this case covers the costs of management fees to development companies. Some resorts even offer ownership "every three years" ("triennial").

"Factional" ("fraction")

The product is the most expensive. The fractional product segment of the timeshare business is the fastest growing in the industry. "Factional" involves ownership for a period greater than one week per year. As a rule, this ownership is from 4 weeks per year to 3 months. 1/12, for example, entitles its owner to use the premises for one week in each of 12 months, or to use the premises for a three-week period in each of the 4 seasons. Other types of fractional product: 1/4, 1/8, 1/18. Also, a fractional product can allow owners to divide their interval into segments of 2, 3 or 4 days to form mini-vacations throughout the year. Most “urban timeshares” provide such opportunities to one degree or another. Due to the fact that the fractional product is serviced mainly by management companies, this implies impressive management fees, and often also considerable membership fees.

Considering that fractional product prices start at $100,000 and can exceed $500,000, and management fees can exceed $10,000 per year, it is difficult to compare it to a traditional timeshare. For the consumer who wants only the best, wants something special and has the money, fractional product offers the leisure concept of the future. Fractional resorts, condo hotels, hotel residences, and private residence clubs (PRCs) are seriously affecting two areas: the leisure industry and the real estate industry.

Condo hotels are becoming a popular alternative to traditional vacation rentals and essentially provide a second home for families. The consumer purchases a luxury apartment at a fixed price, pays monthly management fees for room maintenance and infrastructure, and uses it whenever he wants without the need for a reservation.

Hotel residences and PRCs, such as Trump International in Chicago and Hotel Mandarin Oriental in New York, can hardly be called a timeshare; they are second homes.

Condo hotels, hotel residences and private club residences are much more of a real estate investment than a traditional timeshare. They are positioned as an investment in vacations, not in real estate. Although the Fractional product allows for exchange, most owners prefer to purchase locations in which they want to stay permanently, unlike timeshare owners who consider the ability to exchange their vacation one of the main advantages of this system.

According to 2005 data, consumer satisfaction with a traditional timeshare product is 85%, satisfaction with a fractional one is estimated at 96%.

A fractional product can be with or without ownership of real estate.

Accommodation according to the fractional product can be either in timeshare apartments, equipped with great amenities, or in super-luxury rooms of upscale hotels, which are mainly located in large cities (urban timeshare).

As of 2004, there are 151 resorts in the world that offer fractionated products, with 132 resorts in the United States. This number does not include detached homes and small condominiums, which are also available on a fractional basis.

Almost 50% of fractional resorts are ski resorts, 30% of resorts are beach resorts, the remaining 20% are golf resorts and “urban timeshare”.

"Private Residence Club" (PRC).

This fractional product is in the “ultra-luxury” category. These resorts are located in the most desirable locations. This product often includes a personal vehicle, a personal chef, and 24-hour personal service. Consumers of the PRC product are wealthy people who do not try to save their money in any way.

Average cost of fractional product (2005):

Comparative table of traditional timeshare and fractional product for 2005:

Traditional Timeshare	Fractional product
Average cost $13,500, average cost of management fees $500.	Starts at $100,000, management fees can exceed $10,000.

Division of property with 51 co-owners.	Division of ownership, usually with 11 co-owners.
More comfortable than a hotel room, with more space and a kitchen.	Luxury apartments, more reminiscent of a private home.
Proficiency in 1 or 2 week slots per year.	Possession from 4 weeks to 4 months a year.
Over 6,000 timeshare resorts around the world.	A limited number of resorts united on the basis of exclusivity.
Banks do not lend to Timeshare at mortgage rates, the consumer has to use credit programs that involve high interest rates, on average 16% per annum (USA)Banks do not lend to Timeshare at mortgage rates, the consumer has to use credit programs that involve high interest rates, on average 16% per annum (USA)	More and more banks are beginning to perceive the essence of the fractional product as a second home and provide attractive lending conditions.
A timeshare can increase in value over time. It is possible to sell your timeshare after 10 years for the same price you paid for it.	Significantly more attractive from the point of view of real estate investment than a timeshare, but still not as a main home.
Limited opportunities for sports activities, meals in several restaurants, transfers to attractions, shopping centers, etc.	Unlimited possibilities of available service. From pre-lubricating your skis to using private jets and yachts.
It is purchased, as a rule, taking into account the possibility of exchange for other locations and the opportunity to visit	It is purchased, as a rule, for use in a specific desired location.

"Points"

Used as a “currency” to select accommodations at resorts. Some points programs are limited to use at one resort, while others allow you to select within a club or developer network through internal exchange programs.

The purpose of developing a points product is to allow the consumer greater flexibility in using a resort than with a traditional fixed week purchase. Points are used to pay for accommodation in accordance with the location of the resort, the size of the apartments and demand, which is based on days of the week and seasonality. For example, the owner of a certain number of points can choose either a studio that is in great demand for a three-day weekend dedicated to a holiday, or an apartment with three bedrooms for up to 2 weeks during “quiet” times, when there is no rush for accommodation , at the same cost. Many clubs use points, and some timeshare developers have developed points programs tied to the base value of a traditional fixed product.

In a points product, each week owned by someone is tied to a certain number of points. This number is determined based on criteria: type of apartment, resort rating, season, etc. In most cases, ownership of the resort facilities represented by the points product is held in trust by the developer, not the owner.

The biggest advantage of a points product is the ability to use it outside of the standard week. You can use 2-3 day intervals for rest. Points can sometimes be used to pay for flights, car rentals, cruises, hotels, and even theme parks.

The biggest disadvantage is that the points product, unlike the classic timeshare, is most often not protected from inflation.

"Club"

Vacation club is a membership, but without ownership rights. It typically involves multiple locations and may include other leisure products and services. The clubs offer clients who expect to secure holidays at attractive prices in the future the opportunity to purchase and satisfy their tourism needs “in one window.”

For many consumers, the “Club” product is an alternative to hotel accommodation, but without the hassle and obligations, including financial ones, that owning a “classic” timeshare usually involves. And this is the main advantage that “clubs” use to sell their product, offering consumers accommodation in timeshare apartments, but without long-term obligations to pay management fees and many years of operation with all the encumbrances. Also, membership in the club is more affordable than the price of a timeshare certificate, which is many times higher for obvious reasons. Essentially, paying a one-time membership fee provides accommodation for one, two, three or four weeks a year at an attractive price. Typically, purchasing a membership gives you the opportunity to use the services of a travel agency that provides discounts on flights, hotel accommodations, cruises, package holidays and more for club members. Club membership extends to family members and can also be bequeathed.

Example: In 2005, in Florida, it was possible to purchase a “club” membership for 10 years with the opportunity to stay in a timeshare apartment:

For 4 weeks a year for $4,995.

For 2 weeks a year for $3,995.

For 1 week a year for $2,995.

In all cases, the annual membership fee is $149,

The average cost of a week's accommodation when purchasing a membership was $500, and the consumer also received discounts on other travel products.

Comparative table of economic costs for hotel accommodation when purchasing a club product for 10 years.

Annual inflation is set at 10%. The basis is the basic cost of hotel accommodation - $100 per day with an 8% tax. Using the example of a 2-week vacation in 2005 in Florida.

Hotel/tax	"Club" holiday
Year 1 $1,400/$112	$3 995/$1 000
Year 2 $1,540/$123	0/$1 100
Year 3 $1,694/$135	0/$1 210
Year 4 $1,863/$149	0/$1 331
Year 5 $2,049/$163	0/$1 464
Year 6 $2,253/$180	0/$1 464
Year 7 $2,478/$198	0/$1 771
Year 8 $2,725/$218	0/$1 948
Year 9 $2,997/$239	0/$2 143
Year 10 $3,296/$263	0/$2 357
Total: $22,295/$1,780	$3 995/$15 934
Total: $24,075	$19 929

The next most important standard is the season. Depending on which season you choose, this is the time of year you can come to the resort, and this is very important. Because in the tourism industry, peak dates such as Christmas, for example, can cost twice as much. In a timeshare, this price does not change for the owner. There are other seasons - medium and low, there are three of them: “peak season”, “middle season”, “low season”. Moreover, summer in our understanding, namely June, July and August, does not form the “peak season” in all countries. In Thailand, Vietnam and India, the "peak season" is from December to March. There are places where the weather is favorable all year round: the Canary Islands (Tenerife) is a unique place in terms of climate. There the temperature is almost always the same all year round - within 25 degrees Celsius. Therefore, there is a “peak season” all year round. Finland, on the other hand, is famous for its winter resorts, which means that its “peak season” is in winter.

Often, “peak seasons” are tied to both transnational holidays: Christmas, New Year, and local national and religious holidays. The tourism business has solved this problem simply for itself: every tourist, leaving for a particular country, knows in advance what season he is traveling in, and accordingly pays for his tour at a price that corresponds to a particular season. A timeshare is deprived of such privileges; the concept of a timeshare is property, it is bought once. To solve such problems, a seasonal standardization system was introduced. Conventionally, they are divided into three main positions: “high”, “medium”, “low”. Moreover, if a club member’s certificate says “high season,” this does not mean that he can use his membership only during “peak seasons.” “High season” means using a timeshare all year round, regardless of the time of year or holidays. "Peak season" is generally any time of year that is not peak season. And the last one is the “low season” - this is the season of the most unpopular time of the year, when tourist activity in the resort region is very low, either due to weather conditions or for religious reasons. If we roughly translate this into the seasons of the Russian Federation, then we can roughly determine that the “low season” is winter. Exchange systems do not use the concept of “high”, “medium” and “low” seasons. They designate these periods with colors: “red”, “yellow”, “green”, “blue” and “white”. Although it is not uncommon for seasons in certificates to be designated precisely by classification: “high”, “medium” and “low” seasons. This generally refers to floating memberships that do not have a sequential number in the year. That is, the period for choosing a holiday date is limited only by the season, and not by week numbers.

Super High – (super high) RED

One of the most visited and expensive seasons is indicated in red. This means the possibility of visiting resorts all year round, but also during holidays and Christmas weeks. This is the highest tier of membership pricing and the highest priced season type.

High – (high) RED

The most visited and expensive season is indicated in red in the timeshare. This also means that the user can relax with his membership all year round, regardless of the seasons and other components that affect attendance: secular or religious holidays, features of the resorts (ski, golf clubs, etc.). High – (high) RED (red) - the opportunity to visit resorts all year round, including on holidays. And this is the highest tier of membership pricing and one of the highest priced season types.

Middle – (middle) YELLOW, WHITE (yellow, white).

If we roughly transfer this classification to the climate map of the Russian Federation, we can say that these are spring, autumn and winter, because summer is the most favorable season in Russia. In Timeshare it is presented in two colors: yellow and white. They are absolutely the same and no different, it’s just that some resorts designate their middle season with one color or another. But they exist legally and are described in certificates: Middle - (middle) YELLOW, WHITE - (yellow, white) (the ability to visit resorts at any time, except for the peak season and holiday weeks, conventional climatic designation: autumn, winter, spring) are designated by two colors - yellow and white, with no differences. And this is the average price level of membership, that is, the average price type of season.

Low – (low) BLUE (blue)

The lowest season with the minimum load of tourists in the region - visits during the peak season are excluded. If we conditionally transfer this classification to the climate map of the Russian Federation, we can say that these are autumn and winter, because summer is rather the most favorable season in Russia. In timeshares it is represented in blue. They are absolutely the same and no different, it’s just that some resorts designate their low season with one color or another. But they exist legally and are described in certificates. Low – (low) BLUE (blue), the opportunity to visit resorts during the lowest tourist activity, visits during the peak season are excluded, conventional climatic designation: autumn, winter is indicated in blue. And this is the lowest tier of membership pricing, the lowest priced season type.

The next important timeshare classifier is the type of apartment. Apartments in the timeshare system are not hotel rooms in the usual sense, but full-fledged apartments that have a lot: a kitchen equipped with household appliances, as well as all the other attributes of a home apartment; this, in essence, is the ideology of timeshare. In classic tourism, accommodation is paid for each person, and this does not suit a timeshare from the point of view that it is not a tour that is being sold, but property for a family, but a family can be two, four, or ten people. Therefore, in addition to the pricing policy, a number of Timeshare standards also include a restriction of users per period of time in the apartments. There is the following classification of apartments:

(Studio), “studio” (one-room apartment)– the room is a kitchen combined with a hall (similar to Russian one-room apartments, only without a wall between the kitchen and the room). In a timeshare, in addition to determining the type of premises, this also means that up to two people can live there at the same time during the holiday period. If the owner’s certificate says that his apartment type is T0 – (Studio), this means that only one to two people can use it. If three vacationers arrive using such a certificate, the third will either be denied accommodation or will be offered to pay for the accommodation of a third person.

T0 – (studio) “studio” (one-room apartment) - accommodation for only one to two people. And this is the lowest level of membership pricing, the cheapest type of apartment.

(One bedroom), “van bedroom” (two-room apartment)– the premises consist of a kitchen, a hall and one bedroom (similar to Russian two-room apartments). In a timeshare, in addition to defining the type of premises, this also means that from one to four people can live in the premises at the same time during the holiday period. If the owner’s certificate says that his apartment type is T1 – (One bedroom), this means that only one to four people can use it. If one or four vacationers arrive using such a certificate, they will easily be accommodated at the resort, but if there are already five of them, then the fifth person will either be denied accommodation or will be offered to pay for the accommodation of the fifth person.

T1 – (one bedroom) “van bedroom” (two-room apartment) - accommodates only one to four people. And this is the average level of membership pricing, the average priced type of apartment.

(Two bedrooms), “that bedroom” (three-room apartment)– the premises consist of a kitchen, a hall and two bedrooms (similar to Russian three-room apartments). In a timeshare, in addition to defining the type of premises, this also means that from one to six people can live in the premises at the same time during the holiday period. If the owner’s certificate says that his apartment type is T2 – (Two bedrooms), this means that only one to six people can travel there. If one or six vacationers arrive using such a certificate, they will easily be accommodated at the resort, but if there are already seven of them, then the seventh will either be denied accommodation or will be offered to pay for the accommodation of the seventh person.

(President) "president". The prefix “P”, as a rule, comes with the type of apartment and speaks about their quality and nothing more, and the types T1 and T0 cannot be with the prefix “P”. As a rule, only T2 apartments have this quality, so if the certificate says T2P, you should understand that these are apartments with the attributes of T2, but with improved comfort and quality of finishing. This does not affect the number of people - from one to six people can visit the resort at the same time.

R – (president) “president”. A prefix to the type of apartment of the highest price category with improved comfort. And this is the highest level of membership pricing, the highest priced type of apartment.

And the last classifier is the star rating of the resort, you have already encountered this more than once, so you will most likely know this. The classification of a hotel (resort) determines the place of a particular hotel in the hotel services market and makes it easier for clients and specialists to get an idea of the guaranteed range of services that can be provided by a hotel of a certain class. Hotels are classified based on their certification, which can be carried out both nationally and internationally.

The class of the resort is never described in the certificate, information about this can only be obtained in the charter of the resort, this attribute relates directly to the resort itself, and the level of the resort is never taken into account in the exchange. This is not an attribute on which the exchange is made, this attribute is only taken into account when pricing the membership itself.

The most common classification systems are:

A European classification system based on the French national classification system, which is based on the division of hotels into categories of one out of five stars. The star rating is directly proportional to the maximum level of comfort that the hotel is able to provide to its clients. This system is used in France, Austria, Hungary, Egypt, China, Russia, Brazil and a number of other countries:

Three star hotel.

This is the most common type of hotel. The room of such a hotel should have all the amenities: telephone, TV, possibly a minibar. The rooms are single and double, both with one large bed and with separate beds. There are triple rooms for parents with a child: usually a double room with an extra bed or a folding sofa. Hotel service in different countries of the world may differ significantly from each other. For example, in Europe, a three-star hotel has fewer services than a Greek three-star hotel. They have certain patterns: usually, the higher the comfort and the more additional services provided, the further the hotel is located from the center.

Four star hotel.

Hotels with a high level of service, designed for people whose earnings are average or above average by European standards. A four-star hotel is distinguished by an increased level of comfort and a convenient location; it can be located in the city center or on the first line of the beach. There must be a guarded parking lot. Large hotels have their own taxis and minibuses. This category includes many additional free services, the ability to use gyms, courts, and swimming pools, and various hotel shows, such as discos. In a four-star hotel, the room is furnished like an ordinary living room with standard household appliances: color TV with remote control, refrigerator, minibar, air conditioning, security system, mini-safe, and always a telephone with intercity access. Some hotels provide a heat press for ironing and have a remote light control system. In such hotels you can book both a standard single or double room, as well as rooms with an improved layout, which includes not only a bedroom, but also a living room or kitchen.

Five star hotel.

A small town with all the infrastructure necessary for life. The hotels have several restaurants (with European and national cuisine), bars, a nightclub and shops. As well as hairdressers and laundries, fitness and business centers, swimming pools and beauty salons. The rooms are varied: from single rooms with one bed to multi-room apartments. The most modest room in a five-star hotel is a single room with one double bed. Next come the doubles, they come in two varieties: with two beds or with one large bed. Higher in rank is the double room, which can be two floors, usually with a bedroom or bedrooms above. There are bunk rooms, including 2-3 bedrooms, a couple of living rooms and offices, and rooms for servants or security. For business people, some five-star hotels have business rooms with multi-line telephone, computer, fax and meeting room. Any room in a five-star hotel should have a full set of necessary cosmetics in the bathroom, slippers in front of the bed, a minibar, telephone, color TV, air conditioning and other luxuries that make life easier.

A letter classification system is used in Greece (although you can also see the usual stars on the facades of hotels.) According to this system, all hotels are divided into four categories: A, B, C, D. The highest category of hotels is designated de luxe and corresponds to the five-star level, hotels of category A – four-star level, B – three-star, C – two-star, D – one-star hotel level.

The category system is typical for Italy and Spain. In Italy, hotels are classified into three categories: the first category can be conditionally classified as four-star, the second - three-star, and the third - two-star.

The crown system is common in Great Britain. To go to standard stars, you need to subtract one from the total number of crowns, i.e. in comparison with the pan-European star, the crown is one unit higher:

Silver crown - SC.

Silver Crown resorts are resorts with an average optimal level of service. This is the average level of membership pricing, the average price level of the resort.

Bronze crown - BC

Bronze Crown resorts are lower tier resorts. This is the lowest tier of membership pricing, the lowest resort tier.

Who knows what a timeshare is?

That's right, literally - division of time. Organization of recreation in the RCI (Resort Condominium International) or II (Interval International) system, which involves about three thousand clubs in more than 70 countries around the world.

Timeshare sounds great

The idea is this: you buy luxury apartments in a beautiful resort and own them from one to 51 weeks a year. And you get the right to exchange these weeks of rest for others anywhere in the world. And all this for mere pennies compared to the cost of real estate in the same resort. Just a few thousand dollars for the right to lifelong, inheritable ownership of the apartments! In addition, this happiness can be sold, exchanged, rented out, bequeathed, etc. at any time.

Did you like it? Do you want to live like the characters in Santa Barbara? Do you want to invest your money profitably? Let's get more of them here. We will arrange everything for you! - this is promised at almost all presentations of companies offering to buy a timeshare.

There were several dozen such firms in Moscow. Recently, having practically exhausted the supply of Muscovites capable of “buying” into these promises, such companies have turned their attention to the regions: the first transactions were registered in Yekaterinburg, Rostov, and Krasnoyarsk.

Let's try together to understand what this system is and how it works.

Natural selection

If you put on your best outfit, parade in it in a crowded, prestigious place (large department stores, lobbies of expensive hotels) and give the impression of a successful person, then it is possible that a pretty girl or boy will approach you with a notepad. In a light, casual conversation, you will be asked to answer a few questions and fill out a questionnaire. After which they will offer to attend the company’s presentation, promising something amazing. They will ask you to come together - with your wife (husband) or with a girlfriend (boyfriend).

It was you who met with the “external representative” of the company. When selecting them, preference is given to students of humanities universities (journalism, law, VGIK, etc.). For 3-4 hours of “catching clients,” young people receive $5 and from 0.25 to 1% of the contract amount, if it is concluded.

At the presentation

Presentations most often take place in expensive hotels or luxury offices. When you get there, another employee of the company talks with you for an hour and a half. This is an “internal representative” - he has no right to talk about prices, but only “warms up” you for the manager. He earns the same amount as an "external representative", but before he is hired for this job, he must pass an exam.

ConfOP employees managed to obtain an interesting internal document from one of the companies selling timeshare: instructions from an “internal representative.” This secret document is called “Representative Training” and is something between instructions for putting a client into a trance state and a treatise on communication ethics. The employee must memorize the text.

Here are some of its fragments.

Make sure you (representative - V.K.) are either next to them or ahead of them... This is part of your control over them (clients - V.K.). You should act like a friend who is about to show them your house and explain how great it is...

Controlling your clients is an integral part of your job. You must control your clients from the first minute you meet them. You need to create an easy psychological and physical superiority. Control where they sit, what they touch, what they look at, what and when they eat or drink. Some people are trying to take control of you, don't let them do this... Some may say they only want to see apartments and prices... Some may say they are not interested. Ignore this and continue with the presentation...

The best way to make people relax is to make them laugh... Laughing makes people feel good, they do things they wouldn't normally do. This may set them up to rest...

You must sell them a DREAM... Create this dream for them, color the picture...

Paint them a picture, make them trust you, you have to put them in the picture... let them be on the golf course, in the hot tub, in the pool or on the ski lift. Find their hot spot, keep asking questions, pressing buttons until you find the right one. Their hot spots and fun attitude are what sell...

Our task as sellers is very simple - we just need to find out what our customers want, and then convince them that our product is what they want...

Touch is your tool. Touch both clients frequently...

This job is not easy... THAT'S WHY THIS JOB PAYS SO WELL...

Did you feel like dough from which you can make Easter cakes? No? You are a strong person...

When “the cake is ready,” the manager comes up to you and gives you papers to sign.

The firm's manager is paid from $500 to $1,500 monthly, plus $500 quarterly to maintain “working shape.” The manager - a "white collar" - must carry out the final "fine-tuning" as quickly as possible. He accepts money from you.

Not a single document describes your apartment. What for? Don't you trust our company? We showed you films and prospectuses. Don't you want to relax like all the rich people? You may not have enough money? No problem - you can always sell your timeshare, we will be happy to buy it. And please, hurry up, we are closing soon, and we will resolve all your issues tomorrow, if, of course, you make an advance payment today. Tomorrow it will cost 20% more. Handle? Please! All! The contract is signed!

The morning is wiser than the evening

The applicant is bound by the provisions of the club's constitution, regardless of whether he has read its contents... At one of the presentations, I suggested that the manager take the money in an envelope - without counting it. I didn't take it.

“In the event of conflicts between the Russian and English texts of the agreement, the English text shall prevail.” Thank you for not offering to sign the contract in Chinese.

"This contract cannot be canceled." Did we promise to buy a timeshare from you at any time? Our intern gave you the wrong information, there was a mistake.

"All oral representations are null and void." Remember: "Don't you trust our company?"

"The parties irrevocably submit to the exclusive jurisdiction of the Isle of Man." How long has it been since you last looked there?

"All disputes and disagreements... shall be governed by arbitration. The arbitration shall be held at the International Chamber of Commerce in Paris, France." Do you like feeling like a subject of private international law?

For any lawyer, such an agreement causes a slight toothache - many of its terms are contrary to our legislation. From a legal point of view, you, as a timeshare owner, are as far from the owner of a resort as a patient of an ordinary sanatorium. After all, you cannot allocate your share in NATURE and dispose of it at your own discretion. It is impossible to prove this to the company's employees - they do not understand (or pretend not to understand) the legal terms, or simply “ignore it and continue the presentation.”

But the most important thing is that not a single company gives any guarantees of the quality of services: “the best guarantee is the good name of the company” (and you hear it for the first time at the presentation).

The vast majority of clients who bought a timeshare try to return the advance payment. And I must say, not without success. Over the past year, dozens of lawsuits have been filed in court and almost all cases have been won. But it is difficult to predict how events will develop outside the walls of the capital, where firms will go, hardened in battles with Moscow lawyers.

You still bought a timeshare...

But in fact, what will happen if you pay for the timeshare in full and try to exercise your right to vacation? What's there at the resort?

Here are a few excerpts from letters from citizens who experienced the “delights” of the promised fairy-tale life:©

“After shivering all night in the apartment (the heating didn’t work), we decided to figure out where we were. There was dust, dirt, and the noise of construction vehicles all around (it turned out that renovations were underway).”

"The apartments have worn-out furniture, threadbare, unkempt carpets..."

"There was no air conditioning in the apartment."

“There was no restaurant or any organized catering at all, the hotel was in the mountains - and it was impossible to buy food without a car.”

“Full-scale construction was going on 25-30 meters from the hotel, noise, dirt; the premises were cleaned once a week.”

“All restaurants and cafes in the area are closed until the start of the holiday season, sports grounds, a swimming pool, and boat stations are only in the future plans of the club owner.”

“Hot water and electricity are strictly metered, the economy regime is taken to the limit, the use of water from sea horizons makes it unsuitable not only for drinking or washing dishes, but also causes allergies.”

“The resort is located 350 km from the airport, and a taxi there costs $260.”

“I have visited many resorts, but I have never seen such horror anywhere.”

And now the question is: what would you do if you found yourself in Moscow after this?

That's right, we should go to the company to terminate the contract.

Here is the company's response in full:

“The company, in accordance with the contract, fulfilled its obligations by providing a vacation certificate for membership in the club... The conditions for the further sale of membership are not within the competence of the company and are not the subject of the contract concluded between the company and the client.”

What to do next?

Read the legislation of the Isle of Man...

To be fair, it should be noted that there were also positive responses. Some clients were satisfied with their vacation in the first year. But by the beginning of the next holiday season, they began to receive bills for colossal sums: for the renovation of apartments, for maintaining them in the off-season, and sometimes for restoration after natural disasters. Having paid these bills, the owners forever gave up the idea of selling their timeshare - it began to cost such crazy money that it is unlikely that they will be able to find a buyer.

To have or not to have

The RCI system actually exists in many countries around the world, and it is possible that someone somewhere has managed to take advantage of its benefits. But in the Russian market, unfortunately, timeshare has not proven itself to be the best.

What are the main visible reasons for this? Why has a generally good idea acquired such ugly forms in our market?

The system has existed in the world for about 60 years. Naturally, a whole sea of low-liquid offers has formed on the timeshare market. Some of them were sold by dissatisfied clients - for example, because the resort’s location was not good enough or because the administration did not have the best attitude towards clients. Some resorts fell into disrepair due to natural wear and tear. And some are under construction and the infrastructure there has not yet been developed.

And now all these illiquid assets poured into our market. If we multiply this by the usual Russian attitude towards business, the situation in the club system will become more clear. For example, 60% of Moscow companies selling timeshares have already died. Where the clubs' money went remains a mystery. Some companies constantly change their names, while cutting off dissatisfied customers. Thus, the Paradise company was revived under the name Paradise Group, then Paradise Gift... And although legally these are completely different companies, consumers say that the same people work there.

One thing is clear: buying a timeshare in Russia in the near future means taking a very big risk.

At first, the timeshare idea looked very nice. You pay 15 thousand dollars and never worry about your vacation again. For this money, for example, you buy 1/25 of a hotel and get an exotic Pacific bungalow, a room in a luxury hotel in Nice or a cozy club on the Mediterranean Sea for your personal use every year for two weeks. This kind of vacation was called a timeshare.

But, as always, in domestic conditions its charm has faded greatly...

Timeshare was invented in the 60s, when a crisis began in the global real estate market. The owners needed money to build new hotels and restore old ones, and some inventive agency decided to take this money from potential vacationers. Roughly speaking, the service looks like this: the hotel is sold 50 times the number of weeks in a year, minus some time for repairs. If, by selling it to one person, the owner could receive, say, 100 thousand dollars, then when buying a timeshare, each of 50 buyers pays him 10 thousand, and the cost of the hotel grows to half a million. Each of these buyers has the right to relax in this hotel for free for as many weeks as he purchased. The right to use can be lifelong and inheritable or “temporary” for a period of 30, 50, 70, 100 years.

You don’t need to think that, having bought a timeshare, you will go to the same boring Cyprus all your life. As soon as timeshare became a separate service, club exchange systems appeared, the most famous of which are RCI (Resort Condominiums International) and II (Interval International). With their help, you can exchange your two weeks for a similar vacation in another place. Timeshares are divided into several categories depending on the time of year: so if you buy a week in the high season, you have a “red” timeshare, in the off-season you have a “white”, and in the low season you have a “blue”. The “red” week, of course, is the most profitable for exchange. Purchased weeks can be either fixed (for example, from August 10 to August 24) or floating. The owner of a timeshare certificate has 3,600 resorts in 94 countries, and one week in the Canary Islands can get two weeks in America. And if, for example, you bought a two-bedroom apartment, you have the right to bring your friends there for free.

The average price for one week under the timeshare system in such popular places as the Canary Islands or Mallorca is 10-13 thousand US dollars. The same holiday in the resorts of Cyprus or Greece does not exceed 7-8 thousand dollars. Money for the average European or American, as you can see, is not very much. Therefore, the growth rate of timeshare tourism is 15% per year, while the growth of traditional tourism does not exceed 8 percent.

In our country, timeshare has become known since 1992. But while there are three and a half million “share” hoteliers all over the world, in our country there are still no more than 20 thousand of them. And even those cannot be called particularly lucky. Unfortunately, the reputation of timeshare in our country has been greatly tarnished, and there are no fewer scandals associated with club holidays than with financial “pyramids”. And all because most of the deceived owners unknowingly got involved with fraudulent companies. Most of the timeshare companies operating with us are registered as travel companies and do not have a license to conduct such activities. They sometimes resort to dubious methods of work. A common way to attract customers looks like this: a person comes up to you in a supermarket and says that he is conducting a statistical survey. He starts asking you about your age, marital status, income, and where you go on vacation. Then they call you at home and say that by participating in a survey, you won a prize. You need to come to a certain office to get it. By the way, only middle-aged couples with an income of at least 15 thousand dollars a year are invited there. And in this very office, specially trained agents bully your brains so much that you leave the first $500 without even bothering to read the contract.

Half of these unfortunate buyers usually come to their senses after a couple of days and begin to feverishly think about how to sell this timeshare. So, the next option for taking money from the population is precisely used in the secondary timeshare market. A call rings in your apartment: “Would you like to sell your timeshare?” The firm says they already have a client willing to buy your weeks, and he's going to pay a couple thousand dollars more than you were hoping for. The intermediary asks for 10% for the service. But you need to pay the money in advance, and also purchase a certificate of authenticity of your timeshare certificate for $150. A significant portion of timeshare owners usually decide to take a risk. Need I say that the agent, having received the money, no longer appears?

Adviсe

To prevent you from joining the army of timeshare owners storming the courts, here are some of our educational tips:

Never enter into a contract if the seller is using the "pressure selling" method. The following formulations serve as signs of such marketing: you need to hurry up with the purchase, since there are only a few free weeks left, only today there is a 20-30% discount, if you sign a contract today, the company will make a gift in the form of payment for air tickets. Don't believe companies that say you can make money by buying a timeshare. You can, at most, save money, and that’s still a big question. Never leave any deposit at the presentation; in all European countries you can take a deposit from the client under the contract only 15 days after the presentation. Take the contract home, consult with a lawyer and, if you have any comments, get them included in the text of the contract. Often contracts are clearly designed for the incompetence of clients. And such a small thing as the absence of company details in a contract can deprive you of the opportunity to assert your rights in court.

It is extremely important that your club is part of one of the international exchange systems, such as RCI. Be sure to find out the current costs of maintaining the apartment. This figure can range from $200 to $500 per year and is best known before entering into a contract rather than after. Try to find out whether the club is far from the sea, whether there are nightclubs or an airport nearby. Ask about the availability of air conditioning, TV, refrigerator, washing machine, etc. in the apartment.

If you decide to sell your timeshare, contact the club where you are a certificate holder. You will be given the coordinates of the trust company with which this club cooperates, and this company will help you with the sale or renewal of the certificate. And you should definitely be wary if you are offered to pay for this service in advance.

→ Timeshare

A timeshare is a form of property ownership in which one property is rented to several people. This scheme, which originated in Europe in the 1960s, is now popular in resort towns in the United States, Europe, the Caribbean and Asia. In Russia, timeshare has been known since the 1990s. However, it has not become as widespread as in Europe due to the unscrupulous behavior of some companies that have made a lot of money from fraudulent transactions involving the secondary sale of timeshares.

There are different timeshare schemes. In one case, the owner has the right to use the apartment for one week every two years, in the other - for a whole month every year. But the most common option is that the timeshare owner can only stay in the apartment for one specific week of the year and cannot change the date. Such fixed weeks are only suitable for those who have holidays at the same time every year. There is also a so-called “floating” timeshare, when the owner can plan a vacation for different times in different years. You just need to agree on the date of arrival with the management company in advance. During the absence of the owner, the apartments are rented out.

Each year, rooms are offered in the same hotel or in different hotels, but usually within the same resort. The buyer only decides on the specific size and type of apartment and chooses the season.

A timeshare ownership agreement is concluded for a period from three years to several decades.

Timeshare weeks are divided into red (holiday season), white (off-season) and blue (low season, when the least number of tourists come to the resort). Red weeks are the most expensive. You can exchange more valuable weeks for less valuable ones by turning to the services of exchange companies - for example, RCI (Resort Condominiums International) or II (Interval International). These organizations connect several thousand resorts around the world. However, you cannot exchange weeks for more expensive ones: for example, you can exchange red weeks for white ones, but not vice versa. Blue weeks are not exchangeable.

Some hotels have a points system instead of weeks. The timeshare owner receives a certificate indicating a certain number of points. In this case, the length of stay in the apartment can vary from one night to 10 days. By using unused days, a timeshare owner can accumulate points year after year, which allows him to choose more favorable accommodation conditions - for example, a more spacious room or a more expensive resort. Thus, a spacious apartment often costs 500 points during the holiday season, and a small room during the low season costs 200 points.

Timeshare advantages:

Timeshare properties are typically studios or apartments that offer a high level of service.
The timeshare owner can transfer weeks of his vacation to subsequent years and thus increase the duration of use of the apartment.
The owner has the option to assign or sell his weeks.
The owner of a timeshare can vary the time and duration of vacation.
There are bonuses in the form of additional days.

Flaws:

Timeshare is considered quite expensive. In addition, the owner of the apartment is required to pay an annual tax - on average, 300–400 euros per year. For example, in Florida, a timeshare priced at €11,700 entitles you to stay at a resort for one week a year in a two-bedroom, two-bathroom apartment. In this case, 450 euros are paid as annual tax.
Timeshare is difficult to resell due to the high price.
The owner can live in the apartment for a limited time - usually a few weeks a year.
When the lease expires, the timeshare owner does not retain ownership.
In some cases, if a timeshare owner does not use the weeks allotted to him, he loses the right to use them for a year.
High risks. The owner's rights are secured only by agreement; he does not acquire a property, but the right to use this property for a time. If the management company goes bankrupt, the client will lose money.

A timeshare has many similarities to fractional ownership, a scheme in which multiple owners own shares in the same property.

Just like a timeshare, in the case of fractional ownership, the property can be rented out during downtime, given to friends and relatives for use, or passed on by inheritance.

At the same time, there are differences between the schemes. First, shared ownership is much more expensive: a share typically costs several hundred thousand dollars, while a timeshare costs an average of $10,000. This is because a timeshare system typically allows you to live in the home for one week per year, while the owner of the shared ownership gets the right to use the property for up to several months out of the year. The difference in price is also explained by the fact that real estate purchased through a shared ownership scheme is usually elite and located in expensive resorts. Another important difference is that the owner of a timeshare does not receive ownership of the property, but only acquires the opportunity to spend a certain amount of time at the resort. Also, over time, shared ownership increases in value, and your share can be sold at a profit, which is difficult in the case of a timeshare.

Would you like to own your own room in a luxury hotel and come there on vacation at a convenient time? Then you will be interested to know what a timeshare is, what its features are, and how it can be useful to a tourist.

The word itself timeshare arose back in the 70s of the last century, in Europe and America. Time- time, share- share, division. Accordingly, timeshare is time sharing. Its essence is simple. A company wishing to build a hotel did so at the expense of investors, who could be both individuals and companies. By investing in the construction, they became co-owners of one of the hotel or resort rooms.

Do not miss:

Reminds me of the system by which most apartments in new buildings are now sold, right? The only significant difference is that the number ownership time is divided into 52 periods, equal to the number of weeks in a year. In other words, you can buy ownership of the room for any week (or several) per year.

Timeshare Features

Traditionally, the minimum unit for purchase is one week. The maximum is not limited, you can buy at least the whole year. The cost of the fee depends on both the location of the room and the time of year. A week in the “high season” will cost more than in the “low season”.

You can select the holiday date immediately, or leave it “floating”, indicating only the season. In this case, you need to book a room in advance for the required dates. The rule here is “whoever got up (called) first gets the number.” Most numbers are sold using this system, with a floating date.

The concept of a timeshare has changed somewhat since its inception. Now, in order to become a participant in the program, it is not at all necessary to invest money and wait until the resort is built. On specialized sites, anyone can buy so-called points (or glasses), which are the internal currency. You can exchange them for a stay at any of the hotels included in the system. Moreover, in this case you can buy both weeks and individual days.

The purchased number is subject to almost the same rules as when owning any other real estate. It can be sold, rented, exchanged, and even inherited. All possibilities for this must be clearly stated in the contract. In addition, depending on the share, your right to participate in the management of the hotel, being a kind of shareholder, may also be indicated there.

Timeshare in Russia

The history of timeshare development in Russia began in the “turbulent” 90s, when the main principle of doing business was “invest less, grab more.” The consequence of this was the dissatisfaction of people who, using the services of such would-be intermediaries, overpaid several times more than the real cost of the room.

Unfortunately, the principles of many companies have not changed, so getting involved with a timeshare in Russia is not only unprofitable, but sometimes even risky. When professional scammers got down to business, the timeshare turned into a kind of scam. Many people still think that this is some kind of sophisticated deception of money from the gullible public.

Do not miss:

Considering the complete lack of legislative regulation on this issue, it is not surprising that reviews of timeshares are mostly negative. However, this does not prevent it from developing quite dynamically in the West. Many analysts predict that over the next 10 years, this type of club recreation will take first place among other methods of organizing leisure time.