For so many individuals, timeshares and scam have become almost synonymous with one another, like a bad joke from the late nineties. But if there is seemingly such a ubiquitous and dubious knowledge around this industry, why is it a 9.2 billion dollar industry today?
The reason why the timeshare industry continues to grow and bear financial fruit is because, despite its reputation, it has evolved enormously over the decades so as to be almost unrecognizable.
There was an era in this industry’s history when a timeshare meant that you owned a portion of time and space to use for a vacation once a year. This remains true in some circumstances; however, what has really changed the nature of timeshares is the points system.
What is the points system, who uses them, and how can you join in?
What Is The Points System In Timeshare Investment?
Traditionally, timeshare ownership meant owning a fixed amount of time in a singly designated location. This would mean that for one week a year, for example, the owner could go on vacation to the same spot every year. The points system changed the meaning of timeshare ownership and ultimately allowed the industry to expand beyond its not so enticing reputation.
The points system allots each owner a certain amount of timeshare currency every year that can be used to vacation within a single resort or multiple resorts in many different places and at different times. It is essentially a membership to a large organization such as the Mariott or the Hyatt, and allows you to spend the points, borrow, trade, or stock up on resort money.
The points system allows you to vacation in a different place every year at different times, and this level of flexibility can be highly enticing. In short, an individual can buy points with a specific vacation club entity and use those points to buy a vacation.
Points are currency within participating vacation rental properties. You can look at them like monopoly money, or money designated to vacationing within a certain range of companies, but that cannot be used anywhere else.
Who Participates in the Timeshare Points System?
- Marriott Vacation Club
- Wyndham Club Ownership
- Hilton Grand Vacation Club
- Disney Vacation Club
- Shell Vacation Club
Sometimes club vacation currencies can be shared between institutions, sometimes they cannot be shared. Buying a tropical vacation in the middle of July to a Wyndham resort will cost less points than if you went during high season for example.
Similar to currencies between countries, not all timeshare points are equal. Depending on the size, quality, location, and time of year, the number of vacation club points that an individual has can buy more or less.
The points system works well for individuals who know that they will be taking a resort style vacation every year and who have the flexibility to travel to new places at different times.
There are some advantages and discounts available to points owners that those on the outside may not have the access to, but more or less points are allocated vacation money within a specified system of resorts.
The Evolution Of Timeshare Vacation Points Has Kept This Industry Moving Upward Into A Multi-Billion Dollar Industry With A Few At The Top
If you are wondering why timeshares are even still a thing, the primary answer is simple: The vacation points system. While traditional timeshares still do exist, the reason that this industry has flourished is because of a few very large companies creating a vacation points system that keeps travelers’ money locked up within single institutions.
If you own vacation points then it guarantees that the money stays within the club that you have bought into. Selling your points, leaving your club, and choosing to vacation in a different style is beyond the scope of this article. Meaning once you have joined in, can you get out?
What happens if you buy Disney club points, and you are sick and tired of the same resort set against the backdrop of different geographical locations? Can you get out, or like the traditional timeshare are you stuck?
Certainly, the vacation club points gives its users much more flexibility than traditional timeshares; however, they remain bound to the system of currency they have bought into.