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The Coronavirus crisis has impacted almost every industry – be it e-commerce, manufacturing, or traveling.
By now, most avid travelers have already become well-acquainted with policy changes linked with air or cruise travel.
When it comes to the lodging space, all attention has been on home-share and hotel options. But there’s another segment that has been directly impacted by the recent travel bans and COVID restrictions. Yes, you got that right. We’re talking about the ‘timeshare industry’.
As a consequence of the pandemic, many timeshare owners have tried to get rid of their timeshare contracts.
The vacation ownership industry has witnessed a sharp downturn in recent months. Whether it’s about Wyndham timeshare cancellation or getting rid of a Hilton timeshare, owners are on the constant lookout for ways to save exorbitant annual maintenance costs.
Pre COVID-19 Timeshare Industry Status
The timeshare industry has evolved massively in the past 5-decades. When timeshares first emerged back in the 1970s, they were inexpensive and less rigid than today.
Timeshare owners were even allowed to visit their shared properties on certain dates every year. But today, owners may need to compete with other visitors.
Because of the vying competition in this space, prominent timeshare brands have to compete with home-sharing giants, such as Airbnb. As an outcome of this aggressive competition, timesharing companies are trying to squeeze more money from the owners, making timeshare one of the most expensive investments in 2019-2020.
The timeshare industry has performed at incredibly high levels in 2019 and was also expected to achieve new success records in 2020. There are more than 10 brands currently dominating the timeshare space, and all of them were doing good before the COVID crisis.
COVID-19 Impact
The COVID-19 crisis has also impacted the timeshare space similar to any other industry. Since marketing and sales activities have been slowed down during the crisis, many resorts have been temporarily shut down, workers have been furloughed, and new projects have been stopped due to the factor of uncertainty.
Because of these and many other similar reasons, the timeshare owners around the globe are trying to determine the best way to alter or cancel their contracts.
COVID-19 Policies for Prominent Timeshare Brands
Before we jump on to the impacts of policy changes on travelers and timeshare owners, let’s have a quick look at some of the policy changes timeshare groups have implemented to cope with the COVID challenge.
Marriott Vacation Club
With more than 660,000 families registered, it’s a massive challenge for Marriott Vacation Club to offer cancellation or adjustments to individuals who had preplanned reservations for the crisis-affected weeks.
Your options for changing or canceling your timeshare depends on your scheduled arrival date and booking conditions. According to one of the Marriott Vacations representatives, “Owners that were impacted from COVID-19 and had to cancel their reservation, they will have until Dec. 31, 2021, to use their time throughout the collection of resorts that they normally would choose from but will need to arrive within 120 days from booking their reservation.”
“Those who are impacted and need to cancel will have any cancelation fees waived,” he added.
HGVC
The Hilton Grand Vacations Club has also updated its cancellation policy. The transaction fees and Open Season rental rates will be credited back to the owner’s account. Also, you don’t have to pay reservation fees while booking your vacation for 2020-21 online.
You can check out the HGVC’s official page for more info.
Wyndham Vacation Club
Wyndham Vacation Club has also updated its policy during a pandemic. According to Wyndham, their objective is to ensure that no member loses their points if they had a vacation interrupted or rebooked for later in the year.
Hyatt Residence Club
According to Hyatt Residence Club, which is owned by Marriott Vacations, they have also updated their policy to make it more flexible and fluid during the pandemic for the members.
COVID-19 Calls for Major Reforms in the Timeshare Industry
More than 9 million households own a timeshare. But, the sad reality is, almost all of them regret their timeshare purchases.
Contributing to this disappointment is the financial burden of rapidly growing annual maintenance fees that gobble up roughly $1,000 a year.
Also, strict timeshare cancellation policies are one of the reasons why most of the buyers regret their timeshare buying decision later on.
According to LinxLegal, a company that specializes in Wyndham timeshare cancellation, “Life changes, and sometimes your timeshare isn’t a good fit anymore. Changes in health, financial status, or a family situation do not make sense for you to keep paying monthly maintenance fees and mortgages for something you can no longer use. Remember, your maintenance fees will never stop coming.”
The timeshare space is currently going through the hardest phase. People are already distressed due to lockdowns and strict SOPs.
This calls for major reforms in the timeshare industry that can help these brands regain trust and persuade passionate travelers to invest their money into timeshares again.
Recommendations
Below are some of the recommendations, that if implemented on time, can help buyers regain their trust in this constantly declining industry:
Establish a Strict Code of Ethics
Timeshare companies should establish a strict code of ethics to ensure their members get the right value for their money.
Considering the fact that timeshare members are already going through so much, all prominent timeshare groups must ensure to communicate the clear company policies to its registered members.
Promote Transparency in Marketing Practices
The next important thing timeshare brands must do is promote transparency in marketing practices. Since present-day timeshare owners can successfully distinguish between commitments and fake promises, these brands should market only those features that are actually the part and parcel of their package.
Regulatory authorities, on the other hand, must also keep a proper check and balance to ensure that these brands are fulfilling their promises.
Educate the Public
The role of regulatory authorities is critical. They must devise programs to spread awareness about how these timeshare companies work. Also, they should keep interested buyers informed about the state, local, as well as federal laws that would violate the rights of timeshare owners and consumers.
Timeshare buyers must be aware of the things they should pay attention to before they put in their hard-earned money into any contract. Some of those things include knowing about the exact interest rate and rescission period.
Reform Sales Practices
Sales and marketing is the area that demands significant adjustments and reforms. Here, the role of authorities, as well as the timeshare groups, are crucial.
Advocate for Legal Exits from Timeshares
If the rescission period has ended and you want to get out of your timeshare contract, the companies will generally respond with a straight no. These brands already know that many timeshare owners have buyer’s remorse. This is why they prepare contracts that are nearly impossible to back down.
More and more legal and fair timeshare exit routes should be introduced so that buyers can get rid of scam deals without losing their money.
Conclusion
Unfortunately, there are far too few protections for buyers who’re interested in purchasing a timeshare contract.
The Federal Trade Commission and the Consumer Federation of America offer cautions for potential investors thinking of investing in a timeshare contract.
ARDA also guides those timeshare owners who’re looking for safe and legal ways to get rid of their timeshare contracts.
There’s still room for improvement. Both regulatory authorities and timeshare companies should work with each other and develop a strategy that protects the right and investment of the timeshare owners.
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This content is brought to you by Jitender Jagga.
Photo: Shutterstock