Did you know that about 9.9 million U.S. households own some form of a timeshare? On top of that, in 2019, the timeshare industry grew by 7%. There is a lot of interest in timeshares and people are wondering if it’s the right choice for them.
Many people are choosing timeshares, but what exactly are they, and how do timeshares work? For planning a vacation, having a timeshare is a convenient option for you and your family.
There are many misconceptions about timeshares. There are different ways they work, and in this brief guide, you will learn the options and which one is the best for you.
What Is a Timeshare?
If you’re wondering, “how do timeshares work?”, a timeshare is the ownership of a vacation home that is split between families for different weeks of the year. These residences can be condos, resorts, or apartments. Each family has certain weeks that they stay at the timeshare.
Buying a timeshare is a great idea for a family that wants to take a vacation every year at a resort location. Most timeshare owners will pay a lump sum at the start of their contract, which can help you save money in the long run.
There are two ways a timeshare splits up between owners. The first is a “shared deeded ownership,” which is when each individual owns a fraction of the timeshare. This kind of ownership you can transfer or gift to someone else.
The second kind of ownership is what is a “shared leased ownership.” With this option, individuals all have the right to use the timeshare, but it does not give you ownership rights.
How Do Timeshares Work?
When it comes to how weeks are decided, there are three timeshare options. These are the fixed-week, floating-week, and point system options.
The fixed-week system is what most people are accustomed to. With this option, you have one week that you are entitled to every year. There is not a lot of flexibility with this option, but you can plan your vacations with this.
The floating-week option is slightly different than the fixed-week option and offers more flexibility. With this option, you have a week out of the year, but you can decide when that week will be every year. While this is a great option, you do need to make sure you claim your week well in advance, especially if it’s a popular time of the year.
The third option is the point system. With this option, you are given a certain amount of points either every year or every other year. From there you can book your vacation at the timeshare.
Depending on the length of stay, the dates you are staying, and the number of rooms, you will earn a certain amount of points. The Hilton timeshare Seasons is a great example of how that option works.
A Great Option for Your Family
While many people might be on the fence about timeshares, there are a lot of great options out there for your family. Finding a place to vacation every year can be difficult and time-consuming. With a timeshare, you can avoid that problem and have a dependable option every year.
You might have started reading this article wondering, “how do timeshares work?”, but through this informative guide you now know the basics and why you should consider one.
If you want to learn more about vacationing this year, be sure to check out our travel section.