Currently there are several types of Timeshare programs that allow the client to choose the type of Vacation Property that best suits them or suits their needs.
Timeshare is a term that describes the exclusive use of hosting for a particular number of days each year. Usually sold by the week, also known as Interval or Vacation Property.
Buying a timeshare slot can take several legal forms:
Week and Fixed Unit.
The buyer receives a contract allowing the use of a specific condominium, in a specific week, each year, just like buying a house. The benefits may include the property tax benefit, plus the right to participate in development management. Under this agreement, the owner can rent, resell, exchange, or donate the vacation interval.
Right to Use.
Ownership of the development is maintained by the Tourism Developer. The buyer obtains the right to use in one or more developments, for a specific number of years, generally between 5 and 20, and at the end of the term the rights return to the Developer. These plans are currently the most commonly used by high-profile startups and function like a Vacation Club Membership.
Vacation Clubs or Points Programs.
They offer the flexibility of use on a different date each year. Club members buy points, which are used as currency to access different Suite sizes, season or number of days in affiliated developments only.
The number of points required varies in relation to member demand for unit size, season, development location, and amenities. A vacation club can offer right-of-use contracts for up to 99 years.
It allows consumers to buy a greater number of weeks, usually between 4 and 26, at a lower cost. This modality is popular in ski or beach destinations.
Units with Lockoff or Lockout.
They allow vacation rental owners to occupy only a portion of the unit on one date, and the rest on another. You can rent one of the portions or even exchange it.
Vacation intervals are sold as fixed time or as floating time.
With Fixed Time.- The unit (condominium), or type of unit, is purchased to be used for a specific week, that interval is assigned each year to that member.
With Floating Time.- Refers to the use of vacation accommodation generally for a specific season of the year, summer, winter, all year round, etc. The owner must reserve your desired vacation date in advance, as the reservation confirmation is usually made on the basis of: First Call / First Confirmation.
According to a recent study it was found that in the United States about 70% of timeshare condos are sold in floating time. The difference in prices is determined by the demand for the season purchased.
They are required by members who prefer shorter vacations and allow them to divide their interval into two or three separate visits to their development, commonly one for 3 nights and one for 4, on two different dates in the year. Reservations are generally confirmed on a “First Call / First Confirmation” basis and subject to availability.
Biannual Property, or Alternate Use Property.
It allows the use of the property only every two years only, its cost is cheaper than the annual one, although not necessarily 50% lower.
In the beginning, one of the biggest disadvantages was that one was forced to spend the same week, in the same development, year after year. Currently this is not a problem, through exchange companies, timeshare owners can use vacation intervals in similar developments around the world.
Most of the developments are affiliated with an exchange company and offer this possibility to their clients. Currently both II (Interval International), as RCI (Resort Condominiums International), HSI (Holiday Systems International) and ICE (International Cruise & Excursions) are the exchange companies with more affiliated developments and that offer more alternatives to choose from.
The affiliation to these companies is voluntary and requires an annual Membership payment as well as the payment of a confirmation fee of exchange each time it is made. These companies publish annual directories of affiliated developments with photos and a brief description of them, sending it to affiliate partners as well as quarterly magazines with Tips, reports, new affiliate developments, travel promotions and special discounts on airfare and car rentals.
By being affiliated with an exchange company you have the right to accumulate intervals; For example: if for some reason it is not possible to use your interval one year, this interval is deposited in the bank of spaces, being available to other owners, and in a maximum of two years later, request the confirmation of that week (s) ( s) accumulated for use in any other affiliated development. Another benefit is the ability to advance next year’s intervals to be used in the present. This added value makes vacation ownership more sense for Latin Americans who generally plan our vacations on short notice.
For the year 2011, in Latin America 863 developments affiliated to an exchange company were registered. (Mexico with 372, Argentina 116, followed by Brazil with 111 and Venezuela 69).
The affiliation to an exchange company is only possible by owning a vacation interval in the Tourist Developments affiliated to it and is generally processed by the Developer at the time of purchase.