Timeshare:

Any arrangement plan or similar device, but not including any exchange program, whether by membership, agreement, tenancy in common, sales, lease, rental agreement, license, right to use agreement, or any other means whereby a purchaser in exchange for consideration, receives right to use accommodation or facilities, or both, for a specific period of time less than a full year during any given year.

Definition acc. to WTO (World Tourism Organization)-

The advance purchase of time in holiday accommodation. The purchaser pays a capital sum to acquire the timeshare and then pays an annual contribution towards the maintenance of property. The period of time sold is usually based on modules of week.

1. Time share properties are usually located at beaches, ski slopes, hill resorts, spa, waterfalls, etc.

2. Timeshare owners can exchange their time with another timeshare owner at another location. They can even rent their time slot to another person.

3. Timeshare properties have fully furnished rooms with kitchenettes. They may have a dining hall with a bar.

4. Owners need to schedule their visit with the management office to ensure that the room or suite is available.

Types of Timeshare:

a) Fixed Timeshare – Buying holiday time for a specific number of years in advance.

b) Floating Timeshare – one can holiday with their family in various resorts owned by the timeshare company for the specific period one has purchased the holidays for.

Characteristics of Timeshare Properties:

a) Builds a culture of leisure tourism.

b) Targets a large cross section of consumers offering wide choice of holidays.

c) Promotes domestic tourism and creates jobs.

d) Minimizes seasonality- insulates against fluctuating occupancies.

e) High resilience.

f) Builds customer loyalty and maximizes repeat business, thus enhancing brand

loyalty.

g) Increases revenue from F&B and other resort services and activities.

h) Cross selling opportunities.

Condominiums (Condos) –

These are another type of accommodation. The owner of a unit which is a room or apartment in a complex, furnishes it to his/her taste and informs the management for the times when he/she will occupy the apartment. He/she permits the management to rent out the apartment at times and the rent goes to the owner. Condos have a restricted entry.

Referral

The referral programme is one of the most cost effective programmes in any vacation ownership development. It has the lowest cost and highest closing rates. As the magnitude of the owner base builds, this programme gains momentum and has a positive effect on costs. However the direct corollary of the success of this technique is owner satisfaction with their total vacation ownership experience. Thus in the long term, resort management practices have a direct influence on its success. Incentive programmes are established to motivate members to refer their friends and relatives.