How Will Timeshare Change In 2021
We wanted to give timeshare owners our predictions on what we think will change in 2021 from our perspective at Cancel Timeshare.
More sales pressure on existing timeshare owners
It’s no secret that revenue dropped for the travel industry in 2020 because of COVID-19. That meant less New Owner Sales and overall a drop in revenue. How will the timeshare companies make up that drop in revenue? They will apply pressure to existing owners to upgrade their timeshare accounts, that may include new products or rebranding of existing products. Some of the major timeshare companies have already changed VIP levels in order to apply urgency to buy more points. If history is a good indicator of what will happen, one of the largest timeshare developers created new product offerings in 2009 after the last big economic crisis of 2008.
One of the major developers will go bankrupt.
We know that many major timeshare developers avoided being bought out or filing bankruptcy this past year. This isn’t speculative, just google the SEC filings for all the publicly traded timeshare developers and you will see a lot of loans coming due this year. The bigger question is what happens if your timeshare company goes out of business? Who will run the reservation system for your points program? If your company is bought out will you still have the benefits you were used to getting?
Maintenance Fees will increase.
Even though 2020 was one of the slowest years for travelers, HOAs around the country will increase their operating budgets. Why? Partly because developers get paid a percentage of HOA budgets to manage the property. That means they profit from having a higher HOA budget each year. Also keep in mind that usually they are the majority owner at most resorts; maintaining a controlling interest in the HOA. Conflict of interest? We’ll let you decide.
It will be much harder to get out of your timeshare.
The days of calling owner care and writing a letter to cancel a contract are over. The timeshare companies will fight for every dollar they have received and will work even harder to make sure timeshare owners continue paying their timeshare loans and maintenance fees. We have already seen this on our end. We have had to find new and improved methods to help timeshare owners get rid of their timeshares. The only thing constant in this industry is change, and we know that we always have to be three steps ahead of the timeshare companies.