The ever-increasing cost of timeshare maintenance fees over time (with calculator)

To keep our subscribers up to date with the most relevant timeshare industry news and consumer information, we’re sharing the latest newsletter from the Timeshare Consumers Association (TCA) below.

As a timeshare owner, you’ll already be familiar with your contractual obligation to pay annual maintenance fees. What has always surprised us is how many resorts issue the bill just before Christmas. Few things are welcome at the start of an already expensive festive season — least of all a maintenance fee invoice.

And once that envelope lands, it’s often followed by a few choice words when you realise the fee has increased yet again. It seems far more likely that hell will freeze over than that dreaded bill will ever go down. In many cases the rise may not exceed a “standard” 5% a year, but even at that rate, the impact of timeshare maintenance fees over time can take a serious bite out of your finances.

For example, if your 2020 maintenance bill was £900, you belong to RCI, and your annual increase is a modest 5%, then by year 5 the fee would rise to £1,249, by year 10 to £1,594, and by year 20 a staggering £2,598. Even more sobering: by year 20, the total maintenance fees paid over that period would equate to £33,990.15.

Once you factor in your original purchase costs, you can quickly be looking at a very hefty sum for something that offers no investment value and — beyond holiday memories — provides no return when your contractual term ends.

Shock horror!

Your annual maintenance charges may differ from our example, so we’ve created a Maintenance Fee Calculator to help you work out figures based on your own circumstances. It shows what you could be expected to pay each year over a 20-year period, as well as the cumulative total. We hope the results don’t shock you too much. Access the calculator here: https://timeshareconsumerassociation.org.uk/maintenance-fee-calculator/

Once you’ve seen the potential scale of your future liability — and recovered from the shock — it may be worth taking a step back and asking whether timeshare ownership offers genuine value. Remember, maintenance fees typically cover self-catering accommodation only: no flights, no transfers, no food and no spending money.

It’s starting to look like a very expensive proposition.

Let’s look at the pros and cons of owning a timeshare.

Cons:

• Ever-increasing maintenance charges
• Limited exchange power
• No exclusivity — many resorts can be booked without owning a timeshare
• No resale opportunity
• Costly to relinquish ownership
• Constant pressure to upgrade or take on more encumbrance

Pros:

• A timeshare holiday can work out cheaper if your party size matches the unit (for example, six people in a two-bedroom unit) and you’re happy with self-catering. You would need to own at a resort with reasonable maintenance charges, be happy to return year after year, and be fortunate enough not to face availability problems when booking. In reality, this tends to apply to only a small percentage of owners.
• Holiday memories.

Given the current global situation and the uncertain future of the travel industry as a whole, we do expect many timeshare companies to significantly increase maintenance charges in the coming years to recoup losses — often relying on the force majeure clause in their contracts to distance themselves from circumstances such as a worldwide pandemic or government-mandated closures. Convenient, perhaps — and, as ever, it’s the timeshare owner who bears the consequences.

In recent months, the TCA has seen increased demand from enquirers seeking assistance with terminating their timeshares and, where applicable, pursuing financial recompense.

If you would like help and guidance with escaping the timeshare trap and, where applicable, seeking compensation, please feel free to contact us — our team will be more than happy to assist.

For friendly advice, call today on 0203 807 3388 or 0800 1026070, or email pr@timeshareadvicecentre.co.uk