How will the fuel and energy price hike affect timeshare travel and maintenance fees?

With the war in Eastern Europe driving up fuel and energy prices, many people are asking: “What does this mean for me?” Here’s how the current price rises could affect timeshare owners and day-to-day timeshare usage.

Global shockwaves

Just as many countries seemed to be emerging into the sunlight after two difficult years of COVID-related uncertainty and economic hardship, another major crisis has unfolded. The war between Ukraine and Russia is sending shockwaves through global supply chains, affecting food, energy and the wider cost of living. In an interconnected world, few people will be completely untouched.

Those directly caught up in the conflict—families facing shelling, violence and displacement—deserve our immediate empathy and support.

This article is not intended to trivialise that suffering. However, the rest of us still need to understand the knock-on effects and plan accordingly.

So, what changes might the Ukraine/Russia conflict bring for people committed to timeshare memberships?

Fuel, gas and oil prices

Russia is one of the world’s largest producers of oil and natural gas. Disruption to supply has pushed up the cost of petrol, jet fuel and household gas.

For timeshare owners, there are two obvious knock-on effects:

• Higher travel costs to use your timeshare: Fuel hikes increase the cost of getting to your resort—whether your timeshare is in the UK or abroad. Timeshare owners are typically committed to paying annual fees regardless. If you can’t justify the extra travel costs, you may lose out on the value of those fees by not using your week.

• Rising maintenance fees and resort running costs: Higher gas and oil prices also affect the annual running costs of resort properties, from heating and electricity to services and supplies. If costs rise, fees tend to follow. During the pandemic, with many resorts operating at minimal levels or standing empty, maintenance fees in many cases stayed the same and no discount was offered. This widely criticised approach means resorts may be unlikely to absorb energy price rises rather than pass them on. As Andrew Cooper, CEO of European Consumer Claims (ECC) explains, “Traditional businesses are motivated to keep customers happy so they don’t take their business elsewhere. Resorts don’t have that problem, because their clients are legally obligated to pay whatever they are charged every single year whether they want to or not, whether they use the product or not. So Resorts unfortunately have no incentive to be fair or reasonable.”

Wider economic effects

These fuel and energy price rises don’t just affect timeshare ownership—they affect everyday life. Household gas in the UK has already gone up by 54%, and this feeds into electricity prices because up to a third of electricity is generated by burning gas. Beyond energy bills and travel, higher transport costs also push up the price of goods. The global economy needed to rebound after the pandemic, and a prolonged conflict makes that harder.

• Will your job be safe? Nobody can say for certain what a global slowdown or recession could mean for individual employment. Businesses are connected, and if demand falls, spending on non-essentials such as holidays can be one of the first things people cut back. While some roles (supermarkets, for example) are often seen as more resilient, a tighter job market increases competition and can slow pay rises.

• Inflation: We’re already seeing rising living costs. Shortages in food, fuel and other essentials; easing of monetary policies (including issuing more government bonds); and depreciation of the Euro can all contribute to inflation. If wages don’t rise at the same pace, real income falls. Savings can also lose value in real terms over time.

• Interest rate rises: With inflation already at a 30-year high, banks may raise interest rates. Higher interest rates increase the cost of borrowing, which can reduce demand across the economy. That can put pressure on firms as costs rise, reinforcing the cycle.

These points are simplified, but the practical impact is the same: many people will have less disposable income for luxuries. One of the largest “luxury” expenses for many households is an annual holiday.

Most holidaymakers can respond by choosing cheaper trips, staying in the UK, or not travelling at all. Timeshare owners, however, remain committed—recession or not—to paying their fees every year. Often, the only decision left is whether to use the holiday they’ve already paid for.

Is it time to move on?

The above is (educated) speculation. Some of it may happen, or none of it might. Everyone will plan in their own way to reduce risk and manage costs. What is certain is that being tied into an expensive, outdated timeshare contract during a period of high inflation and unpredictable travel costs is far from ideal.

“At one time, timeshare ownership was the only way a holidaymaker could avoid being disappointed by unexpected low standards,” explains Andrew Cooper. “Nowadays the rest of the travel industry has overtaken timeshare clubs. Anyone can guarantee themselves the standards they want by checking review sites like TripAdvisor. Non members have the same annual expenses as timeshare members, but they have the flexibility to choose exactly what they want every year, or even to not go at all.”

Relinquishment and compensation claims

For many members who feel stuck with an unwanted commitment, there may be options.

“The contracts might seem iron clad, but with expert help there is usually a way to be free from the expense,” reassures Cooper. “And for members who bought in Spain, on or after the 5th January 1999 it is likely that their contracts are actually illegal. If so, then they are entitled to often substantial compensation.”

To protect consumers from high-pressure timeshare sales operations, Spain enacted strict laws 23 years ago. True to form nearly every timeshare company ignored those laws, and claims firms like ECC are able to sue them on behalf of illegally sold consumers.

“Not only does the claim free the member from the contract, the average compensation award is around £20,000,” explains Andrew Cooper. “Timeshare memberships don’t work. It’s an annual expense people don’t want to be tied into. Right now ECC’s success rate is 98.6%, so if one of our advisors confirms you have a valid claim you can not only be free of the membership, you are statistically also in line for compensation worth tens of thousands of pounds.”

“If this kind of freedom and financial bonus sounds interesting, we are a phone call or email away.”

Thank you for taking the time to read this article. For anyone wishing to help the Ukrainian people suffering due to the crisis, here is a list of top rated charities who would welcome your donations.

For a free, confidential, no obligation chat about options regarding your timeshare membership, get in touch with our team at Timeshare Advice Centre.