Is timeshare cheaper than a regular holiday? A 20-year UK cost comparison

In the past, timeshare ownership came with two big perceived advantages: higher standards and the exclusivity of holidaying in a private club that wasn’t available to the general public.

Over time, that has changed. Many timeshare resorts now rent to non-members and can be booked through mainstream sites such as Booking.com.

That leads to an obvious question: does owning a timeshare still make financial sense compared with booking a regular holiday?

Cost comparison over 20 years

Below is a like-for-like comparison of accommodation costs over 20 years for two different situations. We’re not including inflation, as it affects both options.

We’ll compare two fictional UK couples:

• David and Jayne, who book holidays normally.
• Mary and John, who own a timeshare.

We’ll look at three cost areas and then total them up to see who pays more over the 20-year period.

1) Upfront (signup) costs

This is straightforward. David and Jayne have no signup fee.

Mary and John pay £15,000 upfront for one Silver Season (low season) week at Marriott's Marbella Beach Club. The contract runs for 20 years.

There is typically no meaningful resale value, and owners often need to instruct a law firm if they decide they want to exit the contract.

Timeshare costs: £15,000

Regular holiday costs: £0

2) Ongoing costs (annual fees vs paying as you go)

Next, we’ll compare the cost of staying at Marriott's Marbella Beach Club (MBC).

Mary and John pay every year. Over 20 years, we’ll assume they stay at MBC 10 times and holiday elsewhere for the other 10 years. Their annual maintenance fee is £828.

David and Jayne, by contrast, pay only when they book. A Silver Season week at the resort on Booking.com is £746 (for the third week in January). On these figures, booking as a non-owner is cheaper for the same resort week.

Timeshare costs: £8,280

Regular holiday costs: £7,460

3) Costs of holidays elsewhere (exchange fees vs booking normally)

Timeshare owners can also holiday in other locations by using an exchange company. As RCI is the largest, we’ll use its prices for this comparison.

The cheapest 20-year membership option for Mary and John is £1,004. On top of that, they still pay MBC maintenance fees during the 10 years they go elsewhere, totalling £8,280.

They also pay £184 each time they exchange for a different destination. Over 10 years, that comes to £1,840.

David and Jayne, meanwhile, simply book a week for £746 without exchange fees.

Timeshare costs: £11,124

Regular holiday costs: £7,460

20-year totals

On the totals, David and Jayne come out well ahead by booking through standard travel sites. They pay under half of what Mary and John pay for accommodation of the same standard.

Mary and John face an upfront outlay, ongoing annual fees and additional exchange-related costs to enjoy the same kind of holiday that non-owners can book as needed.

Timeshare total costs: £34,404

Regular holiday costs: £14,920

Conclusion

"This is really exactly what we could expect," Andrew Cooper, CEO of European Consumer Claims (ECC), says.

"Timeshare companies sold themselves on exclusivity and high standards, but when they started renting their spare inventory to anyone who was not a member, convincing people to sign up with them became a very tough sell.

"Also, the study doesn't take into account the fees that timeshare owners usually have to pay for specialist legal help to get out of their contract when they no longer want their membership.

"The non-owners have other advantages, including flexibility: in years when they don't go on holiday (for example, during the pandemic), non-owners are not obliged to pay for holidays they don't use. Timeshare owners have to pay every year no matter what their circumstances."

An ARDA (timeshare-sponsored) study that is frequently cited suggests 85% of timeshare owners are content with what they own. An independent study by the University of Central Florida reported the opposite, with 85% of timeshare owners saying they regretted their purchase. With the added costs and drawbacks of ownership, it’s hard to see how even 15% of members could be happy.

So why did people sign up in the first place?

Andrew Cooper continues: "Most timeshare purchases were not about saving money. Members understood that timeshare wasn't cheaper, just better — in the same way that a Ferrari costs more than a Fiat. Nobody expects them to be comparable in price.

"By renting to non-members, resorts engineered their own downfall. It generated revenue in the short term to make up for the massive drops in new member sales, but at the same time it removed any convincing reason for anyone to pay extra for something they can get cheaper on the internet."

Do you own a timeshare you want freedom from? Contact Timeshare Advice Centre today for advice on relinquishment, or to find out whether you may be able to claim compensation.