What do timeshare maintenance fees cover in return, and are they still worth it?

Many people bought into timeshare on the promise of luxury accommodation, consistent standards and a sense of exclusivity. But with the European timeshare market long past its peak, it’s fair to ask: what do timeshare maintenance fees cover today, and are they still delivering value?

Holiday nightmares

In the 1980s and 1990s, before the internet made it easy to compare hotels and read genuine reviews, finding reliable holiday information was much more difficult.

When you booked a trip, you often had little more to go on than a physical brochure with its glossy photographs.

Brits were drawn in by idyllic images of beachfront hotels, only to arrive and discover their “dream” resort looked nothing like the pictures.

As more holidaymakers shared their stories, “holidays from hell” became tabloid headlines.

A solution arises

That wave of disappointment helped create a new business model: timeshare.

Holidaymakers became targets for aggressive sales operations, where they were pitched high-quality accommodation in “exclusive” resorts.

Many paid a premium — a sign-up cost of thousands of pounds, plus ongoing maintenance fees — in the hope of avoiding another holiday nightmare.

Maintenance fees and resort profit

Maintenance fees have always raised questions.

It is widely understood that charges were higher than the true cost of upkeep. In the early days, however, the annual fees could still look cheaper than booking a comparable high-standard holiday elsewhere (excluding the upfront joining cost, of course).

Timeshare resorts continued to push sales across Europe, and standards were kept up — after all, properties needed to look premium during resort tours and sales presentations.

How things have changed

Fast forward to 2022 and the picture looks very different.

New member sales have either stopped altogether or slowed significantly. For many timeshare companies, maintenance fees are now the main source of income.

Over the years, these annual charges have been heavily inflated and are now comparable to — and often more expensive than — the cost of regular holidays.

And as many resorts are no longer actively selling, there is less incentive to maintain superior standards.

Members commonly complain about cuts to facilities, reductions in services and dated apartments.

Just look at this example from Playa Real, a timeshare resort in Marbella, Spain:

Drab: Playa Real apartment living room

Tired: Playa Real apartment bathroom

Uninspired: Playa Real apartment bedroom

Today, regular holidaymakers can often book apartments that match — or beat — the standard of many timeshare complexes, and frequently for less than timeshare owners pay in annual fees.

For example, take a look at the Romana Playa complex, close to the Playa Real timeshare resort.

This is listed from £519 per week and includes cleaning and beach access. Arguably, it offers a better standard than nearby timeshare complexes.

What’s more, many timeshare resorts are no longer genuinely exclusive and can be booked on travel websites such as Booking.com. Holidaymakers can stay without paying a joining fee, paying only for the time they’re there.

A poor attitude

Andrew Cooper, the CEO of European Consumer Claims (ECC), says that "customers are contractually obliged to pay whatever the timeshare company decides," while the resort has "no motivation to provide high standards in return."

"To maximise profits, a timeshare company's logical course is to minimise expenditure wherever possible on resort standards. And to increase the annual charges the maximum they believe they can get away with".

Over the decades, the travel industry has evolved significantly, largely driven by competition and consumer demand. However, Mr Cooper explains that "timeshare owners are being left behind, without the standards, choice and flexibility enjoyed by regular holidaymakers".

"Ironically the expensive memberships that once shielded timeshare owners from 'holidays from hell' have trapped them in some of the least acceptable holiday conditions available in modern times."

Do you want to escape your membership?

If you are considering your timeshare options, speak with one of our specialists at the Timeshare Advice Centre.

It may be possible to relinquish your timeshare membership, and you may even find out that you are entitled to compensation.

Get in touch today to find out more.