wall st journal story on Timeshares

[TUGBrian]

https://www.google.com/url?rct=j&sa=t&url=https://www.wsj.com/video/series/the-economics-of/despite-a-bad-reputation-timeshares-are-a-billion-dollar-industry/E1AC87B3-4612-4B9A-AE12-BF28F92DB97E%3Fmod%3Dmhp&ct=ga&cd=CAEYACoTODAzOTA4NTI1ODUwODM0NTMyNTIaM2Y4ODkzMzdlNWI2NTViYzpjb206ZW46VVM&usg=AOvVaw3kHXKUOz4i_JxNMMnX4bKa

story is fairly promotional until the 3min mark when they start discussing resale/exit....all in all its a pretty thin story and im not actually sure what the focus of the story actually was?

 

[CalGalTraveler]

Thanks for sharing @TUGBrian

Overall, they depict a balanced view. It's too bad that they didn't interview you. I also would have liked to see a segment on benefits of the resale market. Perhaps a Part II follow-on opportunity?

BTW...lots of images of Cabo Azul. That is a great resort and we will return there in 2026.

They talked about owner satisfaction but did not state why. I would have liked to have seen this in more detail because it made the satisfied owners sounds defensive and didn't state reasons other than defending a bad decision (e.g. Size of unit for the price. Ability to upgrade - you can get outsized value in some resorts if you are savvy and buy resale.). But perhaps that is an advanced topic for travel hackers.

 

[jp10558]

I don't know that WSJ should really do video - doesn't seem like their strong suit. I didn't like the clip from the HGV guy that it's not a second home but a prepaid vacation. Though as I've always said, it's not really a prepaid vacation either - it's more like a golf club or club store that you have to buy membership into initially.

 

[jp10558]

Thanks for sharing @TUGBrian

Overall, they depict a balanced view. It's too bad that they didn't interview you. I also would have liked to see a segment on benefits of the resale market. Perhaps a Part II follow-on opportunity?

They talked about owner satisfaction but did not state why. I would have liked to have seen this in more detail because it made the satisfied owners sounds defensive and didn't state reasons other than defending a bad decision (e.g. Size of unit for the price. Ability to upgrade - you can get outsized value in some resorts if you are savvy and buy resale.). But perhaps that is an advanced topic for travel hackers.

I think the issue is you almost need to come to TUG or at the very least get someone like a TUGer to explain to you what's going on, and to help you figure out if it makes sense for you. Like to some extent it's like you need a vacation professional like you need a financial professional. I know - silly in some ways, but you don't want to take on a yearly obligation without understanding.

I also think that lots of people could use a more advanced travel agent kind of person. Or make it their hobby like we do lol. The reason is if you're wanting to go beyond booking.com there's hotel loyalty, AirBnB/Vacasa, private rentals, timeshare rental, vacation club / RCI cash deal access, timeshare ownership and probably more that in a lot of situations the cost difference can vary wildly, but so do the accommodations. Even within a hotel brand system I've seen noticeable swings in prices within 5 miles of each other. There are a lot of moving parts though as we see on this forum.

 

[TUGBrian]

I got excited at the 3min mark when they started discussing resale and exit companies....but it sure didnt scratch the surface on that topic.

 

[CalGalTraveler]

IMHO...I find renting hotels and cruises expensive. AirBnB is too difficult to understand the quality and has a lot of add-on charges. Perhaps some enjoy this discovery but I do not.

 

[chapjim]

I don't know that WSJ should really do video - doesn't seem like their strong suit. I didn't like the clip from the HGV guy that it's not a second home but a prepaid vacation. Though as I've always said, it's not really a prepaid vacation either - it's more like a golf club or club store that you have to buy membership into initially.

Pretty good analogy! Initiation fee plus a monthly minimum to be spent at the club.

I looked into a local country club quite a few years ago. The initiation fee was $10,000 -- not small change now but a lot more back in the '80s. Plus, to meet the monthly minimum, your social life would have had to be almost 100% at the club.

 

[CalGalTraveler]

The biggest difference is that most TS are deeds and golf clubs are not deeded AFAIK. Deeds are why so many people have issues exiting timeshares.

European timeshares are an RTU model because of deed abuses in the past. I own several European timeshares because an RTU is a lot easier to exit. The timeshare industry needs to sell buckets of 5 or 10 year points to millennials to give them an exit path and lower cost entry. The current deeded model is dying with the owners.

 

[WaikikiFirst]

the HGV guy that it's not a second home but a prepaid vacation. Though as I've always said, it's not really a prepaid vacation either

Yes. Part of my response to my only TS saleswoman was "I suppose I COULD give you $44,000 but then I can't imagine paying any MFs for a long time, as in DECADES."
I thought I was being pretty generous with that (since it was only words and I wanted a response)

 

[WaikikiFirst]

not actually sure what the focus of the story actually was

The media. Clicking on links leaves me with that 40% of the time. 40% of the time I am left knowing "Pure propaganda". Then 20% of the time, maybe something there

 

[jp10558]

The media. Clicking on links leaves me with that 40% of the time. 40% of the time I am left knowing "Pure propaganda". Then 20% of the time, maybe something there

Yea, the legacy media is just getting worse and worse. I used to sort of stand up for them as better than randos through last year, but it was always tenuous and this year we see just worse and worse crap. It's very depressing.

The biggest difference is that most TS are deeds and golf clubs are not deeded AFAIK. Deeds are why so many people have issues exiting timeshares.

European timeshares are an RTU model because of deed abuses in the past. I own several European timeshares because an RTU is a lot easier to exit. The timeshare industry needs to sell buckets of 5 or 10 year points to millennials to give them an exit path and lower cost entry. The current deeded model is dying with the owners.

I think the flip side is without a deed there's even more changes that are detrimental to people that seem possible. Doesn't Mexico do the 5 or 10 year thing, and the issue is that you end up basically having to re-buy every 5 or 10 years and at whatever the prices are then? Personally I prefer the current resale market to that even though I wish it was a little more liquid.