Timeshare Consumers Association

Timeshare in Europe - 2005

A report by the Timeshare Consumers Association

SUMMARY

Last year the Timeshare Consumers Association (TCA) published their report "Timeshare in Europe 2004" [ink] in which we said:-
"The timeshare industry in Europe is at the cross roads - if it fails to take prompt action to remove anti-consumer practices the current decline in business could be fatal"
This 2005 report takes a further look at the industry a year later to see what, if anything, has changed.
The picture is not good:-

Sales continue to decline with some leading companies now reporting losses.

Owners are continuing to walk away because of declining standards and ever increasing annual costs

resulting in a further reduction in ownership numbers.

Fraud and deceit continue to dominate consumer and media views of timeshare in Europe

The law has failed to keep up with the rogues and enforcement is weak or non-existent

Industry leaders are making no effort to recover lost consumer confidence.

Consumer views are summed up by - "If we had known it was timeshare we would not have gone".

TCA conclude that only a much tougher regulatory regime will recover an industry of which many people used to have high hopes.

CONTENTS

Timeshare and its Environment

Products - Confusing consumer with fixed weeks, floating weeks points clubs, multi-resort clubs, holiday clubs etc.

Accommodation - Only 70% sold as timeshare - now over 50% used for non-timeshare such as rental

The Market - More venerable purchasers being targeted

Competition - Timeshare now becoming poor value for money as rental etc. catches up.

The Industry

Developers - Top 20 represent 40% of market

Marketers - Tell lies - brief existence

Management Companies

Exchange Companies

Trustees

Finance Providers

Independent resale brokers - struggling to make a living

Marketing - Timeshare sold not bought, no consumer choice, aggressive, deceitful sales techniques

Company profiles & Brand names - Hapimag & Sunterra ( 17% of industry) trading at a loss

Corporate fraud - Avoiding tax, falsifying accounts

Organisation for Timeshare in Europe (OTE) - Useless as consumer protector

Declining sales - 35% down in last 5 years

Industry response to downturn in business - More aggressive selling, selling resorts for re-development

Consumers

Buying problems - Lies, aggression, harassment.

Owning & Selling problems - Annual fees twice inflation, many weeks worthless

Frauds on Consumers - 25% of payment fraudulent

Complaints & Complaint handling - Evasive and aggressively negative

Ownership decline - Owner numbers down 5% in last three years

Media - negative reporting
Law & Enforcement

Law - Too many loopholes

Enforcement - Weak or non-existent

Consumers legal action - Major growth area

The Future ? - Gloomy
Recommendations - New, tougher law and effective self regulation.

The full report is available is DOC and PDF format

1 February 2006