Exchange companies are businesses that create networks of timeshare resorts and then oversee the exchanging of timeshare units between you, the owner, and other people who have bought timeshare units at other resorts around the world. Most of the exchange companies have their own ratings systems to help you understand what you will be getting for your unit’s exchange value, and many also offer things like unit upgrades, bonus time for extending your vacation at given resorts, and other timeshare-user perks.
Different exchange companies charge different fees—for membership, for exchanges in the United States and abroad, for adding bonus time to your ownership, and more—and they offer different services on the whole. Some handle exchanges only, while others also offer advertising and Internet support for timeshare renting and resale. The bigger exchange companies are part of huge worldwide corporationss that also include car-rental companies, hotel properties, discount airline ticket Websites, and more. If you join one of the bigger companies, your membership will include subscriptions to glossy magazines offering you access to everything from discounted cruise-ship vacations to vacation insurance.
The way exchange companies handle the actual exchanges can differ, too. Some force you to pay the exchange fee and deposit the week that you own into their system first, so other people can decide whether they want it, while other companies allow you to choose your exchange resort of choice first, then pay a fee and deposit the week you own afterward. (You will learn more about how these systems work in Chapter 12.) Some people try to game the system by working with more than one timeshare exchange company at a time, but if you work with multiple exchange companies, you run the risk of trading away the single week you own to more than one person. If this happens, you would be liable for double or triple booking penalties from multiple exchange companies and, possibly, the resorts themselves.
Which exchange company should you choose? Often, it’s not up to you. Some timeshare purchases include complimentary membership in one of the larger exchange companies, and some brand-name
resort developers allow you to use only the exchange company with which they are affiliated. You should ask before buying any timeshare unit whether you will be forced to work with a particular exchange company and what penalties you might incur if you go outside the system in search of a better deal.
While there are several brand-name hotel developers getting into the timeshare business by offering their unit owners exchanges among only a handful of resorts, most developers are affiliated with the two exchange companies that continue to dominate the timeshare industry. The biggest is Resort Condominiums International, and its largest rival is called Interval International.
There are smaller exchange companies, as well, which you will read about toward the end of this chapter, but you should start your industry education by taking a look at its biggest players.
Vacation Avenues Specializing In Marketing and Advertising, To Make The Most Out Of Your Vacation Property! Terms and ConditionsRent a Timeshare
