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Now that travel is back on the table, people are getting used to the idea of regular annual vacations again. And unfortunately, everything seems to be going up in price, including hotel accommodations.
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If you’ve ever considered buying a timeshare as a way to make your vacation costs more predictable, you’re not alone.According to the American Resort Development Association, 9.9 million households are considering resorts as an option. Not only is it actually taking steps to get investment into the industry.
To help you decide if a timeshare is the right move for you, here are some typical costs involved and how they compare to a traditional vacation at a resort hotel.
How do timeshares work?
“A timeshare is a shared ownership (or contractual right to use) leisure property in which the purchaser acquires a specified period of annual use (often one week) in a condominium or other type of vacation accommodation. ),” said Sarah Conroy. Senior Director of Marketing and Communications for the American Resort Development Association.
“The hours don’t have to be the same week each year, or even the same type of accommodation,” she added.
How much money do you expect to spend on your timeshare?
Timeshares have some initial and ongoing costs. Here is an example.
“A typical upfront investment in 2021 was $24,140 per week for a two-bedroom unit with a full kitchen, washer and dryer, and living room,” says Conroy. “His average annual maintenance cost per week for his two-bedroom unit in 2021 was $1,120.”
What other costs can I incur with my timeshare?
“Generally speaking, after the initial purchase price of the timeshare itself, the required annual cost is a maintenance fee used to maintain and repair the common areas of the resort, including all furniture in the unit and throughout the resort. , room and resort housekeeping and cleaning, and amenities like pools, game rooms and sports courts,” Conroy said.
“For reference, as of the end of 2021, only 20.5% of all timeshare owners had an outstanding loan related to their timeshare purchase. There is no fee, and owners rarely charge a resort fee for using Wi-Fi or amenities.
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Timeshares vs Resort Hotels: Which Is Cheaper?
The main difference between a timeshare and a resort hotel is that you have to pay thousands of dollars to take ownership before you can take advantage of the timeshare, whereas vacationing at a resort hotel does not incur such costs. plug. But what about more? Which of these accommodations is cheaper?
“Hotel rates have been shown to rise gradually over time, but a surge in travel coupled with inflation has led to sharp increases in daily rental prices,” Conroy said. “ARDA encourages value-minded travelers to consider the economic benefits of timeshare ownership, such as protection from the economic pressures that affect these rates, including inflation.”
She continues: However, purchase prices for two-bedroom timeshare units have remained relatively stable over the past five years. These ever-changing average daily rates plus fees and taxes (usually $25 or more for resort fees per day, state, local and other taxes easily exceed 10% of the daily rental price). ) makes the cost of timeshare ownership more consistently affordable. Empower your family to plan vacation spending with confidence. “
Conroy continues, “Over the five years to 2021, annual maintenance fees paid by timeshare owners have increased by only 15%, compared to a seven-night resort hotel stay, which is the same as the fee. 24% increase before taxes May 22, 2022 to July 22, 2022 — in just three months — 1 bedroom resort hotel units (units not including kitchen or separate living area ) rose from $1,569 to $1,569.1720.”
She concludes: [timeshare] Instead of eating out for each meal, you should eat full meals and snacks. “
Obviously, it’s not a simple answer as to which is cheaper, but if your wishes and needs align with using a timeshare, it can definitely lead to savings in the long run.
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