Advantages of Timeshare
- Timeshare membership provides the member immunity from rising costs and inflation. Accommodation is available even after 10 years at the amount paid today as per the current value of money. Moreover, it has a one-time cost for the customer.
- Timeshare has an emotional connection as it is a commitment of the member to his family of spending quality time with them every year
- Timeshare stay is safer for a member compared to conventional hotels as only the members are given a right to admission. All the guests staying in timeshare are properties are known to the management and they primarily constitute family clientele.
- Depending upon the company policy members can gift, sell, and transfer their membership to others. Timeshare may also be considered as an investment in such cases.
- Facility of exchange provides a large range of options for Timeshare members.
- The overall cost of Timeshare holiday comes out to be less expensive in the long run of time.
- From the Timeshare company’s perspective there is a guarantee of business and generally, it is not affected by the recession.
- Advance payment received by the company helps them to repay their loans. This reduces the interest cost burden on the property and substantially lowers the fixed cost of the property.
- The timeshare industry is an employment generator for the locals and it helps in promoting domestic tourism.
Disadvantages of Timeshare
- The large amount taken as an upfront payment is a major deterrent to potential customers.
- Fly –by- night operators have created a negative publicity for the Timeshare industry and create an anxiety in the mind of the buyer.
- Sometimes timeshare companies do not provide quality service which creates negative word of mouth publicity for the industry.
- Timeshare industry has a very high marketing cost which reduces the profit margin of the promoter.
- Maintenance cost is high for Timeshare properties.
- Timeshare membership is considered expensive by a buyer when he starts calculating the interest component and other associated costs of his investment.