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Timeshare Exchanging Explained

Timeshare Exchanging Explanation

Timeshare Exchange Programs are some of the core features of timeshare ownership today; many timeshare owners actually define their timeshare ownership by which exchange program their timeshare belongs to instead of the actual property they own.

You will find many timeshare owners have never even been to the resort since the time they purchased it; instead, they use their exchange program membership to travel to top rated resort destinations all over the world! Timeshare exchange programs open the world of vacation opportunities to their members, and are the major reason that timeshare has become the fastest growing segment of the travel industry.

What is an Timeshare Exchange Company?
A Timeshare Exchange Company can be defined as any company that we can make a reservation, or "trade", to use the deeded timeshare ownership that we have at one property to vacation at a different resort property.

How does my vacation ownership work in coordination with an exchange company?
When you become a Vacation Owner, your home resort is yours to use during your assigned ownership time. Your ownership also makes you part of a network of people who are passionate about vacation. During those times when you’d like more than one vacation, or when you want to travel to another destination or during a different time, the exchange company can connect you to an exchange network of travelers like you who are also looking to exchange their assigned vacation time.

There are a couple of different types of exchange companies; under the traditional timeshare ownership exchange programs, exchanges are made on a week for week basis. The resorts that are available to you through this type of exchange program are based on the "trading power" of the timeshare you own. Trading Power is based on a couple of factors:

• Supply and Demand - such as summer and public holidays
• Resort Location
• Resort Quality
• Sleeping Capacity
• Seasonal Color Code

Many people own traditional timeshare and and return to their resort each year it works. If you are looking to purchase a timeshare to trade, make sure that you get one with the trading power to get you where you want to go.The 2 largest Week-for-Week Timeshare

Exchange Companies are:

o Resort Condominiums International - R.C.I.
                   and
o Interval International - I.I.

See the timeshare rating system for both Interval International and RCI.


How Can I become a member of a timeshare exchange company?
To become a member of a timeshare exchange company, first you must purchase a timeshare ownership unit at a resort that participates in the exchange program. After you have purchased a timeshare that is part of the exchange company, then you may become a member of the affiliated exchange company.

Using Your Timeshare for Exchange
Some people buy a timeshare so they can return to the same resort year after year. Others, however, like the long-run savings of timeshare, but want more variety in travel destinations, so they enjoy the flexibility they gain with exchange.

The Exchange Model
The concept of exchange is a simple one. When you buy a timeshare at a particular resort, that resort will almost always be affiliated with at least one timeshare exchange company, the most prevalent being Resort Condominiums International (RCI) and Interval International (II). Timeshare exchange programs give you the flexibility of buying a timeshare someplace like Vermont and exchanging that unit for a comparable unit in any other timeshare resort in the world affiliated with the exchange company.

Trading Power: The Value of Your Timeshare
The key to performing successful future exchanges is the value, sometimes called "trading power" of your timeshare week. Here's the scoop: when you buy a timeshare, unless you're buying vacation points, you usually have the ability to select the season and unit size at a home resort with desirable amenities and location. Exchange companies take these factors and put them into an equation to figure your timeshare's "trading power".

Like most businesses, timeshare exchange companies work on supply and demand. This means you can't buy a one-bedroom week at a resort in Minnesota during the season where the weather never gets warmer than 0 degrees Fahrenheit and expect to exchange evenly for Christmas in Kauai. The Christmas week will go to someone who has an equally desirable week… and your week will go to someone who wants your week… or go into the exchange company or resort's rental pool.

Common sense should prevail here: if you buy an off-season timeshare week, you can generally exchange for off-season timeshare weeks in the same unit size. Trading up is usually difficult or impossible.

What is Timeshare Exchange?
Timeshare exchange is the ability to trade one timeshare vacation for another timeshare vacation. You exchange a timeshare for another timeshare. It doesn't have to be for the same calendar time, same resort, or even the same country. This is the absolute right of each and every timeshare owner: the ability to trade.

Here’s how timeshare exchange works (A simple scenario):
Louis owns a timeshare at a resort in the Pocono's for the week July 1 – July 8. Rather than vacation at his timeshare in the Pocono's this year, his family would rather vacation at a resort in Hawaii so he does a timeshare exchange and offers his week at the Pocono's  resort with a timeshare exchange company that will put Louis’s week into the “pool” of available weeks available for all other members to use. Louis uses his timeshare to travel to Hawaii using a technique called timeshare exchange. Since he owns at a resort in a very valuable geographical location (red week) He will be able to go to any resort at anytime worldwide without any limitations. In addition, It is perfectly in the rights of either owner to exchange their timeshare directly with another owner at another resort if they wish without going through an exchange company. Resorts welcome exchanging because it brings
new visitors to their timeshare resort.

Timeshare Exchange Companies:
A timeshare exchange company facilitates the trading of timeshares between owners. They act as a broker connecting two parties that want to exchange. Timeshare exchange companies charge a fee for their services.

In this situation, the timeshare owner hands over their week to the timeshare exchange company by depositing it into a “bank”. Once it is deposited, the timeshare owner can choose another week from the bank that the timeshare exchange company approves of. The timeshare exchange company gives the owner deposited week a specific “weighting” (value) and based on that weighting they can choose another interval/week of equal or lesser value. The timeshare weighting process can be very confusing for timeshare owners. Timeshare owners often complain of never truly understanding how it works and frustrated with the timeshare exchange process.

The simple solution to fiqure out tradability is to ask yourself, is my resort located in a geographical area in a timeframe that is sought out by many people? Do you find the people seeking your resort area is local, regional, national or international? Which do you think would be the most valuable?  It's not rocket science!

Two companies, RCI and Interval International transact almost all timeshare exchanges each year in the timeshare exchange business. More timeshare exchnge FAQ's.

 

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