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What is
Timeshare?
( It is spelled as one word, not two words: TIMESHARE. )
The Exchange Companies:
The two major exchange companies are Resort Condominiums International (RCI) and Interval International (II), plus an increasing number of smaller independent companies.
The exchange companies operate somewhat like a " timeshare bank" , allowing you to " deposit"
your timeshare and " withdraw" another one located somewhere else. The system has traditionally been
one of supply and demand, trading like for like. In its simplest form, you exchange your 2-bedroom in the summer
for a 2-bedroom in the summer somewhere else. In reality, the formula is increasingly complicated and the companies
use sophisticated computer systems to match demand with supply, establishing the " value" of different
weeks in different resorts. Weeks are rated according to a sliding scale of factors, such as size of unit, duration
of stay, time of year, resort location, resort quality, ratings by consumers, etc.
The exchange companies charge an annual fee for membership,
plus fees for domestic and international exchanges and other fees depending on what you want from them.
In addition, RCI has developed its own "points club"
, RCI Points,
whereby members can convert their Weeks ownership into points and use those points like currency for resort occupancy,
airfares, cruises, car rentals, etc. In this system, the timeshare owners "give" their weeks to RCI for
a set number of years in return for points. The more Points you purchase, the greater your exchange and other usage
possibilities. Though the Points and Weeks systems are kept separate from each other, RCI Points members can exchange
for Weeks units, but Weeks owners cannot exchange for inventory in the RCI Points system. This is a point (no pun
intended) of contention among Weeks owners, who feel that they are being shortchanged by this system; Weeks vs. Points debates
rage continuously on many timeshare-related message forums and bulleting boards, many of which can be found on
our Useful TS Links page. Conversion sales are handled by affiliated companies, certified
"brokers" , which will charge whatever the traffic will bear to convert your Weeks to RCI Points.
The exchange companies also operate their own travel agencies, offering members flights, car rentals, cruises and
travel insurance, etc. at competitive prices.
RCI:
(http://www.rci.com ) Christel and Jon DeHaan
invented the first exchange company, Resort Condominiums
International (RCI), in 1974. They correctly figured
that if timeshare owners were able to trade their week for a week somewhere else, it would increase the perceived
value of the product and more people would buy. This relationship among RCI/developers/timeshare owners proved
to be symbiotic, wherein each entity profited by the existence of the other two.
When the DeHaans divorced in 1989, Christel bought out Jon's
half of RCI. In 1996 she sold the company for half a billion dollars to Hospitality
Franchise Systems, Inc., which merged in December of
1997 with CUC International, Inc. The company created by that merger, Cendant
Corporation, then took ownership of RCI.
In 2005 Cendant decided to split itself into four separate companies.
Its hospitality division was renamed Wyndham Worldwide in 2006 and comprises the new company's hotel, resort and timeshare
businesses. The formerly named Cendant Timeshare Resort Group, which includes RCI as well as the timeshare companies
Fairfield Resorts and Trendwest Resorts, was renamed Wyndham
Vacation Ownership, Inc. Additionally, Wyndham Vacation
Ownership's consumer finance division, currently named Cendant Timeshare Resort Group—Consumer Finance, Inc., has
been renamed Wyndham Consumer Finance, Inc.
INTERVAL INTERNATIONAL: (http://www.intervalworld.com ) In 1976, Miami attorney
Thomas J. Davis, Jr.
and former accountant Mario Rodriguez formed Interval International (II) specifically to compete in the timeshare
exchange marketplace. They marketed the company as a more upscale alternative to RCI.
Davis left Interval International in 1982. Leaguestar
plc, a London-based holding company supported by European
institutional investors, purchased Rodriguez's interest in 1988. In 1992, II became a wholly-owned subsidiary of
CUC.
When CUC and HFS merged in 1996, anti-trust concerns were raised because both of the major exchange companies resided
under the same corporate umbrella. To mitigate those concerns, Interval International was sold in December of 1997
to an investment group formed and controlled by Chicago-based investment partnership Willis
Stein & Partners, L.P. a group of II’s senior executives
and a consortium of hospitality firms consisting of Carlson
Companies, Inc. Hyatt Vacation Ownership, Inc. and Marriott Ownership Resorts, Inc.
In 2002 the company was purchased by USA Interactive, now renamed InterActiveCorp
(IAC), owned by Barry
Diller. Carlson, Hyatt and Marriott no longer have an
ownership interest in the company, but they continue to affiliate their resorts with II.
Mario Rodgriguez, who was known as the industry's goodwill ambassador throughout his life, passed away on March
25, 2003.
INDEPENDENT EXCHANGE COMPANIES:
In addition to the Big 2, several smaller exchange companies
have been independently developed over the years. These companies are beginning to see larger opportunities for
growth as dissatisfaction with the Big 2's policies and/or exchange fees grows. The following is a list of Independent
Exchange Companies in alphabetical order along with their Web site addresses:
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