The European timeshare industry is on the brink of collapse. Travel restrictions have forced almost all the European timeshare resorts to close their sales deck. Travel bans combined with unfair maintenance fees, charged by the resorts during a time that when travel was impossible, have caused a huge influx of timeshare owners relinquishing their timeshares.
Timeshare resorts have lost a large proportion of their members whilst not receiving a single new customer. This has created a snowball effect, causing more members wanting to relinquish their timeshares. This is due to the divided management fees increasing to cover the costs of the ex-members who are no longer responsible.
Avoid timeshare holidays in 2021
Many timeshare resorts have already closed down as there simply is not enough money to be made. The remaining resorts will be desperate to bring in more customers, as this would be the way to reduce their current members annual fees. Timeshare resorts cost the same to run if there are 100 members or 1000 members. It is the members who pay the divided costs to run the resort.
We are likely to see hard selling tactics come back within the timeshare industry. The salesmen have been underpaid and it is time to make their commission. If they can’t bring in new business, it is likely that they will try to upgrade their current members.
Resorts will begin to rent out their accommodation on cheap hotel booking websites. This is unfair to the owners, as the owners will be paying much more in annual management fees than members of the public can book it for online.
Be prepared for hotel closures. We have seen this with numerous resorts in the Canary Islands and Costa del Sol and they will give no warning. Timeshare owners turned up to their accommodation to find that the hotel was closed. If you have a timeshare, we recommend booking back up accommodation and contacting your resort frequently to find out if they are still in business.
Exiting a timeshare
For information regarding legally exiting a timeshare agreement, or claim compensation, please use our online compensation calculator form and a member of our team will be in touch.