timeshare point system pros and cons
The Basics
Unlike traditional timeshares (where you own a fixed week in a fixed location), a pointsbased system gives owners an annual allotment of points. These can be exchanged for nights at various resorts, of differing lengths, locations, and seasons, depending on availability and point cost.
Pros: The Case for Points
1. Flexibility
You aren’t locked into the same week or unit every year. Points can be spent in different sizes of accommodations, trip lengths, and locations. Desirable if you want to mix up your vacation style—weeklong stays, weekend getaways, or even hotels.
2. Exchange Options
Many systems allow you to access partner networks (Interval International, RCI), exchanging points for stays in a broad universe of resorts and destinations. Points can sometimes be used for cruises, flights, rental cars, or entertainment tickets (usually at poor value, but it’s an option).
3. Customization
Split points to cover multiple short trips instead of a single, long one. Upgrade units (for more space or luxury) by combining or banking points. Can sometimes roll points over to the next year or borrow from a future year.
4. Potentially Greater Value
The savvy, organized vacationer can maximize point value, getting more or better trips than with a fixed week system. High demand weeks or locations can be accessed if you plan ahead and are flexible.
Cons: The Reality Check
1. Availability Risk
Flexibility cuts both ways—if you don’t book early, popular resorts and peak travel times are often “sold out.” Points without real inventory are useless; owners in some systems find themselves competing for the same solutions with tens of thousands of others.
2. Devaluation and “Point Inflation”
Developers and resort brands can (and do) raise the number of points required for highdemand locations and weeks. Over time, the same points buy less vacation—forcing you to buy more or settle for less.
3. Ongoing Fees
Maintenance fees rise annually, often outpacing inflation. Exchange company membership has its own yearly charge. Sometimes booking and cleaning fees are layered on top.
4. Complexity
Mastering the system requires discipline—knowing deadlines for booking, banking, or borrowing points. Understanding value per point, and working the calendar, is more work than a fixed week.
5. Resale and Exit Hassles
Most timeshare systems, even with points, have poor or nonexistent resale value. Selling or exiting contracts frequently incurs transfer costs, and the pool of willing buyers is small. Many buyers are lured in by perks or lastminute upgrade deals, then regret purchase when costs and point “inflation” set in.
6. Limited Transparency
Booking windows favor longterm planners; shortnotice or lowpoint owners are at a disadvantage. Extras (like housekeeping, upgrades, partner exchanges) often cost far more points than advertised in sales presentations.
Discipline Is the Key to Value
The timeshare point system pros and cons balance out in favor of the savvy, proactive planner—those who know their annual schedule and book 1–2 years out for highdemand weeks. Flexibility becomes disappointment if you don’t work the system’s rules.
Important Rules of Thumb
Compute cost per use (annual fees plus buyin, divided by points and actual vacations used). Track “point inflation”—how point costs change yeartoyear for your favorite destinations. Read all terms on banking, borrowing, and points expiration. Always factor in the cost of exchange networks—RCI, II, and others.
Who Wins With Points—and Who Loses
Wins: Families with regular, fixed travel windows who book early; retirees and frequent travelers who maximize shoulderseason value; planners who enjoy working the system. Loses: Casual or lastminute travelers; those who don’t use their points each year; buyers who can’t absorb rising maintenance fees.
Alternatives to the Timeshare Point System
If the cons outweigh pros, consider:
Vacation clubs or travel subscriptions with no ownership fees. Renting timeshare points from owners (sometimes at lower cost than annual fees for owners). Using online discounts or loyalty programs for hotels and resorts.
Final Thoughts
The timeshare point system isn’t a scam, but it isn’t simple either. The timeshare point system pros and cons are real—flexibility and novelty for some, hassle and diminishing value for others. Do your research, understand your own travel habits, and only commit if you thrive on planning, not promise. Vacation ownership is most rewarding when approached with discipline, not impulse. In the end, the value of your points—like your time—is up to you.