Results 1 to 10 of 10

Thread: How will Wuhan Coronavirus impact timeshares?

  1. #1

    How will Wuhan Coronavirus impact timeshares?

    The Wuhan Coronavirus is hitting the travel and hospitality industry hard. How will timesharing fare?

    There are two categories of resorts to consider. The first is those under the control of a developer and often still in developer sales. The health of the overall company is the key here, and how deep their pockets are on financial reserves. They won't be doing any tours to sell timeshares for a while. Many of them rent unsold weeks to help drive both revenue and tour flow. That has dried up, too. If a big developer goes bust, the individual timeshare owners in such resorts are likely to lose out, but they are probably in a much better position to borrow money to try to ride it out.

    The member-run resorts will probably be in a better cash flow situation. Annual maintenance fees have been collected by now and will not be due again until next December or January, which is plenty of time for this to blow over. The weak link is that when RCI changed its exchange system, the ability to resell off season weeks to new owners has tanked and HOA's are stuck with a lot more of them than they used to be. Some resorts have used rentals to make up some of that money, and at least on the OBX, February-March was a key time for that. This year, that revenue will not be there. Of course, on the other side of the ledger, expenses for things like utilities and cleaning will be way down. So over all, independent member-run resorts should be okay.

    One potential fly in the ointment is how exchange companies will behave. I was an HOA president during the recovery from hurricane Isabell, and at that time the exchange companies were great and really helped out. RCI made no demands on us as to spacebanked weeks and gave us a bunch of free vouchers good for an timeshare exchange each that we could give to our owners who lost use of their weeks. They had very low trading power but at least got people a week somewhere they could use.. DAE was even better. They allowed our owners to spacebank weeks while the resort was closed for repair that they could exchange against elsewhere with full trading power.

    That changed drastically in the last resort closure due to a bad Nor'easter. RCI not only gave us nothing but they came with their hand out. They demanded that the HOA make them whole for weeks they could not use due to closure for repairs. Fortunately, the closure was short and there were some deep off season weeks available to give them. Otherwise, they were demanding cash from the HOA. DAE did not give anything this time but at least they made no demands like RCI did.

    What will RCI do this time? For the OBX, the resorts can be ready and willing to take exchangers, but the county is closed to tourists. The resorts should argue that is not the HOA's fault if RCI comes with their hand out. Fortunately, the OBX itself is not under lockdown but it just prohibits travel into the county by people who are not residents or property owners. Where a resort is in an area under lockdown, their argument with RCI might be weaker but it still should be made. I hope RCI does not try to pass their own pain onto HOA's.

  2. #2
    I hope not. Since the resorts are still inhabitable, this time around might be a bit better. RCI gave me a credit for my exchange fee and my TPU back when I had to cancel my Grand Cayman trip for 4/5/2020.
    Jacki

  3. #3
    The kicker is whether RCI will then demand that the resort give them something for that cancellation as they have started doing in hurricane situations.
    Last edited by Carolinian; 03-26-2020 at 01:09 PM.

  4. #4
    Goomba & Super Moderator tonyg's Avatar
    Join Date
    Jun 2005
    Location
    Southern New England
    Posts
    16,120
    The two Maine resorts closest to Acadia National Park have closed their common and recreational areas. Both are HOA controlled.

  5. #5
    The one that I own in AC was trying to stay open but has closed, I am not going to pay the over $900 MF this year for something I could not use, So I have no idea how this will end
    Timeshareforums Shirts and Mugs on sale now! http://www.cafepress.com/ts4ms

  6. #6
    On the Outer Banks, owners of weeks during the Spring have the highest rate of deposit with exchange companies. Most summer owners own to use, and due to the fishing season, that is also common in the Fall. That means that right now, there are a lot of weeks going unused that have gone through the exchange companies. Who will take the loss? Since exchange companies offer exchangers a type of insurance for this, it should work the way it does with renters as to those who have exchanged in. If they paid for the insurance, the exchange company takes the hit, but their internal insurance fund can cover that loss. If the exchanger did not take the insurance, the loss is on them. The loss should NOT be on the HOA.

  7. #7
    Goomba & Super Moderator tonyg's Avatar
    Join Date
    Jun 2005
    Location
    Southern New England
    Posts
    16,120
    I'm still planning a trip to my resort in June. I heard (tho don't believe) that they are stopping cars at the Maine border and turning non residents back. They tried that in Rhode Island but backed off. I think there is a lawsuit possibility against the state in there somewhere. Next question would be, if I had banked the week with II what would the status of the banked week be if the state closed the resort. I can see the exchange companies are going to have some problems with some weeks.

  8. #8
    And then does the exchange company cancel the credit, eat the loss, or try to impose the loss on the other timeshare owners at the resort by pushing it onto the HOA?

  9. #9
    Very complicated, I have cancelled an exchange thru RCI for May in Mexico. Was not an issue got my trading power back and also my exchange fee as a credit. Interval on the other hand has not be as cooperative. Same in May another week in Mexico. I requested to change it to July, well they have a resort avaialable in Nuevo but I specifically said PV and then the only one in PV is not to my liking, so I asked what now. Their answer was we cane look for other times. I did pay for that E-Plus ( 3 times you can change your reservations, so if I accepted a certiciate of a week for wherever I woud lose that, but yet there was/is no availability in Mexico/ Puerto Valarta down the road either considering pretty much the country is shut down. Eespecially Jalisco where PV is located. This all transpired over 2 days and a total of more then 3.5 hours. So I am pushign the box and hoping online to push it out to July on the E-Plus which again I paid for, catch 22 here, you can only search 60 days out, is that ridiculous or what. I told the person what a ridiculous rule, she repeated to me I coudl call, as I explained the wait times and how complicated can it really be to open up the timeframe online in light of the world problem right now. Any way I spun my wheels, so I am searching daily and will either get something in July and if t does nto work to my likeing hopefully can retrade again with E-Plus to later in the year. More than frustrated to say the least.

    On a maybe a brighter note I hear timeshares might be the first to reopen in Mexico anyway. Maybe many folks will not travel via plane, as I am under dr. orders not to go to states at this time due to weakened immune system.

    I wonder as well will timeshares push off their losses with big assessments to owners? What a mess.
    Timeshare Addict - Mexico Travel Abounds - Happy Vacations!!

  10. #10

    Angry

    Very complicated, I have cancelled an exchange thru RCI for May in Mexico. Was not an issue got my trading power back and also my exchange fee as a credit. Interval on the other hand has not be as cooperative. Same in May another week in Mexico. I requested to change it to July, well they have a resort avaialable in Nuevo but I specifically said PV and then the only one in PV is not to my liking, so I asked what now. Their answer was we cane look for other times. I did pay for that E-Plus ( 3 times you can change your reservations, so if I accepted a certiciate of a week for wherever I woud lose that, but yet there was/is no availability in Mexico/ Puerto Valarta down the road either considering pretty much the country is shut down. Eespecially Jalisco where PV is located. This all transpired over 2 days and a total of more then 3.5 hours. So I am pushign the box and hoping online to push it out to July on the E-Plus which again I paid for, catch 22 here, you can only search 60 days out, is that ridiculous or what. I told the person what a ridiculous rule, she repeated to me I coudl call, as I explained the wait times and how complicated can it really be to open up the timeframe online in light of the world problem right now. Any way I spun my wheels, so I am searching daily and will either get something in July and if t does nto work to my likeing hopefully can retrade again with E-Plus to later in the year. More than frustrated to say the least.

    On a maybe a brighter note I hear timeshares might be the first to reopen in Mexico anyway. Maybe many folks will not travel via plane, as I am under dr. orders not to go to states at this time due to weakened immune system.

    I wonder as well will timeshares push off their losses with big assessments to owners? What a mess.
    Timeshare Addict - Mexico Travel Abounds - Happy Vacations!!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •