Industry Terminology
Here is a list of terms, phrases, and titles commonly used in the industry.
Affiliation Agreement - The agreement between the Network Administrator and a timeshare resort or club pursuant to which that resort or club becomes an Affiliated Resort.
Condo Hotels- Condo hotels offer a portion of their hotel room inventory for sale to the public. The owner may use it for vacation or corporate housing needs, or place in a rental program typically managed by the hotel. Owners then receive proceeds from the rentals. Buyers enjoy the benefits of owning real estate in a desirable location coupled with hotel amenities and services. Annual dues also apply.
Deeded Agreements - Agreement to purchase timeshare, which is a lifetime ownership represented by a deed.
Destination Clubs- Members of a destination club are not buying a specific property/real estate, but rather the right to use any of a portfolio of homes owned or operated by the club company. With few exceptions, they offer a non-equity based membership emphasizing a broad selection in vacation home experiences. Most destination clubs also offer members concierge services.
Fixed Time - This is the timeshare ownership system that a resort developer may use to permanently assign the unit and/or Week during each year of your vacation ownership.
Floating Time - This is the timeshare ownership system for resort developers who give ownership flexibility through a variable unit and/or Week assignment during each year of your vacation ownership.
Fractional Ownership/Private Residence Clubs- Fractional ownership buyers typically have a recorded deed and title. Fractional ownership has the benefits of second home ownership, but for a fraction of the cost and without the maintenance responsibilities. Considering the average vacation home buyer uses the property just three to four weeks a year, fractional ownership tends to be commensurate with actual use of a vacation home. Additionally, fractional properties are generally affiliated with high-end hotel companies or high-end boutique operators, where owners have the benefits of personalized services and amenities.
Right-to-Use Agreement - A timeshare owner's right to occupy a unit at a resort for a specified number of years.
Timeshare/Vacation Ownership- Vacation ownership may be purchased through deeded property ownership, right-to-use or a points-based program. Owners purchase a vacation villa for one or more weeks within a fixed or “floating time” system, which allows scheduling each year's vacation during the most convenient week within a specified season. With timeshare, consumers have the opportunity to purchase time at resorts offering a wide range of amenities at different destinations. While many vacation ownership villas have two bedrooms and two baths, floor plans range from studios to three or more bedrooms.
Traditional Second Home Ownership- Viewed as a lucrative financial investment, traditional second home ownership appeals to those seeking a vacation setting to share with family and friends and/or use for business whenever they choose. Owners have full responsibility of maintaining the property, or the owner must hire a management company. Homes purchased in popular tourist regions can generate revenue for the owner because of the willingness of tourists to pay high rental rates.
Vacation Owner - A person (including a corporate participant) that has purchased Vacation Time.
Source: ARDA International Foundation 2006
