2. Time
share
Time share is a
marketing concept in
which hotels are
marketed on a
membership basis.
Members can avail
accommodation in the time
share property by paying
the upfront advance for the
stay of a fixed number of
days every year for a
specific number of years.
3. Advantages of Timeshare
provides the
member
immunity from
rising costs and
inflation
Accommodation is
available even after 10
years at the amount paid
today as per the current
value of money
it has a one-time
cost for the
customer
Timeshare has an
emotional connection as it
is a commitment of the
member to his family of
spending quality time with
them every year
Timeshare stay is safer
for a member
compared to
conventional hotels as
only the members are
given a right to
admission.
4. All the guests staying
in timeshare are
properties are known
to the management
and they primarily
constitute family
clientele.
Depending upon
the company
policy members
can gift, sell, and
transfer their
membership to
others.
Advance payment
received by the
company helps
them to repay their
loans.
The timeshare industry
is an employment
generator for the
locals and it helps in
promoting domestic
tourism
Facility of
exchange provides
a large range of
options for
Timeshare
members
5. Disadvantages of Timeshare
The large amount taken as an upfront payment is a major deterrent to potential customers.
Fly –by- night operators have created a negative publicity for the Timeshare industry and create an anxiety in
the mind of the buyer.
Sometimes timeshare companies do not provide quality service which creates negative word of mouth
publicity for the industry.
Timeshare industry has a very high marketing cost which reduces the profit margin of the promoter.
Maintenance cost is high for Timeshare properties.
Timeshare membership is considered expensive by a buyer when he starts calculating the interest component
and other associated costs of his investment.