Industry Terminology

Here is a list of terms, phrases, and titles commonly used in the industry.

Affiliation Agreement - The agreement between the Holiday Exchange Company 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 holiday or business accommodation needs, or place it in a rental programme 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 fees also apply.

Deeded Agreements - Agreement to purchase timeshare, which is an 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 holiday home experiences. Most destination clubs also offer members concierge services as well.

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 holiday 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 holiday ownership.

Fractional Ownership/Private Residence Clubs - Fractional ownership buyers typically have a deeded agreement. Fractional ownership has the benefits of second home ownership, but for a fraction of the cost and without the maintenance responsibilities. Considering the average holiday home buyer uses the property just three to four weeks a year, fractional ownership tends to be commensurate with actual use of a holiday 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 shared amenities including swimming pools, bars, restaurants, spa facilities.

Mixed Use – Hoteliers affiliating a percentage of hotel rooms or additional accommodation into a timeshare programme.  The accommodation put into timeshare tends to be larger than normal hotel rooms, however.  Benefits to the hotelier include reduced marketing, operational and development costs, as well as increased retail revenues from food and beverage sales and higher occupancy levels in low season.  Hotel guests enjoy the increased on-site amenities typically offered by timeshare operations.

Right-to-Use Agreement - A timeshare owner's right to occupy a unit at a resort for a specified number of years.

Timeshare/Holiday Ownership - Holiday ownership may be purchased through deeded property ownership, right-to-use or a points-based Programme. Owners purchase a holiday villa for one or more weeks within a fixed or “floating time” system, which allows scheduling each year's holiday 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 holiday ownership villas have two bedrooms and two baths, floor plans range from studios to three or more bedrooms.

Second or Holiday Home Ownership - Viewed as a lucrative financial investment, traditional second home ownership appeals to those seeking a holiday 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, and these properties can generate rental revenue for the owner especially if purchased in a popular tourist location. 

Holiday Owner - A person (including a corporate participant) that has purchased a shared ownership product.

Source: ARDA International Foundation 2006