Timeshare has evolved from a rigid system in which a buyer buys a right to a fixed time period in a dedicated apartment or villa in a resort to the ultimate in flexibility, which is Points.
Points Clubs are established by the Developer, who sells unsold Points to new and existing members. A Management company will be appointed to provide reservation facilities and to look after the resorts that make up the Club. Members contribute each year to the general maintenance costs of running the system and looking after the resorts (like a service charge in an apartment building). Usually, an independent trustee is involved. Rights in physical real estate, as well as other forms of occupation rights, are transferred to the Trustee.
The properties held by the Trustee acts as a form of “guarantee” for the long term security of the Club, even in the unlikely scenario of developer or Manager going out of business. Further, given that the reservation system plays an important part in Points clubs, often the Trustee has access to the latest reservation software via escrow arrangements.
A Wide Range of Benefits
In Points Clubs, members acquire the rights to a set number of points each year, which they can then use in various ways to reserve their holidays in resorts made available by the Club itself. Points may be used or saved (or indeed Points borrowed from future years) all as set out in the rules of the Points Club. Benefits and flexibility are determined by the number of Points a Member owns and in general, the more Points a person holds, the more flexibility that person has.
Some clubs have different ranges of benefits, such as priority booking, saving or borrowing or even access to selected facilities depending on which membership level a member has (usually depending on number of points owned). Points tables are made available to show members what they need to use to travel to certain resorts at different times of the year. Resort quality, apartment size and seasons all work together to determine the number of points required. Popular resorts in high season will need a greater Points holding than the same resort in winter.
Flexibility and Efficiency
The resorts which are available to Points Members may fall into various categories but to summarise, while there is a core of owned resorts, among the other resorts featured in many Points Clubs will be other resorts or activities accessed through flexible short or long term commitments. The nature of Points Club is such that resorts are brought into the portfolio and some move out depending on demands of Members and travel patterns, which naturally can and do change from time to time.
Flexibility and efficiency in how reservations are handled are key ingredients in making a Points Club a successful holiday product where members enjoy their holidays and often buy more Points year after year.
Key Benefits of Points
* Greater flexibility on holiday options
* In some schemes, members may be able to save or borrow their Points from year to year
* Members of a Points Club may buy more points to add to points already owned