LETTER FROM CHAIRMAN

April 2014

In these days of increased consumer awareness, the important thing for us to do is underline the assurance that goes with resort owners in the organized sector of timeshare. These are timeshare companies with a commitment to the customer, to the industry and the people employed – directly, or indirectly.

I mentioned ‘organized sector’ in my opening paragraph to illustrate the two ways to look at timeshare in India. There exists an unorganized market with independent players who make their own rules on charges, fees, deliverables and customer experience. And then you have the organized sector, operating within a self-regulated body called the All India Resort Development Association (AIRDA).  It is useful for end customers to evaluate the differences that emerge between the two, well before they sign the contract.

End customers should also spend time educating themselves about the product, features and offerings, as well as know what their responsibilities are to keep the membership alive and valid. On their part, resort owners should be proactive in terms of clearing doubts, ensuring transparency in transaction, billing and incidental charges. We must give each customer the time and opportunity to understand ‘every condition that applies within the contract.’

Here are some points to keep in mind, if you’re exploring the world of timeshare.

• As a first step, it is important that you understand the offer made and your rights as a customer. Make a list of doubts that you want cleared – this will help you ask the right questions at the sales presentation you are invited to.

• The presentation is also the right time to find out about the total cost-of-tenure on your membership with your home resort. On his part, the marketer should disclose all charges involved.

• During a presentation, you as a timeshare buyer must ensure that all terms and conditions are clearly understood and agreed upon in black and white. Verbal assurances and promises are usually grey areas and should not be considered as part of the contract.

• If your resort offers you an exchange platform, please obtain information on locations and actual availability. Reselling timeshare plans that fall short, is not easy - the real resale value of your timeshare could sometimes be well below your expectations.

• The annual service fee varies with the quality of the product, the services and is subject to increase over the years, to cover maintenance and inflationary aspects. If the marketer specifies Utility Fees, the customer should take time off to review the purchase.

• A resort in the AIRDA network will indicate two basic payments in its fee structure. An initial membership fee (with a defined tenure) and an annual service fee; optional costs are linked to exchange company memberships and exchange fees. AIRDA member resorts do not charge any Utility Fee for intra-AIRDA exchanges.

• Does your resort offer you a step-back option? AIRDA resorts give you the convenience of a ten-day cooling period from the date you sign the timeshare contract – during this time you could rescind the contract without any penalty, by giving a logically valid reason. Any associated credit agreement is also de-linked when you rescind a timeshare contract.

• It is useful to get a true picture of the company behind the product and the way it conducts its business. Outside the safety net of AIRDA, it is difficult for the average customer to evaluate good from bad - and harder to gain a redressal in case you want fair play on an issue that is not in your favour.

Coming back to the contract that you will eventually sign, do not put your signature on a document that you don’t understand. Insist that verbal assurances and promises are included in the contract. You have a right to documentary information and a written contract in your own language; key information in the brochure must be included in the contract if the purchase goes ahead.

I have always said that an ‘informed customer’ is someone who signs up for timeshare with his eyes open. This is the safest way to do it. Because there are unscrupulous resort owners who could mislead you on the paperwork, in the microseconds it takes to blink.

B. S. Rathor
Chairman, AIRDA

Click here to see a listing of AIRDA members