LETTER FROM CHAIRMAN

February 2014

Sometimes it can be useful to participate in small discussion groups of timeshare customers. Or maybe, even people who are not interested in timeshare to gain deeper insights on likes, dislikes, interest areas and frustrations. Because the timeshare category is unique as a product offering in terms of how it is perceived, marketed and sold to a customer.

While AIRDA does not interfere with a member’s business process, we have useful guidelines and other self regulatory norms for members in the interest of the customer. We even have a Code of Ethics that our members adhere to, ensuring fair play on many consumer issues.

Here are some helpful tips that should come in useful.

Why customers should ask more questions during a presentation
During a presentation, the timeshare buyer must ensure that all terms and conditions are clearly understood and agreed upon in black and white. On his part, the marketer should disclose all charges involved. 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. The buyer should be aware of any Utility Fee that could be levied by the resort. If the marketer specifies Utility Fees the customer should take time off to review the purchase. It is useful to know, that AIRDA member resorts do not charge any Utility Fee for intra-AIRDA exchanges.

Why customers should study the fine print in a sales contract
My advice to customers is to always look carefully at the fine print before you sign your acceptance of the terms. Verbal offers and assurances should not be considered. The annual service (or maintenance) charges are an integral part of the timeshare business module and always applicable – study this carefully and understand its implications. In case a seller verbally says that that this will not be applicable for the full duration of the membership you should seek a clarification, because it may not be true. Such a situation will not arise if all charges are mentioned clearly in the sales document.

What happens when a customer does not pay his AMC dues for the year
Timeshare customers must be aware that there is, and always will be an annual maintenance charge levied by the resort. This is a legitimate charge and goes towards maintenance and upkeep. The sales document you’re reviewing should define the consequences of defaults in the payment of ASF, fines thereof and the possibility of a revocation of membership. As a buyer you must be aware of the measures taken by the resort on defaults.

AIRDA member resorts do pay a lot of attention to detail and transparency – making sure customers fully understand the financial implications of holding a timeshare membership and what they need to do to keep this membership active. We have heard of cases where some non-member resorts have revoked memberships for minor delays in payment. It is advisable that buyers avoid any dealings with such organizations.

What happens when a resort cancels a membership without preset guidelines
Firstly, the buyer has an equal responsibility to know about the timeshare offering he is buying into. In case the disputed charges are not spelt out in the contract and are made applicable at a later date, the buyer is in his right to take suitable action through a customer grievance cell. On disputes between customers and non-member resorts, AIRDA plays an advisory role through a supportive and amicable process.

At the end of the day a supportive relationship with the customer has long term benefits. Resorts need to be fair, transparent, helpful and understanding. The more aware a customer is of the product, the price and his responsibilities, the more proactive he will be in meeting his commitments.

So the next time you see a customer frown, see if you can turn it upside down.

B. S. Rathor
Chairman, AIRDA