How Timeshares Have Changed Throughout History

Timeshares have existed in some form now for many years. Modern timeshares do share many of the same basic characteristics as their original versions. However, they also have evolved substantially throughout their history.

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Timeshares are becoming an increasingly popular way to vacation, available both in the United States and in hundreds of countries overseas from thousands of different companies. The basic concept behind a timeshare is that you, along with a group of other people, invest in a property; in exchange, you gain access to it for certain time periods during the year, alternating use with the other investors. Most timeshares simply operate on a right to use principle. In some ways, timeshares have remained remarkably similar to their original form; in others, however, they have changed and developed significantly.

The earliest timeshares — although they were not then actually called timeshares — were created in the 1960s in Europe by Hapimag, a Swiss real estate developer, and the Société des Grands Travaux de Marseille, a French real estate company. The concept eventually spread to Italy and Spain and then on to the United States. In 1969, Hawaii became the first state to introduce timeshares; a few years later, the concept spread to Florida. The term “timeshare” was introduced in 1973 by a group of American developers. By the 1990’s, timeshares could be found all over the world, including in nations in Eastern Europe, Asia and the Caribbean.

Most timeshare require a minimum time agreement — in that respect most have not changed. What has changed, however, is the length of this time period and the flexibility involved in timeshare ownership. In timeshare’s early days, most required 40 year agreements for one location, and allowed for one to three weeks of use out of the year. Today, however, you can rent a time share from an owner for one week, or purchase one of your own for an average of 25 years. In addition, depending on which company you use, you can transfer the timeshare you use to various resorts — an appealing option for many buyers who do not want to be limited to one resort for the duration of their contract.

Of course, not all development in the timeshare industry has been positive. The industry’s rising popularity has made it an attractive target for scammers. In fact, companies can be found that simply pose as legitimate timeshare providers while actually providing nothing of value in an attempt to defraud potential customers. The Better Business Bureau has reported that offering non-existent incentives to potential buyers and offering non-existent buyers to current owners are two of the most common scams.

Despite these growing pains, there is still a major market for the industry. The number of resorts worldwide has grown to over 5,000 and includes major trusted brands such as Hilton, Ritz-Carlton and Sheraton. The timeshare industry has grown particularly large in the United States; Americans account for up to 45 percent of all timeshare owners internationally, and American resorts number almost 1,500. If the last 50 years have been any indication, the growth of the timeshare industry over the next 50 years will be staggering.