Timeshare Exchange: The Good, the Bad, and the Ugly

Timeshare exchange has been an industry feature for decades, with ever-more opportunities available besides unit bookings. While there’s no doubt that exchanges offer access to a wider range of vacations (some of them spectacular), many owners express frustration, noting that their prime weeks often don’t get them a whole lot in return. Others report thrilling exchanges year after year. So what’s going on? First, let’s cover the basics:

Timeshare Exchange in a Nutshell

There are a number of companies that offer timeshare exchange, but the most prominent by far are Resorts Condominium International (RCI) and Interval International (II). Founded in the 70s, both RCI and Interval offer their members access to exchanges among thousands of resorts worldwide, plus other benefits like exchanges towards cruises, excursions, and spa packages.

To trade your timeshare, you’ll deposit your timeshare week or points to the network of your affiliated exchange company. Your unit will be assigned either points or a TPU – trading power – based on location, seasonality, unit, and other attributes that make it an attractive booking. You can then book a comparable unit within their network.

The “comparable” aspect of exchange has generated…controversy. Many frustrated owners claim that their prime weeks (Hawaii beachfront during spring break, for example) were only exchangeable for lower-quality units at less appealing destinations and/or seasons. RCI was even subject to a class-action lawsuit which claimed it was renting out deposited weeks (instead of making them available for exchange). 

On the other side of the equation are owners who know the system. They regularly exchange their home week or points for a vacation they love, visiting new destinations year after year. These owners get some of the best availability, maximizing their ownership value while enjoying flexibility that puts even the most seasoned travel hacker to shame. Let’s explore how they do it:

Tips of the Trade

When exchanging your timeshare, you’ll want to deposit a listing that’s appealing to travelers. The more in-demand a destination, the higher your TPU. This is an internal system that exchange companies use to determine the value of your exchange. You’ll then be able to search units with comparable TPU to your deposit. Be sure to strategize ahead of booking, however. Online forums are full of cautionary tales from owners who felt compelled to accept that dreaded less-than-comparable trade. Here’s how to secure a prime exchange: 

• Plan (far) in advance: To lock in a high demand booking, you’ll need to make your exchange far in advance – realistically, at least nine months to a year.
• When deciding on an exchange, keep in mind that apples-to-apples exchanges are determined by a destination’s popularity among travelers and not the maintenance cost of your deposit. That aforementioned December in Park City may not be as high-demand as spring break in Hawaii, or (vice versa).
• If you decide to exchange a high-value week for a longer vacation at less in-demand locations, make sure you know what you’re getting. Research the resort and brand. Check the weather for your season. Become an expert on your intended exchange!
• Know your vacation club’s rules for weeks and/or points, along with your timeshare exchange’s rules. Example: If you bought points, you may have to pay extra fees to use an exchange. 
• Don’t settle! RCI offers a deposit calculator for calculating TPU, while Interval provides a request first waitlist (which allows you to deposit your week ONLY if the system is able to match you with an exchange you’ve pre-requested). Providing a range of requested dates and choosing multiple resorts increases your chance of finding that perfect vacay.

Remember, the booking you deposit needs to be traveler-focused, not just a destination you personally enjoy. The more attractive your exchange, the higher TPU and the more destinations available to you in return. 

Keep an Eye on Those Fees

Timeshare exchange can be a great way to maximize your timeshare ownership, but there are financial considerations to exchange. Even if you plan on exchanging your timeshare week, your home resort’s annual maintenance fees are still due. In fact, you’ll need to pay them before you deposit your week with an exchange company.

Additionally, both RCI and Interval require paid memberships to access their networks. An annual membership in RCI starts at $99 for weeks ($124 for points), plus additional upgrades for platinum and gold tiers. Then there’s also an array of fees for exchanges, guest certificates, or extensions on your deposit. Each of these fees can range upwards of several hundred dollars.

When trading your timeshare, remember to plan far in advance, be aware of additional fees, and stay flexible with your sought-after destinations. Minding these details will help keep you on budget and prepped to find a stellar booking as you set your travel plans in motion.