People may go into their timeshare deal fully intending to use it each and every year.
However, if they are unable to, all of that year’s fees go swirling down the drain! Many unpredictable things can occur in a year which may make it impossible or impractical for owners to visit their timeshare. Canceling a hotel won’t cost a lot of money but a timeshare simply remains a forever-lasting financial responsibility.

The main issue at this point is how difficult getting rid of the financial burden of timeshare can be. Many timeshare owners try to cancel their contracts and hand it back to the developer, but generally the developer has no interest in buying it back. This is the case with some members of Diamond Resorts.

The company has increased annual maintenance fees by an incredible 57% over the last three years. They claim the increases are necessary to keep their resorts financially independent. From the company’s point of view it is a very important responsibility of the management company and the resort committees to ensure financial independence and continued resort sustainability.

So, in other words members are paying to keep the resort running in a financially viable manner, but are the facilities actually being maintained to a satisfying standard? Also, is it acceptable to hold members financially responsible for the lack of available funds needed to maintain resort facilities?

Obviously, increasing maintenance fees reduce desirability and that in turn quickly drains financial resources. Meanwhile the value of the timeshare and the resort decreases.

Members also complain about a lack of exchange opportunities. In recent years, timeshare developers have introduced point-based programs designed to offer the timeshare buyer another level of flexibility, but in reality it is wasted money and doesn’t change anything. Diamond Resorts’ members who spent additional money now have a big problem trying to get rid of their points as they are restricted to selling them to other Diamond Resorts members or family and friends. Obviously, leaving their loved ones with rising bills and no way out is not really an option.

It’s unclear whether the management fees are likely to see further increases or will be retained at current levels. It is extremely unlikely that management fees will ever be reduced back to the level of commitment that was agreed with members upon joining, so clients are left feeling constrained and extremely uncertain.

The Diamond Resorts’ members voiced that they would much rather be told what was going on and hear some kind of response to their concerns. At the moment they have no opportunity to challenge what was said by the company chairman.