Business advice: Timeshare scams are just flushing away your money
Investment, vacation lodging or fraud? You be the judge.
Perhaps you’ve heard of timeshare properties, or had the unfortunate opportunity to sit through a high-pressure sales presentation offering one of them.
On a scale of scams, from small level grifting to megamillion fraudulent operations, they rank pretty high. At least, that’s my view after attending a Florida meeting conducted by a well-known hotel and hospitality company that I won’t name here.
I was walking in a tourist-friendly area of Destin, Florida, when I encountered a crew of salespeople pitching a “vacation club.” Pay $70 and you’ll get a week’s worth of lodging, plus a separate bonus weekend at an affiliated property. Plus a free $100 gift card for a local restaurant.
The only catch? Sit through a meeting that lasts 90 minutes. How bad could it be?
Caveat emptor. If it sounds too good to be true, it probably is? (Photo by John Naughton.)
You may be aware of the premise of timeshare properties. You pay a fee to purchase the rights to stay at a vacation destination, plus assorted maintenance costs, whether you use the timeshare or not.
“Hmm, John… I like (insert exotic location), and I could see myself visiting every year for a week. What’s wrong with that?”
Oh, my. Let me tell you.
In my opinion, the entire industry is based on a scam. I base this on my experience of attending a meeting, of my family’s loss of more than $100,000 of what was pitched as an “investment” and of my reporting skills.
The salespeople I encountered seemed so friendly. They wouldn’t lie to me, would they?
I was wary. My mother and stepfather had purchased a timeshare condominium in Hawaii. Then they went back and bought another. The total investment was approximately $100,000.
But they encountered problems. First, they were elderly and couldn’t use the properties. Annual fees added hundreds of dollars to the bill.
And guess what? The resale value was only a few thousand dollars. After my folks passed, our family simply turned them over to the scammers that had been so eager to take their money.
Have you ever taken $100,000 and flushed it down the toilet?
Back to my experience in Destin. I asked the eager salespeople if this was a timeshare. He assured me it was not.
When I promptly visited the vacation resorts folks the next day for a meeting, one of the first things the gentleman said was…
“Now, this is a timeshare…”
Excuse me?
My career experience as a journalist helped me navigate this slimy situation. After you’ve spent decades listening to the b.s. of coaches, administrators and the occasional attorney, how am I going to get strong-armed into making a commitment to what I consider fraud?
Oh, but they tried… The initial salesperson I spoke with wasn’t present at the sales meeting. It was a man whose job it is to get you to sign on the dotted line. He played the nice guy, trying to get sympathy because his wife died. He bragged about how good of an investment timeshares are, and how they’re so much better than staying in hotels. A tour of the building — a very nice, luxurious tower on the beach — was impressive.
When asked, “Do you have one of these units?” The answer was no. Thought balloon: If it’s such a great deal, why don’t you have one?
As he encountered my resistance, Mr. Nice Guy became Not So Mr. Nice Guy. His tone changed and he was rude, bitter, resentful.
A second guy took over. And he wasn’t playing around. This was good cop, bad cop.
He assured me that I was making a terrible mistake by not agreeing to put money down. He treated me like I was an absolute fool for deciding that my current preferred way of vacation lodging (hotels, private rentals like Airbnb, staying with friends and family) was for morons.
It didn’t work.
I got a voucher for a week’s travel (who knows if I’ll use it or not), the weekend travel voucher (which, in the fine print, required another 90-minute sales pitch) and the restaurant gift card… the best part of the deal.
A few weeks later, I visited my sister and brother-in-law, who happens to be a realtor. He said that he attended a class about how to sell timeshares and said the people who do it are taught to, in essence, commit unethical behavior.
That’s the sales model!
My advice to you is this. Buy your own dinner, continue vacationing the way you want and walk away from the sales pitches.
As for me? You can find me at a hotel, Airbnb, campground or staying with friends or family… and I’ll avoid flushing any money down the toilet, if you please.
A note to readers: John Naughton’s Substack Column, “My Life, In Color,” will be moving from weekends to midweek coming up. Most of his columns focus on sports, travel, dining, history and music.
Thanks, John. We sat through a presentation like this a very long time ago. Thank God it is not hard for Larry Zimpleman to say "NO!". We didn't even get the dinner voucher!
Glad you didn't fold. Sorry your folks got scammed.