Remember when you were a kid and the ice cream truck would come ring its bell as it came down the street? Everyone ran to the corner, met up with the ice cream man and waited in line to get served. Well, if for some reason by the time you got your turn, he was out of ice cream sandwiches – you were sad – but you understood they were out and you asked for something else. First come, first serve is the standard for business in America.

Now lets take the same scenario as above and imagine that after you were told there were no more ice cream sandwiches (you got the lemon popsicle instead), the kid behind you asked for an ice cream sandwich too…but he was sold one! How did that happen?! What was different?

Well this exact scenario happens with timeshare every single day.

This industry does not work on the honor system of first come, first serve – in fact, no one is equal. People own all different levels: Red season, Gold Crown, 5 Star, 2 bedrooms, low demand locations, etc…this is an unfair system where no one is treated the same. And here’s where it gets worse – you remember that kid behind you at the ice cream truck? Well he was the same “quality” as you – he just had more money.

You see, your exchange company is never working in your best interest. They love having you standing in line because you are going to buy something, but they save the “good ice cream” for the highest bidder. So how does an exchange company find a “higher bidder” if everyone pays the same exchange rate? We’ll answer this in a minute.

The exchange companies got smart a number of years ago and devised terms and conditions which encouraged you to give up your valuable week without getting inventory back immediately. This was called the Space Bank system or the Deposit and Exchange System. How they tricked Joe Consumer into this was a sales Houdini. They created a virtual swap meet where you give them your valuable week, yet you didn’t get anything immediately back. As a matter of fact, the exchange company you are dealing with says “Ok, I’ll take this and maybe – three to five months later I will give you something in exchange.”

Here’s the problem with that: if he doesn’t give you something of equal value or more desirable than the week you gave up – you can’t get your original week back. As a matter of fact, their contract reads that they can give you absolutely ANYTHING in exchange for it and you have to accept it. So right now, all across the world, people are giving up their valuable weeks or points up to the exchange company in hopes that many months later they will have something of equal or greater value at another destination. Unfortunately, this almost never happens.

Remember the question we asked earlier, ‘how does the exchange company find the highest bidder if everyone pays the same exchange fees’? Well, here is how they do it in front of your own eyes, without you even realizing what is happening:

Let’s take the information we just learned and analyze how the exchange companies were able to perfect this art of illusion. As we can all agree, the exchange companies were very smart in devising this “give me yours now and I’ll tell you what you can get for it later” scheme. The perception from your view was “I put in one week and take another one out” – kind of like the honor system.

Instead of this honor system, however, the exchange companies perfected the early deposit system. They essentially told you that if you were having problems getting the locations you wanted, you just were not depositing your week early enough. The exchange companies told you to deposit your home resort up to a year in advance, because “the earlier you give it to us, the better your shot of getting a prime time week!” This never worked out for the majority of owners, and in fact, gave the exchange companies even more leverage to profit from your deposit.

All this new “miracle method” did was give the exchange companies more time to SELL your inventory to a non-owner for MORE MONEY!

The reason why you can’t get your desired exchange week is because the exchange companies mark them up (sometimes $1,000 more than what an exchange fee is) and sell them to the highest bidder…THE TRAVEL CLUBS!

Have you heard about travel clubs? Many of them are in your local metropolitan cities, inviting people into their office or local hotel and telling you why timeshare sucks (they’re right) and why their product is so much better (possibly right). The fact is that many travel clubs out there license and use the Exchange Company Feed to get properties to sell.

What is an Exchange Company Feed? It’s a direct contract, which allows a software terminal to be linked in to the exchange companies deposited inventory database. This allows travel clubs to access all of the deposited and procured inventory for $40-100+ a night. Where do these hundreds of thousands of weeks come from? That’s right, it’s your deposited/space banked weeks that you and everyone else gave to the exchange company.

In other words, owners are giving up their weeks, those weeks are being sold to travel clubs for more money, and the owners are getting nothing in return.

For years exchange companies have encouraged (tricked) owners to give up their valuable home weeks, and for that they get a week back on the exchange. So these exchange corporations, being a company of profit, have this big pool of inventory and a fellow exchange company member can pay roughly $189 for a week or they can sell that inventory for a significant markup to a travel club.

This is usually why you can’t get “where you want” or “when you want”. These exchange companies have found a way to put their own desperate/trapped/paying customers 2nd to the next guy who is willing to pay more. You get the lemon popsicle while the travel clubs get the gourmet ice cream sandwich. This is the main reason why travel clubs have become so successful. They allow their clients to get a week through their travel club (which is really just your weeks deposited and then funneled through your exchange company to the travel club to their client base) for less than what a timeshare costs, without the limited choices a timeshare provides and for THOUSANDS LESS!

If you always loved the timeshare resorts but hated “timesharing”, than look into purchasing travel clubs. Remember, soon you will be done with timeshare payments for good. If you ever want to vacation at a timeshare – it can now be done on your terms, when you want and how you want, and at a much cheaper price. No more being held captive to what the exchange companies want you to have.

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