Name Change for Timeshare Organisation
Brussels 25th March – OTE (Organisation for Timeshare in Europe) announced today that it has changed its name to Resort Development Organisation (RDO). The new name is reflective of developments in the vacation ownership industry, which has changed dramatically since the 1960s when timeshare was first sold, giving the consumer a fixed week at one resort. Since then new forms of vacation ownership have emerged giving the consumer more flexibility and choice, such as ‘floating weeks’*, the points system* and, more recently, fractional ownership*, private residence clubs*, destination clubs* and condo hotels*.
RDO’s chairman, Richard McIntosh said: “I believe that RDO truly reflects the extensive range of holiday options now available in the vacation ownership market. By widening the scope of the organisation’s membership, we are representing the industry as a whole rather than just focusing on timeshare.
“Under RDO, the free complaints resolution service and dispute resolution scheme will be opened up to more people. The level of complaints for timeshare is at a very low level and is decreasing year on year, which compares starkly with other holiday options, such as holiday clubs (or discount travel clubs), which are not governed by specific legislation and do not benefit from trade body representation”, concludes McIntosh.
RDO will continue to promote best practice and fair trading in all areas of the industry; to work closely with governments, consumer bodies and relevant NGOs to ensure that legislation is appropriate and fair; to protect consumers via its code of conduct and to help the authorities to combat fraud.
More about RDO
RDO (Resort Development Organisation) is the trade body dedicated to excellence and fair trading in the European vacation ownership industry, whilst promoting and fostering industry growth. As such, it serves its members through public relations, legislative lobbying, research and member and consumer relations management.
Resort Development Organisation, formerly Organisation for Timeshare in Europe AISBL is an international non profit making association registered in Brussels with company number 0457.984.213. Its registered office is at Oak House, Cours St Michel 100/3, 1040 Brussels, Belgium
*Glossary of terms
The vacation ownership industry is made up of:
Timeshare means buying the right to spend a set time period in a holiday property each year for three years or longer, usually paying an annual management fee.
Under this system you own rights to a specific week, usually in a specific apartment/villa.
In the ‘floating system’ you own occupancy rights to a week in an apartment type, within a season. Each year you have to book the specific week that you want, subject to availability.
Points are a form of holiday currency. Owners use their Points to pay for holidays, selecting accommodation that is in the scheme’s accommodation pool.
Fractional ownership gives buyers ownership of, or occupancy rights to, a property normally in perpetuity or in some cases for an agreed period of time, with a fixed or rotating term of residence, eg ⅛ or ¼ share each year. An annual management fee is usually payable.
Many fractional schemes are in fact timeshare but some are share based or a lease may be granted for a percentage of a property. In some fractional schemes, when the property is sold, any profits on sale are shared between the owners.
Private Residence Clubs
Private Residence Clubs are high-end fractionals, enabling the consumer to own a part of a luxury home, often in unique locations and with the added benefit of maid or concierge type services.
Destination Clubs are based around consumers sharing a portfolio of fully-furnished, multi-bedroom residences around the world. Members usually pay an upfront deposit and an annual fee for exclusive access to a multitude of properties which can be a mixture of holiday beach, ski and city residences. This can be an equity or non-equity interest, depending on the scheme.
Condo hotels are typically luxury hotel properties in outstanding locations. Essentially, consumers buy a legal interest in an hotel room giving them personal use of a specific number of weeks. They normally participate in an organised rental programme and share in that rental income.
For RDO’s Public Relations Office in the UK, contact:
Jackie Murphy/Will Brewster
020 7 886 8440
Jackie.email@example.com or firstname.lastname@example.org