OTE Welcomes New EU Directive Putting An End To Discount Travel Club Fraud

The Organisation for Timeshare in Europe (OTE) today welcomed the European Parliament’s adoption of the Directive for the Sale and Marketing of Timeshare and Long Term Holiday Products (holiday clubs). OTE believes it will make genuine timeshare easier to buy and will also put an end to fraudulent discount travel clubs.

The OTE has been working closely with the European Parliament since 1999 to secure the best protection for consumers buying timeshare, and in particular to ensure regulation of holiday clubs and rogue timeshare resale companies. Many consumers have mistaken these holiday clubs for timeshare. In reality these clubs do not own any accommodation or inventory but effectively act as a holiday discount club.

In recent years there has been an increase in complaints from British holidaymakers about holiday clubs and authorities such as the OFT have estimated that they have been causing massive fraud. The new directive imposes upon holiday clubs stringent regulation such as cooling off periods, full disclosure of prices and the actual discounts they will give on accommodation and travel.

With regard to timeshare, the directive will ensure that consumers have the same protection across Europe, wherever they buy timeshare. This protection incorporates many elements of OTE’s Code of Practice, which has been adhered to by OTE members since 1999 (and revised in 2005) but has not been implemented by other operators throughout the European Union. This includes elements such as cooling off periods, full disclosure and the extension of protection to trial timeshare products.

Peter van der Mark, Secretary General of the OTE, said “We are pleased that the European Parliament has recognised the need for codes of conduct, such as OTE’s. Non-OTE members will now have to declare that they do not subscribe to the OTE code nor do they offer a dispute resolution system which all OTE members are required to support.

“With the harmonisation of laws governing the purchase of timeshare throughout Europe, we believe that consumer confidence in the timeshare holiday concept will further increase. The introduction of regulations for discount travel clubs will also help us to differentiate timeshare, which has a high consumer satisfaction level (recent surveys show a record 86% satisfaction level), from these. Timeshare resale fraud will also be prevented through this directive which should make timeshare reselling easier and safer.”

More about OTE:
OTE is the pan-European trade association representing the timeshare industry throughout Europe. It promotes best practice in the industry for the benefit of both consumers and the industry.  All members are bound by a code of ethics that ensures the protection of consumers’ rights.  OTE provides information and advice to consumers and offers a free conciliation service to consumers dealing with its members.

OTE represents the majority of timeshare companies in Europe which are responsible for some 65-70% of all timeshare sales. These include major hospitality groups such as Pestana, De Vere, Hilton, Sol Melia, and large independent timeshare developers, namely the Petchey Leisure Group, Club La Costa, Hapimag and Seasons Holidays.

We are able to comment on timeshare or Discount Travel Club issues that may emerge in the news and have spokespeople ready to answer questions you might have. If you would like to speak to someone at the OTE then please contact Peter van der Mark, Secretary General at 0032 2 533 30 63 or 0032 473 895 897(THESE NUMBERS ARE NOT FOR PUBLIC USE) or email Peter at pvandermark@ote-info.com.

For OTE’s Public Relations Office in the UK, contact:
Jackie Murphy /Will Brewster
Flagship Consulting
020 7 886 8440
Jackie.murphy@flagshipconsulting.co.ukor will.brewster@flagshipconsulting.co.uk