Let’s face it: Orlando is a popular vacation destination for Bermuda residents, especially now that BermudAir offers a direct 2½-hour flight. Whether it is the theme parks, golf courses, shopping centres, restaurants or simply a change of scenery, many of us return annually.

As I sit here on my last day in Orlando, I am reflecting on several fun-filled days with friends we had not seen in years. We enjoyed great meals, visited the Universal parks, played golf and, above all, laughed so much.

Last night, as our trip was coming to an end, the conversation turned to timeshares and whether they still offer value in today’s market, given the wide range of hotels available throughout the Orlando area.

Therefore, for this week’s topic, I thought I would explore whether timeshares or, as I have seen on more signs than I can count, “vacation clubs”, still offer value.

I think it is safe to say that Orlando is probably the timeshare capital of the world. The sheer volume of resorts along International Drive and throughout Kissimmee gives the region more timeshare inventory than almost anywhere else.

For those unfamiliar with timeshares, here is some background. Unlike a vacation home, a timeshare generally takes one of two forms: a deeded timeshare or a right-to-use timeshare.

A deeded timeshare provides the purchaser with an ownership interest in real property. The owner receives a deed, similar to traditional real estate ownership, which grants the right to use a specific unit or resort for a designated period each year.

Because it is a real property interest, a deeded timeshare may generally be sold, transferred, gifted or inherited, subject to the rules and restrictions of the resort or homeowners’ association. Owners are typically responsible for ongoing maintenance fees and assessments.

A right-to-use timeshare does not convey ownership of real estate. Instead, the purchaser acquires a contractual right to use a vacation property for a specified term, such as 20, 30, or 99 years.

Once the agreement expires, the right to use the property ends and reverts to the resort owner or developer. RTU arrangements are common in jurisdictions where deeded ownership may not be available or practical. While RTU owners enjoy many of the same vacation benefits as deeded owners, they do not hold a real property interest and generally have fewer rights regarding transfer and inheritance.

From my perspective, a distinct advantage of a timeshare is the convenience it offers families who return to Orlando regularly, eliminating much of the stress of booking accommodation each year. Owners generally know where they will be staying and have a clearer understanding of their lodging costs, reducing their exposure to seasonal spikes in hotel rates during peak travel periods such as school holidays and summer vacations.

For families, timeshare accommodations often offer better value than traditional hotel rooms. Larger units commonly include multiple bedrooms, a full kitchen, living space, and laundry facilities, creating a more comfortable environment for longer stays. The ability to prepare meals and snacks can also help reduce overall vacation expenses.

Many Orlando timeshare resorts feature extensive amenities, including multiple swimming pools, lazy rivers, children's programmes, fitness facilities, and transportation to nearby attractions. These features can enhance the overall vacation experience and make the resort itself a destination rather than simply a place to stay.

Ownership can also provide greater flexibility through exchange networks, which may allow owners to trade their Orlando usage for stays in other destinations around the world.

In addition, a timeshare may serve as a hedge against rising accommodation costs. As hotel and vacation rental prices continue to increase, owners who purchased into a points-based or fixed-week system years earlier may benefit from comparatively stable lodging costs over time.

On the other hand, while timeshares can offer convenience and predictable vacation accommodations, they also come with several significant disadvantages that prospective buyers should carefully consider.

One of the most common concerns among owners is the ongoing obligation to pay annual maintenance fees. These fees cover property upkeep, insurance, taxes, and resort operations and generally increase over time.

Importantly, owners remain responsible for these costs whether they use the property or not, meaning the financial commitment continues long after the initial purchase.

Another major disadvantage is the poor resale value associated with most timeshares. Unlike traditional real estate, timeshares are generally not considered investments and often depreciate significantly after purchase.

The resale market is saturated with owners looking to exit their contracts, and many units sell for only a small fraction of their original purchase price.

The sales process often begins with a heavily promoted timeshare presentation offering discounted tickets, gifts or vacation incentives. Although advertised as brief informational sessions, these presentations can be lengthy and are often designed to create a sense of urgency, encouraging consumers to make an immediate purchasing decision.

Flexibility can also be more limited than buyers initially expect. Although many timeshare programmes promote points-based systems and exchange opportunities, securing accommodations during peak travel periods such as Christmas, spring break, or summer holidays can be challenging.

Popular weeks often require reservations far in advance, and availability may be subject to restrictions that are not always fully appreciated at the time of purchase.

Long-term commitment is another important consideration. Many timeshare agreements are perpetual in nature, meaning the obligations may continue indefinitely and, in some cases, pass to an owner's estate.

Circumstances can change substantially over time, including family needs, financial priorities, health concerns, or travel preferences, leaving owners committed to a product that no longer fits their lifestyle.

While a timeshare may provide value for travellers who vacation regularly and fully utilise its benefits, the ongoing costs, limited resale potential and long-term contractual obligations make it essential to conduct a careful evaluation before signing an agreement.

So, who does it work for?

A timeshare makes the most sense for a narrow group: families who visit Orlando every year, who would otherwise spend a similar amount on lodging, and who understand the full cost over ten to 20 years. If you have done the maths on maintenance fees, plus the purchase price against what you would realistically pay for rentals, and the numbers hold up, ownership can be reasonable.

Who does it not work for?

If you vacation in different places each year, value flexibility, or want to build wealth rather than spend on leisure, renting is almost always the better deal. Short-term rentals, hotel points programmes, and booking directly during off-peak periods offer more freedom without the long-term obligation.

At the end of the day, whether you are for or against timeshares, it is worth doing your research to determine whether ownership makes sense for you. Although I always enjoy visiting Orlando for a quick break, I am confident that the timeshare option does not suit my vacation plans.

• Carla Seely is the chief operating officer at Freisenbruch Insurance Services Ltd and has 26 years of experience in international financial services, wealth management, and insurance. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI qualification through the Chartered Institute for Securities and Investments (UK), the Qualified Associate Financial Planner (QAFP) designation through FP Canada, and the Associate in Insurance (AINS) designation through The Institutes. She also completed a Master's Degree in Business and Management through the University of Essex.

• For further inquiries or suggested topics, e-mail: justaskcarla@outlook.com