What is Timeshare Exchange?

Whether you're using internal timeshare exchange or external timeshare exchange, the process and the steps are similar.

If you have a week, fixed or floating, you deposit it with your vacation club or timeshare exchange company of choice. You then are able to reserve a week at a similar quality or lesser quality resort through this timeshare trade.

Timeshare vacation exchange with points is slightly different, because you can utilize your points like currency to book your vacation internally or externally. The more points you own, the more flexibility you have as to where you go and what size unit you can book. Some exchange companies require you to deposit your points first before reserving so that they can be converted to the correct exchange point ratio.

Internal exchange happens within your ownership brand or vacation club. Exchange can be free, or there can be a nominal fee depending on the club or the type of exchange you want to make.

Some of the most notable vacation ownership brands that feature internal exchange opportunities include:

• Marriott Vacation Club
• Club Wyndham
• Hilton Grand Vacations Club
• Diamond Resorts

While internal exchange can be more limited (you can only choose from the resort portfolio at the brand you own), you can rest assured that you will be getting the same quality standards you are used to at your home resort.

External timeshare exchange happens with the assistance of external exchange companies such as RCI and Interval International. To be able to externally exchange your timeshare, you must own at a resort affiliated with an external exchange company. If you do, you pay an annual membership fee to reap the benefits of the company's exchange offerings.

With external exchange, the world is your oyster. External exchange companies feature thousands of resorts in destinations all over the world, giving you virtually endless travel and vacation opportunities to choose from.

This exchange process is considered "external" because an outside company is involved with handling the exchange. These companies do not manage or own resorts, but rather affiliate themselves with the top-rated vacation ownership properties of their choice.