In a traditional timeshare you purchase a week (or sometimes a particular week of the year) in a specific resort. While timeshares are generally considerably less expensive than staying at a comparable hotel, and while you are guaranteed a week in what might otherwise be a difficult area to book in to, there is an obvious trade-off in freedom of choice. Unless you know for a fact that you want to spend the same week in the same place every year, a timeshare can certainly be a mistake. That is why some of the most successful timeshares are in places like tropical resort areas and ski resorts.

Many timeshares offer exchanges through timeshare exchange programs like Intervals International. (II). II allows you to place your week into a pool with a lot of other weeks at other timeshares so that you can trade your week on the beach in the July with someone else's week in Vermont in February. Sounds great, right? Well, there is one catch. In order for you to trade out, someone else has to request a week in the resort you have ownership in. So II isn't going to work well for you unless you have an ownership interest in a popular timeshare.

Disney's Vacation Club (DVC) does it differently. Instead of getting a week (or longer) in a specific resort, you get "vacation points". These points can be traded for stays at a number of places. First, you can stay at any of the 4 DVC properties (Disney's Boardwalk Villas and Old Key West Resort at Walt Disney World, Disney's Vero Beach Resort or Disney's Hilton Head Resort). Next, you can use your points to stay at most of Disney's resort hotels at Walt Disney World, Disneyland or Disneyland Paris (although the exchange rate is much more attractive at the DVC resorts). You can also exchange for several other high-end resorts like the Plaza in New York or Shutters in Santa Monica. There are also "adventure excursions" like white water rafting. Or you can choose a cruise on Holland America or the Disney Cruise line.

You can also exchange your points for a week at another property through Intervals International. You will remember the caveat I pointed out about II, but 3 things make it work well for DVC. 1) you don't own a specific week, so you don't have to worry about that, 2) DVCs excellent Member Services department takes care of the details and 3) DVC properties are among the most in demand, with II waiting lists common. You still have to deal with the fact that someone at the timeshare you are requesting has to give up their week, but your odds are much better.

So, you may ask, how much is a "vacation point" worth? Hard to say, but in 1999 dollars I use a guideline amount of $10 per point per year. This guideline helps me to decide whether trading points for staying at a specific hotel for a specific night is worth it. For instance, if we're staying in a room that would cost $200 per night if we paid cash but is only 15 points, that's a good deal. But if it's 40 points, we might reconsider.