Showing posts with label timeshare industry. Show all posts
Showing posts with label timeshare industry. Show all posts

Concept of Shared Accommodations Not New - Timeshare Started it All

8/23/2016 Unknown
Kauai Kailani, the U.S.'s first timeshare.
With all the attention given to home sharing services such as Airbnb, HomeAway, and others, one would think they had originated the concept of the sharing economy. The truth is timeshare started it all. 

Timesharing began in the mid-sixties in Europe with a French ski resort.  It offered the new concept of selling units for vacationing and used the slogan, "No need to rent the room; buy the hotel, it's cheaper." The first timeshare in the U.S., Kauai Kailani, began selling units in 1969. As timeshare grew in popularity, the concept of timeshare exchange was added. In 1974, RCI led the way by helping owners trade their week at their resort for a week at another resort. In the early 2000's, online timeshare rental companies such as RedWeek (now the largest online site), provided another benefit to owners, a safe and easy way to rent their timeshare. Timeshare revolutionized vacationing by giving vacationers more flexibility and control over the way they vacationed.

Sharing Services Risky Business?

Though companies like Airbnb and Homeaway have many fans, there has been criticism about these companies. The risk of booking through peer-to-peer listings, the lack of regulation and guarantees on what the host is like, or whether the properties meet safety requirements are a few of the issues. 

Recently, San Francisco's Board of Supervisors hit the home-sharing industry with a new bill requiring home-sharing services to remove listing for units that are not registered with the city's Office of Short-Term Rentals. The bill allows the city to fine sharing services not registered with the city, up to $1000 per listing. A study from financial services firm, Canaccord Genuity, says other cities are likely to follow San Francisco’s example resulting in a significant reduction of listings for these companies.

Timeshare Offers More

Though timeshare and sharing services both share some of the same concepts such as a variety and diversity of destinations and residence types, there are advantages that only timeshare offers. A big one is knowing what you are getting - the consistency of brand product, brand experience, and level of service that well-known timeshare companies such as Westin, Hilton and Marriott can be counted on to deliver. 

Timeshare resorts are owned and run by professionals, they have strict standards for accommodations and traveler experiences. They follow safety regulations and tax laws. Home sharing services may not even be aware of these practices and many sharers have no experience in the hospitality industry.

Another advantage of timesharing is the family orientation. Children who have grown up with a positive relationship of timeshare often carry on the legacy. 

Potential Distribution Channel for Timeshare Industry

One professional who sees a positive alignment of timeshare and sharing economy alternatives is ARDA President and CEO, Howard Nusbaum. He sees them as potential distribution channels when listings comply with timeshare standards. 

In a recent article in Hotel Management, he was quoted, "Homeaway and Expedia are members of ARDA. We have a program through VacayStay Connect where timeshare resorts can list their product on those sites and harmonize it with them, and I think we offer a better environment because you're not seeing somebody's family pictures, you don't feel like you're invading somebody's privacy, you don't have to worry about cleanliness, or health, or safety, and you still get that condo environment."


For more information, please visit www.hotelmanagement.net. 

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Timeshare Big Contributor to the U.S. Economy

8/17/2016 Unknown
Owners and industry professionals are aware of timeshare's benefits to the consumers, but timeshare also has a huge impact on both local and national economy. The recently released report, 2016 Economic Impact of the Timeshare Industry on the U.S. Economy, from ARDA International Foundation's (AIF), provides impressive figures on the actual size of timeshare's impact.

"It is not just the vacationers that benefit from the timeshare industry," said Howard Nusbaum, president and CEO of ARDA, in a recent press release. "This industry has a huge impact on local economies through jobs, spending by vacationers, and taxes."

Highlights

The report, conducted by Ernst & Young, illustrates that timeshare's influence on the U.S. economy goes far beyond timeshare resorts. It includes the sales and marketing offices, corporate operations, construction of new resorts and renovation of existing resorts. It has significant effects on vacationers’ expenditures during timeshare stays. Here are a few of the highlights of the report.
  • Economic Output
79.5 billion in consumer and business spending
16% increase over 2013
  • Employment 
511,782 full and part-time jobs
8% increase over 2013
  • Labor Income
$28.1 billion in salaries and wages
19% increase over 2013
  • Consumer Spending
$10 billion total spending by timeshare vacationers
$3.4 billion onsite, $6.6 billion off-site

Everyone in the timeshare industry has real reason to feel proud of these achievements. Not only does the industry provide millions of people a perfect vacation year after year, and many private sector benefits, it also provides substantial tax contributions that are a source of revenue for federal, state and local governments - $10.2 billion in 2015, a 21% increase over 2013.


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Youth and Diversity Top Influencers

7/27/2016 Unknown
It seems that for most industries, reaching youth and diversity demographics are at the top of their marketing efforts, and many think that millennials are the most important demographic influencers to reach. Even politicians consider it a primary concern - Ivanka Trump, a millennial woman herself, introduced her father at the convention last week.  Early in her speech, she emphasized that as a millennial, she doesn't follow the status quo, but votes her conscience.

Companies are eager to understand the traits of and quirks of millennials. Taco Bell recently incorporated a company feature at its headquarters called, "Millennial Word of the Week". The words are curated by a group of employees in their twenties. The purpose - to keep its employees up on the lingo of Millennials to better communicate with their young customers. 

Timeshare Reflects the Trend

Timeshare is no exception to the trend. Our industry is also reflecting a different age and diversity. The profile of the new owner has changed. Information from ARDA International Foundation's (AIF) newly released Shared Vacation Ownership Study shows that new owners are younger, have higher-incomes than current owners, and are more culturally diverse. Howard Nusbaum, president and CEO of ARDA, attributes the increase in timeshare sales (another positive in the study) to the new owners, "While existing owners continue to enjoy the lifestyle and purchase more timeshare, it's the new owners that are responsible for the majority of qualified sales".

What's changed?

  • Age: New owners are nearly 10 years younger than typical timeshare owners. Millennials actually give way to Gen X'ers here. Millennials, with a median age of 39 years, represent 30% of new owners. Gen X'ers represent 39% of new owners.
  • Ethnicity: Forty-two percent of new owners are African American or Hispanic. 
  • Education: New owners are highly educated. Seventy-two percent are college graduates and 23% of those have graduate degrees.
  • Income: The new owner has a median household income of $94,800 and disposable income to spare. Forty-seven percent made just a single payment to cover their purchase. Fifty-seven percent spent $10,000 or more on their timeshare.
  • Value: New owners are savvy consumers. They value long-term vacation savings and flexibility in timeshare. Thirty-six percent purchased timeshare to save on vacations and 31% bought for the flexibility timeshare offers. Seventy-five percent had some form of interaction with a timeshare resort before purchasing including staying as a guest at the resort where they bought or rented first. Before making a decision 35% attended multiple sales presentations.


Find more information at www.arda.org/foundation.

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State of the Industry: 6th Year of Growth!

7/20/2016 Unknown
The 2015 numbers are in and we are pleased to announce another great year of substantial growth in our industry! Here are some highlights from the 2016 State of the Timeshare Industry Study conducted by Ernst and Young for ARDA International Foundation (AIF).

Sales Volume $8.6 Billion

Sales volume rose by nine percent in 2015 from $7.9 billion in 2014 to $8.6 billion in 2015. That’s the second largest increase percentage-wise since the recession!

Timeshare Resorts in U.S. at High of 1,547

In 2015 there were 1,547 timeshare resorts in the U.S. representing about 200,720 units. The average resort size was 130 units. Occupancy rates were up to nearly 80 percent, a two percent increase.  In comparison, the hotel occupancy rate was only 66 percent. Vacationers are loving their timeshares!

Average Sales Price for Timeshare at $22,240

That's a nine percent increase over 2014. Howard Nusbaum, President and CEO of ARDA was thrilled with our industry's performance in 2015 and said in a recent press release, "Timeshare offers a flexible vacation experience anywhere in the world. And with over 70% of the properties being two or more bedrooms, families are enjoying the space for everyone to actually relax and the privacy for individual or group time while on vacation."

Interesting Facts Quiz

Here’s a quiz to test your knowledge of the industry and see if you know the answers to some of the other interesting findings from the study. Don’t look at the answers before you choose!
  1. What is the most common type of resort? 
  2. Which resort has the highest occupancy?
  3. What state has the most resorts?
  4. What state has both the highest average occupancy and highest maintenance fees?
  5. What region has the lowest average maintenance fees?
  6. What state has the largest resorts?

Answers to Quiz

  1. Beach Resorts
  2. Theme Park Resorts
  3. Florida
  4. Hawaii
  5. Northeast ($690 per interval)
  6. Nevada (230 units on average)

For even more information, see ARDA's State of the Industry infographic at www.arda.org/foundation.

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A Look at the Big Picture - Sale of Diamond Resorts

7/13/2016 Unknown
Mergers and acquisitions continue in the timeshare industry, and the most recent involves Diamond Resorts International Incorporated. On June 29th, private equity firm Apollo Global Management announced a $2.2 billion agreement to acquire Diamond and its network of 420 properties in 35 countries.  

Win-Win for Both Companies

The deal appears to be a win-win for both Apollo and Diamond. Following the announcement, Apollo’s stock rose 23.7% to $29.79. Apollo has been on an acquisition spree this year of more than $1 billion, buying among other entities, the grocer Fresh Market, Incorporated. Apollo's hospitality interests currently include a large amount of stock in Caesar's Entertainment Corporation and Norwegian Cruise Line. Last year, Apollo sold its Great Wolf Resorts to Centerbridge Partners LP.

The all-cash agreement valued Diamond at $30.25 per share, a 26% premium over its Tuesday closing price. It's a strong testament to the business acumen of Stephen Cloobeck, Diamond's founder and chairman, who owns about a quarter of the company's stock. His shares rose by $60 million after the announcement. Cloobeck created Diamond in 2007 and is credited with coming up with Diamond's unique points-based system which allows customers to buy points to use in several select vacation destinations. Under his direction, Diamond’s annual revenue rose from $371 million in 2010 to $954 million in 2015.  Said Apollo partner David Palmer:

 "The management team and Diamond's more than 8,000 team members have built an amazing customer-centric business with a great reputation that delivers award-winning hospitality experiences at great value."

Even More Deals

The Diamond/Apollo deal follows this year's industry trend of mergers and acquisitions beginning with the merger of Starwood with Marriott. Starwood sold Vistana Signature Experiences, its timeshare business, to timeshare and exchange business Interval Leisure Group for $1.5 billion.  Diamond acquired Intrawest Resort Club Group for $85 million. Just last Wednesday, Hilton Worldwide Holdings Incorporated announced that it filed with the U.S. Securities and Exchange Commission to spin off its timeshare business, Hilton Grand Vacations, into a publically-traded company. 

Is the Industry Changing?

ARDA's "2015 edition of the State of the U.S. Vacation Timeshare Industry" may have some of the answers to that question. The report gives proof that the industry is thriving. Sales volume increased almost 25% since 2010 with an average annual growth of 6%. ARDA's results for 2015 are expected soon, and President and CEO Howard says the year 2014 shows the fifth consecutive year of sales increases in the industry. Reported sales grew by 4% to $7.9 billion in total sales in North America. 

Strong Growth Motivates

The healthy growth seems to be motivating big players such as Marriott Vacation Club, Breckenridge Grand Vacations and Welk Resorts to add new properties, and to bring new entrants into the market such as U.S. based Tropicana Entertainment. According to an article in Hotel Interactive, "Transformative Timeshare Market", other influences on market growth could include the move into different markets such as the urban market, new and different travel opportunities such as experiential travel, the changing demographics of the timeshare buyer and the willingness of companies to cater to their needs. Whatever the reason for the current state of the industry, it's all good right now! 

For more information:
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Britain Leaves the European Union - How Will it Affect the Timeshare Industry?

6/29/2016 Unknown
On June 24th, major banks took a pounding and stocks plummeted when the Brexit referendum passed. Brits voted 51.9% to leave the EU and 48.1% to stay. Naturally, our thoughts turned to how it would affect timeshare and travel. 

The Good News

The good news is that in the short-term the drop in the pound precipitated by Brexit will benefit American tourists. Americans can expect huge price breaks in the UK - England, Scotland, Wales and Northern Ireland this summer. That's according to a Detroit Free Press article that said, "normally Americans pay $1.50 per British pound, but after Brexit, the cost was $1.37 per pound, a 30-year low". British tourism data reports Americans make up 9% of all tourists visiting Britain and spend the most—= - 3 billion pounds in 2015. And it doesn’t stop there - the euro also fell after the vote. It now costs $1.10 to buy one euro. Most of Europe is now a good deal for Americans.

After the vote on June 24th, the World Travel & Tourism Council (WTTC) issued this statement, "Travel to, from and within the EU and UK will not be affected in the short-term. The Lisbon Treaty allows a two year period of negotiation once the UK formally states its intention to leave the EU and this period could be extended by an agreement of all parties. During this period the legislation around Travel & Tourism will remain the same."

David Scowsill, President & CEO of WTTC, said, "We are entering a period of market uncertainty which will undoubtedly put pressure on Travel & Tourism businesses, however we know that our sector is resilient and we expect business and leisure travel to hold up in the face of these challenges."

Affect on Timeshare

As of now, it doesn't look like Brexit will directly affect the timeshare industry in the U.S. The UK, however, is a different story. An April blog post from Worldwide Timeshare Hypermarket®, a leading European timeshare resale company, outlined several ways the referendum could affect timeshare owners and travelers. It may have unexpected implications on timeshares UK citizens pay for in other EU countries. The currency fluctuations could also impact UK timeshare owners' annual management fees, the UK's free health care options for travelers and EU passenger rights and airfares.  

EU Timeshare Directive 


The WorldWide Timeshare Hypermarket® blog speculated that "the inconsistences between the UK and the EU on timeshare regulations may provide disincentives for UK consumers to purchase timeshare resorts outside of the UK". Before Brexit, "consumers were protected by the EU timeshare directive which benefits UK citizens considering purchasing timeshare in the EU as well as organizations owning, managing or selling timeshare. Now, owners may be exempt from the EU timeshare directive and at risk of losing protection, unless the Prime Minister secures assurances from the EU for UK timeshare owners." As you know, here in the US each state has a set of laws governing timeshare and they can vary from state to state. We wish the UK the best in this time of change.
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It’s a Win-Win for Members

2/24/2016 Unknown
If you aren't already a member, you might want to consider joining ARDA-WIN Advantage. ARDA-Win Advantage is a women-centric group (though men are welcome too!) that advocates, educates and connects its members by fostering personal and professional growth through a focus on networking, philanthropy, mentoring and diversity/inclusion within the vacation industry. It really is a win-win for the members of the group. Through connecting with other industry professionals members reap many benefits:
  • A mentor program that benefits both the mentor and mentee
  • Real-world knowledge of industry basics
  • Knowledge of new developments and the latest industry trends
  • Access to the industry’s library of educational and professional development tools
  • Networking opportunities
  • Access to business training
  • The support and fostering of diversity and inclusion in the vacation ownership industry
  • ARDA-WIN Advantage World Scholarship

Win-win for Philanthropies Too!

ARDA-WIN is also a win-win for the philanthropies it supports in order to help improve the lives of women through education, health and other initiatives. The ARDA-WIN Advantage Social Responsibility Group has awarded thousands of dollars in charitable grants to such recipients as Christel House, Deliver the Dream, Dress for Success, Easter Seals Camp Challenge, Send Me on Vacation and more.


Win Wednesdays


An important aspect of the WIN’s networking component is WIN Wednesdays. Gatherings are held the fourth Wednesday of every month in different areas.  Local members and visiting members can stop by and connect with other colleagues working in the industry and enjoy food, fun and camaraderie. Interested in becoming a WIN member? Stop by a meeting and introduce yourself. For a list of upcoming meetings check the site at www.arda.org/win/wednesday.aspx

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A Look Back at Timeshare 2015

12/30/2015 Unknown
The SVO-Interval merger was one of 2015's top
timeshare stories!
It's that time of year when we look back on all that has happened in timeshare. Thankfully, most of the news has been positive with good growth in the industry. Timeshare continues to evolve to meet the demands of technology and travel trends. We've worked hard to keep and gain owner/member loyalty through employee engagement, and we've done studies to guide us in all areas from sales to service. Here are five 2015 events meaningful to our industry: 


1. Mergers, Acquisitions, Spin Offs

Many of the top timeshare companies have been involved in consolidating this year, but Starwood surprised us with both a spin off and a merger. Starwood announced in June that they would spin off Starwood Vacation Ownership (SVO) and its 22 timeshare resorts into a stand-alone public company. The big spin off was official on October 28 when SVO was acquired by Interval Leisure Group. Five transferring properties were part of the transaction including Westins in Los Cabos, Cancun and Puerto Vallarta and Sheratons in Kauai and Steamboat Springs. 

Starwood continued to surprise us when in November, after rumors of a merger with Hyatt and possible bids from Chinese companies, they announced they were merging with Marriott. The $12.2 billion Marriott Starwood merger creates the world’s largest hotel company. 


2. Exciting New Technology for the Hospitality Industry

New technologies are being tested and many are already in operation in the hospitality industry. Innovators using "Living Labs", high-tech rooms that act as incubators for tech entrepreneurs to study future hospitality technology, are already changing the way we experience travel. Check-in made easy with your phone app or Apple watch, facial recognition software instead of a key card, wireless charging, ultra-high definition TVs, and more are just some of the ways technology is changing our lives.  The innovations may be driven by the tech-savvy millennials, but everyone benefits as customers of all ages look for ways to save time, increase comfort and experience new and exciting ways to vacation.


3. Developing Customer Loyalty

Making and keeping owners and members was top on everyone's list in 2015. According to a Gallop Study there is a strong correlation between highly engaged employees and customer loyalty. "Employees who are passionate about their job, often go above and beyond their responsibilities for the greater good of the company" said Karen Case, Vice President of Human Resources at Wyndham Vacation Ownership, a speaker at this year's ARDA Southeast Regional Meeting. Case also specified that employee engagement starts with leaders that are engaged. Engaged leadership = engaged employees = engaged owners and members.


4. Study Shows Vacation Ownership Leads

Studies done by industry leaders abound, but this year's first-of-its kind study on behalf of the National Timeshare Owners Association (NTOA) is unique. NOTA enlisted Intuition Brand Marketing to track, analyze and segment 500,000 online social conversations about timeshare, vacation ownership, and travel clubs. The use of SPSS predictive analytics software for statistical analysis of the relevant findings of the study, helped NTOA to make the following predictions for the future growth of the industry:

Key factors driving industry growth in global vacation ownership

  • Rising number of high net worth individuals and employed population
  • Demand for leisure and recreation
  • Increasing internet penetration
  • Improving global economic conditions
  • Increasing international tourism in the US

Noteworthy trends/developments in the industry

  • Enhanced buyer’s protection
  • Shifting profitability from hotel stays to timeshare buying
  • Growing popularity of eco-friendly timeshare resorts
  • Fast-paced recovery of respective industry in developed markets after recession

5. Travel Trends

American spending and buying is undergoing a profound change according to recent studies of consumerism in the U.S. Where a person travels is no longer a reflection of status, but a reflection of the person's values.  Travelers look for ways to connect with people and cultures, and often hope to make a contribution to society while traveling.
  • Multigenerational travel: Multigenerational travel is booming. Americans look at family travel as a way to strengthen the connection with those they care for, as well as an opportunity to celebrate and remember life’s special events. Timeshare is perfectly set-up for multigenerational travel as resorts typically have accommodations, facilities and activities set up to encourage the family connection.
  • Authentic travel: Authentic or experiential travel are terms currently used to describe an emerging trend in travel. Travelers want to get in touch with the local experience. They want a unique and authentic interaction with the people and culture that often includes volunteer or philanthropic visits.

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Around the World with Timeshare

12/09/2015 Unknown
The newly renovated Ramada Resort Golden Beach
Just as the timeshare industry in the U.S has experienced steady growth in the past few years, so has the timeshare industry around the world. Many U.S timeshares have locations in other countries, and exchange companies and vacation clubs offer opportunities to trade for vacation time in destinations around the world. Values-driven travel, adventure and experiential travel encourage travelers to look for ways to connect with all people and cultures.  Fasten your seat belts and join us for a tour of some news from the world of timeshare.

First Stop India

India's timeshare industry, much like what's happening in the U.S., has been urged to concentrate on meeting customers' needs. The All India Resort Association (AIRDA) India's equivalent to ARDA, is encouraging its members to put greater attention on the needs of its customers and their interests.  Says AIRDA's Executive Committee chairman and principal advisor, B.S. Rathor, "Understanding a customer’s wish list helps us to match their needs with the kind of timeshare experience we have to offer.  By studying emerging trends, changing influences and newer outcomes in the vacation landscape, we can help our member resorts market timesharing offerings in a meaningful and relevant way." Sound familiar?

Ramada Responds to Australian growth

One of Queensland’s most popular vacation ownership resorts, WorldMark Golden Beach Resort has been renovated and rebranded as Ramada Resort Golden Beach. Strategically located along Queensland’s Sunshine Coast, the 130-room resort recently experienced a $1.5 million renovation. It will now operate as a mixed-use property serving WorldMark South Pacific Club by Wyndham vacation owners, as well as regular hotel guests.

Southern Sun Resorts Keep Up with Technology

Southern Sun Resorts, a division of Tsogo Sun, just completed a successful installation of cloud-based enterprise software at its six upscale resorts located in South Africa's top destinations. The three-year installation by Merlin Software for Vacation Ownership uses one single platform to provide functionality throughout the resort and hotel operation from front desk check-in and property management, to annual levy collection and accounting.

Stiff penalties for Bangkok Timeshare Executives 

Unfortunately, timeshare problems are also found globally. It's 20 years of prison for Bangkok's Blissher Holiday executives, Angsunee Pattananithi, Saengthong Sae Kim, and Unnop Kunsawate. They were convicted of convincing people to invest in their time sharing business, with the promise of free accommodations at leading hotels and resorts for four days each year throughout a 20-year period. Investors were also promised free fitness facilities, medical services and reduced prices for food—all to be arranged by Blissher Holiday. A total of 24,189 people went for the scam, which generated 826.27 million baht for the culprits. If it sounds too good to be true, it generally is.
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Diamond Resorts International, Inc. goes for $85 million deal with Intrawest

12/02/2015 Unknown
Club Intrawest - Palm Desert
Diamond Resorts International, Inc. (DRII) reported last week that they have a definitive agreement to purchase Intrawest Resort Group (IRCG) from Intrawest Resort Holdings, Inc. The $85 million purchase is contingent upon specific closing date adjustments and completion is expected by the first quarter of 2016.

Acquisition Adds Nine North American Resorts

DRII has a network of more than 350 vacation destinations in 34 countries. The nine IRCG resorts included in the acquisition are in North America. In a press release DRII President and CEO David Palmer commented, "Both acquisitions provide us with significant value creation opportunities through synergies, sales innovation and cost savings. We are confident that acquisitions such as these will enhance our financial profile and create long-term shareholder value."

Intrawest Enthusiastic About Agreement

Tom Marano, Chief Executive Officer of Intrawest Resorts, expressed his enthusiasm for the agreement, "With the additional cash from this transaction, we are well positioned to continue driving organic growth at our mountain resorts and adventure businesses, while also pursuing strategic acquisitions and evaluating opportunities to unlock the value of our real estate holdings over time." IRCG, a mountain resort and adventure company, develops, sells interests in, and manages Club Intrawest, a points-based timeshare vacation club.

What Does it Mean for Owners?

CEO Tom Marano said this about the agreement, "We are committed to working closely with Diamond Resorts to execute a seamless transaction and look forward to a long-term relationship that we believe will benefit club owners and our resorts alike." The transaction includes the management contracts with Club Intrawest, the current balance of notes receivable, approximately four acres of undeveloped land, and the current balance of points available for sale.

According to a recent article in Barron's, Diamond Resorts has made seven acquisitions since 2010. In addition to the Gold Key deal in August, Diamond also announced a partnership with Och-Ziff to develop a 144 unit resort in Kona, Hawaii. Diamond will buy the units, manage the property and handle the sale of VOI’s. The project, expected to finish in 2017, could generate $400 million in VOI sales. Diamond’s Gold Key acquisition in August added six resorts in Virginia and North Carolina with 30,000 owners.

Often when a transaction like this one occurs, rumors fly and owners often feel some trepidation. The whole industry is consolidating and on the positive side, that gives consumers more options for exchanging and often a higher trade value. However, timeshare used to be very entrepreneurial, with folks providing unique and individual service. With conglomerations formed by consolidation, that often goes away. There are advantages and economies of scale, but along with it the individuality of resorts evaporates. Intrawest used to be keen on each resort being singular - will this change now?
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Spin-off Puts Starwood at the Top of the Industry

11/04/2015 Unknown
Last Tuesday, October 28, Starwood Vacation Ownership announced that the big spin-off had gone through. Starwood Vacation Ownership will be acquired by Interval Leisure Group (ILG) who also owns exchange subsidiary, Interval International. The transaction was not a total surprise. Starwood Hotels & Resorts, the parent company of the Westin, Sheraton and W Hotel brands, had announced in February 2015, that they would be looking to spin off its vacation-ownership business into a separate company. In a just released letter to owners, the company stated that the spin-off would, "put Starwood at the forefront of the industry, and would offer owners even more choices for unique and memorable vacation experiences."

Starwood offered assurances in a letter to owners that they will continue to be the exclusive provider of vacation ownership for Westin and Sheraton brands, and will still provide all the features and benefits of current ownership. Access to Starwood Preferred Guest® (SPG) program, current guidelines and fees, exchange rules reservation rights and all exchange options will all remain the same.

The letter also stated that five transferring Starwood properties are part of the transaction: The Westin Resort & Spa, Los Cabos; The Westin Cancun Resort & Spa; The Westin Resort & Spa, Puerto Vallarta; Sheraton Kauai Resort; and Sheraton Steamboat Resort. These resorts are anticipated to provide additional inventory for owners over time.

Starwood says ILG is committed to invest in new Westin and Sheraton properties. In 2016, the Westin St. John Resort is scheduled to convert 96 poolside hotel rooms into vacation ownership villas. The Westin Nanea Ocean Villas on Ka’anapali Beach in Maui, is currently under construction and due to open in 2017.

On the same day that Starwood made its spin off announcement, the Wall Street Journal ran an article that stated, "at least three big Chinese companies are competing to win Beijing's approval to bid for Starwood Hotels & Resorts Worldwide Inc. According to people with knowledge of the discussions, it could be the largest-ever Chinese takeover of a U.S. company." The article said that the Chinese government might discourage bidding for Starwood if the price is considered too high. The interest in Starwood is the latest sign of China's global ambitions in the hospitality sector. The report sent Starwood stock soaring.

In related events, around the time the spin off was first announced in February 2015, Starwood Chief Executive Frits van Paasschen, left under pressure. Paasschen failed to move quickly enough to increase the number of hotels in the Starwood system through franchise or management agreements, according to Starwood Chairman Bruce Duncan. In April 2015, Starwood hired investment bank Lazard to help the company explore strategic alternatives such as a sale or merger. Its decision to explore strategic alternatives to create value, sparked speculation of the potential for broader merger activity in the hotel industry. 

The latest news on Thursday, October 29, showed shares of Starwood Hotels and Resorts Worldwide continuing to soar following a report by CNBC that Starwood is in merger talks with Hyatt Hotels and a deal could be a week away. Hyatt management would take control of the combined company if the deal goes through. We can't wait to see what happens next! Whatever the future brings for the company, it looks like big changes are in the works.
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Do You Have Owner Engagement?

10/21/2015 Unknown
The hospitality industry chatter these days is all about maintaining owner, member and guest engagement. An engaged owner/member/guest is a loyal owner/member/guest. How do you know if your owners are engaged with your resort? According to much of the current research, there are a few behavior traits that are representative of highly engaged owners. Some of these traits will be obvious to you when you read them, but you may not have thought about them enough, nor acted upon them as much as you should to maintain engagement. 

Your Owners are Engaged When:

  • They loyally keep coming back to you. They are the owners who visit your resort time after time, who book weeks in advance, and who are always current in their fees.
  • Engaged owners tell their friends and family members, colleagues and new acquaintances about the resort. They use their social media networks to display pictures of their vacation and to broadcast to all about the great time they had at the resort. They bring their friends and family members with them on vacation, and those friends and family often decide to become owners too. Engaged owners may be your best salespeople!
  • Engaged owners give you needed feedback. When you send out newsletters, e-blasts and posts to social media, your engaged owners and guests respond to your questions and requests. They appreciate you telling them about all the good things you are doing for them. In short, they are invested in your brand and are vital contributors to the promotion of your brand. They also may have good suggestions on what you can do to improve and to maintain their loyalty. 

Treat Them Well

Don't ever let the lure of making more new sales ever cause you to forget about your current owners. Be constantly on the look-out for ways to engage with owners. 

Communicate

Communication is key in any relationship. In the timeshare industry it should start at the moment of sale and continue consistently throughout the owner/resort relationship. Use all forms of communication that are available, and match the communication to the type of message you are sending, the person who is receiving the information, and the particular occasion.  

Use social media tweets, Facebook, Snapchat for sending quick resort updates and pictures of special events. Owners need to know about all the good things you are doing for them. E-mail a newsletter with notices of improvements, added activities or special owner events. Don't forget phone calls and personal written notes offering congratulations, expressing sorrow for a loss, or just thanking them for being such a good member of your timeshare community. This type of communication may be just what an owner needs. 

Know Your Owners

Communication can only be effective if you know your owner. Make sure that you and your employees consistently engage with your owners. Taking the time to really know your owners, to know their family, their likes and dislikes, and staying aware of events happening in their lives, enables engagement and fortifies connections that can last for a lifetime. 
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How Important is a Timeshare Management Company?

10/07/2015 Unknown
Sometimes it takes more than a Home Owners Association to manage a timeshare resort. Problems may arise that are not within the expertise and capabilities of the HOA. Board members may have other jobs and responsibilities that preclude their timeshare duties, there may not be enough owners willing or able to take on all the responsibilities of managing a resort.  It may be time for the services of a professional timeshare management company. A timeshare management company can help identify cost savings and revenue-generation opportunities to keep your resort functioning at a high level. 

Advocacy and Compliance 

A timeshare management company can also advocate for owners and help to ensure compliance and protection of the owners' investment. Unexpected contractual disputes can occur such as one recently mentioned in a Conde Nast Traveler article. A couple with a timeshare in Aruba received an unexpected special assessment invoice, in addition to their yearly maintenance fee. Nowhere in their timeshare contract could they find where it said they were obligated to pay. The resort told them that the assessment was industry norm and threatened to take their timeshare away if they didn’t pay. A timeshare management company has the expertise to do the research and help resolve issues like this.

Other Services Provided

A professional timeshare company provides comprehensive services necessary for the successful operation of a resort. They can provide full or partial operational resort services. Here are some of the services timeshare management companies provide:
  • Technical and Legal Assistance
  • Resort Operations
  • Financial Services
  • Transient Rental management and marketing
  • Employee and Owner Services
  • Communications
  • Property Maintenance

What To Consider

There are several considerations to think about when looking for the right timeshare management company. One of the oldest and largest timeshare management companies, Grand Pacific Resorts, shares some universal considerations to ask about when considering a management company:
  • A long-term plan for your resort- The management company should have at least a five-year revenue and reserve fund plan for your resort as significant change takes place over time.
  • A successful rental program- Income from rentals is important for the health of the association. Make sure the company has a successful track record with other resorts and know how they plan to market unused nights.
  • Low employee turnover- Loyal employees provide the best service, reinforce the resort’s value and drive additional rentals and resales. 
  • High owner engagement – The company should regularly communicate with owners.  Attempts to contact and reengage with delinquent owners should be made. Both good and bad feedback should be actively solicited.

In addition, find out if the company does a professional reserve study with timeshare-experienced consultants? Does it offer a robust activities program? Does it take ownership of the resort while welcoming board involvement? And does it offer a complimentary consultation before you sign on the bottom-line. 
Running a timeshare resort is not easy. It requires management that is experienced, knowledgeable in all areas of resort operations, and has your best interests in mind. Do the research and take your time in finding the best management company for your resort.
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Do We Need All Those Conferences?

9/23/2015 Unknown
It seems like every week - sometimes even daily - there is some form of industry conference to attend. With the rise of digital networking, many believed that the need for face to face interaction would diminish. After all, it's much easier to watch a webinar in the comfort of your office, then to deal with the hassle of airport lines and rental cars. And there's all that time and extra work to prepare to leave and to catch up on when you return. But conferences are not diminishing, in fact, the opposite is true - they are big business in all industries and the timeshare industry is no exception.

Statistics from the U.S. Bureau of Labor indicate that conventions and other such events are expected to expand by 44 percent from 2010 to 2020. That’s well beyond the average projected growth of other industries. The timeshare industry is following the convention trend. We've got GNEX, SOIC, Regional ARDAs, Fall ARDAs, Annual ARDA, the Canadian Resort Conference, and the list goes on. 

Are They Worth It?

The Good

  • Networking
Conferences offer networking opportunities. Connections are made that can be good for your business. Even if it isn’t right away, that cocktail you had with a business owner may result in a beneficial future relationship. 
  • You might learn something
Conferences can be a valuable learning tool. People new to the industry can gain valuable knowledge from the seminars and workshops.Veterans can update their skills and keep on top of trends.
  • Exciting and Stimulating
Conferences can be exciting, especially if you are a speaker and you get a lot of attention as you expound your views for all to hear. As a participant, there's usually something to take away from the conference that stimulates.
  • Regional conferences 
Regionals can be especially helpful for those working at resorts who can't get away to attend the bigger conferences.

The Bad
  • Too much of the same thing
With so many conferences, information is often repeated. The same speakers tend to be at all conferences.
  • All about the location
Conference planners are determined to find the most fascinating location for the conference. Sure it's fun, and our industry is all about great locations, but how much actual work is getting done?
  • Lost productivity
Who’s minding your business while you are away? That time away from the business can mean a loss of productivity. First, there’s all the prep work you need to do to get away for the week—you might have to train someone else to do your job or to take over responsibilities, and when you get back, more time is needed to catch up on all that you missed. 
  • Too much hype
There really is a conference industry for those companies that don't want to plan their own. The conference industry is so big that it has its own conference and industry awards. Ever notice how many vendors set up shop at the conferences and post their company names all about? They are sponsoring conferences to sell their products and fortify their connections to members of their distribution chains. Sometimes it seems like this interaction is overshadowing the true purpose of conferences.


We'd like to hear about what you think. Is our industry having too many conferences? Could we spend the time more productively? Comment below with your views!

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