Timeshare Information

American Resort Development Association's (ARDA) Fall Conference was held last week at the Fairmont Hotel in Washington, D.C. The conference is a time where (unlike the U.S. Congress!) competition is put aside, and people share ideas and best practices. During the conference, ARDA shared the progress it has made in legislation for the year. Attendees are given up-to-date analysis of the implications of industry, economic and political trends on owners, developers and consumers. Since this is a working meeting, ARDA Committees meet at this time to strategize for the upcoming year about policies affecting the industry.

One of the Busiest Years Ever for ARDA

Thursday's meetings kicked off with Howard Nusbaum, ARDA's President & CEO, moderating a discussion of the new VacationBetter.org site.  In an opening comment he stated, "It has been one of the busiest years ever for us in pushing and strengthening legislation for the benefit of timeshare owners. We have advocated for owners in 14 states this year, all the way from Arkansas to West Virginia, with the thrust of our efforts focused on providing specific guidelines related to resale and transfer company legislation."

VacationBetter.org

ARDA's communications staff, communications committee leadership, PR consultants and web design consultants talked about the VacationBetter.org site's dynamic new look and feel. Participants got a sneak peak at the new site before it goes live. All noted the increased interactivity credibility, and user-friendliness of the site set to launch in January.

Vacation Club Task Force

Suppliers and Design and Construction committees got some special love during the conference. With consolidation of industry, those wishing to forge relationships with developers got some extra "oomph" from their specialized committee groups. Even the Vacation Club Task Force is its own entity, and is drawing up a code of ethics to help protect the vacation experience for owners and the entire vacation industry.  Travel to Go's Tommy Middaugh sits on the task force and is one of the people instrumental in pushing for the standard of ethics for the travel clubs.

Health Care and Immigration Reform

In this year's conference, several influential industry leaders and supporters were keynote speakers. Senator Kelly Ayotte, (R-NH) spoke at the legislative luncheon addressing health care and immigration reform, two issues of great concern to resort developers. (Ayotte has 27 ARDA member properties in her home state.) Ms. Ayotte expressed her opinion that the government shut down was "dumb", and that sequester caps across the board is not good business. Ms. Ayotte believes there will be a funding bill by the end of the year.

In a question and answer session from the audience, an audience member asked if she expected a 3rd party movement. To which Ms. Ayotte responded, "Not one that could win." Her answer was "no" to a question of was there any fear of back channel funding to insurance companies.

Howard Nusbaum, President of ARDA, asked,  "How can we support moderates?" Ms. Ayotte told the audience to get engaged and not just with resources. "Don't just go along to get along. Make choices and support everyone." When Tim Wilson, publisher of Resort Trades, asked if she thought that the country might be moving toward a single party since the Republicans are in disarray. Ms. Ayotte responded that she thought Republicans needed a unifier. "It is time to stop fighting and remember what we have together."

Chairman's League Breakfast

Charlie Cook, who bills himself as the "Political Prognosticator", was the featured speaker at Chairman's League Breakfast on the last day of the convention.  Mr. Cook in actuality is the Editor and Publisher of the Cook Political Report and a columnist for National Journal. Mr. Cook called ARDA, "the most powerful group in Washington you've never heard of."

Find out more about ARDA's Conference at: ARDA.org

This year's Resort Development Organization Conference (RDO2), co-sponsored by RCI, is planned for September 26-28, 2011, and will be taking place for the second time at the Don Carlos Leisure Resort & Spa near Marbella on Spain's Costa del Sol.

"The timeshare industry is at a critical point in its evolution. The industry has never had a better chance to shape the future both timeshare developers and their owners dream of," said Robin Mills, chairman of the RDO communications council.

The RDO was created following the decision by the European Timeshare Federation to integrate all national timeshare trade associations into one pan-European direct membership organization. Today the RDO has over 90 members from all sectors of the industry across Europe.

Speakers at RDO2 will inspire delegates to look outside their current operations to fulfil these emerging consumer needs and interaction is high on the agenda to make sure the conference is both memorable and actionable, Mills noted.

Dave Thackeray reported for the online news source, RCI Ventures, that Mills said the RDO team had listened long and hard to the advice provided to the organization by former British Hospitality Association chief executive Bob Cotton at its founding conference last October, and the RDO has worked tirelessly with its members to make sure RDO2 matches more precisely what the industry needs for the future.

Thackeray also noted that the RDO has been educated by the ways of its peer, the American Resort Development Association (ARDA), in bringing on stage keynote speakers daily to fuel a passion-filled and highly-energized conference. And for the first time, a 'day in the life' session will look at the work of ARDA's president Howard Nusbaum, who recently celebrated 10 years at the Association.

The Resort Development Organization was established to improve representation for reputable companies in the timeshare sector and promote fair trading, quality within and growth of the timeshare industry.

Its members lead the industry in their commitment to strong ethical standards with the aim of raising the standards of the industry as a whole to ensure fair trading and satisfaction of timeshare owners.

In March, 2011, the timeshare industry online publication, Perspective Magazine, posted an interview by Editor Matt McDaniel of one of the industry's A-List members - Franz S. Hanning, President and CEO, Wyndham Vacation Ownership.

Wyndham Vacation Ownership markets and sells vacation ownership interests through its three primary consumer brands: Wyndham Vacation Resorts, WorldMark by Wyndham, and Wyndham Vacation Resorts Asia Pacific.

Wyndham Vacation Ownership has developed or acquired more than 160 vacation ownership resorts throughout the United States, Canada, Mexico, the Caribbean and the South Pacific that represent approximately 20,000 individual vacation ownership units and more than 800,000 owners of vacation ownership interests.

In 2007 Hanning marked his 25th anniversary with the company he originally joined as a sales professional. Today, he leads a worldwide staff of more than 12,500 employees.

Following are excerpts from the McDaniel interview:

PM: You’ve certainly been in the time-share industry long enough to see a lot of change. At its core, has the timeshare product changed much since the industry began?

From a physical-product, the sticks-and-bricks standpoint, yes. When I started at Marco Island there were a lot of motel conversions – timeshare was just a solution for people who had assets that they couldn’t monetize.

But the basic concept of delivering a lifetime of memorable vacations for people, and a way for people to prepay those vacations, that hasn’t changed. Fundamentally, that’s what we do. The reason it’s been so successful for so long is that, for the most part, all of us have delivered on that promise.

I see it every day - I get emails and letters from people because of the fact that the product that we sell changes people’s lives - and that’s a good thing. Everyone’s out there looking to a better timeshare experience and a better product, and that’s evident from the great resort locations that people in the industry build and create for people today.

PM: What’s next for WVO? Where do you see the company in five or 10 years?

We will continue to be the leader in the industry. From a technology standpoint, we’re focused on making it as easy as we can for people to go on vacation.

Our future has never looked brighter. The demand for our product is going to continue to be very strong. For Americans - certainly Western Europeans have known this for a long time- vacations need to be a birthright. Spending quality time, whether it’s with your family or just enjoying life, that’s what it’s about, and that’s what we do. Anytime you have those two things match up you have a great future ahead of you.

(Photo - perspectivemagazine.com)

The website Business News Express posted an article on March 3, 2011, written by Kris Hana, titled "Illegal Timeshare Sales on the Rise." In that article, Hana quotes Florida timeshare victim advocate attorney Susan Budowski, who warns consumers to be aware that with the resurgence of the timeshare industry, timeshare scams will rise with it.

Hana notes that Howard Nusbaum, President of the American Resort Development Association, stated “The travel and timeshare industry is seeing a resurgence of travel in 2011, terrific news for the timeshare industry.” And that has led Attorney Budowski to explain that this also brings more victims of deceptive sales practices by unscrupulous sales representatives.

Reports Hana, Budowski adds, “Unfortunately many timeshare owners are getting taken advantage of multiple times. I have seen those who have been misled or coerced into buying a timeshare and then later desperate to get out of their contract, attempt to sell their timeshare only to be taken advantage of by a resale company.”

This is evidenced, says Hana, by a recent SWAT team raid of a purported timeshare resale company by the Orlando Police Department. A spokesman for the Orlando Police Department said, “The company was taking two to four thousand dollars per customer without providing any services. The raid and arrests were a result of timeshare owners from Florida to Canada filing multiple complaints.”

Attorney Budowski advises timeshare owners that feel they have been a victim of a resale scam to contact their local authorities. She adds, “The majority of legitimate real estate transactions do not require an upfront fee to try to sell or rent a property; if a company does, that should raise a huge red flag.”

Budowski also warns of a surge in timeshare cancellation companies on the Internet and utilizing similar unscrupulous telemarketing firms to take advantage of timeshare owners’ misfortunes, reports Hana. “These companies make false claims of legal expertise and claim to guarantee refunds and/or cancellations of timeshares, and like the resale companies, require an upfront fee, many times exceeding what it would cost to hire an attorney.”

Interval International, a prominent worldwide provider of vacation services and an operating business of Interval Leisure Group, is again proud to be a Platinum sponsor of the Resort Development Organization (RDO) Conference. The event will be held September, 2011, in Marbella, Spain.

“Last year’s RDO Conference was a tremendous success and it is our pleasure to support this year’s event,” said Darren Ettridge, Interval’s vice president of resort sales and service for Europe, Middle East, and Africa and its representative on the RDO Board. “We look forward to playing our usual full part in the organization of the conference and also in taking an active role during the event.”

“We’re extremely pleased that Interval is a Platinum Sponsor of RDO2,” said Paul Gardner Bougaard, chief executive of RDO. “The company is one of the first to step forward to support the Conference. In addition to its key sponsorship role, Interval is offering the same level of logistical assistance in the planning and production of the event as last year, which was a contributing factor to its great success. For that, I would like to express my personal thanks and that of the RDO.”

The Conference is expected to attract more than 200 delegates from across Europe and beyond, including resort developers, representatives from trust companies, and legal experts. It will be a primary venue for discussing key industry topics that affect the European market. Interval will have a full resort sales and service team at the event.

Interval International operates membership programs for vacationers and provides value-added services to its developer clients worldwide. Based in Miami, Florida, the company has been a pioneer and innovator in serving the vacation ownership market for 35 years. Today, Interval has an exchange network of more than 2,500 resorts in over 75 nations.

The Resort Development Organization was established to improve representation for reputable companies in the timeshare sector and promote fair trading, quality within, and growth of the timeshare industry. RDO was created following the decision by the European Timeshare Federation in February 1998 to integrate all national timeshare trade associations into one pan-European direct membership organization.

RDO is a direct membership organization with over 90 members from all sectors of the industry across Europe.

Dan Lubner, President of the Hospitality Design Division of Robb & Stucky Interiors, has recently been named to a three-year term to the prestigious Suppliers Council of the American Resort Development Association (ARDA).

Suppliers Council members are called upon to provide insight into current industry issues and to help develop and guide association programs. Membership indicates a high level of commitment to the vacation ownership industry and provides direct contact with the ARDA Chairman and association president.

Comprised of leading industry firms, the Council was formed in 2005 to provide education and networking for ARDA’s supplier members and to serve as subject matter experts for the association in terms of product and service procurement trends impacting the resort industry.

“We welcome Dan with his vast expertise in furnishing and renovating hotels and resorts around the globe. His extensive knowledge in this highly specialized field is providing tremendous benefits to our entire Council,” said Joy Powers RRP, Director of Business Development of Concord Servicing Corp. and Chairman of the Suppliers Council.

Robb & Stucky Interiors is a nationally respected interior design and premier furnishings retailer with 15 showrooms in Florida, Texas, Arizona, and Nevada as well as Robb & Stucky patio stores. The company’s Hospitality Design Division has completed domestic and international commercial design assignments for hotels, condominiums, timeshare and fractional resorts located from Denver to Dubai.

Robb & Stucky Interiors was recognized for design excellence in August, 2010, by The Southeast Building during the Aurora Award Gala held in Orlando, Florida. Robb & Stucky won five awards, including two Grand Auroras.

ARDA is a Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 corporate members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

Diamond Resorts International, a global leader in the hospitality and vacation ownership industries, today announced that three timeshare industry veterans are assuming leadership roles for Sales and Marketing Operations in North America.

Derek Kanoa will maintain a key leadership role as Vice President of Sales and Marketing over his area of expertise, the Western Business Unit. Diamond would like to thank Mr. Kanoa for the integral role he has played and will continue to fulfill for Sales and Marketing Operations as he is a critical player to the success of the Western Business Unit.

Rhett Bolling, bringing more than 17 years of Sales and Marketing experience, will be leading the Eastern Business Unit. Mr. Bolling’s vacation ownership career began in 1993 with Bluegreen Corporation in Gatlinburg, Tennessee. The majority of his career was with Sunterra, where for 10 years Mr. Bolling was responsible for various regions including Florida, mid-West and mid-Atlantic.

With over 20 years of Sales and Marketing experience, Eric Assam will serve as Vice President of Sales and Marketing Operations, North America. Mr. Assam’s background and experience with Wyndham Vacation Ownership as the Executive Vice President of Sales and Marketing provides him with an extensive knowledge of strategic sales, marketing and business development in the vacation ownership industry.

Mr. Assam will develop the three year strategic Sales and Marketing Plan, Compensation Plans, National Program Management, the Exit Sampler Program, and Sales and Marketing Reward and Recognition Program.

According to Stephen J. Cloobeck, Chairman and Chief Executive Officer, Diamond Resorts International, “We are looking forward to welcoming Rhett Bolling and Eric Assam to our dynamic sales and marketing team. Both individuals offer an extensive knowledge of their respective fields and regions and will bring vast vacation ownership sales and marketing experience and expertise to the Diamond community.”

Diamond Resorts International, with global headquarters in Las Vegas, Nev., is one of the largest hospitality companies in the world with more than 177 branded and affiliated resorts in 26 countries. With destinations throughout the continental United States and Hawaii, Canada, Mexico, the Caribbean, Europe, Asia, Australia and Africa. Offering simplicity, choice and comfort to more than 385,000 owners and members through the branded hospitality service of more than 5,500 team members worldwide, Diamond Resorts International is dedicated to providing its guests with effortless and relaxing vacation experiences every time, for a lifetime.

Diamond Resorts International®, a global leader in the hospitality and vacation ownership industries, has announced that Michael A. Flaskey has joined the company as Senior Vice President, Sales and Marketing, North America, effective January 10, 2011.

Mr. Flaskey has more than 15 years of vacation ownership sales and marketing leadership experience, having held the position of Senior Vice President, Sales and Marketing East for Starwood Vacation Ownership, Inc, and Wyndham Vacation Ownership.

While at Starwood Vacation Ownership, Inc., Flaskey was instrumental in rebuilding Orlando sales and marketing from $70 million to $135 million annually and successfully rebuilt Myrtle Beach from $15 million in annual sales to more than $30 million.

Prior to his position at Starwood Vacation Ownership Inc., Flaskey was the Senior Vice President, Operations for Wyndham Vacation Ownership where he held total responsibility for a combined $400 million in annual revenues.

Flaskey successfully negotiated strategic alliances with the Atlanta Braves, Baltimore Orioles, Cincinnati Reds and Texas Rangers, including exclusive vacation ownership marketing rights to the major league baseball stadiums. He additionally negotiated a strategic alliance with the Trump Hotel and Casino organizations, including exclusive marketing rights for three hotels and casinos.

“We are looking forward to welcoming Michael Flaskey and his vast vacation ownership sales and marketing experience to the Diamond community," stated Stephen J. Cloobeck, Chairman and Chief Executive Officer, Diamond Resorts International. "Michael’s sales expertise and proven success in the marketing industry coupled with Diamond’s existing global footprint and business model will continue to position Diamond as an industry leader in the vacation ownership market.”

Diamond Resorts International, with global headquarters in Las Vegas, NV, is one of the largest hospitality companies in the world with more than 177 branded and affiliated resorts and over 24,000 guest beds in 26 countries with destinations throughout the continental United States and Hawaii, Canada, Mexico, the Caribbean, Europe, Asia, Australia and Africa.

Offering simplicity, choice and comfort to more than 385,000 owners and members through the branded hospitality service of more than 5,500 team members worldwide, Diamond Resorts International "is dedicated to providing its guests with effortless and relaxing vacation experiences every time, for a lifetime."

With the recent economic downturn, the top players in the timeshare industry are making big changes to their business models. Here’s how Wyndham Worldwide, Marriott International and Starwood are tightening their belts.

Wyndham Worldwide
Wyndham is cutting a reported 4,000 jobs in its timeshare division due to a lack of financing. The company, whose brands also include Super 8 and Ramada, are estimating a drop in overall sales this fiscal year. They reported $2 billion in sales for 2008, and are expecting $1.2 billion in 2009. Financing options will be limited for those looking to buy Wyndham timeshares as well. Previously, if you were willing to buy a timeshare, simply signing the papers was enough to complete the transaction. But now a more stringent credit approval has been put into place and their 90% financing options are no longer available.

Marriott International
Many timeshare companies, such as Marriott, are now demanding that buyers have higher down payments and good credit scores to qualify for a loan. Only about half of all buyers are eligible to receive financing from Marriott, down from 80% previously. Also, the down payment required for a timeshare purchase amount has increased from 15 to 20% up from the 10 to 15% that was once the standard.

Starwood Vacation Ownership
Starwood reports the least amount of cut backs and changes. But, in an effort to “watch every dollar” they have reduced some of their owner incentives, like the free nights program.

All businesses, timeshare specific and otherwise, are riding out this economic storm the best way they can. It’s actually good that companies are being forced to take a hard look at their costs to do business. By getting out of their comfort zone and drilling down all aspects of their P & L, they will emerge running better and stronger than before, and when the economy does turn around, they will be in a better position to grow their business accordingly and add more value to their customers.