5 Ways to Help You be a Better Timeshare Consumer

6/18/2014 Unknown
You’re a timeshare owner or thinking about becoming one, and you’ve got some concerns. You’ve heard stories about unscrupulous timeshare companies, resale scammers, promises unkept, ridiculously high maintenance fees, and the list goes on. So how can you protect yourself and enjoy the many positive aspects of timesharing? There are groups available to help you protect your investment - American Resort Development Association, Federal Trade Commission, Better Business Bureau, State Department of Justice Consumer Protection—but the number one person to start with is you.

1. Be Your Own Advocate
  • Before and after you purchase a timeshare you must be your own advocate. New buyers need to do their homework. It is never wise to jump into any purchase that requires a sizeable investment before you do the research. Find out all the information you need to calculate the cost of a timeshare. Add up such costs as mortgage payments and all expenses like annual maintenance fees (does the plan have a fee cap?) and taxes, broker fees, finance charges, closing fees and even travel costs. Compare these costs to the cost of renting similar accommodations in the same location for the same length of time and in the same time period. Include amenities too. If the timeshare still looks good after the comparison, then go on to the next step.
  • Check with the local consumer protection agency in the company’s home state to see if there are any complaints against the company. Check out the property, quality of the resort and availability of units. Talk to current owners about their experiences—does the owner keep up the maintenance of the property? Make sure you understand all the paperwork involved, find out about cancellation policy and other issues of concern. Set up an escrow account for undeveloped properties and a written commitment from the seller as to when the facilities will be finished. That way, you protect yourself should the developer default.
  • Once you take the plunge and become an owner you need to continue to advocate for yourself by keeping informed of the latest timeshare legislation, getting actively involved in timeshare advocacy groups, and if you really want your voice heard, become a member of your timeshare’s Board of Directors.

2. American Resort Development Association (ARDA)
Timeshare owners have a fair and unbiased resource as well as a legal advocate with ARDA.  As ARDA’s website states, "our Government Affairs Team has a strong record of successfully advocating for the policies contributing to the growth and vitality of the industry while protecting the vacation ownership experience." ARDA’s website is full of information on the latest news and legislation effecting timeshare. Its 10 advisories, listed on the ARDA website help guide owners through the secondary market that includes timeshare resellers, internet advertisers and resale companies. The ARDA Resort Owners Coalition (ARDA-ROC) helps to protect owners by working to prevent legislation that might have a negative impact on timeshare. Funded by timeshare owners’ contributions (often as little as $1 checked off of the maintenance fee form) owners can take part in protecting and enhancing the timeshare experience.

3. Federal Trade Commission (FTC)
The FTC is another entity actively involved in helping the industry. Their joint task force, combing federal, state and international law enforcement, has been successful in bringing actions against companies involved in timeshare scams. Their website is an excellent source of information on the ins and outs of buying a timeshare, and recent criminal prosecutions and legislation concerning the industry. 

4. Better Business Bureau (BBB)
Just as you would investigate any business that you’re thinking of working with, investigating the business you’re going to buy your timeshare from is a must. The BBB is a good place to review a business, find out its BBB rating and if there are any registered complaints against it that haven’t been resolved. The BBB also offers its own information about buying a timeshare. Contact your timeshare company’s local BBB for information.

5. State Department of Justice Consumer Protection
As state law varies from state to state, and country to country, you might want to check out the timeshare company through the State Department of Justice or Attorney General’s Office of Consumer Protection for local laws governing timeshare. For instance, if you purchase a timeshare and then decide to back out, in Florida you have 10 business days to return it for a full refund, in Nevada it’s 5 days, and in Indiana it’s only 3 days. These offices also have access to any pending legislation against companies. 


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Now May be the Perfect Time to Market to Baby Boomers

6/11/2014 Unknown
With all the talk about millennials, you might be inclined to ignore the baby boomers - but don't. Those 76+ million boomers in the US are still one of the most viable sources of timeshare buyers. Why, you might ask? The reason is because they like to travel and they have the money to do so. Timeshares are appealing to boomers because they offer all the things boomers want in a travel experience - affordability, flexibility and quality.

Baby Boomers are Pre-Qualified

Baby boomers have disposable income. Instead of choosing to retire, many have chosen to keep working or at least work part time, and those who have retired have money to spare. True to their strong work ethic and "live to work" reputation, some 49% of baby boomers are still in the work force and don't expect to retire until age 66 or older. Those that have retired have planned well for their retirement time and have money to spend on travel. According to industry research, boomers spend $157 million on trips every year. And you don't have to convince them of the benefits of travel - baby boomers already view travel as a necessity not a luxury. In fact, in most travel polls, boomers rank travel as their #1 activity.

Timeshares and Boomers--a Perfect Match

Accommodations
Boomers favor luxury and comfort, and they are willing to pay for it if you can deliver. They like what a timeshare can offer, such as spacious accommodations with room for multigenerational family vacations. The "home away from home" atmosphere is attractive to boomers because convenience, comfort and added space for family is important. 

Variety IS the Spice of a Baby Boomer's Life
Boomers want flexibility and choice in their travel. The vacation options of timeshare are attractive to boomers. The ability to have flexibility in choosing when they want to travel and where - numerous choices of locations throughout the world - are all appealing to boomers.  They like the convenience of the "all inclusive" resort where food and drink is covered and where they will have plenty of activities to keep them occupied, because baby boomers are healthier and in better shape than their predecessors. They do not think of themselves as aging. According to Phil Goodman, co-author of Boomer Marketing Revolution, "Boomers will always try to act younger than their chronological age. As a result, they may want to fulfill the dreams they had when they were 25 even if their bodies aren’t willing." So bring on the adventure travel, but don’t forget the spa!

Aware of Cost
Raised by parents who encouraged savings accounts, baby boomers want to know that they are getting their money’s worth. They like a good bargain and timeshares fit the bill, particularly for longer stays. The cost of staying in a timeshare for 2-3 weeks or more, is far less than it would be at a typical hotel or resort. Advantages such as exchanging, the option of renting, and last-minute bargains, all make timeshare more cost-effective to boomers. 
The timeshare industry has always welcomed baby boomers, but now more than ever, may be a good time to get that welcome mat out again.
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Who are the Leaders in Timeshare Sales?

6/04/2014 Unknown
Vacation Ownership World (VOW) - a digital magazine that acts as a forum for the trends and issues of the vacation ownership industry - has come out with its latest review and forecast of the state of vacation ownership sales. According to VOW, vacation ownership sales, timeshare and fractional sales combined, expanded 7% in 2013 over 2012. Combined with a 10% rise in 2012 over 2011, it’s the largest back-to-back sales growth period since the economy began its decline in 2008. Timeshare sales rose 11%...the largest jump since 2006 and 2007.

Last Year’s Top Developers Remain in the Lead
Changes and adjustments (noted in VOW’s 2012 review), are still being used by the leading developers who remain successful in an economy that is improving but still struggling. Some of the ways developers maintained success are:
  • Having access to sufficient capital
  • Using only the sales and marketing programs that have proven to be most efficient
  • Sustaining a ratio of new owner sales to existing owner sales
  • Recognizing that consumers are purchasing in smaller transactions (samplers, junior suites, biennials, triennials, etc.) and using social media to make vital owner contacts and building relationships
  • Using timeshare as a cash generator…some developers collect over 50% of the value of a sales contract up front. Ownerships allow developers to access inventory as needed versus carrying the cost of excess inventory on their books.
  • Improving cash flow and increased profitability by using sophisticated models to predict a prospect’s ability to pay

The Leaders in Timeshare Sales

The developers who had $5 million or more in 2013 sales include:

1. Wyndham Vacation Ownership
Wyndham Vacation Ownership (WVO) topped the list of the 2013 Sales Leaders with $1.9 billion in sales. WVO is one of those companies that stuck to their plan. Experiencing a banner year in 2012, WVO president and CEO Franz Hanning said that 2013 was a replay of 2012, "Once again our numbers were excellent, once again sales, tours, VPG, net income, EBITDA (earnings before interest, depreciation taxes and amortization) and WAAM (fee-for-service business model) sales and commissions were all up." Top on WVO’s strategy list…generate cash flow.

2. Hilton Grand Vacations
Coming in at #2 on VOW’s list was Hilton Grand Vacations with a record $830 million in timeshare sales. Much of the success was attributed to an increase in club membership to more than 200,000 and moving capital efficient sales from 17% in 2012 to 45% in 2013. Commenting on this, Hilton’s president of global sales Mark Wang stated, "We did this by welcoming more visitors to our sales centers allowing us to continue our strategy of adding first time buyers to our club." Mr. Wang attributed another part of HGV’s success to the company’s adherence to hiring and retaining qualified and dedicated employees, and their commitment to making an engaging work environment.

Rounding out the Top 10 in Timeshare Sales (in millions)
3. Marriott World - $679
4. Diamond Resorts International and Bluegreen Resorts each with - $465
5. Starwood Vacation Ownership - $326
6. Silverleaf - $244
7. Holiday Inn Club Vacations - $229
8. Villa Group - $116
9. Club Melia - $109

10. Welk Resorts - $105

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Timeshares Continue Strong Growth

5/28/2014 Unknown
New construction starts support the results of the American Resort Development Association’s (ARDA) research findings showing the timeshare industry to be one of the fastest growing. ARDA’s 2012 World Wide Shared Vacation Ownership Report showed North America topping the timeshare global list with the most properties—2500 resorts or 46 percent of the total market. Timeshare companies are actively involved in building and acquiring new additions to their properties.

Breckenridge Grand Vacations Peaking Again

Breckenridge Grand Vacations is breaking ground this summer on a new resort on its Peak 8 property. Reportedly being called the pinnacle resort within the community, the exclusive 75 residence resort boasts 28,000 sq. ft. of amenity space and 4500 sq. ft. of space for resort operations.

Welk Resorts Celebrates 50 years in the Business with Further Expansion

This year, Welk Resorts is celebrating its 50th anniversary. Supported by capital obtained by the completion of a $158.67 million securitization last December, Welk has plans for more development. In June, Welk completed their multimillion dollar renovation of the Welk Resort Branson. In December, the Northstar Lodge was officially opened as a Welk Resort. In the works for 2015 are 123 luxury units in Breckenridge, and by 2018, 164 units in Poipu, Kauai.

More New Construction Rumored

Silverleaf Resorts is building a new sales center and reportedly bringing in award-winning companies like Architectural Concepts to design a more contemporary look for their resorts. Rumor has it that Westgate Resorts is on the lookout for new sites to construct in Northern and Southern California.

Future Growth Predicted in New Global Markets

The World Wide Shared Vacation Ownership Report research indicated that timeshare’s future will include more growth in the global timeshare market (now nearing 2%). The research reports 5300 resorts in 108 countries supporting more than 1.1 million jobs and generating over $45 million in direct economic output in 2010. Findings also show that ownership is likely to expand to numerous countries, particularly Brazil, Russia, India and China.



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Defending Timeshares… Owners Respond to Negative AARP Article

5/21/2014 Unknown
In response to a recent AARP article castigating timeshares, owners have shot back with letters in defense of timeshare ownership. Timeshare industry leaders issued a call to action to owners and industry professionals to respond to the article with letters to the editor of AARP magazine (see the original controversy right here) and respond they did! Here are some of the points made in the letters to AARP by those who know the benefits of timeshare first hand:

  • Cost-Effectiveness of Ownership
A big concern of owners about the AARP article by Alan Roth involves his statement calling timeshare one of the “worst investment and financial products.” Many owners responded that a timeshare purchase shouldn’t be expected to be an investment returned in monetary benefits, but as an investment returned in life-style benefits. Owners such as Sharon S. stated, “Many of us would not explore vacation opportunities, especially outside the U.S, without the security and financial assistance timesharing offers.” And from Fred M., “We didn’t buy our timeshares as a financial investment—we bought them so we could afford to enjoy life more instead!”
  • Better than a Hotel

In response to Roth’s comment that one would be better off getting a hotel room rather than a timeshare, owners Matthew and Elva W responded, “Try getting a hotel room right on the beach or in a choice vacation spot anywhere in the world for 6 people for $900 per week!” Sharon S. added, “Whereas hotels may charge $300 or more a night, a timeshare owner is guaranteed a week’s stay for the price of the maintenance fee.”
  • Home-away-from-Home Accommodations
Home-away-from-home accommodations was another major plus cited by owners. Many commented on the value of and the pleasure of having accommodations that offered the comforts of home. They listed such amenities as spacious rooms with additional living space, fully stocked kitchens where you can cook a meal and save on the expense of going out; plus, balcony views, access to outdoor space, pools, children’s areas, barbecues and recreational areas and activities. Owners also valued the ability to have access to units with two to three bedrooms and additional bathrooms for vacations with family and friends.
  • More Travel Opportunities through Exchanging and Points
Many owners wrote about the flexibility offered through points and exchanging--how exchanging offers them opportunities to travel more often, and to travel all over the world to destinations that would not be affordable without owning a timeshare. Owners shared that using points has given them enhanced travel value, and the flexibility to travel when they want. They expressed appreciation of exchange companies like Interval International and RCI who post reviews of all exchange resorts and give owners the assurance that the exchange resort is all that it is reported to be. 
  • Ability to Rent Out 
The added advantage of being able to rent out their week when they were unable to use it was a plus for many owners. It allowed them to vacation at times of the year that weren’t the peak of the tourist season, or at a time when an event was taking place that they wanted to be a part of. Renting out their timeshares through companies such as RedWeek can make it possible to make enough money to pay for the maintenance fees on their timeshare.
  • Alternatives to Resale
One of Mr. Roth’s negative comments concerned the difficulty of owners in selling a timeshare and actually recouping the money they paid for it. Owners countered with alternatives to selling. They mentioned that as well as renting out their timeshares, another alternative was gifting or bequeathing timeshares to family members. This allows them to leave a legacy and the assurance that the tradition of sharing quality time with family members is carried on. Owners Matthew and Elva W. summed it up very well, “True, timeshares are not a good investment for a quick return on your money, but it certainly enhances the vacation experience. If we were to walk away from our timeshares today, they would have been worth every penny we have invested.”
Letters are posted in the TST Newswire



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Negative AARP Article Sparks Concern

5/14/2014 Unknown
A recent article in AARP Magazine lists timeshare as one of the “worst investment and financial products you can sink your money into.” The magazine’s April/May issue investment column featured “5 Bad Money Moves” by Allan Roth, and buying into timeshare was one of those five. With statements like, “These people are trained to get you to buy before you have time to do the math”, and “it’s a money pit of recurring fees”, Roth’s article disparages timeshare in more ways than one. Timeshare leaders are calling for all owners and industry professionals to respond to the article with a letter to the editor of the magazine.

Industry Leaders Respond

The article has already elicited several responses from the timeshare industry. ARDA president and CEO, Howard Nusbaum was one of the first to respond to the negativity with a letter to the magazine’s editor stressing the many positive aspects of timeshare.  Nussbaum explains in his letter that timeshare is not meant to be a real estate investment, but instead is an investment in quality time with family and friends, and the lasting benefits that come with vacationing on a regular basis. He also addresses concerns mentioned in the AARP article on timeshare resales and explains what the true financial commitments are. His letter closes with links to www.ardaroc.org/resales and www.vacationbetter.org for further examination.
Another organization responding to the AARP article is Timesharing Today. Publisher Shep Altshuler, has posted a request to owners and industry professionals urging them to use their collective voices to respond to the article. He asks all to “detail why this one-sided article is a disservice to those in the timeshare industry.”

Call to Action

If timeshares are ever going to shake the negative images of the industry, those of us in the industry must work to stop the negativity, and reach out to educate everyone to the many positive benefits of becoming a member of the timeshare family. We all know the wonderful benefits that can be gained, such as the home-away-from-home experience, the cost-effectiveness of a timeshare vacation, the positive health benefits of regular vacationing, and the unforgettable family vacation memories that will last a life-time. There’s also the advantage of having a comfortable place you can count on to vacation each year, and the opportunities to experience other travel destinations…the list goes on and on.

Don’t wait. Get out those positive responses. Send letters now to the editor at aarpmagazine@aarp.org. But don’t stop there, respond anytime you see other negative articles, or hear others disparaging the industry. Let’s all work together to let everyone know what it is we love about our industry.
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Big Data and Timeshare Marketing

5/07/2014 Anonymous
By now you've probably heard the term big data used as one of marketing's hot buzz words, but do you know what it really means?  And more importantly, how is it used in timeshare marketing?

What’s the Big Deal?
The term big data has been around for the past few years, but it seems it's not so easy to define. In general, big data refers to the collection of all the data from digital and traditional sources within and outside a company. Some definitions like to confine big data to information gathered from digital sources, and it is that. But it can also include traditional data collection such as that derived from call centers and point-of-sale, product transaction information and financial records.

In short, big data is collecting all the voluminous amount of data that your company creates, and then analyzing it for information that can be used to determine repeatable business patterns that really work.  Never think of it as just about gathering large amounts of data, what’s even more important is how you use the data. Combining big data with high-powered analytics can help you to zero in on data that is most relevant, and then analyze it to determine the areas that matter the most to your business success.

How Big Data is Being Used in Timeshare Marketing
In a comprehensive 2013 report by Harvard visiting professor, Tom Davenport, At the Big Data Crossroads: Turning Towards a Smarter Travel Experience, he stated that "big-data could be one of the most influential initiatives for travel since the online reservations system." But Davenport, who has also written over a dozen books on business analytics, suggests that "for the most part with some exceptions, other industries are using data in smarter and more advantageous ways then the travel industry."

Wyndham Worldwide is one of those exceptions. Wyndham utilizes its more advanced data analytics from its exchange business in its U.K rentals, to set pricing across its European vacation-property rentals. The company uses what it calls "yield management" tools to adjust pricing based upon factors that include, past consumer practices, market peak, and timing.

Another company to get going with big data is MGM Resorts. Understanding the power of Facebook and its over 1 billion followers, plus utilizing Facebook’s many data gathering tools, helped MGM to refine and update their advertising strategy. They expect a return on their new advertising program of between 3 to 15 times greater.

Major airlines are using big data to customize new offers for each flier. With data gathered on passenger past purchases, airlines are personalizing the travel experience. Recent technology advances enable airlines to sell products directly to passengers at booking and at check-in, in reminder e-mails as trips approach and on mobile phones before boarding. 

Delta Airline's CEO, Richard Anderson says, "We have massive amounts of data, we know who are customers are and what their history on Delta has been." Using this type of data helps airlines personalize the flying experience.

Companies That Help

If you need help with the gathering and analyzing of your data, whether it's a little or a lot, there are full-service companies and software specifically designed to guide and direct you in the process. CustomerCount, TrackResults Software, Amadeus, and Katana Software are just a few involved in the business of big data.
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