All-Inclusive Resorts Maintain Popularity

9/02/2015 Unknown
Remember the old Club Med Days? Club Med was one of the first to offer all-inclusive properties and usually the first resort group that people thought of when considering this option. Now there are a number of resorts that are all-inclusive. The popularity of the option has continued due in part to the demand for cruise vacations, but mostly to the timeshare industry whose great success with the concept has contributed to the staying power and growth of all-inclusive vacationing. 

Timeshare a Natural Match for All-Inclusive Vacations

Timeshare's "home away from home" atmosphere is a natural match for all-inclusive service. Not only can the vacationer relax in a large, comfortable space in a beautiful setting, but an all-inclusive package also takes the hassle out of vacation planning with offerings of planned activities, special VIP services such as early and late check-in, access to concierge services and preferred accommodations. There’s also the freedom to experience many different cuisines from buffets and specialty restaurants as well as opportunities to try a new activity and enjoy nightly entertainment. Often tips and taxes are taken care of too. All you have to do is relax and enjoy. It's obvious why all-inclusive has stuck around.  

Defining All-Inclusive?

Merriam Webster defines all-inclusive as: "including everything; especially: sold for one price that includes charges and fees that are often added separately."

Generally, the "everything" Merriam Webster refers to includes meals and snacks, all beverages (usually domestic alcoholic drinks, but some resorts may include premium brands), daytime activities, and nighttime entertainment, plus taxes and gratuities. 

Don’t assume that all-inclusive means everything. The vacationer needs to check with the resort to find out the specifics of what is and what is not included in your package. Is it all the amenities of the hotel, or are certain things excluded? Guests may pay extra for spa services, specialty activities, off site excursions and other such things. Some resorts even offer different levels of all-inclusive. So ask about them all. The resort is not trying to deceive you, you just need to be an astute buyer, so there will be no surprises when you reach the resort. 

Occidental Vacation Club - One of the First in All-Inclusive Resorts

Occidental Vacation Club (OVC) was one of the first in the timeshare industry to fully embrace the concept of all-inclusive. All OVC holidays include unlimited meals and snacks, a la carte dining in specialty restaurants including unlimited alcoholic beverages; sports (including tennis on a lighted court, water polo, aqua aerobics and kayaking), use of the fitness center and more. Daily entertainment and a supervised Kids Club (ages 4-12) is part of the package where available on site, as well as nightly shows, live entertainment and all taxes and gratuities.

Says, President Luis Namnum, "at many OVC resorts guests will find everything they need from fine dining to quick snacks, a great bar and lounge area, art gallery, hair salon and even bank services. Our club is known for its high quality all-inclusive experience and we are pleased to offer that possibility to members who stay with us."  

Other Hospitality Groups Feeling the Trend


A recent article in Hotelexecutive.com reports that hotels are experiencing a resurgence of all-inclusive properties. Though long a trend in the industry, all-inclusive hotels are proliferating boosted by the emergence of high-end, all-inclusive resorts.  Apple Leisure Group Executive VP/CSO, Javier Coll, was quoted, "fifteen years ago there was a mixture between the all-inclusive and the traditional resort. Now 99 percent of our customers choose to stay in all-inclusive resorts."

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Hospitality Industry Weathers China Currency Devaluation

8/26/2015 Unknown
Recent stock reports show minor down trending in the hospitality industry in the weeks following China's currency devaluation when compared to industries such as commodities, oil companies, and those industries involved with foreign currency and marketing products to China.


A Look at a Few Major Hospitality Groups

We looked at a few of the major publically traded timeshare companies to get an idea of how their stocks are trending, comparing today's rate to one month ago. Today (August 24) the S&P 500 was down 3.94 percent compared to the Friday before.

August 24 July 24

Starwood         70.53            81.89

Wyndham  74.75 83.06

Hilton 23.88 27.90

Bluegreen/BBX Capital   15.77 15.86


Though the industry is experiencing some of the effects of the overall economic conditions, it's typical of other mainstream businesses and much less than those companies more directly involved with China.  

The China Effect

To give you a little idea about how China's devaluation of their currency affects us all we consulted Investopedia.com, "A country's economy and is currency is impacted by the flow of funds between countries. The more money leaving a country, the weaker the country's economy and currency. Countries like China who predominantly export physical goods or services continually bring money into their countries. This money can be reinvested to stimulate the financial markets within the country." China has historically kept tight control of its currency with favorable exchange rates boosting exports and manufacturing over time, and forcing the U.S. government put up with China's artificially lowered rates.

Industry in a Good Position

The hospitality industry is in a good position to weather this current affront from China. Our industry has grown exponentially over the past few years as the economy improved. But also largely due to nature of the industry. We offer joy, fun, comfort, relaxation and entertainment. We offer the ability to experience other countries and other people, and the ability to adventure away from our everyday lives. What other industry can claim to do all that? 


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Maneuvering the Timeshare Secondary Market

8/19/2015 Unknown
You're probably used to seeing a lot of advertising from "postcard companies" soliciting anyone looking to get rid of their timeshare. As timeshare popularity continues to grow, these solicitations stand out, because most owners are happy with their timeshare and are not thinking about selling. But, if this is a time in your life when you have a reason to sell, there are resources to help you maneuver your way through the timeshare secondary market, avoid the scams, and even find alternatives to selling.

Where to Start

The approved party line on the retail market is ARDA-ROC's Timeshare Resale Resource Center. Since its inception in the 70's, ARDA has offered information on the often confusing and frustrating secondary market. They have held symposiums, monitored resale companies and utilized industry leaders to come up with the best solutions. The Timeshare Resale Resource Center site can answer most if not all of your questions. 

First Steps

The very first step the site recommends is to consult your resort developer, manager or owners' association. Often homeowner associations or the management company have websites or newsletters for advertising your timeshare. They may also have a resale program or an affiliated licensed broker that handles resales. Find out how much past resales sold for, what was the commission, and answers to other concerns. And don’t forget the other owners at your resort. If they own weeks before or after you, or own only a small amount of points, they may wish to purchase more time.

Answers to all Concerns

With the Timeshare Resale Resource Center, ARDA-ROC is attempting to answer the concerns and provide information about all aspects of maneuvering the secondary market from buying to selling. Questions about what kinds of resale companies are around, how to prepare to sell and price your timeshare, how to know if a company offering to sell your timeshare is legitimate, and much more can be answered on this site. 

Alternatives to Resale

Don't forget that there are alternatives to selling - in fact selling is not always the best option to choose.  Consider donating your weeks to charity or philanthropic causes. Organizations like Send Me on Vacation, can make you feel good by making someone else feel good through a donation of a vacation to a breast cancer survivor. Give your family or friends the gift of a week or points, rent your timeshare, trade for a cruise, or check with your resort developer or manager about giving your timeshare back.

Continuing Research 

The National Timeshare Owners Association (NTOA) is working on their first executive study on timeshare resale issues. They are partnering with Dr. Tammie Kaufman, a timeshare professor at the University of Central Florida, industry professionals and timeshare owners to analyze and prepare data compiled by the associations Secondary Market Solutions committee.  NTOA wants to help meet the need to educate consumers on how to buy or sell timeshares safely in the secondary market because of the problem of unscrupulous telemarketing and resale operations. According to NTOA more than 10 billion in available inventory sits idle with more piling on each year due to these scammers.

For more information go to www.ntoassoc.com or www.ardaroc.org/resales/ 
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More Proof that Timeshare is on the Upswing

8/12/2015 Unknown
We've heard the good news reports from industry leaders that the timeshare industry is experiencing an upswing. Reports of strong growth and positive comments are coming from all sectors of the industry. If you need more proof, this month’s Fitch Rating Outlook for timeshare should provide it. According to the rating agency, U.S. timeshare ABS delinquencies fell again in the past quarter to their lowest level in eight years. Fitch also reports consistent year-over-year improvement since 2012 with:
  • Delinquencies down for second quarter 2015 – 2.66% down from 2.79% in the first quarter of 2015 and 2.92% in second quarter 2014.
  • Defaults down for second quarter 2015 – 0.57% down from 0.67% in the first quarter 2015 and 0.66% in second quarter 2014.  On an annualized basis, defaults were 6.42% for second quarter 2015, down from 6.51% in the first quarter 2015. This represents three years of quarterly improvement, as well as the lowest level of defaults for timeshare ABS in six years.
Fitch's Rating Outlook for timeshare ABS remains stable due in part to the delivering (to decrease financial leverage) structures found in timeshare transactions and ample credit enhancement levels.

What This Means to Us

To owners, developers, managers and everyone with an interest in timeshare, this is very good news. It supports the positive attitude about timeshare currently trending in our industry. When people are happy with their timeshares, they pay their bills and they don't default. 

Business 101 Review

In case you were wondering, ABS stands for Asset-Backed Security. A definition from Investopedia.com says it's essentially the same thing as a mortgage-backed security, except that the securities backing it are assets such as loans, leases, credit card debit, a company's receivables, royalties and so forth. It is not backed by real estate or mortgage-backed securities.

The Fitch timeshare ABS index is an aggregation based on pools of securitized timeshare loans originated by various developers. Expected cumulative gross defaults on underlying transactions can range from 9% to above 20%. Delinquencies and defaults may vary on an absolute basis, but most transactions supporting the index exhibit similar overall trends.

The Fitch timeshare performance index summarizes average monthly delinquency (over 30 days) and gross default trends tracked in Fitch’s database of timeshare asset backed securities (ABS) dating back to January 1997. It is available on a quarterly basis. For more information go to www.fitchratings.com 
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Hark! What are Users of Social Media Saying About Timeshare?

8/05/2015 Unknown
Social media monitoring, one of the latest marketing tools, is getting much attention lately. One user is the timeshare industry's trade association, ARDA. As part of ARDA's Social Listening Initiative, the organization is using online listening tool Radian6 to monitor social media news from sites such as Facebook and YouTube, plus news, blogs, forums and more, to find out the chatter about timeshare. The results are published in the Hark Report.

Hark Report

How does it work? The listening tool monitors unsolicited reviews of what individuals are saying about the timeshare industry. Keywords, like "value" or "love" along with "timeshare" are searched and then run through a calibrated industry profile. ARDA then weeds through relevant posts to find digital conversations that reveal what people are feeling and sharing about timeshare. As a timeshare executive, you can use the information to adjust your marketing strategies. As an owner you may find valuable suggestions and answers to your questions.

The Tide is Turning to Positive

The feedback from social listening shows that the tide of attitude about timeshare is getting more positive. People are realizing the benefits of timeshare owning and they're sharing it. Here are some of the notable conclusions and relevant comments gathered from the data:

  • Timeshare makes vacationing a financial possibility for larger families. This was posted on the Forum Post, "We bought for a NICE and large enough space for our big family. We wanted nice, we wanted convenient, and we wanted LOCATION. We look at our timeshare as prepaying our trips. So is it worth the money? Yes, because we have a family of six, and are adopting again and my mom and her partner plan to join us on a trip or two. To stay in a nice resort that would hold ALL of us would cost a fortune."
  • Location continues to be of significant importance and there is still appeal in going to the same place every year. From Facebook, an owner posted, "We've loved going back to Maui every year. The kids love going to the beach and swimming at all the different pools at the resort. It’s just a fantastic."
  • People want to know how to use their timeshare after the prime "family vacation" years. Here are questions posted to the DIS Board Forum, "Still thinking about long term family changes and vacation needs as time goes on BEFORE purchasing. I have 2 small children now and know they will grow and change. Do you mind sharing how your family has changed and if you still enjoy DVC now? Would you do it again? Do you enjoy going without kids? Have you traded in to try RCI?"
  • Timeshare employees remain an important, integral part of the overall vacation experience for guests and owners, as unique and interesting people. From a personal blog, "I spent a couple of days on Kauai and stayed in Princeville because I could use a timeshare for free. I did no planning for this island. The timeshare had a concierge on duty, so I stopped in a couple of times to find help making plans for the day. Enter Kai—one of the concierges, and a Kauai native. She has lived all over the world and lives an adventure lifestyle when not helping people like me navigate their way through her island."
  • When people explain the benefits of timeshare, they consider it the best of all worlds.  From a Forum Post, "For personal travel, if it’s just the two of us or our immediate family, I prefer staying in privately rented condos or timeshares vs. staying in a hotel. I own a Westin timeshare and really love their resorts. I love that they blend the conveniences of a condo (including separate bedrooms and TV's, kitchen, washer/dryer, and grills) with the amenities of a hotel, such as a great pool, hot tub, tennis court, and poolside service. That IMO, is the epitome of my type of vacation."
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Timeshare Resorts - the Answer to Vacationers’ Need for Space

7/29/2015 Unknown
Timeshares offer the perfect answer to family or group vacations - space plus privacy. Owners and others in the timeshare industry already knew this, but the continued growth of our industry indicates everyone else is figuring it out too. ARDA's recent report, "State of the Vacation Industry: United States Study 2015", shows that the timeshare industry enjoyed consistent growth in 2014. Sales volume increased more than four percent to $7.9 billion and the timeshare occupancy rate of 78 percent surpassed that of the hotel industry’s occupancy rate of 64 percent!

Space to Spread Out

No one wants to vacation in a cramped space. When you are vacationing with family or friends, it's nice to have extra space and the ability to have some private time to yourself. Timeshare units are four and a half times the size of your average hotel room. VacationBetter.org reports timeshare units range from 700 square feet for a one-bedroom unit, to 1,160 square feet for two-bedrooms and up to 1,590 square feet for a three-bedroom. That’s a lot of space for family reunions and celebrations with friends!

Vacationers Love Kitchens

VacationBetter.org says 91 percent of vacationers are happier on vacation when their accommodations include a kitchen. Those of us who timeshare vacation know how nice it is to get up and make your morning coffee and breakfast without stepping out the door. Besides convenience, kitchens save us money too.  Using the kitchen to prepare breakfast, or sandwiches and snacks to take on outings, keeps your vacation costs down. Your beautiful resort is the perfect setting for celebrations, intimate cocktail parties, or barbequing the fish you caught earlier in the day. Use the extra money you’ve saved for dining out at a special restaurant!

Extra Living Space a Plus Too

ARDA's report shows that 61 percent of all timeshare units are two bedrooms, and in addition to kitchens, these units have living rooms too. That gives your family and friends much more room to spread out than the 350 square feet that the average size hotel room offers! 

More Interesting Report Facts

  • The most common type of resort—beach resorts. (No surprise there!)
  • Resorts with theme parks have the highest occupancy.
  • Florida has the most resorts—23% of the national total.
  • Nevada has the largest resort size—182 units on average.
  • Largest occupancy rate for a region—Hawaii at 85.3 %.

For more reasons to love your timeshare, check out www.arda.org/foundation and www.vacationbetter.org 
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Orange Lake Resorts Adds Silverleaf to its Expanding Family of Resorts

7/22/2015 Unknown
May brought the announcement that Orange Lake Resort's parent company, Orange Lake Holdings, had acquired Silverleaf Resorts, Inc. The acquisition of Silverleaf adds 13 vacation properties in six states across the eastern U.S. and 120,000 members to Orange Lake's family of resorts. It doubles the size of Orange Lake Holdings whose resorts span, Florida, Nevada, South Carolina, Tennessee, as well as Texas, Vermont, Virginia and Wisconsin. Silverleaf has been in operation for over 30 years.
  
Silverleaf Resorts along with Orange Lake's Holiday Inn Vacations® brand, will be operated independently. The two brands together represent 26 resorts, 7,200 villas and over 320,000 members. Club members in each brand will continue to receive all the benefits of their existing membership plans. 

Orange Lake CEO Don Harrill, called the acquisition of Silverleaf, "a historic development for both companies".  He added, "With our combined reach, we continue to stay on the forefront of providing diverse travel experiences for today’s changing market".

Thomas J. Morris, CEO of Silverleaf Resorts, expressed excitement in joining Orange Lake, "We are excited for the future and the tremendous opportunities this affords us".

Orange Lake’s acquisition of Silverleaf mirrors the industry trend, started in 2009, to consolidation of resorts and away from independent operations. The strength in numbers concept has worked well for many timeshare companies as a buffer to the ups and downs of the economy, and in providing owners a broader selection of vacation options.

Consolidation can offer a lifeline to smaller, private operators who are not large enough to go after public equity and are too small and complicated to interest institutional investors. Other companies that have been involved in recent consolidations are Marriott, Starwood, and Wyndham Resorts.

For more information on Orange Lake Resorts visit: www.orangelake.com or for more on Silverleaf Resorts go to: www.silverleafresorts.com




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