This is the final post in a three-part The Timeshare Authority blog. (Timeshare Sales and Developer Strategic Responses – Part II) Parts I and II looked at how the credit crunch is impacting timeshare developers and timeshare sales, as well as what adjustments some timeshare companies are making to deal with it. Today’s post looks at what appears to be a growing recognition of the values in timeshare resales during these tight economic times.

Looking First at Wyndham Timeshare and Marriott Timeshare Sales

In the 4th quarter 2008, Wyndham timeshare reported that their gross vacation-ownership interest sales (timeshare sales) dropped 11 percent. In 2008, Wyndham timeshare segment contract sales declined 23 percent to $1,076 million. (source: Wall Street Journal)

Declining numbers like these in timeshare sales are no longer headline news; we’ve been hearing this message since last fall when Westgate Resorts timeshares and Bluegreen timeshares first began to send up red flags that they were feeling the pain of the troubled economy. But let’s consider the changes in timeshare sales patterns from all angles.

Sell My Timeshare NOW Saw Timeshare Sales Climb in 2008

At Sell My Timeshare NOW, the overall number of offers to buy or rent timeshares increased by 85 percent from 2007 to 2008, totaling 132,470 offers. The dollar amount of these offers also increased during this period, reaching $461,470,158.00, which represents a 68 percent increase over the dollar amount of offers to buy or rent timeshare in 2007.

Even in the 4th quarter of 2008, when US financial experts had stopped calling it a troubled economy and switched to calling it a recession, Sell My Timeshare NOW saw a 73 percent increase in the number of offers to buy or rent timeshare over the same quarter in 2007. Quarter-over-quarter, we experienced a 43 percent increase in the dollar amount of these offers.

Clearly people are tightening their belts, and personal financial situations range from ‘nervous about the economy’ to those who are dealing with the trauma of foreclosure, job loss, or both. Yet timeshare, both new and timeshare resales are selling. Before the credit crunch, Westgate timeshare was reporting strong sales of new timeshares as well. Westgate timeshare President and CEO David Siegel told the Orlando Sentinel, in an article that ran last September, that Westgate was managing to pay all its bills and will continue to meet all its obligations. But that there is no money for new business. “We’re having a record year. We’re in the most profitable year in our history and the banks are freezing our money. So we have no choice. In order for our company to survive we’re going to downsize until the money starts flowing again.”

And in a time when just about everyone is looking to get his or her dollar’s worth, it is not surprising to see a migration from closed timeshare sales offices to the excellent values available by shopping online for timeshare resales. Timeshare buyers are recognizing the value in timeshare sales on the secondary market and the enormous opportunities in timeshare resales.

This is a challenging economy, but there is nothing going on that the timeshare and vacation ownership industry won’t handle in stride. The industry will come out of this economic period redefined and better and the changes will benefit both consumers and the industry alike.

This is the second in a three-part The Timeshare Authority blog. (Read Timeshare Sales and Developer Strategic Responses – Part I) Part II looks at how different timeshare developers and timeshare sales companies are adapting to meet the challenges of difficult economic times.

Marriott Timeshare, Starwood, Wyndham Vacation Ownership And Others

While not every timeshare company enjoys the depth of the Disney corporation with its worldwide network of theme parks, entertainment, and retail merchandise, many of the big dogs in the timeshare industry do have other revenue streams in addition to booking hotel room nights and selling timeshare.

According to the Orlando Sentinel, companies including Marriott Vacation Club International and Starwood Vacation Ownership are adapting to the credit crunch by reducing or eliminating certain incentives for timeshare buyers to finance timeshare through them. At the same time they are making it less inviting to use the timeshare developer as a financing source, they certainly haven’t stopped financing timeshare sales altogether.

Wyndham Vacation Ownership along with Westgate Resorts have had to dig deeper to compensate for the fact that many prospective timeshare buyers are unable to obtain financing. Both Wyndham timeshare and Westgate timeshare have laid-off thousands of employees and in some situations, closed timeshare sales offices.

Orlando timeshare company Sol Meliá, with timeshare resorts in the Europe, Mexico, and other top destinations worldwide, is responding to the credit crunch by restructuring interest rates. Sol Meliá is now typically requiring larger down payments from timeshare buyers.

Sell My Timeshare NOW – the Defacto Solution in Timeshare Resales and the Secondary Market

Already the industry leader in online advertising and marketing of timeshare resales and timeshare rentals, Sell My Timeshare NOW, continues to work to help consumers buy, rent, or sell timeshare in affordable and effective ways. We are also expanding our services, working with timeshare developers, offering proactive, business-to-business solutions for the secondary market.

We are living in challenging economic times. All of us – businesses, consumers, support services, and suppliers – need to work together, ride out the storm, and plan for the better days ahead that we know are coming.

In the final installment of this series, The Timeshare Authority looks at how timeshare sales trends and tactics at some development companies may be changing the patterns of timeshare buyers. Watch for Part III tomorrow.

This is the first in a three-part The Timeshare Authority blog post taking an in-depth look at how the timeshare industry is weathering the US economic recession. Part I begins by looking at some very insightful information that appeared in HOTELS magazine earlier this month on the current state of timeshare sales and the timeshare industry.

In an article on 2/1/09, HOTELS Magazine observed that as recently as last October, they were still reporting that vacation ownership (timeshare sales) “defies the downturn“. Candidly, it seemed to most people in the timeshare industry that the historically proven success of timeshares sales would carry the industry through this economic recession. Here at The Timeshare Authority, we were delivering much the same message. In so many ways, it appeared that the proven strength of timeshares sales would even help some hotelier/developers compensate for weak hotel bookings.

But as the HOTELS article so aptly put it: “And then the sky fell.” Howard Nusbaum, the American Resort Development Association (ARDA) President explained, “We’ve never had a situation like this before, where we’ve been unable to monetize consumer paper. There were timeshare developers who were still having robust sales, but there was no way to monetize the consumers’ debt, so those developers had to slow their sales down. That has been very problematic for the industry.”

People didn’t lose their desire and interest to buy timeshare and timeshare developers weren’t failing in their goal of keeping plenty of enticing new timeshare resorts on the market. Instead, there simply wasn’t the available credit to finance the purchase of new timeshares. And the problem hit everyone … at least to some degree.

Disney Vacation Club Timeshare Dealing with the Challenging Economy

The Orlando Sentinel reported that in December, even Disney Vacation Club hit a snag when a line of credit the company had used since 1999 expired and was not renewed. In the past, Disney Vacation Club has helped approximately 75 percent of its timeshare buyers finance their purchase. Timeshare sales averaged between $20,000 and $30,000 for one-week of timeshare ‘ownership’ in a two-bedroom timeshare unit at a Disney timeshare resort.

After helping timeshare buyers take ownership of new timeshares, Disney Vacation Club often bundled timeshare mortgages together and resold them to investors. This securitization of mortgages was a source of profit for Disney Vacation Club timeshare, and according to the Sentinel report, “Disney Co. Chief Financial Officer Tom Staggs said during a December conference with analysts that the practice generated about $40 million in operating profit last year for Vacation Club.”

But Disney Vacation Club has the wherewithal of the Disney corporation behind them as a safety net. The depth of the company enables them to carry timeshare mortgages instead of selling them for profit. By doing this they will still realize the proceeds from the financed timeshare sales; it will just take the lifetime of the timeshare mortgage rather than the quick cash-out available when the mortgages are resold.

How much does this really hurt Disney Vacation Club timeshare? According to Morgan Stanley financial analyst, Benjamin Swinburne, Disney Vacation Club timeshare will see a “small increase” in 2009 rather than the estimated 18 percent growth it experienced last year.

In tomorrow’s The Timeshare Authority post, we will look at measures other timeshare companies are taking during these challenging times.

Dennis, MA, like other popular timeshare vacation areas, is looking for ways to balance timeshare sales opportunities with the peace and privacy of those who pay to vacation there.

In the beachside community of Dennis, Massachusetts there have been recent discussions about “timeshare OPC’s”. Dennis is not the first community with concerns about where and how timeshare OPC’s operate.

In the timeshare industry, the person who sets up timeshare sales presentation appointments by connecting with prospective timeshare buyers in public venues is generally known as an OPC. The initials stand for off-premises contact or outside public contact depending upon whom you ask. This person may be an employee of the timeshare company or may be either a temporary or a contract employee of the company. They deal in sales of new timeshare only, not timeshare resales or timeshare rentals.

OPC’s frequently operate from a hotel desk or hotel lobby, or from a kiosk in a high traffic tourist area. An OPC rarely offers mini vacations or reduced rate vacations, but will more likely be recruiting you to attend a sales presentation, either at the timeshare resort or at a nearby location in return for a gift. As a ‘thank you’ for your time, you typically will be offered something of value, such as restaurant passes, tickets to shows or theme parks, or occasionally merchandise like luggage or small electronics. The Timeshare Authority reported recently on a move by Bluegreen timeshares to hand out prepaid credit cards (in conjunction with Maverick Network Solutions), to people attending some Bluegreen timeshare sales presentations.

But Dennis, like many communities, is concerned about where people are approached by the OPC trying to sell Massachusetts timeshare. For example, you cannot approach someone on the beach or while he or she is in a car … such timeshare sales solicitation violates a Dennis town bylaw.

Accorded to Wicked Local Dennis, which reports on news from a number of Massachusetts communities, Dennis Police Capt. Bill Monahan says, “They (OPC’s) drive around the Sea Street Beach and Glendon Road Beach parking lots, approaching or stopping cars and trying to persuade people to go to timeshares …”

Dennis city officials theorize that since the fine is only $50, many of the solicitors don’t mind paying it. If a case goes to court, the fine can be as much as $300. But because the person solicited has to be willing to testify in court, many people don’t wish to take the time off from their jobs to appear in court or, as visitors from out of town, won’t travel back to Dennis for a court date.

The Timeshare Sales OPC and a Solution that Works for Everyone

Certainly in this job-tight economy, no community wants to prevent a hardworking timeshare sales person from working. Nor do they want the tourists, who feed the revenue base of their communities, feeling annoyed or pressed by enthusiastic timeshare sales representatives.

The popular timeshare vacation destination of Gatlinburg, TN. has tried an interesting solution. They provide visitors with free lapel buttons that say “No thanks” as a way for them to signal OPCs that they do not want to be approached. (see: The Timeshare Authority Thanks, But “No Thanks” to Timeshare OPC’s, March 20, 2007.)

Many happy timeshare buyers made their purchase during a vacation after being approached by a timeshare sales OPC. As a marketing tool, timeshare companies have successfully used this method for many years. Like any other aspects of business, this sales tactic may have to be rethought over time to best serve the needs of prospective timeshare buyers and to better serve the changing needs of timeshare developers. In the end, the goal must always be to achieve a win-win-win for communities, consumers, and timeshare sales people.

Marriott Vacation Club International (Marriott timeshare) is not letting the challenges of the economy stop expansion plans for their Las Vegas timeshare, near the famous Vegas Strip.

A popular Las Vegas timeshare, Marriott’s Grand Chateau on Harmon Avenue, is moving ahead with exciting expansion plans. Construction of a third and then a fourth tower will soon double the size of the existing timeshare resort.

According to the Las Vegas Sun, Marriott’s Ed Kinney says ground will be broken sometime in 2009 for the third tower with the fourth tower scheduled to be developed after that. Kinney cites the Grand Chateau timeshare as Marriott Vacation Club International’s highest-grossing property in 2008, totaling $110 million in timeshare sales.

He also noted that demand by current timeshare owners as well as new timeshare buyers from Asia were influential in the timeshare company’s decision to expand at this resort.

A Las Vegas Timeshare with South of France Style

Designed to have a French Riviera-style elegance, the Grand Chateau lives up to its name with its ornate entrance and lavish lobby complete with fine art works, fountains, and a rich stone floor. In the heart of Vegas glitz and glitter, this Marriott timeshare offers you a cool and elegant retreat at the end of your day.

At build-out, the Las Vegas timeshare resort will include four, 37-story towers with a total of 895 timeshare villas The resort includes one, two, and three-bedroom timeshare villas that typically include a full kitchen, 42-inch plasma television, separate living and dining areas, washer and dryer, and an oversized soaking tub.

Timeshare resales and timeshare rentals are currently available at the Marriott Grand Chateau at dramatically reduced prices.

This You-Tube video will never win an Academy Award, but it does give you the chance to tour the interior of a one-bedroom timeshare at Marriott’s Grand Chateau Las Vegas timeshare.

Universal Studios Orlando is expecting a great deal of excitement surrounding its opening of a Harry Potter-themed portion of the park. For the millions of die-hard Potter fans, an Orlando timeshare resale could be an excellent way to experience the magic of Harry and Hogwart’s again and again.

For fans of the young wizard Harry Potter, 2009 and 2010 will mean the unveiling of an exciting new way to experience JK Rowling’s magic at Universal’s Islands of Adventure theme park in Orlando, Florida. Since the announcement was first made in May 2007, by the author of the Harry Potter series, JK Rowling, in conjunction with Warner Bros Studio (the producer of the Harry Potter movies), wizards and muggles alike have been eagerly awaiting the opening of the new park attraction.

The themed area of the park will include a 20-acre Wizarding World, with rides, attractions, shops, and restaurants. Hagrid’s Hut and Hogwarts Academy are part of the park, but many of the other details remain a closely guarded secret.

What Harry Potter Means for Your Orlando Timeshare Vacation

Fans of the books and movies will be anxious to visit this new showpiece attraction at Universal Studios Orlando. And because Harry Potter devotee are so dedicated and so immensely loyal, it is logical to expect them to not only want to continue the magic for themselves, but to find ways to share it with their children (and future children) who may have been too young to be captivated by the original Harry Potter experience.

Orlando timeshares, with more timeshare units and timeshare resorts than any other location in the world, provide families and couples of all ages with an ideal way to lock-in the cost of vacation lodging for a lifetime of memorable family holidays. Buying Orlando timeshare resales means that the magic of Harry Potter never really has to end, as you and your family can enjoy the Wizarding World at Universal Studios, again and again.

… and in case you ever do wish for a break from Harry, Ron Weasley, and Hermione Granger, an Orlando timeshare still has you perfectly positioned for enjoying other favorite characters, including Mickey, Minnie, and Goofy!

Home furnishing industry manufacturer, Ethan Allen, is expanding into the timeshare and hotel furniture industry.

After reaching a monthly high in April 2007 of $10.4 billion, US home furniture sales have declined, down by 14 percent in January 2009, year-over-year from 2008. But the creative minds at furniture industry cornerstone, Ethan Allen Interiors, Inc., may have found their solution for declining sales of home furnishings. Ethan Allen is turning to the timeshare industry and the next timeshare unit you buy or rent, may contain furnishings by Danbury, Connecticut based manufacturer, Ethan Allen.

According to The Advocate (Stamford CT), “The manufacturer and retailer of furniture and accessories has started a contract division that will provide furniture for the hospitality, condominium, villa and timeshare markets, in the United States and abroad.”

Furniture industry expert, Ray Allegrezza, editor-in-chief of Greensboro, NC based Furniture Today magazine, says that companies have to look for markets wherever they can and projects that Ethan Allen residential rivals could begin competing as timeshare and hotel furnishing rivals too. Companies mentioned included La-Z-Boy Inc., Ashley Furniture Industries Inc., and Furniture Brands International Inc., as possible competitors for the large timeshare resort and hotel furniture market.

More Good News about Furniture Companies that Serve the Timeshare Resort Industry

The Ethan Allen announcement came on the heels of last week’s North Carolina-based Kellex Corp., announcing that their Valdese, NC offices have met and exceeded their hiring goals. Kellex Corp., is known for manufacturing upholstered commercial furniture for the hospitality, timeshare, and health-care industries.

Despite all the reports of timeshare companies that are failing to meet their goals and releasing weak quarterly reports, stories like this about Ethan Allen and Kellex Corp reminds us that it is not all bad news. Clearly, new timeshare resorts are being furnished and older resorts are being refurnished – the timeshare industry is moving forward with a positive eye on the future.

It has been less than a month since Holiday Inn Club timeshares announced that the Orange Lake timeshare resorts in Lake Geneva, Wisconsin and Panama City, Florida are joining the Orange Lake Resort in Orlando as Holiday Inn Vacation Club branded timeshare resorts. This week, the timeshare company announced two more additions to its timeshare resort portfolio, with the acquisition of new destinations in Myrtle Beach SC, and Gatlinburg, TN.

The two new resorts are the current South Beach Resort in Myrtle Beach and the Crown Park Resort in Gatlinburg. The 256 timeshare unit South Beach Resort will be known by the Holiday Inn Club Vacations brand and the 109 timeshare unit resort in the mountains will be renamed the Smoky Mountain Resort. The acquisition was made by Orange Lake Resorts under their exclusive licensing agreement with IHG to brand the properties as Holiday Inn Club Vacations timeshares.

New Timeshare Resorts in Popular Timeshare Destinations

The South Beach Resort, built in 2003 and located in the popular timeshare vacation location of Myrtle Beach, offers indoor and outdoor swimming pools, a lazy river, fitness center, and best of all – private access to a beautiful section of beach.

The Smoky Mountain Resort was originally a Crown Park Resort. Situated near the entrance to the Great Smoky Mountains National Park, this resort first opened in 2006; it offers timeshare owners and their guests indoor and outdoor swimming pools, a fitness center, and easy access to many area attractions.

Holiday Inn Club Vacations timeshare assumed management of both timeshare resorts on Feb 13 and expects to begin conversion of the properties by April of this year.

Follow these links to read more about the new Holiday Inn Vacation Club timeshares:

• More Orange Lake Timeshare Resorts Join the Holiday Inn Club Vacations Brand
• Holiday Inn Timeshare Unveils New Orlando Timeshare Resort
• Another Major Hotelier Entering the Timeshare Resort Industry

Ask Ed Hastry, founder and CEO of the National Timeshare Owners Association, about the secret to timeshare owner happiness, and he’ll tell you, “Informed owners = happy owners,” which also explains why the goal of Hastry’s association, the NTOA, is to create knowledgeable timeshare owners.

The association’s message echoes what we say here at The Timeshare Authority: the best way to ensure that you have bought the timeshare you truly want to own, and will enjoy using it for as long as you own the timeshare, is to be an educated consumer. Know what you are buying, how and when you can use it, and what the full terms are of the deal. And to help you in this quest for information, the National Timeshare Owners Association offers you lots of support. In fact, the NTOA does more than just offer reliable information; it provides its timeshare owner-members with a resource that also offers them valuable benefits and meaningful membership perks.

National Timeshare Owners Association Benefits

The National Timeshare Owners Association provides consumer protection by timeshare owners and for timeshare owners. To their membership, they offer:

• Discounts for selling timeshare, buying timeshare, renting timeshare, or timeshare transfer
• A comprehensive book of timeshare facts and information
• Monthly news and tips from timeshare owners and timeshare industry experts
• Minimal interest fee opportunities for financing or refinancing timeshare
• Legal help for managing a timeshare in wills, donations, and divorces
• Liability protection and discounted costs for renting timeshare

In addition to these benefits, one of the most helpful services the NTOA offers its members is regular educational conferences and seminars.

Here’s the current National Timeshare Owners Association educational conference schedule for 2009:

To learn more about the conferences and all the benefits and services of the National Timeshare Owners Association, contact NTOA or call (410) 719-0064.

To learn more about all the ways to buy timeshare, rent timeshare, or sell timeshare contact Sell My Timeshare NOW, endorsed by the National Timeshare Owners Association.

The National Timeshare Owners Association (NTOA) is a timeshare owners association uniquely dedicated to the benefits, education, and well-being of timeshare owners. They serve as a consumer protection organization of timeshare owners and for timeshare owners.

Sell My Timeshare NOW is very pleased to receive endorsement by the National Timeshare Owners Association, which is the largest timeshare owners association in the country. In a mutually beneficial relationship, NTOA is excited to recommend Sell My Timeshare NOW to their members. NTOA CEO, Ed Hastry explains, “Our organization’s goal is to offer consumers every facet of information they need regarding timeshares. The National Timeshare Owners Association is enthusiastic about recommending Sell My Timeshare NOW with its full menu of services and proven record of reliability as a resource for all timeshare owners.”

A Timeshare Owners Association with a Strong History

You might call Ed Hastry an “accidental founder”. In 1997, Ed, his wife Mary Lou, and seven other couples were dining together when the topic turned to timeshares and the need for a reliable, informative source of information for timeshare owners. With Ed’s history as a former mediator/negotiator and board of directors’ member of local nonprofits and civic organizations, he was the perfect choice. And on that evening, the Maryland Timeshare Association was formed.

But as the timeshare association grew and thrived, it became clear that the Maryland Timeshare Association needed a larger stage. In 2008, the National Timeshare Owners Association was founded.

Ed Hastry’s motto is simply this, “Educated Owners = Happy Owners!” How can you not buy into that? Think of the many timeshare owners who have been disappointed with timesharing because they did not know what they were buying up front, or failed to know how to make the most of what they had bought after they became owners.

Follow this link to read Sell My Timeshare NOW’s full press release on the National Timeshare Owners Association. And return to tomorrow’s The Timeshare Authority to learn more about what the NTOA has to offer and what they can mean for you.