Last week’s CRDA Conference was great. The Canadian Resort Development Association Annual Conference was held in Victoria, British Columbia, and Steve Luba (Sell My Timeshare NOW’s director of communications) and I headed to the great northwest to be a part of it.

You might think that with the economy the way it is and some sectors of the timeshare industry experiencing real credit crunch challenges that attendance would have been down. Instead, representatives of the timeshare, fractional, and vacation ownership industries were on hand, ready to learn, network, share, and contribute to the forward vision of the industry.

As Ross Perlmutter, the executive director of CRDA stated, “I’m thrilled with the turnout of the conference. We had 170 delegates, which was up from 130 last year and everybody said to expect a downturn. While other conferences were down as much as 20 percent our numbers were up 30 percent in the midst of the way the economy is going.”

What Fractionals Have Figured Out that Timeshare Developers May Need to Understand

Much of this year’s CRDA Conference centered around fractionals and how developers can manage the growth and sales of fractionals. Dick Ragatz, president of Ragatz Associates, and industry expert on vacation ownership, delivered the keynote address. He identified that there are 300 total fractional projects with 175 in active sales in North America totaling $2.3 billion in sales in 2007. There are about 50,000 fractional owners/members in North America and the average fractional sells for $200,000 USD.

Now here’s where it gets really interesting. The average marketing cost for a fractional is about 18 to 20 percent of the sales price, compared to 50 percent marketing cost for the sale of new timeshares. This would appear to be a significantly contributing factor in why fractionals maintain their value on the resale market so much better than do timeshares.

We’ve talked about it before, here at The Timeshare Authority. Critics of timeshare are always quick to point out that timeshare resales are much lower in price than timeshares purchased new from developers - they see it as proof that this product loses its value quickly. But in reality, timeshare resales may be the product that is “right-priced” while new timeshare prices are overly marked up to cover the high cost of advertising and marketing in the way the timeshare industry has traditionally approached it.

Timeshares are great. And I am pretty sure buyers would be just as willing to purchase them without the seller giving everyone who listens to their timeshare sales pitch a free theme park ticket or discounted vacation night - especially if giving up the perks meant paying less for the timeshare itself.

We came home from the CRDA Conference with a lot of new information, new food for thought, new friends, and new business contacts. And in tomorrow’s blog post, I will fill you in on more of what we learned and who we met at this very exciting event.

Recent The Timeshare Authority posts about CRDA:

• The Turning Point: Canadian Timeshare Buyers

American Express Business Travel has just released its annual Global Business Travel Forecast and Trends report, and despite a declining economy, travel prices are projected to climb. The report is typically published each September, but with the unpredictable economy, AMEX held off, wanting to better evaluate the impact of the rollercoaster stock market and the bailout.

US cities where business travel is always significant will see increases in hotel room rates, due in part to international visitors. The AMEX report predicts that in New York City hotel rates will increase by up to 9 percent over 2008 rates, while rates in Chicago will increase by about 8 percent.

Although air travel rates overall are predicted to remain the same or about the same in 2009 as in 2008, Amex see business class fares rising by approximately 2 percent. The report also points out that while fares themselves may not increase, the add-on pricing for luggage, in-flight refreshments, and other services, has added as much as 15 percent to the overall cost of air travel.

Businesses Need to Look to Timeshare Resales and Timeshare Rentals as Savings Solutions

Back in the days when timeshares carried many use restrictions; they didn’t make much sense for the business traveler. But today’s timeshare ownership is marked by choice and flexibility.

With timeshare rentals available around the world, companies can viably look at housing business travelers in more comfortable and spacious accommodations than a hotel offers at a substantially lower cost.

Corporate timeshare ownership offers a way for companies to reward employees, a venue for entertaining clients, or a destination for corporate retreats and strategy sessions. When timeshares once could only be used in increments of 7 days, there often wasn’t enough flexibility to make them a realistic option for most businesses. But today’s timeshare can often be used in 2, 3, or 4 day blocks, and sometimes, even one night at a time.

Virtually every company in America is looking for ways to cut back on expenses. Timeshare resales and timeshare rentals offer a savings option that has been relatively overlooked by most corporations, but if they are smart and seriously interested in saving money, business America will take another look at the opportunities in timeshares and timeshare resales.

Bluegreen timeshares is the blog topic again today here at The Timeshare Authority. Last week, Bluegreen Corporation settled a pending lawsuit with Orlando timeshare magnate, David Siegel, another timeshare industry name who makes our timeshare blog from time to time.

David Siegel founded Central Florida Investments, the parent of the Orlando timeshare company, Westgate Resorts. In recent months, Siegel had acquired 2.3 million shares of Bluegreen timeshare’s common stock. He also had options that would have given him nearly 10 million shares, or about 32 percent of the company’s stock, if he exercised those options.

But this was already in the pipeline when Westgate Resorts timeshares announced budget cutbacks and massive layoffs in response to the credit freeze. A Sept 29, Orlando Sentinel article, said this of Siegel, “He blamed the national financial meltdown and said until the situation in Washington straightens out, Westgate and all other time-share companies likely are in for very hard time.”

Bluegreen’s board had voted and approved bylaws to allow them to dilute the value of Siegel’s holdings, but not the value of other existing shares held primarily by those Bluegreen shares held through the Levitt Corp.

Under the terms of the new settlement, Siegel and his associates must reduce their Bluegreen holdings by at least 5.4 million shares within a year and within two years, have disposed of all of them. Additionally, pending the sale, Siegel’s shares must be voted in accordance with the recommendations of the Board of Directors of Bluegreen. David Siegel has agreed to not pursue any takeover of Bluegreen nor seek to influence Bluegreen’s management.

The Timeshare Authority will continue to keep you abreast of the changes, shake ups, and shake downs in the timeshare industry … interesting times we are living in, to say the least

Other recent posts about Westgate Resorts Timeshares:

• Hotels, Timeshares, and the Bailout
• Layoffs Coming at Westgate Timeshare

Other recent posts about Bluegreen Resorts Timeshares:

• Credit Crisis May Change the Deal for Bluegreen Timeshare Resorts
• Bad News for Bluegreen Timeshares

Yesterday we told you about data compiled by Ypartnership/Yankelovich, Inc. 2008 National Leisure Travel MONITOR (sm) for Interval International. The research was released in a report titled, “Future Timeshare Buyers: 2008 Market Profile” and was presented last week at the 10th Annual Vacation Ownership Investment Conference recently held in Orlando, Florida.

According to the findings of this study, timeshare owners and timeshare buyers want new and different experiences. Peter C. Yesawich, co-author of the annual survey with Yankelovich, Inc, and chairman and chief executive officer of Ypartnership was quoted by Hotels Magazine as describing people interested in buying timeshare as those who want to “live life to the fullest.”

Yesawich sees timeshare buyers as desiring, “personalization and customization … more brands, more types of products, and more consumer choices overall so they can select what best fits their needs.”

Hotels Magazine describes prospective timeshare owners as, “individuals chasing originality, expressed by their pursuit of new experiences. They prefer traveling to places that are more than just entertainment, where they can also get a sense of participation, and spending their money on life-enriching experiences.”

Clearly fifty really is the new thirty. But are timeshare resorts and timeshare developers prepared to keep up with the changing demands of consumers, especially in these days of tight credit and decreased spending?

Timeshare Developers and the Vacation Ownership Industry are Ready

Howard A. Bendell, director of market research and analysis for Interval International, sees the findings of the report as being very important to the timeshare industry and timeshare developers. Bendell says, “timeshare developers are in the perfect position to offer these consumers exactly what they want: personalization, customization, and originality - in the form of vacation experiences that are tailor-made for the individual every year.”

Clearly if you are buying timeshare, viewing you expenditure as one that has value to you over a lifetime, you are concerned that your vacation needs and interests will no doubt change in upcoming years. As Bendell observes, “… families can create a different experience each year through a myriad of resort offerings and by using the ability to exchange their resort time.”

The study also backs up a finding that has been evidenced in the past: timeshare buyers are willing to pay more - as much as 20 percent more - to get what they really want. Buying timeshare that offers products and services customized to your specifications is what Bendell describes as a good value proposition.

With the economy rocking and reeling these days, and even timeshare developers and big hoteliers feeling the effects, it is good to know that overall there is a bright outlook for the industry. According to facts presented by Hotels Magazine, there are now more people in the US who want to buy timeshare than who already own it. This translates to a potential to at least double the number of timeshare owners in the future, if timeshare developers listen to the market and are ready to respond to the call.

To learn more about the timeshare and vacation ownership report, read yesterday’s post on The Timeshare Authority:

• Timeshare Owners Boring? Not a Chance; They’re Thrill Seekers

Hotels Magazine just published a very interesting article based on a newly release report titled, “Future Timeshare Buyers: 2008 Market Profile“, which includes data collected for the Ypartnership/Yankelovich, Inc. 2008 National Leisure Travel MONITOR (sm).

For so many years, we have been told that the average timeshare buyer is a middle age, middle to upper income, and middle-of-the-road type individual buying timeshare for vacation security. But this study, developed exclusively for Interval International, paints a very different picture of today’s timeshare owner and timeshare buyer.

The study collected data during January and February of 2008, and included a sampling of the population of US adults who are active (current) leisure travelers. All of those participating in the timeshare profile study had taken at least one trip of 75 miles or more from their home that required overnight accommodations, for the purpose of vacation or leisure.

Much to the surprise of even seasoned experts in the timeshare resort industry, the people who expressed an interest in buying timeshare were not your security seeking, ‘take me to the same place every year,’ types. Instead, they show a, “greater zest for life, are more interested in trying new things, and taking risks.”

“What’s perhaps most interesting,” said Howard A. Bendell, director of market research and analysis for Interval International, “is that while the demography of potential timeshare buyers is largely reflective of Boomers, the psychographics are more akin to attributes more often related to Generations X and Y.”

You Already Knew This about Buying Timeshare

If you are a timeshare owner who falls into the Baby Boomer profile, you know that the label, ‘boring’ does not fit you. You didn’t buy timeshare because you wanted to experience the ’same ole thing’ every year; you are likely to have bought it because your life is so busy and so full that you recognize timeshare as a way to ensure your vacation, even during your busiest times. According to Hotels.com, “This group can also be characterized as individuals chasing originality, expressed by their pursuit of new experiences. They prefer traveling to places that are more than just entertainment, where they can also get a sense of participation, and spending their money on life-enriching experiences.”

So all you Boomers, who have shied away from buying timeshare because you feared it was too staid, and just not cool enough for you, there is no reason to hold back any longer. The research is in, and it says that timeshare owners are not sitting back in a rocking chair, but are instead vital, proactive people, who are serious about living their life to the fullest.

Check in on The Timeshare Authority Blog tomorrow, for more facts from the “Future Timeshare Buyers: 2008 Market Profile”.

Wyndham Worldwide hotel and Wyndham timeshare company underwent several significant changes this week; none of them seemingly positive, at least on the surface. Monday’s stock trading saw shares of Wyndham Worldwide Corp drop and settle at $11.83 a share after hitting a low of $11.05 earlier in the day.

WFTV.com (Orlando) reported that, on Wednesday, approximately 200 people were laid off from Wyndham’s timeshare division, including marketing directors, managers, and financial analysts.

According to an article published in Forbes, “Wyndham expects to post pretax charges of $7 million, or 2 cents per share, in the third quarter for job cuts and restructuring … The company expects fourth-quarter charges to range from $10 million to $15 million and charges in the first quarter of 2009 to range from $5 million to $10 million.” Moreover, Wyndham “anticipates recouping its investment by the end of 2010.” The company plans to release its third quarter business report on October 30.

Timeshare Resales Aren’t Facing the Same Problems

Despite the downturn economy, many timeshare resales company, including Sell My Timeshare NOW, find themselves in a growth and expansion period. Unlike a timeshare developer, Sell My Timeshare NOW does not finance the sale of timeshare; instead, we advertise and market timeshare for sale or rent on a by-owner basis.

In a timeshare resale transaction, no one is trying to entice a timeshare buyer to buy timeshare he or she cannot afford. Instead, in a simple, straightforward way, timeshare owners attempt to sell timeshare they currently own; they are selling vacation property or vacation club points, but they are not trying to sell you a financing deal.

e big picture for Wyndham timeshare, Marriott timeshare, Westgate Resort timeshare, and other large development companies will probably turn out fine. They have hit a time of slowed growth and are burdened with more debt, and uncollectable debt than they can handle in the short term. But these companies are cornerstones in the hospitality industry. The derive income from many areas besides hotel room nights or timeshare sales. Most of these companies will be able to trim the fat, cut back, take a few hits, and move forward. 2009 may not be their most profitable year, but like the forest that flourishes after the fire, we should expect them to soon be back, stronger than ever.

Other recent The Timeshare Authority blog posts about Wyndham timeshare:

• Wyndham Timeshare Announces Cut Backs
• Hotels, Timeshares, and the Bailout

You may have seen Tina Fey, (or as she is often known these days, the Sarah Palin lookalike,) and Hollywood director Martin Scorsese in a great commercial for American Express. The premise of the commercial is that Tina Fey and Martin Scorsese cross paths in an airport, and Martin tells Tina he needs to talk to her about, “something that could be a unique opportunity,” for her.

While Fey assumes it is a movie script, the commercial, which is titled, “Airport Lounge,” closes with the revelation that Scorsese is not thinking about the, ‘next big blockbuster,’ but instead wants to talk to her about buying a timeshare in Boca.

The YouTube video below shows you this comical sixty-second spot:

A Funny Take on Timeshares

How funny is this commercial? Funny enough that American Express has also released the bonus cut from the commercial - an additional minute and fifty-three seconds that are even funnier. Watch Scorsese as he goes in for the hard sell, an approach that is all too often associated with timeshare sales.

In yesterday’s The Timeshare Authority Blog, we reported on recent comments and releases by Marriott timeshare, Westgate Resorts timeshare, and Wyndham Hotels and timeshare. Today we are following that timeshare blog post with news of an announcement by Wyndham timeshare that they will be scaling back their timeshare business.

According to an AP release that appeared on Yahoo Finance and other news outlets:

When any company says they will ’shift their sales and marketing efforts to consumers with higher credit quality’, you have to wonder what that says about their past practices. Are some timeshare development companies guilty of the same types of behavior that led mortgage companies to extend credit to subprime consumers? What does a company have to gain by writing loans to customers who may not have the income and creditworthiness needed to carry the debt? The answer is simple: loans equal assets. Assets enable a company to borrow money, expand, or generally improve the look of their portfolio.

If Bill and Mary’s Bakery lets you buy donuts on credit, then the loan document that defines your credit obligation has a value to Bill and Mary as a source of incoming cash. And when Bill and Mary want to splurge on colored sprinkles, they can go to the bank and show your debt document as part of their own security needed to incur debt themselves.

But if you can’t afford to pay your donut debt, then all the lender holds is bad paper.

When you don’t pay Bill and Mary on time, then they in turn can’t pay the bank. And pretty soon, legislators are called in to write a bakery bail-out bill.

Let’s hope the reason some of the big timeshare companies are feeling the impact of the economic downturn is because of the cost of gas and increases in the price of durable goods, and not because they have been playing their own version of the subprime lending game. And if you don’t want to be caught up in any portion of the game, consider buying timeshare on the resale market, dealing directly with the person who owns it. Dollars to donuts, you will always find the best values in timeshare on the resale market.

As you already know, on Friday, Congress voted to pass the revised, reworked, and augmented version of the $700 billion plus plan designed to bail out the US economy. America as a nation was divided, was this the solution? The right solution? Were we trading one set of problems for another?

And while you may think it’s our only choice, or you may see it as a plan for disaster, I thought you might be interested in these comments from some of the executives in the hotel and timeshare industry.

Wyndham Worldwide Hotels and timeshares

Forbes reported that Wyndham CEO Steve Holmes told Reuters last Wednesday, “all that matters is that Congress needs to come together and pass a bill that addresses the immediate problem.” Source: Forbes.com

Marriott Hotels and timeshare

Following up on Marriott’s conference call with investors last Thursday, Forbes reported that Marriott CEO Arne Sorenson said, “We urge the ranking members of both parties to develop and enact a comprehensive stabilization plan. It is important that the plan be big and enacted very, very soon. There are thousands, maybe tens of thousands of jobs at stake in our company alone, and we are typical.” Sorenson’s comments followed the release earlier in the week of Marriott’s third quarter report, which showed quarterly profits down by 28 percent. Source: Forbes.com; time.com

Westgate Resorts Timeshare

After massive layoffs last week at Westgate Resorts, the company’s Executive VP of Sales and Marketing released the following YouTube videos, expressing his support for the bailout. In the videos, he speaks to the people he calls the ‘95% of Americans who are against the bailout because they do not understand it, and why the bailout is exactly what is needed’. This link takes you to Gissy’s video Part I, (7 plus minutes). If you want to view Part II (another 10 minutes), you can find it at: http://www.youtube.com/watch?v=31trCMcPoRQ

The full text of the bailout bill is available at the Huffington Post, in case you want to see it for yourself.

“There are legitimate, effective, and viable means for selling a timeshare.”

Need to sell your timeshare?

The internet really is the great equalizer for selling timeshare. Before there was easily assessable widespread use of the internet it was hard to find an effective way to resale your timeshare…what options did you have? Run an ad in the newspaper? Contract with a real estate agent? Neither of these was a very effective choice. But now, thanks to the internet, there is a realistic way to resell a timeshare you no longer use.

Your Choices for Selling Your Timeshare

You have two basic options for selling your timeshare online. One is to go through a broker, like Timeshare Hot Deal. The other is to go the, “for sale by owner route.”

If you prefer to have no interaction with the process of your timeshare sale, you can turn everything over to a credible timeshare broker. This gives you the full assistance of a licensed real estate professional, and for some timeshare owners, this is the best choice.

The more popular option however, is to sell “by-owner”. When you use a timeshare resale company, look for one that is reliable and gives you exposure - a lot of exposure. Exposure, paired with ‘right-pricing’ is the key to selling your timeshare. This short video will help you understand more about how important exposure is in the timeshare sales process.