Started by charlie1, October 20, 2014, 19:48:34
0 Members and 1 Guest are viewing this topic.
Quote from: charlie1 on October 28, 2014, 09:58:30Have you ever requested from an Exchange Company for a resort or even an area and was told that nothing was available? Have you checked online and what your looking for is just not available?Never happened to you?However if phoning you may be told by some Exchange Companies that we have a week there that you can rent! Perhaps you have seen the very holiday week available online for rental!It could be that you have even been contacted by your Exchange Company promoting rentals that are not available in the timeshare pool. Have you ever wondered why this is? Could this be that some timeshare resorts have either unsold inventory or had a number of repossessions and actually rent out those weeks to some Exchange Companies. Some Exchange Companies will usually add on a healthy profit margin to this and offer these out for rental.So why do timeshare companies offer these up for rental? Its called caught in a survival zone of thinking where no new ideas come out for consideration beyond survival. This problem wont go away and will only get worse. "Insanity is doing the same thing over and over again, but expecting different results." Einstein. We seem as an Industry with some Timeshare Companies just doing that and have done for the last 20 odd years.What happens when the timeshare owner thinks this is not what I signed up for renting and now starts to look for a way out of timeshare adding to the problem of a shrinking membership. So going deeper, why is this a problem? Because in the main most timeshare companies are not selling in any great volumes beyond some last throw at the dice by some companies offering up schemes like fractionals that most timeshare owners would not consider if they were not part exchanging a week of two that they have already paid for to be included in this deal as their timeshare was in perpetuity or had a long lease. In other words their Timeshare Company had no exit strategy! Timeshare Companies need non timeshare owners to start considering timeshare rather than trying to keep on upgrading their existing members.This comes back around to three main areas that need to change. 1)In order to start moving this Industry we need all existing contracts to have an exit strategy it has been suggested that when a resort gets its self into a position soon, it should convert all existing contracts that don't have a fair exit strategy to have say 5-year exit options with 12 months notice. When a member reaches say age 75 it should be 2-year exits with 12 months notice. Those with proven life style challenges that cant holiday should be allowed to leave if all other avenues have been explored.2)Licensing sales people with 'best advice' involved by an Independent Body a little while down the road will bring back trust.3)Real Marketing to non-timeshare owners and that can be done more effectively if you have flexible products in place have listened to your members so you can add relative value and consumers trust the professional sales people that are licensed then I believe we will see more consumers consider timeshare. Perhaps then some Exchange Companies would not need to rent timeshare weeks and we would have a bigger pool of weeks to access for timeshare owners as more members may be enticed into a fairer system.
Quote from: Mavo on October 28, 2014, 14:03:43I can see the logic in the above ideas and and wonder if like me charie1 you can also see advantages for the legitimate resale industry? I can see the advantage of "Exit Strategies for all" bringing an end to the many scams and this in turn should create renewed consumer confidence in the resale industry. I just wonder if there will be other advantages to that area of the industry that you can see?
Quote from: ivyleague on October 31, 2014, 10:29:33Surely the businessmen who set up and run timeshares are intelligent and realised that someone who buys a timeshare aged 25 was likely to be dead in 80 years time? I'd say the resort developers benefit the most from in perpetuity clauses for a one week holiday with no exit strategy, it's a pretence that it is for the benefit of the owners so they can pass it on to their children. One company has seen the bad debts rising since the mid 1990's it has also been aware that there was no or little market for timeshare, because of the horror stories created by the resort owners over in perpetuity clause. Yet that some company was advertising hundreds of timeshares for resale on its website priced at £5000 - £10,000.In 2010 a survey of timeshare owners at a resort 70% responded and 77% stated they were looking to exit the scheme within 5 years....but how if there was no exit strategy and the club & developer had repeatedly said there was no resale market. So the resorts maintained fees had to be paid but bad debts continued rise, the resorts were aware 70% of their owners were aged 64+ thus prolonging the agony for those concerned they'd be taken court.It's an industry that appears to play on fears and threats and people argue it should be saved?Now Timeshare is to be replaced by points on 10-20 year contracts without in perpetuity clauses as the exit fee will be paid upfront. There are also now to be fractional ownerships in blocks of 10 weeks with contracts lasting 20 weeks, isn't that timeshare multiplied by 10?The company I am with has operated a points system for 10 years but apparently only 10% of 22,000 had opted for points, but hey get the 77% who want to exit to vote for a change in the club constitution they will no longer be a member of.And where has the voice of the consumer been in all these over the years?
Quote from: ivyleague on October 31, 2014, 10:29:33It's an industry that appears to play on fears and threats and people argue it should be saved?